Struggling With Cash Flow Issues ? Working Capital Financing Solutions Can Help Unlocking The Secrets To Business Cash Flow Problems !

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YOUR COMPANY IS LOOKING FOR WORKING CAPITAL SOLUTIONS!

CASH FLOW MANAGEMENT STRATEGIES AND SOLUTIONS TO IMPROVE CASH FLOW

You've arrived at the right address! Welcome to 7 Park Avenue Financial

Financing & Cash flow are the biggest issues facing businesses today

ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT  BUSINESS FINANCING OPTIONS?

CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

EMAIL - sprokop@7parkavenuefinancial.com

 

 

WORKING CAPITAL SOLUTIONS THE COMPETITION DOESN'T WANT YOU TO KNOW ABOUT

 

 

 

Solutions to working capital problems for Canadian entrepreneurs work best when they come from the real world .. we can call it  ' main street financing '.

 

Yes, you're right - this isn't the time for ' crowdfunding ' !... what a concept that is  .. having a million people send you $1. We wish we had thought that one up.

 

THE MOST COMMON CASH FLOW PROBLEMS IN SMALL BUSINESS

What then do the Canadian business owner and financial manager do regarding cash flow problems and working capital solutions when cash flow shortfalls are tightest? Even well-operated companies require cash flow solutions for their profit and growth objectives; clients of 7 Park Avenue Financial tell us they just want to know how to get there.

 

We will discuss the common causes of cash flow shortages and what is at the root of these poor cash flow problems - Obvious issues are typically slow-paying customers or the seasonality that might occur in any business or industry - Many businesses also encounter unexpected expenses.

 

IS YOUR BUSINESS EXPERIENCING  ANY OF  THESE  COMMON  CASH FLOW PROBLEMS AND CHALLENGES?

 

Inability to pay bills and  meet vendor/supplier obligations

Unable to meet obligations around long-term debt financing

Missed opportunities for growth

Excessive reliance on the owner's personal funds to avoid a cash flow crunch

Inability to meet  payroll obligations

Reduced vendor and employee satisfaction and morale

High growth leads to lower cash flows as profits do not equal cash in a business - Expaning and a focus on growing quickly will always lead to a loss of cash flow as additional staff and investments will require external business financing

 

  

BOUNCING  BACK TO POSITIVE CASH FLOW  

Cash flow is of course 'fuel' that will drive the combinations of growth and more profits, and allow you to run day-to-day operations with greater ease. Your working capital is tied up in the current asset accounts on the balance sheet - that includes cash on hand,  accounts receivable and inventories for those businesses selling products versus services.

 

It's all bout cash going out versus cash coming in! Liquidity problems will lead to the ineffective running of the business and cash flow is always seen by business lenders as a key financial indicator of business financial health - Fast-growing and profitable businesses can easily have cash troubles.

 

 

 

2 WAYS TO ACHIEVE THE OPTIMAL BALANCE IN YOUR CASH FLOW

 

Cash flow problems and growth goals are usually tied together in some manner - problems for small businesses can be solved by a business owner by focusing on two key areas :

SALES .. AND ASSET TURNOVER!

  

Asset turnover is sometimes a bit of a surprise  to business people that aren't necessarily grounded in finance, but the issue of turning over your assets, in fact, opens up a wide variety of potential solutions, most notably:

MONETIZING AND CASH-FLOWING YOUR BUSINESS  ASSETS

 

  

By financing your assets and at the same time focusing on better turnover your overall profit/growth situation improves, almost immediately.  It’s all about ensuring your cash reserves :


Turning Inventories

Collecting Receivables Faster

Financing Long Term Assets Profitably

  
  
  

SOLUTIONS TO WORKING CAPITAL & CASH FLOW NEEDS - TRADITIONAL AND ALTERNATIVE FINANCING OPTIONS 

 


Working Capital Facilities

Short Term 12 Month Working Capital Loans Paid From Future Sales

Receivable Financing / Factoring / Confidential Receivable Finance

Asset Based Lending / Non Bank Asset Based Business Lines Of Credit

Chartered Bank Solutions

Leasing / Sale Leaseback

Tax Credit Monetization

P O Financing / Supply Chain Financing

All these key solutions can be structured from both traditional and alternative finance firms. Even better, certain solutions, structured properly can be cobbled together to increase your firm's total access to credit.  It's all about monetizing the balance sheet, and your sales!


