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It’s Changing Times In Canadian Business Finance!
Has your firm got cash flow in the crosshairs? Confused about that ' working capital formula ' you keep hearing about.
For many Canadian business owners and financial managers, it's clear - something isn’t working. Business seems kind of back to the usual collapses (of everything), pandemics included, and the average SME business owner and financial manager find they have less working capital and lending solutions available than they had in the past.
DO YOUR COMPANY HAVE ACCESS TO BUSINESS CREDIT AND WORKING CAPITAL CASH FLOW SOLUTIONS
Industry experts point out that the actual access to business credit and cash flow solutions is more and more a great predictor of survival.
Naturally, our banks and major financial firms have websites and advertisements that indicate they are providing more credit to great companies like yours. Sorry for the sarcasm...
It's no secret that lending standards are tighter than in the past, there are certainly not a lot of looser credit standards and criteria these days.
Here's a big irony - a large number of businesses in Canada actually run their businesses on credit cards - both business, and... You guessed it, personal. Working capital providers looking at loans for startups also place a certain emphasis on the credit profile and management experience of the owner/owners.
THE DANGERS OF MIXING PERSONAL CREDIT AND BUSINESS CREDIT
The one danger there of course is that the owner’s personal financial life is significantly mixed into the business. Banks are a good example of placing a strong emphasis on an owner's ' credit score ' . In general, that's not a good thing. One study in the states indicated that business owners seem to squeeze about 5k of revenue out of every 1k they spend via business credit cards... it could be worse we guess. All of a sudden that 0% interest rate on a new card must seem tempting we suppose.
In a perfect world (and we know it isn't) you want your company to be able to have enough cash for all your business needs, all the time. That’s of course where the imperfect world comes in.
What really happens is that you spend a lot of cash sometimes, and in those good months you receive a lot of cash from clients for goods and services delivered... For start-up firms or companies with a lot of seasonality in their business, it's even a rockier road.
If the business owner and financial manager track 'the numbers' over time he or she will find that at times when they have high inventories and receivables they are generally running out of much-needed working capital/cash flow.
MAINTAINING A BALANCE IN YOUR CASH FLOW NEEDS
Here's a fundamental concept that every business needs to get a handle on: You can raise cash flow by drawing down all the cash you have in the bank, borrowing via lending solutions - short term or otherwise, or raise additional owner equity. But you can’t keep doing any one of those all the time!! There needs to be a balance and a strong look at why you are always running low on cash.
Is there a most recommended way to access cash flow? More often than not it’s an internal solution, reducing A/R and inventory and managing payables carefully.
9 SOLUTIONS TO BUSINESS CAPITAL WORKING CAPITAL / CASH FLOW
Great lending solutions for your cash needs both traditional and alternative and include:
Access to Canadian bank loans/line of credit
Non bank asset based lines of credit
Equipment / fixed asset financing
Government Of Canada Small Business Loan Program - The Guaranteed federal business loan
CONCLUSION
Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your business financing needs.
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Email = sprokop@7parkavenuefinancial.com
Click Here For 7 PARK AVENUE FINANCIAL website !
7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.
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.
Stan has had a successful career with some of the world’s largest and most successful corporations. He is an experienced
business financing consultant
.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 financing 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.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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