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Looking For Some Cash Flow Fuel ? Try These Options !
OVERVIEW – Information on different cash flow solutions that many businesses may not have considered. Business Financing should be all about finance alternatives
Business financing is all about ensuring your firm has the ' fuel ' to operate and grow your company. But do some owners/financial mgrs sometimes fool themselves by thinking their current cash flow and finance alternatives work? We think that might be the case. Let's dig in.
Companies with different types of assets require a complete understanding of how those assets can be liquidated, acquired, or monetized. In some cases traditional bank type lending might give your firm the lending solution that you need. That's of course up to the bank in most part, based on the overall financial condition of your business.
For those that can't access all, ( or any ?! ) of the finances they need a revolving line of credit from an asset based lender will allow your firm to secure the type of cash flow / working capital you need. It should also never be forgotten that simply managing payables and maximizing supplier credit is a key to overall cash flow mgmt. Companies with the potential to secure new large orders / contracts should also consider export guarantees or P O financing.
There are some more esoteric and not always considered options that in the past have been more exclusive and reserved for larger companies. These include ' securitizing ‘your sales, or considering a convertible debt solution.
A more commonly accessed type of funding is mezzanine finance, essentially unsecured cash flow loans. They are often reviewed as a ' bridge; between debt finance and the dreaded ' equity ' dilution that is not desired by owners wishing to retain full ownership and control.
Some individual and unique ' subsets' of asset based lending strategies include:
Confidential Receivable Financing
Purchase Order Finance
Leasing Assets
Royalty finance
Those latter 3 solutions distinguish themselves because they provide billions of dollars of capital for SME COMMERCIAL FINANCE needs in ... are you read y???.. a very short period of time! It's all about quick access to cash as far as most firms are concerned. At least that's what business folks tell us. They hate it when financing stifles their ability to ' seize the moment ' when it comes to new sales opportunities.
While personal owner guarantees are required in almost all of Canadian business financing for private firms the reality is that there is less emphasis on these guarantees when it comes to various alternative finance solutions. But for the most part it's all about ' timelines' and the ability to access cash.
If your company is looking for some cash flow ' fuel' from forms of finance that will help you grow and run your business seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist. Stop pretending that newer forms of business finance aren't for you!
7 Park Avenue Financial
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
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
