Cash Flow Financing ! Problems And Oh Yes Business Solutions !

Two Great Tips On The Cash Flow Conundrum!

Information on cash flow financing solutions and techniques for the Canadian business owner and manager . Problems can be solved via internal techniques and real world working capital tools.

Cash flow financing for your business. We're sharing some solid solutions and tips for business finance problems and challenges.


Whether your financing challenges are temporary, or seem to be occurring all the time the Canadian business owner and financial manager is always looking for a fix to that dilemma. So our focus on strategies and straightforward business financing methods that... you got it... fix the problem.


Tip # 1 - Don't pay anyone! Well we're kidding of course, but a better way of saying what we intended to mean is that you can manage a lot of your cash by using an internal solution... payables management. The trick of course is having key vendors and supplies that value your business and want to work with you to keep your business - somewhat of a classic win / in scenario, don't you think.


The ability to turn your stated 30 day terms into 60 and 90 days with your vendors allows many companies to actually become self financing. That's almost cash flow nirvana - not borrowing and growing your business. It's no secret that some of the largest companies in the world pay firms such as yours slowly just to optimize their corporate cash flow. The nerve of those guys.


Our final point on this technique is simply that you don't want to end up ruining a key supplier / vendor relationship, so a proper sharing of the facts keeping in mind the value of the relationship is critical.


Tip # 2- Accelerate collections, finance receivables, and better yet... do both! When we talk to clients about their cash flow financing challenges it’s often about their customers owing them money and not paying. The internal things you can do to fix this problem are of course to be more firm with collections and enforce your terms. Big companies hold shipments to their clients, so you should not be afraid to also. We'd also consider raising prices to clients that don't pay. Just keeping a constant watch on your days sales outstanding or collection period is going to make you a true ' Master' of business solutions and solving those working capital problems .


You might also want to offer a discount for prompt payment. One key point here is that you need to have some decent gross margins when it comes to offering a typical 2% discount for prompt payment. But don't forget also that you can take those same funds you receive and take discounts with your own suppliers. Another key concept here is to understand your borrowing rates and bench mark them against discounts you might offer for prompt payment

Solutions for cash flow
abound in Canada. It's all about picking the right one for your firm.

They include:


Receivable finance

Working capital term loans

Asset based lines of credit

Business commercial bank facilities

Tax Credit Monetization

Supply Chain Finance

Securitizing your receivables or contracts


Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your business problems via real world solutions.

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

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 '

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

Business Cash Flow Financing Problems ? Here’s Some Solutions

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Escaping The Cash Flow Cycle Dilemma

Information on business cash flow financing problems and challenges for Canadian business . What solutions are available for working capital needs

Nothing is as entertaining to us sometimes as to talk to a new entrepreneur who aspires to ' get rich ‘in business. It's at that time that things just don't seem that complex; a firm just needs to make a product, sell it, and bank the profits. And when you think of it, that's not incorrect, it just exhibits a bit of inexperience in the perception of that simplicity, don't you think.


The only thing that is missing in that analysis is of course those three magic words, the ' cash flow cycle'. It's that cycle that will dictate whether your business cash flow financing problems are normal, or perhaps seriously in need of solutions .


Clients often mistakenly think that negative cash flows, those huge swings from positive to the negative are in fact a sign of failure. That's the farthest from the truth. It simply means you're ' in line ‘. In line? To get paid of course!


But the preparations you make when you are ' in line ' are what will truly make or break your business. Simply speaking you need cash flow financing solutions to cover those deficits. It is at those times that your firm is most vulnerable - because employees, suppliers, and lenders, (what a group!) may in fact doubt your ability to return to positive cash flow.


Canadian business owners turn to chartered banks to cover that deficit, when they can. The bank is in a position, when you qualify, to provide you with a business line of credit that will allow your cash flow cycle to continually repeat itself, from negative, to positive, and all over again.


But what if the bank is an inaccessible option for cash flow finance solutions? In some cases we have seen business owners solve their working capital problem by simply accessing supplier credit in a more aggressive manner. It’s not always immediately obvious to business owners that slowing down payables increases your operating cash flow. Of course it's a delicate balance though.


Another issue in working capital and cash flow financing challenges can be the seasonality of your business. Many businesses have very uneven profit earnings; for example they might break even or sustain financial losses during some parts of the year, and thrive at others.


