Cash Flow Solutions That Actually Work for Small Businesses in Canada

Beat the Cash Crunch: Effective Techniques for Solving Cash Flow Shortages

 

 

 

Cash Flow Management Solutions 101: Turn Your Business Around!

 

 

INTRODUCTION

 

 

Cash flow financing in Canada. Is there, in fact, a 'happiness formula' for solving and managing through working capital problems?

 

In our opinion, here at 7 Park Avenue Financial, it's really a combination of management and sourcing the proper solution based on your firm’s particular situation and the need to improve its cash flow.

 

What Are the Best Cash Flow Solutions for a Canadian Business?

 

The best cash flow solution a business can use matches financing repayment to the event that produces the cash. A short receivable delay may require a revolving credit facility, whereas equipment or other long-term assets should normally be financed over several years.

 

 

Common solutions include:

 

 

1. Faster customer collections: Tighten invoicing, verification and follow-up procedures to reduce days sales outstanding and client delayed payments that create outgoing cash needs
2. Supplier-term negotiation: Ask suppliers to align payment dates in trade credit  with the collection cycle rather than paying before customer cash arrives to provide you with funding you need
3. Business line of credit: Use revolving credit for recurring and temporary operating expenses.
4. Accounts receivable financing: Borrow against eligible unpaid business invoices and receive funds as sales are completed.
5. Invoice factoring: Sell eligible receivables to a factoring company  to obtain an immediate advance instead of waiting for customers to pay.
6. Asset-based lending: Establish a revolving borrowing base supported by receivables, inventory and, in some facilities, equipment 
7. Inventory financing: Finance goods held for sale before they are converted into invoices and cash.
8. Purchase-order financing: Fund supplier costs connected to confirmed customer orders when gross margins and transaction details support the advance. Export Finance / supply chain solutions
9. Working capital term loan: Finance a defined growth project or temporary operating requirement with scheduled repayments to improve cash position
10. Equipment financing or leasing: Preserve operating cash by spreading equipment costs over the asset’s useful life.
11. Sale-leaseback financing: Sell owned equipment to a finance company and lease it back while continuing to use it.

 

 

Cash flow shortages are a common challenge faced by businesses of all sizes. They can hinder growth, create operational bottlenecks, and, in severe cases, threaten a company's survival.

 

From optimizing accounts receivable and tightening credit terms to exploring external financing options, the path to overcoming cash flow challenges is challenging.

 

Let the 7 Park Avenue Financial team show you practical insights and actionable strategies that can empower business owners and financial managers to  weather the storm,

 

 

Three Uncommon Takes on Cash Flow Solutions

 

Growth can reduce cash. New sales require inventory, payroll and supplier payments before customers pay. Model the cash-conversion cycle before accepting major orders.

The lowest rate may cost more. An undersized or restrictive facility can lead to lost contracts, missed discounts, and emergency borrowing. Compare usable funds, speed and flexibility—not rate alone.

Every shortfall needs a repayment event. Financing should be repaid through customer payments, inventory sales, completed orders, or seasonal collections. Without a clear source of repayment, the problem may be weak profitability or insufficient capital.

 

 

 

How Should You Diagnose a Cash Flow Problem?

Start with the key question: Is the cash shortage caused by timing, growth, seasonality, low margins or recurring losses?

Match the cause to the appropriate response:

• Unpaid invoices: receivable financing, factoring or a revolving credit line
• Seasonal inventory purchases: inventory financing or an asset-based credit line
• Confirmed customer orders: purchase order financing
• Equipment purchases: equipment loan or lease
• Defined growth costs: working capital term loan
• Fixed bank limit: asset-based lending that scales with eligible assets
• CRA arrears: resolve repayment and lender-priority issues first
• Continuing losses: correct pricing, margins or expenses before borrowing

 

Financing can bridge a temporary cash-flow gap. It cannot permanently fix a business that loses money on every sale.

 

Why Can a Profitable, Growing Business Run Out of Cash? Spoiler  Alert - YES!!

 

The “profitable on paper, broke in the bank” audit compares reported profit with the timing of actual cash movements.

 

Growing sales can consume cash faster because you must pay for inventory, payroll and operating costs before customers settle their invoices.

 

 

Review:

 

• How quickly revenue is growing
• Days sales outstanding
• Inventory holding periods
• Supplier payment terms
• Deposits and payroll required before invoicing
• Debt, tax and CRA payment dates

 

If sales growth outpaces the cash-conversion cycle, every new order can deepen the temporary cash shortage. The problem may be timing—not profitability—and may require tighter working-capital controls or financing linked to receivables and inventory.

