Working Capital Financing In Canada : Meet Your New Cash Flow Solutions

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How To Finance Sales Growth Via These Numerous Working capital financing solutions


OVERVIEW – Information on working capital financing loans and strategies for Canadian business. Cash flow solutions depend on various unique factors to your firm and industry

Working capital financing in Canada is provided via numerous traditional and non traditional lenders.

It's about time to meet those cash flow solutions that just might make sense for your business. Let's dig in.


Working Capital Financing in Canada is provided in a number of different ways to Canadian business owners and financial managers. The typical ‘go to ‘solutions are our Canadian banks and business oriented credit unions, but in recent years numerous non bank commercial lenders have populated the Canadian business financing landscape.


In many cases the hard core reality is that SME COMMERCIAL FINANCE needs are best provided by non bank firms who have a greater understanding and higher risk appetite as it relates to sales growth, receivable financing, inventory loans, and PO Financing and equipment leasing.
We get a lot of questions from clients who are looking for ' government grants and loans' .There are some grant type programs out there but in general they do not serve the needs of the average Canadian business owner as they relate to working capital.
There are two very viable grant and loan programs in our opinion. They are the government guaranteed Small Business Loan , aka CSBFL , aka SBL loan, as well as the federal SR &ED program. The Small business loan provides equipment and leasehold loans to Canadian business owners, and is not capped at a new high of $ 350,000.00.


This in or opinion is a great term loan, and has excellent, we repeat, excellent rates, terms and structures. But the reality is that this is a term loan and is not a working capital loan per se. When clients come to us for ‘working capital loans ‘more often than not they are referring to cash flow needs for inventory, receivables, and equipment.
Companies that spend R&D capital and invest in research can take advantage of Canada's SR&ED program. This is a non – refundable grant that covers approximately 40% of all the cash you have spent in this area. We encourage all business owners in Canada, if it is applicable, to speak to an advisor in this area. By the way, SR&ED credits can be financed and a ' SRED LOAN' is a great way to augment working capital and cash flow. Many start up firms consider this a great source of initial cash flows in their business.


Most Canadian business owners are not aware of what is known as a cash flow loan. A more sophisticated finance term for this loan is a mezzanine or ‘sub debt’ loan. For smaller and medium sized businesses these loans tend to go up to the 250k range and are offered by a specialty lender which is funded by the Government of Canada.


Larger cash flow and working capital loans tend to be in the 1 Million + range and are offered by non banks. These loans typically are unsecured, are used for working capital purposes, and have rates in the low to mid teens due to their unsecured nature. These working capital financing credit lines typically go under the term ‘asset based line of credit '. This facility margins your A/R, inventory and equipment into one large borrowing facility that mirrors the bank line of credit.


The good news about asset based lenders in Canada is just that... they focus on assets, with much less or no emphasis on ratios, covenants and personal guaratees required by traditional bank type solutions , But we never forget of course that the lowest cost and most flexible form of financing is bank credit and term facilities. They are just a lot more difficult to attain in the amount your business might require, especial for faster growth or early stage firms - as well as companies experiencing challenges.


In summary, working capital means different things to different business owners. Our focus has been on real cash flow and working capital for your business. Certain government programs might meet your needs in the areas of term loans, leasehold improvements, etc. But true working capital is the financing of current assets such as receivables, inventory, and purchase orders.
Like anyone, you would prefer to deal with an ‘expert ‘in business financing, so we encourage you to seek and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success.


Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com



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

Canadian Business Financing

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Call us for financing solutions we've consistently delivered on for 11 years . Our core focus for clients :

A/R Financing

Inventory Finance

SR$ED Tax Credit Loans

Film tax credit finance
Equipment Leasing

Sale Leasebacks transactions - equipment / real estate

Rolling stock financing

Asset Based Business Credit Lines

Canadian Chartered Bank facilities - lines of credit, term loans, acquisition financing
Franchise Loans

We've financed public and private companies and originated in excess of $ 100,000,000.00 Million dollars in finance originations for hundreds of clients all over Canada


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

Business Financing In Canada : Solid Tips On Cash Flow Finance & Company Finance Strategies & Solutions

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Looking to Enhance The Power Of Business Financing ?