So how does the business owner/financial manager actually figure out how much to borrow, and then whether for it's short-term financing needs? And don't forget the overriding question which is knowing how to balance the eternal questions of more debt or adding equity as examples of cash flow problems that must be addressed. 

Remember that many of the cash flow solutions here monetize assets and sales and don't require ANY dilution of equity! That's a good thing from the business owner's point of view.


For companies that have inventory, it all starts at some sort of production cycle...  but even service industries in technology or other areas have their own flavour of a working capital cycle.


A very simple rule to address working capital problems is that whenever your receivables and inventory grow you are going to have to address more working capital solutions... it's as simple as that.

  

  

28% of small business owners say they lose sleep over cash flow problems; 48% say they pay others before paying themselves; and 28% had experienced cash flow problems such as postponing hiring - SOURCE: STAPLES

 

  

  

CONCLUSION - CASH FLOW MANAGEMENT STRATEGIES FOR WORKING CAPITAL

 

There are many different types of working capital solutions for your business - as in all aspects of business financing, there are advantages and disadvantages to each solution - Making the right decision around the best solution for your company is job #1 for small business owners.

 

Cash shortages have numerous negative effects on a business and 'cash-strapped' businesses have problems that must be addressed.

 

The ability of a business to achieve positive cash flow and positive net working capital becomes the lifeblood of the company. Liquidity shortages are common in the majority of small businesses in Canada - Planning around effective cash flow management empowers your business to grow and succeed.

 

   

A Small business cash flow problem can devastate a business.

 

Speak to 7 Park Avenue Financial,  a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success. Discover how you can address cash flow challenges... the right way. That is of course if your crowdfunding strategy doesn't work... and you can pretty well count on that one! Talk to our team about your business survival plan via healthy cash flow!

 

  

FAQ: FREQUENTLY ASKED QUESTIONS /  PEOPLE ALSO ASK  / MORE INFORMATION  

 

What are cash flow problems, and how do they affect businesses?

Cash flow problems arise when inflows of cash into the business exceed current obligations - That's when a business is challenged to pay accounts payable and meet payroll obligations - Naturally growing the business in that situation is very difficult. Common causes of funding shortages include:

Low profitability - price rises won't always discourage clients and may also lead to perceived value for products and services

Overinvesting

Rapid expansion without financing in place - Uncontrolled business growth leads to cash shortfalls for businesses over-forecasting growth and expenses, it is important to distinguish between profitability and cash flow.

High fixed costs

Unexpected expenses

The owner draws from the business

Poor inventory and a/r management

Seasonal fluctuations in sales

 

  

What is working capital, and how can it help businesses solve cash flow problems?

 

Working capital is the funds that a company has available to fund day-to-day operations - Key balance sheet accounts such as inventory and accounts receivable are key components of working capital. Companies should review trade credit payment terms and focus on enforcing sound credit and collection policies.

If a business improves its working capital it can cover day-to-day operations and consider growth opportunities - Numerous small business financing solutions can be addressed to fix cash flow challenges - they include short-term working capital loans known as merchant cash advances, as well as other solutions such as invoice financing/factoring - Business lines of credit are the optimal solution. Cash flow statements in business financial statements outline the sources and uses of cash in a business. 

 

How do different working capital solutions work, and what are their advantages and disadvantages?