When business in fact seasonal, experiencing the ' bulge ' as we might call it your bank or other lenders have the option of staying the course with your firm, or canceling credit facilities altogether .


We have shown that cash flow challenges are a business reality, spanning all types of businesses and different industries. With proper management and solutions those challenges can be overcome. It always gets back to the issue of cash flow and profits being recognized as different. Bottom line, your profits are on paper only until they are banked.


In Canada business owners have access to a number of business finance solutions for working capital and cash flow. They include traditional banking, asset based lending, receivable finance, inventory finance, P.O. finance, and tax credit monetization.


Speak to a trusted, credible and experienced Canadian business financing advisor who will ensure your business hasn't lost faith in its ability to come up with growth and capital solutions for success.

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

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 '

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

Working Capital Cash Flow Financing With No Expiration Date For Canadian Business Solutions For Your Company

Looking For Solutions To A Creativity Deficit In Your Cash Flow Crunches?

OVERVIEW – Information on available solutions for the working capital cash flow financing crunches faced by Canadian business owners and financial managers

Working capital cash flow financing challenges, we've found. create huge ' Creativity Deficits ' in the minds of Canadian business owners and financial managers. They tell us they are constantly looking for a finance solution that doesn't have an ' expiry date ‘!

We're happy to share some of those solutions. Let's dig in.

If you think when you're watching the business news that only large corporations are addressing cash flow issues imagine what the SME Commercial companies in Canada must address. How does the business conserve cash and arrange financing that is ' evergreen ' in nature - allowing you to utilize assets and sales to cash flow your operating and growth needs.

Business people get working capital and cash flow mixed up a lot we have found - your day to day working capital is made up of your investment in A/R and inventory and at the same time recognizes accounts payable. Poor payables management often destroys key supplier relationships.

It's important to use your cash flow for the right types of financing - you should be utilizing equipment leases for assets that have a longer economic life.

Don't forget also that existing assets can be refinanced via sale leaseback strategies, bridge loans, or refinancing of any of your company’s commercial real estate - even 2nd mtges can bring additional capital into your business. Government guaranteed business loans can help finance leasehold improvements and fixed asset needs - rates and terms are excellent - commensurate with the same financing the ' big boys ' access.

The ultimate short term financing tool for any business is a commercial business credit line. Banks do that best, and the lowest cost. Problem - not every business qualifies with demanding criteria such as high owner net worths, personal guarantees, debt and cash flow covenants that meet bank standards. While banks have the lowest cost of capital, as well as ample capital not everyone qualifies.

The solution for not qualifying at the bank? The good news is multiple sources of short term financing exist:

Non bank asset based lines of credit

Inventory financing

Refundable tax credit finance loans ( SR&ED Credits )

A/R Financing (We always recommend CONFIDENTIAL RECEIVABLE FINANCING) Here you bill and collect your own receivables with no notification to suppliers, clients, etc. You control cash needs and flow.

Remember also that a company can inject ' permanent working capital ' via a working capital term loan. It's simply a cash flow with fixed repayment terms. That solution brings debt onto the balance sheet though, and is very different from ' monetizing ' assets such as A/R, inventory... and equipment. Naturally bank and working capital term lenders also like to see healthy owner injections of capital - which is not always possible our clients tell us! The two main criteria for working capital loans are a good cash flow ratio and reasonable debt/equity.

We're always amazed at business owners or their managers who are running significant businesses without proper planning using things such as a simple cash flow forecast. One famous saying tells us that ' revenue is vanity, profit is sanity, but cash flow is king '!

Never forget also that it's not just access to the financing solutions we've mentioned that bring true cash flow success - you must turn inventories, grant prudent credit.

Those basics will allow you to foresee potential ' bulges' in cash flow needs and have better negotiating leverage with your bank or a commercial finance firm. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can put you on track to permanent solutions to Canadian business financing challenges.




Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :

http://www.7parkavenuefinancial.com/working-capital-cash-flow-financing-solutions.html





Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:

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


' Canadian Business Financing With The Intelligent Use Of Experience '





















Stan Prokop

Canadian Business Financing Advice And Solutions. Not Just About Bags Of Cash

Are You Really Good at Scorecarding And Running Your Business ?


OVERVIEW – Information on Canadian business financing and advice for scorecarding solutions for your business



How can you tell when a business is doing well?