OVERVIEW – Information on business financing in Canada. Numerous debt and cash flow solutions are available for your company finance strategy

Business financing in Canada probably can deliver on more options that most owners/financial mgrs might be aware of. The truth is some of these options are ' external ' and some might be surprisingly ' internal ‘. Let's dig in.

Taking on some business debt, or monetizing/cash flowing assets you already have (receivables/ inventory/ equipment) is the alternative to bringing more equity into your company. Yes, you don't have to repay equity but to the current ownership is simply a devaluation of what is currently a growing asset - your business! So while equity and new share capital is not selling all of your business, you're certainly selling a part of it.

That brings us back to external business financing solutions, which of course have a cost and risk to some degree. A preferred solution for many companies is the business revolving line of credit. That comes from one of two sources - A Canadian chartered bank, or alternatively a commercial finance company that is independent and unregulated as the banks are.

Those two types of credit line both give you liquidity and don’t add additional debt to your balance sheet. If managed and accessed properly those credit facilities grow as does your sales and asset base.

How can the owner/financial mgr increase cash flow ' internally '? The most obvious manner should be to accelerate your receivable collections. By the way, either the bank or commercial finance company will always be more impressed if your A/R is in good shape!

Don't forget also that you can bring in cash by postponing cash... outflows! How do you do that? Simply by managing payables more effectively, using long term asset acquisition strategies such as equipment leasing to acquire new assets, technology, software, etc.

Inventory is often a large component of many a firms overall asset base - certainly in the case of retailers. They can almost always be included in business credit lines as part of your overall financing strategy, but inventories can also be financed via inventory loans, and also as part of a purchase order financing solution.

Types of term debt and cash flow solutions available to your firm might include:

A/R financing

Revolving credit lines

Govt Small Business Guaranteed Loans

Royalty Financing

Unsecured cash flow loans

SR ED tax credit financing

Sale leasebacks

To ensure you're harnessing the true power of business financing seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow and long term asset financing needs.



Stan Prokop - founder of 7 Park Avenue Financial –

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 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 & Contact Details :

http://www.7parkavenuefinancial.com



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

Working Capital And Term Loans In Canada. Which Cash Flow Solutions Guarantee Happiness And Success ( In Your Company)

Long For The Golden Age Of Financing Choices?


OVERVIEW – Information on cash flow solutions for Canadian business. What are key differences between term loans and working capital options




Term Loans . Cash Flow Solutions for working capital . Business owners and financials managers focus on working capital whilst sometimes not determining whether the business financing solution is a longer term focus.

We first need to point out the differences between a business term loan and a receivable financing / working capital type financing solution.

Business loans of a term loan nature tend to be fixed payments. They will bring what we will call permanent working capital into your business. The nature of these loans is that they tend to be 'fixed' in term, payments, and rates. Your business can acquire a working capital business loan in a couple of different ways. The transaction can be facilitated purely on a 'cash flow 'basis. If the lender feels your firm has the cash flow to support the loan a loan will be created around that belief. Your historical and current financial statements (as well as your projections) should validate that your cash flow can meet the payment requirements of the loan.

The cash flow term loan can also be achieved in two other ways; it can be structured around what is known as a mezzanine or subordinated debt basis, or via a sale and leaseback of your assets or real estate. Some business owners feel it feasible to consider a 2nd commercial mortgage on their property, as an alternative to not having to sell the real estate to bring cash back into the firm.


We've covered the term loans portion of a cash injection into your firm. Another popular alternative is a 'factoring ( aka ' A/R FINANCE' ) solution'. This solution is becoming increasing popular in Canada. We point out that the factoring solution should generally be viewed as an interim solution - our experience is that a firm factors their receivables for a year or so prior to regaining a traditional financing status with the bank for a true margined operating line of credit.

To any Canadian business owner that currently factors their assets it is abundantly clear that the costs and processes are significantly more burdensome than a Canadian chartered bank facility - however, they do work, and they work for your firm now!, when you need it.