 

 

 

THOSE CRA ARREARS / DELAYED PAYMENTS OWING -  How Do CRA Payment Deadlines Create Cash-Flow Pressure?

 

 

 

CRA obligations create cash shortages because their deadlines may arrive before customers pay their invoices.

• Source deductions: Payroll amounts must be remitted on schedule, even when customers pay in 60–90 days.
• GST/HST: Tax collected from customers must be remitted, although some related invoices may still be unpaid.
• Corporate tax instalments: Required payments can reduce cash during seasonal or slower sales periods.

These obligations require cash-flow forecasting because late remittances may bring interest, penalties and collection action. Source-deduction arrears are particularly serious because CRA deemed-trust claims can also affect a lender’s security position and your access to financing.

 

 

WHY WORKING CAPITAL? THE NEED TO ESTABLISH A CASH FLOW RESERVE FOR FUNDS YOU NEED

Your company's inability to consistently generate positive cash flow forces it to fall behind on key obligations such as supplier financing, payroll, and loan obligations.

 

Managing liquid assets such as accounts receivable and inventories is key to solving the cash flow problem every small or medium-sized business encounters.


As a business owner, you must understand how the relationship of working capital over different periods affects cash flows. As sales grow, which is a good thing, most businesses require a commensurate increase in inventories and accounts receivable. Therefore, how you manage your current assets and accounts payable has a direct result on your working capital success—or failure!

Bottom line? A decrease or increase in Working capital will always fluctuate over time - but if you have consistent negative working capital, you will have severe cash flow problems.

 

WHAT CAUSES WORKING CAPITAL PROBLEMS

 

 

1. Slow Inventory Turnover: When inventory moves slowly, it ties up capital that could be used elsewhere, leading to liquidity issues.

2. Inefficient Receivables Collection: Difficulty in collecting payments from customers promptly can significantly impact a company's cash flow and its ability to cover short-term obligations.

3. Late Supplier Payments: Delaying payments to suppliers can strain relationships and potentially lead to less favourable payment terms, impacting working capital.

4. Overstocking: Holding too much inventory can result in unnecessary storage costs and tie up funds that could be allocated to more productive areas.

5. Understocking: Not holding enough inventory can lead to lost sales opportunities, negatively affecting cash flow and profitability.

6. Inconsistent Sales Forecasts: Inaccurate sales forecasting can lead to either overstocking or understocking, harming working capital.

7. Poor Credit Control: Not managing credit effectively can lead to excessive borrowing, higher interest costs, and an increased risk of bad debts.

 

 

WHAT ARE THE EFFECTS OF WORKING CAPITAL PROBLEMS

 

The Consequences of Working Capital Issues Include:

 

1. Cash Flow Shortages: Limited working capital can lead to a lack of liquidity, making it challenging to manage day-to-day cash flow effectively.

2. Inability to Pay Bills: Without adequate working capital, a business may struggle to pay its bills on time, damaging its creditworthiness and cash management abilities

3. Difficulty Meeting Financial Obligations: A shortage in working capital might make it difficult to fulfill financial commitments such as loan repayments.

4. Strained Supplier Relationships: The inability to pay suppliers on time due to working capital deficiencies and negative cash flow can strain or sever business relationships.

5. Missed Growth Opportunities: Insufficient working capital can prevent a business from investing in growth opportunities due to common cash flow problems around expanding product lines or entering new markets with good profit margins

6. Increased Borrowing Costs: A company facing working capital challenges may need to borrow more frequently, potentially at higher interest rates, improving overall borrowing costs.

 

 

 

 

TIPS, TOOLS AND STRATEGIES FOR CASH FLOW SUCCESS

Let's examine some tools, tips, and strategies for what we might consider a 'Happiness Formula' for working capital success in Canadian business financing.


A good way to address the topic is to focus on 3 sub-topics - understanding what is in your financial statements, using that information to work through your cash flow cycle, and, finally, financing cash-producing assets... properly.


We have said it before, and of course, we'll say it again: too many business owners and financial managers focus on their financial statements from a viewpoint looking primarily at their income statement, perhaps the balance sheet.