 

 Different working capital solutions work in different manners - for example, businesses utilizing factoring financing have the ability to sell invoices to third-party commercial financing companies, enabling the business to achieve immediate cash as sales revenues are generated. Inventory financing to fix cash flow problems can be combined with numerous asset-backed lending solutions with inventory being used as collateral for a borrowing base in combination with accounts receivable.

What can businesses do to prevent cash flow problems in the first place?

Businesses can prevent cash flow problems around poor cash flow management via financial planning in a variety of ways, including the preparation of proper cash flow forecasts and projections around cash flow management and funding needs for a healthy cash reserve based on sales and timing of receipts from customers.

Creating a short-term business survival plan should be a priority - focusing on issues such as profit and expense reduction. In certain situations, a scaling-back plan should be initiated.

In some cases, payment terms can be negotiated with key vendors and clients. Expense reduction around variable costs can also be addressed to ensure enough cash on hand. The goal is to be proactive from a prevention point of view.

Businesses also have the ability to refinance existing debt, allowing the business to achieve lower payments and lower financing costs. High-interest loans should be avoided if possible - Supplier financing can also improve the cash cycle.

    

How do you manage cash flow and working capital?    

 

Tips to improve working capital management and manage cash balances &  cash outflows include:

 

Reduce inventory and a/r investment via more effective asset turnover around days sales outstanding for outstanding receivables / slow payments , as well as  inventory turns in the business's cash flow cycle

 

Manage accounts payable - late payments to suppliers improves good  cash flow but should not be done at risk of supplier relations

 

Investigage short term financing for current assets  and business growth via a cash flow budget - Financing via confidential  invoice discounting allows a business to bill and collects its own invoices while maintaining healthy cash reserves as sales are generated

 

Increase profit margins with a focus on  gross margins and a more profitable business

 

Create proper cash flow projections with the help of proper accounting software  to help determine how much cash the business needs

 

 

 

Looking For A Solution To Business Cash Flow Problems ? Solved !

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Business Cash Flow & Working Capital Solutions

Business cash flow problems are encountered at numerous stages of growth in a company's existence . The good news that numerous solutions, both ' traditional ' and ' alternative' are available to fix the problem and set your company back on the right course.

One solution to the working capital conundrum is of course to stop growing ! That's a tough one for any business owner,financial mgr, or entrepreneur to accept . If they did that though they would not need to maintain a higher level of inventory, investment in accounts receivable, or to purchase new equipment/software , etc. It then makes sense that financing solutions around those asset categories we must mentioned might just be the answer you're looking for, right?


In some cases firms might find themselves in a crisis or turnaround situation - it is very difficult to grow and expand your company when you're in the throes of daily financial type issues that deter owners and mgmt from moving forward with growth plans. Quite often these situations are accompanied by pressure from secured lenders , banks, suppliers, etc. Those situations are never comfortable.

Many firms that are growing to quickly will often find that costs and other finance issues are being masked or hidden due to the apparent success of sales. But higher sales can't hide financial flaws forever.

Obviously those sales also create the need for more working capital and the required investments in those current assets on the balance sheet - a/r , inventory, etc. As we said stopping the growth frees up cash flow and some of those creditor issues. Efficiencies around collecting your a/r faster, managing better inventory turns , etc always create more cash flow . So it shouldn't always be about volume - that old adage ' We'll make it up on volume ' somehow seems to never work!

In some cases raising prices to increase cash flow might be considered , but that's rarely the focus of many business owners.


We think you can see the point, in that the optimal solution is to ensure your cash flow / working capital availability must be measured and managed around sales growth


Many businesses in Canada, (perhaps not tech type business) would be very happy with a ten percent year over year sales growth. Let's say you were focused on growing at 25% this year, a huge increase by any measure. However, profits and cash flow and working capital don't move lock step with those sales.