Canadian business considers Receivable Financing solutions when they have capital and debt ratio issues in their business. In many occasions the customer has a bank relationship and you need to simply augment that relationship with a factoring scenario for additional capital. The essence of this issue is that you are in fact 'maxed out 'at the bank, notwithstanding your good relationship with them.

Business owners quickly find out that banks have limits! Many people don't understand that a properly constructed factor/AR facility can compliment, and not necessarily replace a bank facility. You should seek the advice of a trusted, credible, and experienced financial advisor or intermediary in this regard. Our preferred solution for our clients is in fact a CONFIDENTIAL A/R FINANCING that allows you to bill and collect your own receivables, financing them only when you need to .

A/R Financing is a much better solution for new and start up businesses, and if your firm is not in a 'death spiral ',but simply experiencing temporary financial losses or one time set backs then factoring is a solid solution.
In summary, business loans for working capital are either fixed / term scenarios or working capital facilities based on current assets such as receivables and inventory. The


Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your options on the correct type of financing for your needs.


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 = CASH FLOW , TERM LOAN AND WORKING CAPITAL FINANCE EXPERTISE!





CONTACT:
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

Working Capital Crunch ? Inside The World Of Business Cash Flow Solutions In Canada

Looking For The Most Used Business Cash Crunch Solutions?

OVERVIEW – .Information on the working capital crunch faced by companies of all size . What cash flow solutions work when ‘ the crunch’ happens?




Working Capital Crunch ? There no faster moving target than cash flow solutions as the need arises for Canadian business owners and financial managers. What are in fact some of the most popular cash flow fixes - let's take you inside the world of those. Let's dig in.

The one thing we can all agree on is that today’s business seems to move a lot faster. We're pretty sure Heracleitus, a philosopher of sorts centuries back wasn’t talking about cash flow, but we keep thinking of his great line ' Everything flows and nothing stays ' ! So it’s more important than ever for the owner/manager to understand to handle growth and daily operations when it comes to business finance.

Owners and managers of business should always recognize that working capital and their management of same is one of the most important survival tools they have at their disposal.

The other hard reality is that every industries basic economic, business and cash flow dynamics can vary greatly. While we meet many clients seeking financing solutions they believe are unique needs, the reality is that in the big picture most firms in your industry face the same challenges.

Those challenges include the lack of proper bank financing and the constant juggling of payables with cash receipts, and oh yes, those employees seem to want to get paid regularly! Most business owners either don't want to or choose not to deplete personal assets to finance their business - that’s why they incorporated in the first place, right? Or certainly it's one of the reasons!

Top experts in finance tell us that almost 1/2 of all business owners at some point or another face the working capital crunch. In some cases that is of course their own doing as they have extended credit to clients in a liberal manner, or not enforced prompt payment from clients.

What then are some cash flow solutions for Canadian businesses experienced the cash flow crunch? Well the most important thing to realize is that the solutions to problems lie inside and outside your firm! What do we mean by that? Simply that the financing ' crunch ' can be many times partially or totally avoided by:

Improving your credit policy
Asking clients for down payments when applicable
Accelerating invoicing to clients (Does anyone still invoice once a month?!)
Improving inventory turnover
Delaying payment to suppliers when it is possible (hint: key word ' possible')

And what about those external methods for the cash flow fix? They include:

Accounts receivable finance/factoring
Sale leaseback of owned assets
Monetizing credit lines
Non bank working capital or asset based lines of credit
Monetizing tax credits
Bridge loans

Going inside the world of the cash flow fix can be daunting for anyone. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your business cash needs.

T
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 = WORKING CAPITAL FINANCING EXPERTISE

CONTACT:
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

Someone’s Got Your Back On Cash Flow Solutions ! Canadian Working Capital Management

Cash flow solutions and working capital management in Canada. It's nice to know that you do in fact have solutions, help and assistance in Canada... in effect ' someones got your back ' .. helping you out.

A lot is written about why business fail, or stop growing ; we often hear that ' lack of good or experienced management' is the major cause, but trust us poor , or poorly timed working capital management and financial solutions are a true close second!

