Tweet
Is Your Working Capital Situation Scarier Than A Zombie Movie?
Information on working capital management solutions in Canada . What tools are available to finance cash flow and manage business finances properly ?
Are there some finance cash flow tools and knowledge we can share? You guessed it... there are. So we’re of course talking about the funds that are in fact, hopefully ... ' working ' in your short term operations. It's critical to understand a couple of key concepts before we can take you to that toolkit of solid cash flow solutions. So the concept of ' net working capital which is really the difference between your short term assets and liabilities is critical. And at the end of the day the final success you have in financing your business comes down to two key areas -
How you manage those assets
How you finance those assets
Simple as that.
When you think of it, you’re basically on a constant journey with this whole issue. We read an analogy the other day where you might be considered either a warrior or a wizard when it comes to certain aspects of business success. We suppose that we are saying that you have to be a bit of both.
The ' warrior ' aspect of today’s issue is your constant effort to turnover assets, but at the end of the day you have to be a bit of a wizard, especially if you are growing, because that investment in receivables and inventory is in effect your permanent investment. So both your lenders and yourself have a vested interest in how you are doing on that issue - especially if bankers, other lenders, lessors, etc have loans outstanding.
When you think about it the real challenge of finance cash flow tools is really the issue of using the financial solution that comes with an appropriate rate and risk level.
So what are some of the working capital solutions that your firm can employ? They might be one or several of the following:
Bank credit facilities
Receivable financing
Asset based lending
Supply chain/Purchase Order Finance
Sale leaseback of fixed assets (we’re a bit outside out current asset scenario here but sale leasebacks do work)
Tax Credit monetization
Securitization of receivables/contracts
While we would all probably agree that it would be great to have a precise formula around which solution worked best that’s not the real world of course! It simply becomes a case of ensuring that the increases in sales you are enjoying are financed properly. And you want to be able to do that proactively... we can't count the number of clients who we meet who are in emergency cash flow crunches. Why? Because they didn't plan or use some basis analytical tools to measure the performance of their receivables, inventory, and payables.
Seek out and speak to a trusted, credible and experienced Canadian business financing manager who can assist you with your finance needs. It doesn't have to be scarier than a Zombie movie!
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
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 '
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