Business owners and managers that are ‘non financial’ in their backgrounds often need to know how to ‘‘scorecard’ their business. They want to know how to make intelligent decisions about both running their business and moving it forward. At the end of the day the owner/manager wants to know they are managing their assets properly in a manner that allows them to grow and profit.

It might seem improper to answer a question with questions but at the end of the day the business person needs to have a solid handle on some key basics. They might include:

Are we financing are current assets (A/R and inventory) properly?

Can we take on more debt or would it be actually necessary to bring in new ownership equity?

Do we have proper operating efficiencies when it comes to collecting our accounts or turning inventory over?

If the owner/manager understands the relevance of those questions and where to seek answers they are definitely on the right track to doing well.

A key secret to doing well is in what we have termed ‘relationships ‘. Many call them ratios – but if you understand the relationships between just some key numbers in your financial statements that revolve around profit, efficiency and solvency you are absolutely on the right track to doing well.

A quick example? Let’s focus on ‘profit ‘. Take your total profit for the year and divide it by the assets in your business. It’s a simple arithmetic calculation. No financial degrees required. It’s a measure of how you’re using the assets in your business relative to the profit it generates. All industries have different results based on capital intensiveness, etc. So if you think you’re different, you are! But not when compared to others in your industry. Lenders and investors will look at this simple comparison to justify loans or new equity.

One final point on doing well. The numbers in your financials don’t always provide answers – but they can provide some great questions, which you need to address!


What are the signs of a business doing poorly?

While many people use sales /revenue as a yardstick of success we ourselves are a bit more financially oriented to focus just on that. Solvency is therefore important. When you can’t pay bills or suppliers a whole lot of business distress starts to take place.

That’s when it time to focus on a ‘back to the basics ‘strategy that might include improving liquidity by refinancing. Many companies are doing poorly because they simply have too much debt relative to their asset base. Lenders such as banks have some basic ‘yardstick ‘measurements when it comes to cash flow and the amount you can borrow. If you don’t meet those yardsticks lending is curtailed and your company has the risk of entering into the ‘death spiral ‘that we read overtakes many firms.
If your client base is drifting away and owners and shareholders are dissatisfied it’s time for the business owner to assess the problems.

What steps should entrepreneurs take when your business is not doing well?


Business owners need access to good data when the company is perceived internally or externally as not doing well. Key focus on sales, financial controls and availability of financing become key. Objectives at this point have to be realistic, allowing the business to handle challenges of not doing well because of general economics or operations.

It’s all about understanding your financial position, and using that data to address the particular challenges you’re facing. We come back to ‘relationships ‘ again ; that could be focusing on cash flow strategies, analyzing cash outflows , looking at inventory controls, and rationalizing headcount .

How you can prevent your business from failing?

There’s of course no guarantee regarding business failure. One factor that we see often is that many businesses equate sales and profits as ‘cash flow ‘. That kind of thinking has led to some of the greatest financial debacles in business history – so we always encourage clients to have a solid handle on that difference – and it’s a large one. We can jokingly say that to avoid all future cash flow problems we encourage owners and executives to compensate sales staff on collections – but that has never really gone done well!

Who can help get a business back on the right track after failing?


While you can pay turnaround experts and consulting firms large amounts to get your company in turnaround mode the reality is that in many cases the business owner and manager has access to a lot of quality information in their own networks of accountants, lawyers, peers , bankers, etc . Getting credible advice from trusted, experienced parties never has to be expensive or time consuming.

While our firm, 7 Park Avenue Financial focuses solely on business financing we have found ourselves spending countless hours in helping clients achieve overall business success through referrals, advice, etc.






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/canadian-business-financing-advice-solutions.html

























Stan Prokop

Turnaround Financing Solutions Might Be Just Around The Corner When A Specialist Is There To Help !

It’s Here ! Turnaround Financing Solutions From A Specialist – Closer Than You Think !

OVERVIEW – Information on turnaround financing solutions in Canada . Let help from a specialist solve your business financing challenges






Turnaround Financing? ? It's associated with financing solutions and specialist techniques when your company is addressing various situations that may or may not be a crisis situation - although it probably feels like one to the Canadian business owner and financial manager.

A Turnaround Solutions Specialist focuses on a number of different areas - it might be management, products, and sales, however we're focusing on finance.