What then are the actual financing solutions to those changes in your current assets in the sales growth strategy. Traditional solutions such as bank financing for business lines of credit will work - Firms that cannot access any or all the bank credit they need should consider alternative financing solutions such as asset based business credit lines. These 2 types of business credit facilities allow you to better finance and manage extending credit to your clients.

No one solution is applicable to every company in every industry - so the ability to access financing assistance from an experienced 3rd party is key .

Solutions For Cash Flow Problems In Canada:

ASSET BASED LENDING

RECEIVABLE FINANCING/FACTORING

WORKING CAPITAL TERM LOANS

SHORT TERM WORKING CAPITAL LINES

PURCHASE ORDER FINANCING

INVENTORY FINANCE

TAX CREDIT FUNDING ( SR&ED LOANS )



Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success who can assist you in the need for proper business working capital and cash flow solutions that match your company needs.


7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.

Stan Prokop

2 Signs Your Business Is Going Broke And Your Solutions For Fixing Business Cash Flow Problems

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INFORMATION ON BUSINESS CASH FLOW SOLUTIONS

Can you spot (or have you spotted already) business
cash flow problems inside your firm? A better question might be - have you got some solutions to those problems! We've got some insights into both today.

Business failure, temporarily, (or otherwise!) often comes back to cash flow and working capital. In some cases it's an ongoing situation that saps management strength - at other times it's a time bomb inside your firm, seeming ready to explode at any time as you hit the proverbial cash flow shortage wall!

Your ability to perceive this challenge and correct it is of course critical.

Let's get to the meat of the matter... jumping right into the matter. Here are 2 key areas or reasons why you might be ' going broke ‘, and maybe not know why. The term ‘ going broke ‘ is a bit unsophisticated .. but anyway …here goes!
Your ongoing challenges might involve one of these, or both . We'll let you make the call.

Sign # 1- your cash flow cycle. Simply speaking it’s the relationship around the ' in’s and outs' of your business. It's the time cycle between collections and payables. We met with a CEO yesterday of a larger firm who commented that in his cash flow cycle they typically get paid by clients before suppliers are paid. They are in the food industry - and that would be typical. When that issue is reversed, i.e. suppliers needing to be paid before clients pay you face a cash flow cycle problem.

And by the way, you need the right mix of those ' current assets ' when it comes to turnover. When your a/r or inventories become ' bloated ' that's a sign of ' going broke '.

Sign # 2- Leverage. It's a common term that the business financial folks use. It's essentially the fixed costs in comparison to the profits you can earn from selling more. As you look to buying more assets, or even buying a competitor that leverage issue becomes critical. Buying more assets and taking on more fixed costs just puts more pressure on you to breakeven, let alone make a profit.

Too much leverage ultimately will lead to business failure.

Remember also that one of the biggest misconceptions in business is that profits aren't cash. Lenders in Canada generally aren't impressed by romantic, slick company names, high ambitions and future profits. They focus on cash flow and the quality of earnings - when you track income and cash flow over time they should gradually come together.

Our final advice - seek out the ' bad news ' in your cash flow problems - and understand where they are coming from.

Solutions in Canada are abundant - depending on where you are in the business maturity cycle - i.e. start up, growth, mature, etc. Those solutions include solid banking support, receivable and contract finance, inventory and P.O. finance solutions, and asset based lending and equipment finance.

Speak to a trusted, credible and experienced Canadian business financing advisor on how you can utilize these to... dare we say it... not go broke!







7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.



Stan Prokop

2,450 Ways To Pinpoint Cash Flow Problems Via Working Capital Solutions In Canada

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Do You Think You Understand Solutions To Canadian Cash Flow Problems – But Perhaps Don’t ?!


Information on how Canadian business can pinpoint cash flow problems and implement working capital solutions for greater cash flow success

Cash flow problems and working capital solutions to those challenges that are faced by Canadian business. Are we really saying there are 2,450 ways to pinpoint the problem? In a way yes. Let's explain.

