Recognize These Business Finance Problems and Financing Challenges?

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Examining Cash Flow And Finance Challenges in Canadian Business



Information on financing challenges faced by Canadian business owners and managers. Spotting and Solving business finance problems

Business finance problems. Got the ability to spot financing challenges when it comes to the immediate and longer term issues that face your firm in the Canadian business environment? We have always felt that some positive proactive techniques and information can go a long way to your health... and that’s better business health we're talking about by the way!

It's easy for an outsider to revert to the textbooks on this one, and larger corporations have access to all sorts of advisory advice. The business owners and managers of small and medium sized corporations in Canada have the tools; they just need to know how to use them. Technically speaking, (and we promise to try and not do a lot of that,) its just understanding your financial and operating leverage.

In reality by using basic and time tested tools you're in effect creating an early warning system around business finance problems and financing challenges you are facing now or down the road. And the goal is pretty clear, don't you think - it’s about ensuring you can fulfill your financing and contract obligations while at the same time growing and profiting.

A lot of finance problems revolve around your favorite entity, your customer. It's therefore prudent at all times to understand the financial health of your customer. This can be accomplished in a number of ways - if you don’t think major corporations ask for their clients financial statements... well you're simply wrong. The small and medium sized corporation can utilize various tools to monitor customer financial health; even monitoring payment habits over time is a great tool, allowing you to spot deterioration.

It goes without saying you have to be open to realizing what some of your current financing challenges are - Thats often tough for the business owner to admit because most entrepreneurs we meet are optimistic, sometimes excessively so, which is of course a double edged sword.

Can you balance sheet actually predict failure? A lot of history tells us it can... and there's some pretty basic stuff here. Things like knowing the real value of your assets, not the book values when it comes to negotiating with Tier 1 or Tier 2 lenders. While cash and receivables are the two most liquid parts of your balance sheet even those receivables might misrepresent a true value in your firm if they are uncollectible, or uncollectible in a timely fashion.

While it may seem unappealing to spent to much time analyzing your financial health just some very basic ratios ( we’ve always called them relationships ) in 4 areas - liquidity, leverage, activity, and profit will give you a great total view of your firms current or upcoming challenges .

In Canada your firm has access to traditional financing via Canada's chartered banks, but those financing challenges that seem ' unfixable' can be address by a broad number of business finance solutions from non bank lenders - they include asset based lines of credit , government business loans, monetization of receivables and inventory separately or combined, supply chain finance, and tax credit monetization.

Bottom line ... invest some time in some analysis and basic tracking tools, and consider speaking to a trusted, credible and experienced Canadian business financing advisor on solutions to business finance problems.

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

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

Fixing 3 ( More ) Parasites Of Business Cash Flow . Solutions For Management Financing Challenges In Canada

Power Up Business Cash With These Solutions and Tools!


Information on business cash flow . Fixing management financing challenges so your firm never runs out of cash and working capital .



Parasites of Business cash flow in Canada. We wrote recently on 2 specific parasites concerning management financing challenges for your business. They were, specifically, mismanagement of your cash flow cycle, and... Secondly, poor use of operating leverage.

That word parasite conjures up an image of a ' leech ‘...or ' sponge ‘. It seems somewhat appropriate then to perhaps address 3 more of those parasites of your business cash and working capital challenge.

We'll start with # 1, which is the concept of ' Financial Leverage '. A good way to think of that is that it’s the idea of how different types of financing affect you use affects your net profit. To finance your firm it always comes down to the fork in the crossroads - ie debt or equity. If your firm can pull off acquiring and managing as much debt as possible in a solid manner you naturally restrict outside ability to dilute your equity position.

Essentially that’s a good thing. The only problem is that your lenders want to get paid, either periodically or on a revolving basis. Ultimately its one of the most important ' big picture ' decisions you have to make in running and financing your business.

