What Type Of Asset Finance Is The Lubricant To Growth Financing In Canada ? Financial Assets Are Critical To Business Success

Let’s play the Match Game Of Asset Finance In Canada


OVERVIEW – Information on growth financing strategies in Canada. Your ability to properly match asset finance of your financial assets to the right type of solution is key to proper growth .



Growth financing in Canada. As if keeping your business alive as a Canadian business owner or financial manager wasn't enough, what about all the growth financing challenges you have to face?!

There probably are thousands of businesses in Canada who are either content to stay roughly the same size, or , at the opposite end of the spectrum, want their business financial assets to grow, but just don't know how , or where to turn to . Businesses in the SME sector in Canada are sometimes quite happy to put those earned profits regularly back in the bank accounts of their owners. That’s ok, for course, just not complementary to a growth strategy.

As we said though, many firms wish to capitalize on asset finance solutions in Canada to add assets to their business open a new location, buy a competitor, even in some cases franchise their business model.

So if it is true that financing is the key ' lubricant ' in that growth financing depends on, and if the business owner’s dont have ability to fund their firm personally, what are in fact the options? In reality there are more than you think!

Naturally early start up firms in Canada though do in fact rely on initial owner equity. But sooner or later you need growth financing of financial assets for key investments in offices space, software, computers, and other infrastructure and business model assets.

We never fail, or at lease try not to fail at pointing out to business owners/mangers that internal cash flow generated form asset turnover is a key to growth finance. It's just that they are never enough! And if you're not big enough to go public yet, or engineer a reverse takeover then financing financial assets is in fact going to be a key driver in your revenue and profit growth.

Here though we are at a key point in the juncture of your firm. Because here's where mistakes are made, we’re referring to the sometimes inability of the business owner/manger to match the right assets with the right type of financing. So a very key point is in fact that you should be financing receivables, inventories, and tax credits with short term financing vehicles in Canada.

Those solutions include bank lines of credit, receivable finance, inventory finance; asset based non bank lines of credit, and purchase order/supply chain financing.

Longer term assets should be financed with term loans, equipment leases , secured or unsecured cash flow loans ( unsecured is best!) , etc .

If you wish to match the right assets you have, or need, with the right type of financing seek out and speak to a trusted, credible and experienced Canadian business financing manager today.

P.S. That is of course only if you want to grow your business!

7 PARK AVENUE FINANCIAL
CANADIAN GROWTH FINANCING AND ASSET FINANCE SOLUTIONS






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/asset_finance_growth_financing_financial_assets.html

Growth Financing Challenges ? Don’t Trade Off Growing Due To A Cash Flow Problem !

Canadian Growth Finance Problems .. and Solutions!


Information on growth financing challenges in Canada . Don’t let a cash flow problem prohibit your company growth!




Growth financing in Canada. It's a harsh reality for many business owners that with new found revenue growth comes a cash flow problem. Knowing why that problem exists and what to do about it is what we're talking about today.

Cash flow goes higher and lower with growth. Simple as that. But why those changes ? That is the key question. It's because your working capital accounts change all the time, every day in fact. Those working capital accounts are receivables, inventory, and your payables on the other side of that balance sheet.

So if there is any one point you can take away here its that as your assets and payables increase your business cash flow goes.... DOWN! It therefore goes without saying (almost) that if your sales go up and your working capital assets such as inventories and A/R stay the same or decrease your working capital cash flows get ... Better!

It’s your ability to either finance, or turnover those working capital accounts that will ultimately make you successful in growth financing and solving any cash flow problem you have.

The big take away here, again, is that you have to watch your receivable and inventory growth. Not all companies have an inventory challenge, such as service Type Company, but pretty well all of us have A/R. One internal way you can address a cash flow and working capital challenge is to slow down payables. As we have pointed out in the past that is a very double edged sword given that you value your supplier and vendor relationships which can often be key to long term success.

Don't forget also that when your sales go down for whatever reason that also has, somewhat ironically a positive effect on your working capital. The trick here is to also reduce some of your expenses as much as you can.

It's also a good tip, over time, to monitor your levels of inventory and A/R in conjunction with sales going up and down. That's because it’s simply a great tool for predicting better or worse cash flow in the coming months based on history.

So is a cash flow problem necessarily a bad thing. Ironically, definitely not. It's all about the reason for that issue, which typically in a good environment is growth.

We've talked a lot about internal issue and knowing when and why a problem might exist. But a better questions form clients is of course ' what solutions exist?! '.

Here the key rule of thumb is to match the right type of financing with the actual problem. To put it even more clearly, finance shorter term working capital with short term cash flow solutions. In this case we're talking about some traditional and not so traditional solutions.

In Canada they included bank lines of credit, receivables financing, working capital facilities, non bank in nature that finance both A/R and inventory, as well as purchase order or supply chain financing. If you have a SRED claim you can even finance that for short term cash flow, as these loans don’t even carry monthly payments!

Speak to a trusted, credible and experienced Canadian business financing advisor for solutions to growth financing.

7 PARK AVENUE FINANCIAL

CANADIAN GROWTH FINANCING SOLUTIONS




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/growth_financing_cash_flow_problem.html

On Top Of The Latest Trends In Canadian Growth Financing ? Working Capital & Purchase Order Finance Alternatives

No Jargon Get It Done Today Finance Solutions for Businesses in Canada


Information on growth financing alternatives in Canadian business . How working capital solutions such as purchase order finance can provide alternatives to business challenges .




Staying on top of any aspect of your business is important, and that includes ensuring you understand some of your alternatives when considering growth financing and working capital solutions. We're talking about everything from standard solutions such as working capital term loans all the way out to the end of the spectrum, the new kid on the block, purchase order financing.


When the SME sector (small and medium sized businesses in Canada) can't meet the requirements of a Canadian chartered banking solution then what are some of the alternatives. The last couple of years have been somewhat brutal on manufacturing companies, balance sheets have been hit and breakeven, let alone profits have been touch to achieve for many.

A total solution for many firms is to utilize a Canadian asset based lender to address numerous challenges at the same time. Let's examine a typical situation which many clients have found themselves in over the last couple years. They might have secured debt via a bank revolver or term loan, coupled with challenges around CRA arrears and accounts payable which have ballooned due to an overall working capital shortage.

In this type of case, as profiled above the growth financing comes from an all encompassing working capital facility to replace the banking solution, This type of financing margins receivables to 90%, provides a healthy margining of inventory previously not available ( anywhere from 30-70%). In more rare cases a straight cash flow loan might be added to the facility to further enhance the working capital

The bottom line is that the asset based growth financing solution solves a number of problems around collateral, size of the facility, and general health of your firm. Most importantly it addresses your company's ability to grow again and fund that growth at the same time. In effect we've achieved a hybrid type solution that many small and medium sized firms sorely require.

And what about that purchase order financing concept. Actually it’s not a concept; it’s a viable solution that gains more traction everyday. The P O finance solutions bridges the gap between fulfilling your contract or purchase orders from the time you receive them to your ability to get final payment from your end user customer. In some cases, but not all, purchase order financing involves a foreign supplier, either in the U.S., Europe or Asian. Your P O financier makes payment to your vendors, on your behalf, taking the products, inventory and receivables from that transaction as security. It is a more expensive form of financing but provides a valuable bridge to sales growth success.

So, is staying on top worth it? We think so, therefore you will want to ensure you have thoroughly investigated all solutions available for growth financing in Canada. Speak to a trusted, credible and experienced working capital financing advisor who can assist you in identifying solutions that make sense... for you!



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/growth_financing_working_capital_purchase_order.html