Although cash flow challenges are more than ' intuitive ' in the real world (that’s where we ourselves work) Canadian business owners and financial managers often fear or just simply don't understand how to quantify those problems. The reality is that the actual problem can be quite clear if you go to your financial statements, preferably on an ongoing basis.

Let's assume you can identify 2 data points in your financials - the number of simple relationships you can look at with those 2 numbers is of course 2.
3 different numbers or data points in your business numbers would allow you to calculate 6 relationships, 10 for example would allow you to calculate 90 relationships. Finally, if you identified 50 numbers in your balance sheet, income statement, or cash flow statement you would, you guessed it, be able to formulate 2,450 calculations. It's of course a geometrical solution we have just laid out.

So, you next question is of course ' what the heck is your point?! )

It’s simple actually; the relationships we are talking about are in fact more commonly called ' ratios' by financial types. Naturally you don't have to calculate 2,450 ratios to in fact get some meaningful data from your financials; a small handful will do nicely!

Let's examine quick examples to show you how you can very quickly pinpoint cash flow problems in your firm. Let's take 3 data points, your sales and your working capital. The working capital calculation is current assets over current liabilities on your balance sheet. Isolate those three data points and do the calculation. The actual calculation is Sales / Working capital.

Congratulations, you have just completed your working capital turnover calculation! It measures how your company is in fact managing your cash flow, because as sales go up inventories, receivables and payables rise also. All of those have been captured in our final calculation! In effect you have just mastered a simple way to compute the very complex relationship within your firm on a daily basis as you sell and collect.

Important to note that the number in and of itself is not meaningful. When you track it over time, say monthly, it becomes VERY meaningful. And for the purposes of this ration a lower number is a better number.

It's also important to note that each industry in Canada will have a different number as a result, ranging anywhere from 2 to even 18. Each industry is different.


We're not accountants but what we have hopefully demonstrated is that any business owner or manager can use any number of data points in their financial results to pinpoint cash flow problems and performance.

It's all about asset management; in our example it’s those current assets that pay bill and allow you to make loan payments. Your goal is to manage the ' cash on hand ' account in your business well enough to put you in constant survival mode - and it's a jungle out there!

In Canada various solutions exist for cash flow problems. They include receivable financing, bank lines of credit, asset based lines of credit, monetization of tax credits, and supply chain finance. Each of these works in a different way, but all provide you with working capital solutions.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with score carding and solving your cash flow challenges.

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com


Click HERE for 7 PARK AVENUE FINANCIAL

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.

Stan Prokop

Cash Flow Problems In Business Finance : Eliminate That Flying Blind Feeling

Looking For Some Positive Disruption In Your Working Capital Solution Needs ?

OVERVIEW – Information on solving business finance cash flow problems in Canadian business. Financing solutions for working capital is all about recognizing the problem and sourcing the right solution before it’s too late

Business finance and the challenges that come with financing your company can easily make the business owner/manager feel like he or she is ' flying blind’. So when it comes to cash flow problems business owners would welcome some ' positive disruption' in their finances. Luckily a number of solutions, as well as mgmt techniques can help. Let's dig in.

' All tied up ' is really a solid expression for the working capital/cash flow challenge - if only for the reason that your investment in inventory and receivables is in fact tied up on you balance sheet - as opposed to those funds being in your bank account

Top experts tell us that working capital performance varies greatly between SME (small / medium sized businesses) firms and larger corporations. It's interesting that one way that larger firms improve cash flow is by using the clout they have with clients to delay payables - which is a key factor in improving cash flow!

It's important you have a handle on a few tools that help you measure cash flow performance and needs, as well as identifying times that external financing is needed. That financing for your cash flow needs can come from a variety of traditional (Canadian chartered banks) and ' alternative ' sources. Those sources include:

Invoice Financing / Factoring/ Confidential Receivable Financing

Working capital term loans

Non Bank Asset Based Busines Lines of Revolving Credit from Commercial Finance Companies

Financing Refundable Tax Credits

P O / Contract / Sales Royalty Financing




While alternate forms of financing will always cost more they provide the capital you need to fuel your business.