Potential parasite #2 in our analysis today is the concept of maturing debt. Along with that comes another business decision (boy, there seems to be a lot of important decisions to be addressed today!) which is the idea of taking on debt on either a short term or operating basis. You also don't want to be caught in the additional common situation of having to guess where interest rates must go

Potential parasite # 3 is the idea of current asset management. Here's where things can really go wrong, and generally speaking, fairly quickly.

Did you know that as a business owner and financial manager you have minute by minute access to one of the most powerful tools in business analysis... we think, in the world. Simply speaking, it’s the understanding and analysis of your ongoing receivables and inventory. Your ability to track sales and inventory should have bells going on in your head when things feel like they are going awry. Simply monitor over time your sales to receivables ratio, and in the case of inventory ensure your inventory isn't trending up when your sales are not!

The real ' quality ' of your profits / income is ultimately related to your management of these 3 potential parasites.

In Canada you can fix, eliminate, or control these parasites in a variety of ways. They include a term cash flow loan, receivable and inventory financing, true asset based lending facilities, or the monetization of tax credits such as the SR&ED credit.

Speak to a trusted, credible and experienced Canadian business financing advisor on how you can find and deliver on solutions to management financing 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/business_cash_flow_management_financing_challenges.html

Recognize These Business Finance Problems and Financing Challenges?

Examining Cash Flow And Finance Challenges in Canadian Business


Information on financing challenges faced by Canadian business owners and managers. Spotting and Solving business finance problems




Business finance problems. Got the ability to spot financing challenges when it comes to the immediate and longer term issues that face your firm in the Canadian business environment? We have always felt that some positive proactive techniques and information can go a long way to your health... and that’s better business health we're talking about by the way!

It's easy for an outsider to revert to the textbooks on this one, and larger corporations have access to all sorts of advisory advice. The business owners and managers of small and medium sized corporations in Canada have the tools; they just need to know how to use them. Technically speaking, (and we promise to try and not do a lot of that,) its just understanding your financial and operating leverage.

In reality by using basic and time tested tools you're in effect creating an early warning system around business finance problems and financing challenges you are facing now or down the road. And the goal is pretty clear, don't you think - it’s about ensuring you can fulfill your financing and contract obligations while at the same time growing and profiting.

A lot of finance problems revolve around your favorite entity, your customer. It's therefore prudent at all times to understand the financial health of your customer. This can be accomplished in a number of ways - if you don’t think major corporations ask for their clients financial statements... well you're simply wrong. The small and medium sized corporation can utilize various tools to monitor customer financial health; even monitoring payment habits over time is a great tool, allowing you to spot deterioration.

It goes without saying you have to be open to realizing what some of your current financing challenges are - Thats often tough for the business owner to admit because most entrepreneurs we meet are optimistic, sometimes excessively so, which is of course a double edged sword.

Can you balance sheet actually predict failure? A lot of history tells us it can... and there's some pretty basic stuff here. Things like knowing the real value of your assets, not the book values when it comes to negotiating with Tier 1 or Tier 2 lenders. While cash and receivables are the two most liquid parts of your balance sheet even those receivables might misrepresent a true value in your firm if they are uncollectible, or uncollectible in a timely fashion.

While it may seem unappealing to spent to much time analyzing your financial health just some very basic ratios ( we’ve always called them relationships ) in 4 areas - liquidity, leverage, activity, and profit will give you a great total view of your firms current or upcoming challenges .

In Canada your firm has access to traditional financing via Canada's chartered banks, but those financing challenges that seem ' unfixable' can be address by a broad number of business finance solutions from non bank lenders - they include asset based lines of credit , government business loans, monetization of receivables and inventory separately or combined, supply chain finance, and tax credit monetization.

Bottom line ... invest some time in some analysis and basic tracking tools, and consider speaking to a trusted, credible and experienced Canadian business financing advisor on solutions to business finance problems.






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/business_finance_problems_financing_challenges.html