Clearly we can think of financing solutions as the ' doctor' that will be putting your company back in order. Statistics tell us that over 50% of companies that are in turnaround mode are eventually ' saved’

What then should be the goal of turnaround solutions when it comes to Canadian business financing? Ultimately the focus needs to be on getting your company back to some level of cash flow in order to meet your short term and long term obligations when it comes to debt levels.

That’s ‘JOB #1 “! After that you want to be working with someone that has the long term solution in place, with enough financing that gets you to where your firm needs to be. In some cases you might also need new equipment and assets and production equipment. These can usually be acquired via bridge loans of equipment leasing strategies.

We often hear the term ' peeling back the onion ' and its a good analogy for our current purposes ; because its all about seeing what isn’t working from a cash flow and profit perspective, and then putting turnaround solutions in place .

These cash flow accelerator finance turnaround solutions might include:

Receivables Finance

Inventory Financing

Asset based lines of credit to replace existing ( or absentee) commercial bank lines ( In some cases your firm might in SPECIAL LOAN category already at your bank, and ABL lines of Credit are the perfect solution to take your company out of special loans !)

Purchase Order/Supply Chain Finance

Tax credit monetization (Yes, tax credits can be financed)

Sale leaseback strategies via a lease or bridge loan


Even suppliers/vendors can be a solid source of new credit and financing if relationships have been and can be maintained. Oh, by the way, consider your landlord in that group, and if you own your own facility it might be time to refinance for working capital and cash flow purposes.

The obvious question we get from clients is pretty understandable, and they can be forgiven for asking it: ' Who would provide us with financing in this difficult period ‘. The reality is they are party correct in their negative assumption, of their turnaround, mostly because they are focusing on traditional lending sources. In fact many alternative financing strategies work perfectly when it comes to ' THE TURNAROUND '.

That's not to say that Canadian banks and other more recognizable solutions won't address a turnaround - but we can assure you they will need a solid business plan that shows how the company will be fixed and how current and future cash flows and profits will be generated.

So, need some help? Turnaround financing solutions to the rescue! Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your needs.

7 PARK AVENUE FINANCIAL
CANADIAN TURNAROUND FINANCING SOLUTIONS EXPERTISE





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 10 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 :


Turnaround Specialist







7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com




































Stan Prokop

Cash Flow Financing ! Problems And Oh Yes Business Solutions !

Two Great Tips On The Cash Flow Conundrum!

Information on cash flow financing solutions and techniques for the Canadian business owner and manager . Problems can be solved via internal techniques and real world working capital tools.




Cash flow financing for your business. We're sharing some solid solutions and tips for business finance problems and challenges .. i.e. Solving The Conundrum!

Whether your financing challenges are temporary, or seem to be occurring all the time the Canadian business owner and financial manager is always looking for a fix to that dilemma. So our focus on strategies and straightforward business financing methods that... you got it... fix the problem.

Tip # 1 - Don't pay anyone! Well we're kidding of course, but a better way of saying what we intended to mean is that you can manage a lot of your cash by using an internal solution... payables management. The trick of course is having key vendors and supplies that value your business and want to work with you to keep your business - somewhat of a classic win / in scenario, don't you think.

The ability to turn your stated 30 day terms into 60 and 90 days with your vendors allows many companies to actually become self financing. That's almost cash flow nirvana - not borrowing and growing your business. It's no secret that some of the largest companies in the world pay firms such as yours slowly just to optimize their corporate cash flow. The nerve of those guys.

Our final point on this technique is simply that you don't want to end up ruining a key supplier / vendor relationship, so a proper sharing of the facts keeping in mind the value of the relationship is critical.

Tip # 2- Accelerate collections, finance receivables, and better yet... do both! When we talk to clients about their cash flow financing challenges it’s often about their customers owing them money and not paying. The internal things you can do to fix this problem are of course to be more firm with collections and enforce your terms. Big companies hold shipments to their clients, so you should not be afraid to also. We'd also consider raising prices to clients that don't pay. Just keeping a constant watch on your days sales outstanding or collection period is going to make you a true ' Master' of business solutions and solving those working capital problems .

You might also want to offer a discount for prompt payment.