Using Confidential Receivables Financing as an example a business can access 90% financing on its total receivables. With proper collection processes in place this puts cash in your bank today. The higher cost of financing can be significantly offset by using that cash to take vendor discounts or negotiate better pricing, as well as giving the owner/manager confidence that they can take on more business without the dreaded cash flow problem worries that come with growth.

Naturally every industry is different relative to cash needs - service businesses for example are less capital intensive and typical financing needs revolve around receivables only. Larger mfg firms need full blow business credit lines to cover off inventory and other asset needs. Leasing assets is a great way to offset the cash flow investment required to facilitate asset growth.

The bottom line? No matter whether your firm is a start up, SME rising, or larger corporation it's important to ensure you've got access to some ' positive disruption' in cash flow needs. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success , avoiding that flying blind feeling in running and growing your business.




7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS CASH FLOW FINANCING EXPERTISE


7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.






Stan Prokop

A Cash Flow Problems Solution Checklist : Business Finance Challenges Finally Resolved

Here’s A Tour Through Cash Flow Financing Solutions

OVERVIEW – Information on cash flow problems experienced by Canadian firms . What business finance solutions are in place to address management of working capital?





Business finance cash flow problems were in the news the other day. No surprise to us, as we talk about that pretty well every day. The article was front and center in one of Canada's two daily business newspapers the other day. The actual title of the article was ' ENTREPRENEURS OVERLOOK CASH FLOW MANAGEMENT’

We don't necessarily agree they ' overlook' cash flow mgmt, but we do think that many times the business owner and financial manager simple doesn't know how to solve those challenges with effective solutions that pertain to their particular business. We know what the solutions and issues are... so let's dig in.

A large part of the article in question revolved around business owners/mgrs focusing on instead on operational issues. We're all for that of course. Using current asset management as an example, any company can increase internal cash flow by better managing A/R and inventories. And if they can't get the financing they need from banks their ability to absorb higher cost financing such as receivable and inventory finance can be significantly offset by better asset turnover.

The article also suggested that a large part (93 %!) of businesses in Canada were focusing mostly on two areas - cost cutting and technology innovation. We'll leave cost cutting to out clients, but we're the first to put forth effect lease and technology financing solutions for clients that are looking to work harder/smarter.

Another interesting fact put forth in our article was the fact that over 60% of all Canadian businesses admitted to cash flow problems in the past. No secret there - we see that every day.

But what then are some of those stop gaps for cash flow challenges. They include solutions such as:

A/R Financing
SR&ED Tax credit finance
Asset based lines of credit - (they combine inventory, A/R and equipment into one borrowing facility and work just like a bank line of credit)

Our reference article, not surprisingly , laid forth the fact that many business owners and managers focus on the income statement, aka 'profits' as opposed to page 3 of the financial statement (its the one you never read - its the CASH FLOW statement ) and shows in detail you cash in a ' where got' ' where gone ' format . Check it out, it's true!

A large part of any cash flow discussion we have with clients focuses around growth .Thats because growth eats working capital, and it's always hungry. The more you grow, the hungrier it gets. And the sad reality around growth and hyper growth is that a lot of traditional lending is not suited to huge growth success. That’s where innovative solutions such as PO financing, or ABL (Asset Based) CREDIT LINES make sense.

Many great growth potential stories revolve around outside of Canada growth. Those challenges can be addressed by PO FINANCING, CREDIT INSURANCE, and CONTRACT FINANCING.

So when it comes to business finance cash flow problems it's all about recognizing the need and implementing the solution. Many traditional solutions can easily be complemented by alternative finance strategies that will work. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist your company. You just might find that ' the fix is in'!

