Break The Shackles Of Canadian Working Capital Financing Challenges – Proven Methods To Finance A Business

Give your business the working capital and cash flow it deserves

Information on Canadian working capital financing techniques and strategies . How to finance a business via traditional and alternative solutions that work !



We're the first to admit that any Canadian business, from start up to established company often has the feeling they are somewhat shackled in working capital financing options. So how do you finance a business from a cash flow perspective and how one measure does and evaluate the options. Let's dig in, as usual!

A good start is to simple differentiate between short term cash needs (that’s working capital by the way ) and long term debt and financing solutions . That short term cash flow we're talking about is the cash flow you use on a day to day basis to finance a business - those mundane things like payroll, purchasing inventory, covering your fixed costs, etc!

As that cash flow deteriorates or goes down you not only don’t meet those short term obligations but you run the risk of failing to meet long term debt such as leases, loans, etc.

There are essentially three reasons your firm ends up needing working capital financing - they are of course if you are a start up , secondly if you are growing rapidly, and thirdly if your firms basic situation is such that your current operations cant finance day to day activities . This typically arises out of your growth and management of receivables and inventory.

When smaller businesses in Canada borrow for working capital purposes a significant amount of emphasis is placed on the owner’s personal credit .As your company grows the focus turns and it’s now up to you to properly position your businesses financial situation - that means proper presentation of your balance sheet, income statement and projected cash flow.

The good news about working capital financing is that it is not debt in the true sense of the word - it’s simply the monetization of your current assets, typically receivables and inventory. The challenge though it to ensure you don’t over borrow on those assets , that you manage them properly, so that your borrowing doesn’t become what one writer recently described as an ' addiction '.

Quite frankly we agree, and the reality is that the best line of credit is one that goes up and down all the time, and doesn’t stay maxed out at the top of the facility. If in fact you are always at the top of your working capital financing facility you might well be close to some sort of financial challenge or catastrophe.

Of course there are times when it makes perfect sense to borrow and incur debt outside the working capital needs - a good example might be the need for more equipment. Paying for a long term asset out of current operating capital is not recommended. If the equipment generates profits and has a longer term useful life you have made the correct financing decision.

In Canada working capital options range from traditional to alternative. A bank working capital facility will margin 75% of receivables and potentially, but certainly not always, a portion of your receivables. Larger firms have access to non bank asset based lines of credit that provide a very healthy margin of cash flow by utilizing 90% of your receivables and anywhere from 30-70% of your inventory. A subset of asset based lending is accounts receivable financing, which monetize your invoices... on a daily basis. While more costly your firm has just turned itself into an ATM machine for constant cash flow as you grow your business.

Other alternative methods of cash flow financing including monetizing (that’s financing) your government tax credits, or even financing your purchase orders or contracts.

Still feel shackled? Canadian business owners and financial managers shouldn’t feel prisoners due to lack of working capital financing. Don't over borrow; ensure you know what facilities are available. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in identifying immediate solutions... unleashing those shackles!




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_finance_a_business.html

At Last ! New Method To Finance A Business - Canadian Confidential Financing Factoring Receivables

A new thing in business is usually a good thing, it’s usually a welcome thing, and a new spin on that same good thing is of coruse even better.

C I D . What the heck is that you say? It's a little known term in Canadian business financing called confidential invoice discounting. Simply speaking it’s a new way of factoring financing your receivables when you want to finance a business.
Let’s ensure we have a clear understanding of financing factoring in general though, and then we'll show you why C I D is clearly head and shoulders above.

Believe it or not, because we run into them almost every day, there are still many small and medium sized businesses in Canada that aren’t aware of receivable financing . Simply speaking its getting an advance on your billed receivables today, with a fee being charged for the use of the funds until that receivable is collected.

Why would something so simple then be so popular and dramatic when it comes to cash flow and working capital for you business. Simply because as your revenues grow you ability to borrow, lock step in turn with those sales, grows also.

In the U.S. alone billions of dollars (yes that’s billions with a ' B') are financed every year. Slowly, almost too slowly we think, this method of financing is becoming more popular every day - even to the extent that some of the largest firms in Canada employ financing of this type. (If the big boys do it, well it must be right ...?).