Sometimes, a cash flow loan, a/r financing, or monetizing other business assets will fix or alleviate business finance challenges. Taking a deposit or early payment on large orders increases cash inflows
 

IMPORTANCE OF UNDERSTANDING YOUR CASH FLOW STATEMENT AS A PART OF YOUR FINANCIAL STATEMENTS

Guess what though; probably the most critical way to view cash flow management and to identify working capital problems is in that third part of your financials, it’s the 'Cash Flow Statement'.

 

For us old-timers, it was also aptly called 'Sources and Uses ', and we're talking cash! We love the line ' Cash... where got... where gone'! It's those working capital changes that are key to business finance success.



So, what we are saying is that this particular part of your financials can lead you to our sought-after 'Happiness Formula.’


The simple part of looking at this statement is that it quickly identifies the gap between profits and cash - and as most business owners know, they are often, if not always, NOT the same!


The more significant the gap is, of course, the more solid a place and time to start thinking about solving working capital problems.

So how do you secure proper cash-flow financing in Canada? And don’t forget that it’s not just about surviving in business; it’s about growing your business. That growth will simply enhance your company's value.

 

 

THE BUSINESS OPERATING CYCLE - Working Capital Changes

 

The cash flow statement will adequately identify your overall business or operating cycle.

 

It’s even a precise calculation that you can use to track how long 1 Dollar flows through your company, from order to collected receivable—the longer the time gap, the more working capital problems and challenges you will have.


Cash flow financing comes from borrowing or simply turning over assets such as A/R and inventory. Naturally, you also want to manage your fixed assets so they are properly related to your overall equity and capital structure.
 

 

Case Study#1

 

Company: ABC Company, a commercial cleaning services provider serving corporate and institutional clients in Ontario

Challenge: ABC Company's contracts with large clients carried 60-75 day payment terms, but payroll for its cleaning staff was due weekly. Growth in new contract wins was actually straining cash flow further rather than relieving it.

How We Got There: 7 Park Avenue Financial identified that the trigger wasn't a lack of revenue — it was a structural timing mismatch between weekly labor costs and slow institutional payment cycles. A factoring facility was matched specifically to the receivables from the slowest-paying clients, while day-to-day operating costs stayed on the company's existing line of credit.

Results: ABC Company stabilized payroll funding within two weeks of approval and was able to accept two additional contracts it had previously turned down over cash flow concerns.

 

 

 

Case Study # 2 : Cash Flow Solutions for Canadian Businesses

From The 7 Park Avenue Financial Client Files

 

Company

ABC Company, a Canadian manufacturer of specialty food products distributing to major grocery chains across North America.

Challenge

ABC Company faced a critical working capital shortage despite strong sales growth and confirmed orders from large retailers. Their customers' standard 30-75 day payment cycles meant they couldn't finance ongoing production while waiting for receivables to clear. Traditional bank financing was unavailable due to their status as an unproven manufacturer with limited operating history.

Solution

How We Got There: We implemented an accounts receivable financing structure that advanced 85% of invoice value within 48 hours of submission. The facility was secured against the company's receivables from creditworthy grocery chain customers, eliminating the need for traditional collateral. We coordinated with their existing insurance provider to add receivables protection for export sales, reducing lender risk and improving terms.

Results

• Immediate improvement in working capital and cash flow during the first year of sales

• Ability to fulfill larger orders and increase inventory turnover

• Steadily increasing sales and market share over 18 months

• Achieved profitability and positioned the company for potential acquisition by a larger market participant

 

 

Key Takeaways

 

1. Understanding Cash Flow: Grasping the dynamics of cash inflow versus outflow within your business sets the foundation. This insight lets you pinpoint where cash gets tied up, such as slow-paying receivables or high inventory levels.

2. Efficient Inventory Management: Keeping inventory lean without jeopardizing production or sales can free up cash. Optimizing stock levels based on demand forecasts and lead times reduces unnecessary capital in unsold goods.

3. Credit Management: Implementing stricter credit terms and actively pursuing overdue accounts can accelerate cash inflows. It's crucial to balance attracting customers with favourable terms against the need for quick cash recovery.

4. Expense Reduction: Identifying and cutting non-essential expenses boosts your bottom line. Regularly reviewing and adjusting operating expenses can uncover savings that improve cash availability. The ability to take discounts via early payments is a key benefit of effective cash flow management

5. Access to Financing: Establishing lines of credit or exploring other financing options before facing a cash crunch can be a lifesaver. Proactive financing strategies ensure funds are available when needed, without the pressure of last-minute financing at unfavourable terms.