Stan Prokop - founder of 7 Park Avenue Financial


http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :


7 Park Avenue Financial = Canadian Cash Flow Financing Expertise



Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?


CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Phone = 905 829 2653


Email = sprokop@7parkavenuefinancial.com



























Stan Prokop

When Cash Flow Problems Become A Crisis . The Power Of Proper Financing Solutions

Want To Avoid A Cash Flow Crisis? Here’s How!


OVERVIEW – Information on cash flow problems faced by Canadian business. Financing solutions and working capital management avoids a business crisis



Can a problem become a crisis?

You bet it can and when your business cash flow is a problem potentially verging on a crisis financing solutions and some analysis into what happened and how you fix it sure helps! Let's explain.

A ' constant juggling act ' is how many clients and business people we talk to describe the day to day challenge (let alone planning!) of business operations and growth when it comes to operating and funding your business.

Looking for one more good analogy? One author described cash flow management along the lines of juggling bowling pins, spinning knives, and flaming torches. Enough said!

We've often spoken about the very simple problem around cash flow that doesnt even involve the solution yet. It's understanding what it is. The hard core cash is of course what you have in your bank account, but when it comes to ' flow ' everything changes. It becomes the dynamic of sorting out where you are using and getting cash, and where you are able to get cash by perhaps managing your business in a different manner.

So how is cash flow managed then? We can also say that you can improve cash flow by taking on debt, increasing profits and, our favorite and most important... ‘Managing assets '. We're not huge fans as you can guess of taking on long term debt, or giving up ownership equity. Who wouldn’t be!

We all know the results of a cash flow crisis gone bad. They include supplier/vendor relations, employee morale, and lender concern. The path to these problems becomes very steep when operating losses continue, wrong financing is put in place, and creditors sue for payment or attempt to realize on security you have provided.

Some solid cash flow planning helps in a number of ways - You are in a position to plan cash needs, lenders feel more confident about your plans, etc.

Cash flow financing solutions in Canada include:

Asset based credit lines
Receivable Finance
Tax Credit Financing
Inventory finance
Supply chain /PO finance

Ultimately the business owner by experience and planning can put the right plan and solution in place. Your goal: Creating cash and then using it!


In summary then, what’s the best way to avoid cash flow problems, or even a crisis? Yes, you can borrow more; sell equity, but the easiest and as important? ... Convert working capital into accounts (A/R and inventory) into cash faster. Oh and by the way, if along the way you can increase sales and reduce some costs you're a true cash flow superstar!

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can get you out of working capital crisis mode!


Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/cash-flow-problems-crisis-financing-solutions.html







7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com












Stan Prokop

What They Don’t Tell You About Cash Flow Problems . Canadian Business Financing

The What and When Of Canadian Business Financing Solutions

OVERVIEW – Information on the reality of cash flow problems and the possible business financing solutions available to the Canadian business owner/manager






It's actually not a mystery, although many business owners and financial managers think they have no, or limited access to business financing solutions when they are experiencing cash flow problems.

The reality? If you’re honest about recognizing the root causes and real current situation around your working capital and cash flow problems you’re gong to find that nothing is really hiding between you and access to cash flow nirvana!

That's why it's critical to understand why you are in fact seeking cash flow solutions. It goes beyond the aspect of profit, and focuses on the basic needs of your business - buying more assets, real estate perhaps, and having enough cash on hand to operationally run your business successfully. And if you are in the throes of a turn around it’s simply a case of getting more time and muscle behind your well earned turnaround. So seeking the right financial solution allows you either to start a business, grow it, or survive when times seem a bit tough... generally thats when expenses exceed revenue!

Timing is everything when it comes to achieving success in business financing. We recall Ford Motor Company having refinanced their entire corporation just before the 2008 world wide meltdown, allowing them to weather the storm a lot better than many of their competitors. Whether that was more luck and timing than planning we'll never know, but boy did it work!