One key point here is that you need to have some decent gross margins when it comes to offering a typical 2% discount for prompt payment. But don't forget also that you can take those same funds you receive and take discounts with your own suppliers. Another key concept here is to understand your borrowing rates and bench mark them against discounts you might offer for prompt payment

Solutions for cash flow abound in Canada. It's all about picking the right one for your firm. They include:

Receivable finance
Working capital term loans
Asset based lines of credit
Business commercial bank facilities
Tax Credit Monetization
Supply Chain Finance
Securitizing your receivables or contracts

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your business problems via real world solutions.

7 PARK AVENUE FINANCIAL
CASH FLOW FINANCING EXPERTISE



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 10 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/cash-flow-financing-problems-solutions-business.html






7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com






















Stan Prokop

Is The Grim Reaper Of Your Business Cash Flow? Here’s Working Capital Tips And Solutions That Only Make Sense

You Lose.. He Wins .. Don’t Let The Grim Reaper Of Business Finance Get The Lead On Your Business !



Information on business cash flow solutions for the working capital challenges faced by Canadian business on a daily basis .



Is the lack of business cash flow a potential ' GRIM REAPER ’ for Canadian businesses of any size? We certainly think so, and that’s why the ability to figure out / measure what isn’t working and what solutions are needed should be ' job 1' for the Canadian business owner and financial manager.


The goal of course is simple, and it’s to achieve the right balance of both profits and cash flow liquidity. Easier said than done, as we are prone to be saying these days, but the sad state of affairs is that most clients we talk to are focused on revenue and profits and don't have the best handle on business cash flows. And even when the problem has been identified where does the business owner/manager go for solutions?

It seems as if the Grim Reaper of negative cash flow seems to be stalking us all the time!

The actual management of cash flows is really about how well you handle turnover and overall quality of your ' current asset ' accounts. They are actual cash or business lines of credit you have access to, receivable turns, and inventory turns. And, as we said, it’s a case of quality, not quantity. We get a big kick out of what many financial analysts and accounts deem to be the best measurement of liquidity, and that’s the ' current ratio ‘. In reality this number looks great, even fabulous if you have uncollectible receivables and slow moving inventory. But don't get us started...

At the core of understanding your business cash needs is the concept of arranging your finances so that short term cash flow needs are in fact met by short term asset financing. Typically in Canada that comes from various types of financing that might include:

Receivable financing

Inventory Financing

Asset based non bank lines of credit

Supply chain / purchase order financing

Tax credit monetization


In order to determine which one of these is right for your firm the business owner must focus on the amount of financing you require, the rates of that particular finance vehicle, and your overall ability to get approved for the financing you believe you need.

Many of the non traditional sources of working capital solutions , some of which are referenced above have in fact become more popular and well known simply because Canadian business has found it more difficult and challenging to access proper liquidity solutions from Canadian chartered banks over the past several years, although, on balance, this seems to be improving . And remember that traditional bank financing can be withdrawn at any time if the bank calls the ' demand ' loan based on perceived risk in your business, or industry. Think Automotive, circa 2008-2009.

Managing and having access to working capital cash flow and solutions is one of the greatest challenges for any business. Dropping the ball on this issue will ultimately lead to business failure.... simply speaking... the GRIM REAPER wins.

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

7 PARK AVENUE FINANCIAL

CANADIAN BUSINESS CASH FLOW 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/business_cash_flow_working_capital_solutions.html

Business Credit Squeeze ? Rerum Cognoscere Causas ? Better Yet … Solutions !

Canadian Business Financing - Unsqueezing the Squeeze!


Information on business credit and financing solutions in Canada.
Causes and finance remedies for Canadian companies.




Business credit and financing solutions in Canada. We saw a headline that screamed out of a U.S. publication indicating that small and medium sized businesses in the U.S. were in a ' CREDIT SQUEEZE'. And that got us to thinking ... Rerum Cognoscere Causas? Which is simply Latin for ' knowing the cause!

So we're in Canada ... is there a credit squeeze here for the SME (small and medium sized enterprises) sector... and if so, how can your company eliminate the squeeze?!

When it comes to business financing it’s about daily operating cash flows as well as growth financing. How you manage or solicit solutions to those two challenges ultimately will affect the long term success of your business. And without good solutions and information the short term can be quite painful might we add!

As a company in the SME sector in Canada you're vulnerable at a lot of levels... the economy, the crazy things your competitors do and the fact that these days almost any global issues can almost be biting your firm also! So access to working capital and business credit financing is critical.