 

 

CONCLUSION - CANADIAN CASH FLOW SOLUTION STRATEGIES


Your success in managing and financing working capital needs relates directly to your ability to grow your business and increase sales and profits.

 

  Declining sales place even more pressure on working capital needs and financing, sometimes forcing the company to sell or refinance assets. Proper cash flow, working capital financing, and asset management are critical to the growth of Canadian business financing.

Are you still searching for the Cash flow Happiness Formula?

 

Call 7 Park Avenue Financial, a trusted, credible, and experienced Canadian business financing advisor.

 

7 PARK AVENUE FINANCIAL ORIGINATIONS CASH FLOW SOLUTIONS

 

 

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

 

 

How can I quickly identify cash flow shortages in my business?

Identifying cash flow shortages swiftly involves regularly monitoring cash inflows and outflows, comparing planned budgets with actual figures, and monitoring receivables and payables to increase cash flow.

 

 

What are the leading causes of cash flow problems?

The main causes include high overhead costs, slow-paying invoices, excessive inventory, and unexpected expenses in business operations.

 

 

Can improving customer payment terms help solve cash flow shortages?

Adjusting payment terms to encourage quicker payments can significantly improve cash availability.

 

How does external financing help in solving cash flow shortages?

External financing, such as lines of credit or short-term loans, provides immediate liquidity to cover gaps in cash flow, allowing businesses to continue operations smoothly.

 

What is the difference between cash flow and profit?

Cash flow refers to the net amount of cash transferred into and out of a business, while profit is the amount of money left over after all expenses are subtracted from revenue. Cash flow statements as part of financial statements identify  the source and uses of cash.

 

 

How often should I review my business's cash flow?

Reviewing your business's cash flow should be a regular monthly task, though some companies may benefit from more frequent reviews depending on their volatility and size.

 

 

Can cutting costs always solve cash flow issues?

While cutting costs can immediately relieve cash flow problems, it's not a universal solution. Strategic growth and investment are also crucial for long-term stability.

 

 

What role does inventory management play in cash flow?

Effective inventory management ensures you're not tying up unnecessary capital in unsold stock, improving cash flow.

 

 

How does customer relationship management impact cash flow?

Strong customer relationships can lead to quicker payments and repeat business, which positively impact cash flow.

 

How does a cash reserve affect a business's ability to handle cash flow shortages?

A cash reserve acts as a buffer, enabling a business to manage through periods of low cash inflow without the need to secure external financing or cut costs drastically.

 

 

What is the impact of late payments on cash flow?

Late payments can significantly strain a business's cash flow, making it difficult to cover operational costs and expenses and to fulfill financial commitments on time.

 

Are there any long-term strategies to prevent cash flow shortages?

Long-term strategies include building strong customer payment policies, maintaining a cash reserve, diversifying revenue streams, and conducting continuous financial planning and analysis, including a cash flow forecast, which are key.

 

 

What solutions can address working capital problems?

 

Effective Strategies to Improve Working Capital Include:

 

1. Inventory Optimization: Adjusting inventory levels to meet demand without overstocking can free up cash and improve liquidity.

2. Accounts Receivable Collection Strategies: Implementing efficient methods to collect customer payments quickly can enhance cash flow.

3. Early Payment Discounts: Offering discounts to customers for early payment can accelerate cash inflows and improve working capital.

4. Negotiating Longer Payment Terms with Suppliers: Extending the payment terms can keep more cash in the business for longer.

5. Sales Forecasting Improvement: Enhancing the accuracy of sales forecasts can improve inventory and cash flow management, helping avoid overstocking or understocking.

6. Cash Flow Budgeting: Developing a detailed cash flow budget helps plan for and manage cash flow needs, ensuring the business can meet its obligations.

 

 

Statistics

 

• Late payment and cash flow issues around trade credit  are consistently cited by CFIB as among the top financial pressures reported by Canadian small businesses

• Statistics Canada's Business Credit Conditions Survey data shows non-bank financing usage has grown as a share of SME funding sources in recent years

• 81% of Canadian SME financing requests were approved in 2025, up 5 percentage points from the previous period.bdc

• 27% of Canadian SMEs requested financing in the last 3 months of 2025.bdc

• 21% of Canadian SMEs plan to request financing in the next 12 months, with 71% expecting it to be easy to obtain.bdc

CITATIONS

 

 

Canadian Federation of Independent Business. "Cash Flow Challenges in Small Business." CFIB Research Report. https://www.cfib-fcei.ca