Remember also that there is a big difference between financing assets and working capital, so spending some solid time around getting working capital and cash flow facilities in place allows you to access funds on the asset monetization process that you put in place . Simply speaking ... get approved for the type and amount of cash flow facility you need is a lot more difficult when your balance sheet and income statement are showing business stress.

Key to business financing solutions is... surprisingly... knowing which ones to pick, and yes it does seem sometime that you are not being told the whole truth ... is something being hidden. One possible reason for that... that the institution or commercial finance company you are dealing with can’t deliver on that solution... perhaps because they don't offer it. Quick example - you need to finance a short term asset for a major project... you want a 25 month lease or loan. You approach your asset finance partner who indicates they can't do a 2 year lease or loan, and furthermore, they don't offer operating leases. The solution? Find someone who does!

Also, make sure to understand some of the other factors of business financing solutions that many business owners/managers don't consider when they attempt to access financing. That might include your industry, your geographical location (not all Canadian business lenders are everywhere), and finally our personal credit situation as guarantor.

At the end of the day it certainly might seem like you're not being told the truth about finance solutions in Canada - a harsher reality might be that you have simply been working with the wrong party and don't know that you have solutions in place around receivable finance, flexible equipment financing (yes those 24 mo solutions are available), asset based lending, securitization, tax credit monetization, and unsecured cash flow loans.

Speak to a trusted, credible and experienced Canadian business financing advisor with access to multiple finance solutions for your firm... today.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS FINANCING / CASH FLOW SOLUTIONS



Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/cash_flow_problems_business_financing_solutions.html

Crowd Funding Strategy Not Working? Next Best Thing? Working Capital Solutions To Cash Flow Problems In Canada

Mastering Cash Flow Solutions in Canadian Business



OVERVIEW – Information on accessing the right working capital solutions for companies with cash flow problems or growth strategies .




Crowd funding not working? We wish we had thought of the concept .... You contact people or advertise in some manner regarding your capital or project needs... a million people send you $1.00... and voila! You're apparently crowd funded!

But getting back to the real world, on the assumption no one is going to send you free capital in one dollar increments ... what then is the Canadian business owner and financial manager going to do regarding cash flow problems and working capital solutions?

Once again your company is at that fork in the road with respect to addressing your working capital and cash flow needs. You've got a profit and growth objective, now you just need to know how to get there.


We all recognize that cash flow is the ' fuel ' that will drive the combinations of growth and more profits. You can achieve that in one of two ways, more sales, and on the other side, better asset turnover. That asset turnover is often a bit of a surprise to business people that arent necessarily grounded in finance.

That issue of asset turnover opens up a wide variety of potential solutions, including monetizing or cash flowing those assets. By financing your assets and at the same time focusing on better turnover your overall profit/growth situation improves, almost immediately. It’s all about turning inventory, collecting receivables faster, and financing longer term assets in the right manner.

In Canada that is done through:

Working capital facilities
Receivable Financing
Asset Based Lending
Bank Credit lines
Leasing/Sale Leaseback
Tax Credit Monetization
PO Financing

The good news is that many of the above solutions can be combined to further increase working capital solutions. The bottom line... its all about monetizing that balance sheet.Your ultimate goal = more cash in less time!

So how do you actually figure out how much to borrow and when. And don't forget the over riding question, taking on more debt or adding equity to your business.

For companies that have inventory its all starts at some sort of production cycle... but even service industries in technology or other areas have their own flavor or a working capital cycle .

A very simple rule to address working capital problems is that whenever your receivables and inventory grow you are going to have to address more working capital solutions.

Speak to a trusted, credible and experienced Canadian business financing advisor on how you can address cash flow challenges... the right way. That’s of course if your crowd funding strategy doesnt work... and you can pretty well count on that one!

7 PARK AVENUE FINANCIAL
CANADIAN CASH FLOW FINANCE EXPERTISE



Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/cash_flow_problems_working_capital_solutions_2.html