The good news, as we said though, is that someone in fact does ' have your back ' when it comes to those cash flow solutions in Canadian business financing. - In effect you do have a ' roadmap ' to business finance that you may not have thought you had.

These days though the reality is that you have traditional finance methods, and ' alternative ‘. Alternative is not as esoteric as you might think, in fact a good way we explain that to clients is that more often than not you're dealing with commercial non bank finance companies that are not ' regulated ' in that manner that are Canadian chartered banks, insurance companies, etc. And they have solutions to your challenges.

For small and medium sized businesses you simply need a story, and proper financial statements which often can be complimented with a good business plan or executive summary.

Every company in Canada is somewhere along what we could call the ' maturity spectrum '. Firms that are a bit larger or more established have access to some fairly heavy duty solutions which might include angel investors, some private equity, junior capital pools, and even modest forms of venture capital.

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 dream to reality when it comes to business success.

We often think that clients can be forgiven 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.

We never forget the ultimate irony that your firm might have a better chance in slower economic times to get something done simply because in those boom times there’s too many deals and opportunities, and everyone is busy .

Financing a business comes down to 6 alternatives.

- 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,
or you sell equity.

Our focus is really # 2; borrowing funds... actually monetizing assets. Those solutions as we said, are more plentiful than you think - receivable financing, equipment leasing, working capital term loans, asset based lines of credit that are non bank in nature, tax credit monetization, and securitization of sales.

Someone in fact does have your back in Canadian business cash flow solutions - that person just might be an experienced Canadian business financing advisor who has credibility and experience. Consider reviewing the above mentioned solutions in the context of both surviving and growing your business in Canada.







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_solutions_working_capital_management.html

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 goods, 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.





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_solutions_business_finance_solution.html

Danger Signs ( And Solutions!) For Canadian Working Capital Financing . Real World Cash Flow Solutions

Solvency Solutions For Canadian Business

Information on working capital financing & Cash Flow Solutions for Canadian firms.


Cash flow solutions are sort of best implemented when you know what the problem is. Makes sense, right ?We're discussing working capital financing and the danger signs your firm needs to look for to both prevent and of course solve some of those problems .

The challenge in business financing many times is that both the challenges and the solutions to business financing aren't readily obvious. The good news to that story is of course that many finance challenges can be fixed with some very immediate solutions.

And there are more solutions than you might think which becomes readily obvious every time we talk to a client. By identifying working capital problems early in the cycle allows you to prevent a much larger problem down the road?

Shrinking working capital is often the most obvious problem. The irony here is that many firms are in fact growing, and profitable (on paper - profits do not equal cash!) But a combination of external factors or losses, or hyper growth all can lead to insolvency.

Many business owners view bank credit as somewhat of a blessing, if in fact they can get a business line of credit from a Canadian chartered bank. This facility allows you to borrow against receivables and sometimes inventory based on pre established margins. The quick example is that 99% of eligible business can borrow against 75% of their total under 90 day receivables.

Operating lines of credit work great if you are growing !We can say that for both traditional bank financing and non traditional solutions such as receivable financing, inventory finance, tax credit finance and monetization, etc.

A real danger sign though is when your business has stopped growing and credit facilities, both short term and long term are in place. An even worse danger sign is when Canadian business owners and financial managers use the line of credit to unwittingly mask some other problems such as issues in their organization, financial or operational mistakes, or being at the mercy of some external event - i.e. the loss of a key supplier or client.

In general if you are operating at a loss and your balance sheet accounts aren’t really changing cash flow should be viewed as trending down, and that’s a danger signal.

What about the issue that we have referenced a couple times already, strong growth? There isn’t a more classic good news/ bad news scenario. Sales are great, inventories and receivables are up, and cash is down. In fact any expert will tell you strong long term growth is better when its planned, not just happening .

There are numerous danger signs as we have noted when it comes to cash flow solutions for working capital financing shortages. In Canada these solutions include asset based lending, invoice financing , sale leaseback of long term unencumbered assets, tax credit monetization, and purchase order and inventory finance .

Speak to a trusted, credible and experienced Canadian business financing advisor on both avoiding, and oh yes, fixing those challenges.




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/working_capital_financing_cash_flow_solutions.html