Medium/Prokop/7 Park Avenue Financial."The Hidden Cash Flow Tool 73% of Canadian Businesses Never Consider".https://medium.com/@stanprokop/the-hidden-cash-flow-tool-73-of-canadian-businesses-never-consider-caf501bd8ec1

Statistics Canada. "Business Credit Conditions Survey." Government of Canada. https://www.statcan.gc.ca

Bank of Canada. "Business Outlook Survey." Bank of Canada Publications. https://www.bankofcanada.ca

7 Park Avenue Financial."Cash Flow Revolution".https://www.7parkavenuefinancial.com/factoring_in_canada_invoice_factoring.html

Innovation, Science and Economic Development Canada. "Small Business Financing." Government of Canada. https://ised-isde.canada.ca

 

Solving Cash Flow Problems With Solutions

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Cash Flow Solutions For Businesses In Canada

Cash flow solutions in Canada often revolve around effective working capital management - It is nice to know there is help and assistance in funding your company. In effect, someone has got your back!

We only need to read the GLOBE & MAIL or NATIONAL POST to learn why some businesses fail, or stop growing. In many cases inexperienced management is a major cause , but often poorly timed working capital management and financial solutions are a true close second!

So how can business owners and their financial managers create a roadmap to business financing success? In many cases solutions exist that you did not even know you have!

In current times both traditional as well as alternative financial solutions exist to your business capital needs. And while many business people might not comprehend the meaning of ' alternative ' business finance solutions we at 7 Park Avenue Financial can assure our clients these solutions are not as ' esoteric' as you might think. A large portion of Canadian companies use these solutions every day - both large firms and small who are looking for SME COMMERCIAL FINANCE answers to cash flow and debt finance.

Commercial lenders who are in the ' alternative finance ' area are simply not as regulated as our banks who must, of course, maintain very stringent lending based on their fiduciary responsibility to their depositors. They have the solutions you just might need to run, and grow your business.

What does it take to get the proper business financing you need. Whether it is a Canadian chartered bank or and alternative finance commercial lender you need a story and proper financial statements that often can be complemented with a good business plan or executive summary.

Naturally, every business in Canada is located at different spots along what we at 7 Park Avenue Financial call the ' maturity spectrum'. Naturally larger more established firms have access to more financing from investors, both public and private, capital pools, venture capital, etc.

The reality is though is that for the majority of firms its the management and financing of their assets and growth that is the crux of cash flow solutions, and without this management of working capital during the sales and growth of sales period that make allows the Canadian business owner to make the transition from a dream to reality when it comes to business success.

We don't, and can't, blame clients we talk to for thinking there is not a lot of financing options available in Canada for them - it certainly can feel that way on occasion. The reality though is that the lending of business finance funds is, in fact, the backbone of business in Canada. Borrowing and investing, in fact, make Canadian business.

The 6 Alternatives For Financing Your Business In Canada

- You fund it yourself

- You borrow funds

- You sell assets

- You finance internally through growth and management of assets

- You are given funding, via grants, etc,

- Raise equity/sell ownership stake


Our focus is really # 2; borrowing funds... actually monetizing assets. Those solutions as we said, are more plentiful than you think.

Business Finance Solutions

Receivable financing

Equipment leasing

Working capital term loans

Asset based lines of credit

Tax credit monetization

Securitization of sales / Purchase Order Financing


Someone in fact does have your back in Canadian business cash flow solutions - that person just might be a trusted and experienced Canadian business financing advisor with a track record of business finance success.

Consider reviewing the above mentioned solutions in the context of both surviving and growing your business in Canada.





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

Considered A Canadian Business Financing Advisor For Specialized Access To Finance Solutions And Lenders In Canada?

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Best Way To Explore Traditional & Alternative Canadian Business Finance ?



Information on benefits of utilizing a Canadian Business Financing advisor to access traditional and alternative lenders for financing and funds for your business

Yes, of course it’s ultimately up to you but have you considered a Canadian business financing advisor for your specialized access to funds, financing and traditional and alternative lenders in Canada?

As we said it’s you the Canadian business owner or financial manager that has to both recognize the need for and make the call when it comes to your company financial needs. Whether your firm is in some type of financial distress, or if you have the double edged sword challenge of growing sales (how do you finance them).

The fundamental concept of business finance ( and unfortunately many don’t know or recognize this ) is that as you grow your sales you must invest more in business assets such as inventory, receivables, and even equipment under your fixed assets category on your balance sheet.