Many clients we speak to are immediately always focusing on outside external cash flow financing solutions. The reality is that a lot of their problems can be fixed by a focus on cash from their own operations. And the last thing most owners want to do is to focus on equity financing, which at its simplest just reduces your ownership and long term equity potential.

So how do Canadian business owners and financial managers address those internal solutions? We recognize it's easier said than done but it's done by focusing on your collections and payment terms, maximizing solutions around electronic payments and business credit cards, and managing payables and supplier relations.

But getting back to external solutions now, how then can the owner address business credit financing solutions in a manner that makes sense? You do that by identifying which of the three (or perhaps all three) types of financing you need from external sources.

What are those three types of financing? They are:

Fixed financing
Working capital financing
Growth financing


In Canada numerous external solutions exist for all those three types of financing you need to be successful. Those solutions include : Canadian chartered banks, receiving financing facilities, working capital solutions via non bank asset based lines of credit, leasing and sale leaseback solutions, and even tax credit monetization and securitization when those two apply to your firms condition. And remember, under all of those solutions you are not giving up equity.

Don't also forge the government Small business loan program which is a great program for business capital for asset and leaseholds up to a maximum of $ 350,000.00.

So, are we in a credit squeeze in Canada in the SME sector? We'll let the economists and business pundits argue out that one as they always do... instead focus on internal and external solutons that make sense for you, the Canadian business owner and financial manager.

Speak to a trusted, credible and experienced Canadian business financing advisor on eliminating that credit squeeze!

7 PARK AVENUE FINANCIAL

BUSINESS CREDIT AND FINANCING SOLUTIONS EXPERTISE





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_credit_financing_solutions.html

Here’s Some Keys To Unlock Business Operating Cash Flow With Solutions That Work

What is Cash Flow And What Tools And Financing Methods Are Available To Canadian Business


Information on business operating cash flow solutions in Canada. How business owners and managers can unlock financial power in their company.



Here's to not losing your keys. We're talking about the keys to unlocking business operating cash flow and the solutions that come with that Canadian business financing challenge.

We're big

fans of confusion, because hopefully it enhances our reputation of providing clarity around issues such as business cash flow! That term is often confusing to many business owners, and financial managers.

The reality is that you will ultimately be judged by others, i.e. suppliers, bankers, lenders, lawyers, and other professionals as to how well you manage and understand that business concept.

That cash flow plan is really one of the most important documents in your business. Where confusion reigns is that it is often inter mingled with profits, income and revenue, which really are all pure accounting terms.

As we have pointed out in the past, cash does not, we repeat, does NOT equal profits, The short example is that your firm probably has a payroll this week, but in fact has not collected monies owing to you for sales you have made previously, perhaps a month or so ago. And, as we have pointed out, although you have recognized that revenue you in fact have not been paid. The short comment... it's pretty simple - You dont pay bills with revenue, just cash!

When the busines owner demonstrates he has true control over his business he enhances his or her reputation with a lender, whether that is a banker, a commercial finance company, a lessor, etc.

So what keys can you use to dig deep and unlock the cash flow power within your firm? One way is to maximize management of accounts payable. Properly and effectively managing that time lag between your receipt of goods and services to payment enhances operating cash flow, increasing it. Naturally you don't want to abuse supplier credit.

Managing fixed assets properly is another key to unlocking cash flow. Watch your fixed assets to sales ratio, and you might even consider a sale leaseback on unencumbered assets.

A huge cash trap for which you need a great key is inventory. Monitor inventory performance and the amount of product you carry.

Lastly, and perhaps most importantly, the key to unlocking cash flow power is in your receivables. Have a solid credit policy and ensure your A/R is financed properly, either through a bank or commercial receivable finance company. That latter strategy can turn your company into a real cash flow machine if managed properly.

Keep in mind that you're the one in control of those keys to unlocking business operating cash flow. Financing solutions are also available to enhance those ' keys ' - speak to a trusted, credible and experienced Canadian business financing advisor about those solutions that might work for your firm .




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_operating_cash_flow_solutions.html

Carrying On Without Cash Flow Is Not An Option ! Analysis and Solutions For Canadian Business

The Importance Of Cash Flow Focus in Canadian Business

Information on business cash flow analysis and working capital solutions in the context of Canadian business financing .

Carry on? Without business cash flow? That's not an option for Canadian business owners and financial managers. That's why the analysis of their cash and working capital needs, in the context of solutions available is so critical in today’s business environment.