We seem to spend a lot of time with clients talking about the ' stigma ' of financing factoring your receivables. That is kind of because receivable finance used to be associated with firms that had financial challenges, so to speak! But let’s get serious, after the 2008-2009 global recession and financial implosion even banks and worlds largest corporations were on their knees to some extent, so don't talk to us about financial challenges..!

There is kind of a second part to the whole ' stigma ' issue, which is simply the core of our subject today. When factoring moved into Canada awhile back it’s not surprise it came from the U.S. and European models. That business model for this type of financing has your financing factoring firm confirming your receivables with your clients.

What's that you say...??You find that a bit ' intrusive '?

Voila! Enter C I D - confidential invoice discounting. Simply speaking you are in charge of your own billing and collecting procedures - but, and it's a big ' but ‘... you still get all the benefits of receivable financing when you choose to finance a business in this manner .

Costs for C I D are essentially the same as ' regular ' factoring... so why wouldnt you opt for this type of Canadian business financing solution.

So what's our bottom line, that’s really what clients are looking for? Simply speaking its that if you are considering a bit of a non traditional approach to financing your Canadian business then investigate factoring financing - and when you do don’t forget to ask about C I D - Confidential invoice discounting finance. Speak to a trusted, credible and experienced Canadian business financing advisor who will demonstrate the costs and benefits of Canada's newest kid on the block in business finance.



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 .Info re: Canadian business financing & contact details :

http://www.parkavenuefinancial.com/financing_factoring_receivables_finance_a_business.html

At Last ! New Method To Finance A Business - Canadian Confidential Financing Factoring Receivables

A new thing in business is usually a good thing, it’s usually a welcome thing, and a new spin on that same good thing is of coruse even better.

C I D . What the heck is that you say? It's a little known term in Canadian business financing called confidential invoice discounting. Simply speaking it’s a new way of factoring financing your receivables when you want to finance a business.
Let’s ensure we have a clear understanding of financing factoring in general though, and then we'll show you why C I D is clearly head and shoulders above.

Believe it or not, because we run into them almost every day, there are still many small and medium sized businesses in Canada that aren’t aware of receivable financing . Simply speaking its getting an advance on your billed receivables today, with a fee being charged for the use of the funds until that receivable is collected.

Why would something so simple then be so popular and dramatic when it comes to cash flow and working capital for you business. Simply because as your revenues grow you ability to borrow, lock step in turn with those sales, grows also.

In the U.S. alone billions of dollars (yes that’s billions with a ' B') are financed every year. Slowly, almost too slowly we think, this method of financing is becoming more popular every day - even to the extent that some of the largest firms in Canada employ financing of this type. (If the big boys do it, well it must be right ...?).

We seem to spend a lot of time with clients talking about the ' stigma ' of financing factoring your receivables. That is kind of because receivable finance used to be associated with firms that had financial challenges, so to speak! But let’s get serious, after the 2008-2009 global recession and financial implosion even banks and worlds largest corporations were on their knees to some extent, so don't talk to us about financial challenges..!

There is kind of a second part to the whole ' stigma ' issue, which is simply the core of our subject today. When factoring moved into Canada awhile back it’s not surprise it came from the U.S. and European models. That business model for this type of financing has your financing factoring firm confirming your receivables with your clients.

What's that you say...??You find that a bit ' intrusive '?

Voila! Enter C I D - confidential invoice discounting. Simply speaking you are in charge of your own billing and collecting procedures - but, and it's a big ' but ‘... you still get all the benefits of receivable financing when you choose to finance a business in this manner .

Costs for C I D are essentially the same as ' regular ' factoring... so why wouldnt you opt for this type of Canadian business financing solution.

So what's our bottom line, that’s really what clients are looking for? Simply speaking its that if you are considering a bit of a non traditional approach to financing your Canadian business then investigate factoring financing - and when you do don’t forget to ask about C I D - Confidential invoice discounting finance. Speak to a trusted, credible and experienced Canadian business financing advisor who will demonstrate the costs and benefits of Canada's newest kid on the block in business finance.




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 .Info re: Canadian business financing & contact details :

http://www.parkavenuefinancial.com/financing_factoring_receivables_finance_a_business.html