In a perfect world (guess what, it's not) you want to be able to be in a position to generate and have access to financing almost ' spontaneously ', as you grow. And we forgot to mention that that higher investment in A/R, inventory, etc also leads to higher obligations when it comes to payables from suppliers, wages, and government super priority payments such as HST, employee source deductions, etc.

Yes, actual profits (when collected, by the way!) provide additional financing for your firm, but ultimately you will need access to lenders and financing sources to compliment your business finance needs.

When you consider assistance outside of your firm, such as a business advisor it might even be at a time when serious challenges have set in. Those challenges may be diverse, such as suppliers freezing credit, or your institutional lender such as a Canadian chartered bank being in a position to tighten, suspend or freeze your credit access.

Canadian business financing advisor can assist you in getting back the confidence of suppliers and lenders at a time when you need it most. That comes by providing solutions, both traditional and alternative, to the current problem.

We all know the expression ' you can't see the forest from the trees ' and most business owners / managers would admit they are sometimes to close to the problem, or, alternatively don’t have the expertise and access to outside financing sources. In essence you have just received access to corrective financing actions, at a time when you need it most!

So how in fact does a trusted, credible and experienced Canadian business financing advisor ' fix ' things? One way is to focus on the balance sheet and increase cash flow monetization when it comes to sales to inventory and sales to A/R ratios. This can be accomplished through working capital facilities that are non bank in nature, asset based lines of credit, monetizing your tax credit, securitizing receivables, and in some cases bringing a new chartered bank on board that is comfortable with your management and long term success.

So, need that specialized access to traditional and alternative funding sources. Who you gonna call ?!

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

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

Here’s Your Fighting Chance For Cash Flow Solutions! How To Pinpoint A Canadian Business Finance Solution

Looking For Working Capital Survival Techniques?


Information on cash flow solutions for Canadian business owners . Understand the problem and find a business finance solution

Canadian business owners and financial managers are looking for ' fight back' type cash flow solutions
for their survival and growth challenges. Let's examine that from two angles understanding and pinpointing the problem, and then implementing a satisfactory business finance solution for your firm, one that makes sense in the here and now!

While clients we talk to are often very focused on fixing the problem we’ve felt it's just as important to understand how and why they got there. Makes sense right?

If you step back and take a closer look at what's going on in your business you will see that the constant pattern of payments and receipts to your firm dictate the need for Canadian business financing at certain times. The cycle typically constantly repeats itself, your company buys good, generates a payable, incurs costs in creating your products and services and finally invoice generation to your clients. And then you wait!

That's when we arrive exactly at the crux of the matter as typically at this time your cash shortfall is at its greatest point. All the while your firm of course has payable and creditor obligations, and let’s not forget the tax man!

Now we are getting to the core issue, creating cash flow solutions to finance these needs. We now arrive at a point where many companies ' blow it ' for lack of a better word. That's because the obvious solution is ' the bank '. We can't count the number of times clients told us they have approached their bank on what we can politely term a ' short notice'.

Guess what though. Banks don't like to lend on a short notice. Quite frankly they are managing their own cash flow issues! Clients simply often don't realize that at this point in a company's need for a business finance solution that insolvency risk is at its greatest.

The other irony of our situation as described above is that in many cases business has never been greater for your firm. New contracts, new orders abound! Yet history tells us many companies, small and large have gone under when profits and sales were great, but cash has run out.

Solid and savvy Canadian business owners and financial managers will step up to the challenge this time and learn to plan better for short term borrowings. You don’t want to over borrow but at the same time you don't want to commit yourself to having excess cash and liquidity. (Although that’s a problem clients never seem to have!)


One of the best ways you can monitor your cash flow needs is to monitor on an ongoing basis changes in your assets and debt. Business owners often don’t realize that the transfer of funds between those two identify the movement of your cash.

If assets go down cash has been generated from the asset, if assets go up you have in fact invested in this asset, and, guess what, your cash has gone down.

In Canada you have a number of available cash flow solutions for working capital needs. They include properly managed bank debt via a solid relationship and track record. Companies that can't qualify have access to asset based lines of credit, working capital facilities, receivable and inventory financing on their own or together and even monetization of tax credits and purchase orders.

Looking to better understand what business finance solutions makes sense for your firm, and why? Speak to a trusted, credible and experienced Canadian business financing advisor to determine your firm’s best course of action.

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