So are we all in agreement? We mean of course that no company has the ability to on a long term basis operate successfully without cash. That shortage is often the reasons why many companies fail.



However, the balance sheet and the income statement, as we always preach, dont necessarily tell you the full story of your company's goings on! A cash flow statement, that’s the third part of every financial statement package will, however, truth be told you can perform a fair bit of solid analysis way before your accountant or your accounting system delivers that document to you.

So why do you want to be so attuned to that cash flow anyway. Simply because whether it’s the short, intermediate or long term it’s a true measure of your solvency. And that solvency is what keeps your creditors and lenders and suppliers either happy or dissatisfied with your payment ability.

In more sophisticated firms a real measure of cash flow is often ' free cash flow '. Simply speaking it’s the true cash flow calc which then subtracts your capital expenditures to come up with that ' free cash flow '. Investors in public companies look at that one a lot, and quite frankly since the small to medium sized business in Canada doesn’t pay dividends or have to report earnings and cash flow we dont really consider that one quite relevant in the context of today’s discussion .

So what is important then? Several other great tools area available. Just one of those is the cash return on sales analysis tool. Take your cash flow from operations and divide that by your net sales over that same time period. Let's say the number works out to 10%. What does that mean? Simply that 10% of the sales you generate provide cash to the company. At the end of the day the number is relative to your company because it tells you how efficient you are in turning sales into cash.

Another great tool to check out is current cash debt coverage, which we'll leave for another day’s discussion.

At the end of the day there are ultimately 5 reasons why companies fair - they have too much debt, they are caught in a vicious cash flow cycle, they have current assets that aren’t turning, or fixed assets and too little capital come into play.

To solve these challenges Canadian firms have a variety of solutions - they include bank lines, asset based lines of credit, receivable and inventory financing facilities, tax credit monetization, and securitization. Oh and don't forget the proper use of equipment finance.

Speak to a trusted, credible an experienced Canadian business financing advisor on business cash flow analysis and solutions available to your firm today.






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_analysis_solutions.html

2 Signs Your Business Is Going Broke And Your Solutions For Fixing Business Cash Flow Problems

Solving Business Cash Flow Problems .. Today Or Before They Happen

Business Cash flow problems can be solved with the right info an Help . Solutions for business liquidity before you hit the wall!


Can you spot (or have you spotted already) business cash flow problems inside your firm? A better question might be - have you got some solutions to those problems! We've got some insights into both today.

Business failure, temporarily, (or otherwise!) often comes back to cash flow and working capital. In some cases it's an ongoing situation that saps management strength - at other times it's a time bomb inside your firm, seeming ready to explode at any time as you hit the proverbial cash flow shortage wall!

Your ability to perceive this challenge and correct it is of course critical.

Let's get to the meat of the matter... jumping right into the matter. Here are 2 key areas or reasons why you might be ' going broke ‘, and maybe not know why. The term ‘ going broke ‘ is a bit unsophisticated .. but anyway …here goes!
Your ongoing challenges might involve one of these, or both . We'll let you make the call.

Sign # 1- your cash flow cycle. Simply speaking it’s the relationship around the ' in’s and outs' of your business. It's the time cycle between collections and payables. We met with a CEO yesterday of a larger firm who commented that in his cash flow cycle they typically get paid by clients before suppliers are paid. They are in the food industry - and that would be typical. When that issue is reversed, i.e. suppliers needing to be paid before clients pay you face a cash flow cycle problem.

And by the way, you need the right mix of those ' current assets ' when it comes to turnover. When your a/r or inventories become ' bloated ' that's a sign of ' going broke '.

Sign # 2- Leverage. It's a common term that the business financial folks use. It's essentially the fixed costs in comparison to the profits you can earn from selling more. As you look to buying more assets, or even buying a competitor that leverage issue becomes critical. Buying more assets and taking on more fixed costs just puts more pressure on you to breakeven, let alone make a profit.

Too much leverage ultimately will lead to business failure.

Remember also that one of the biggest misconceptions in business is that profits aren't cash. Lenders in Canada generally aren't impressed by romantic, slick company names, high ambitions and future profits. They focus on cash flow and the quality of earnings - when you track income and cash flow over time they should gradually come together.

Our final advice - seek out the ' bad news ' in your cash flow problems - and understand where they are coming from.

Solutions in Canada are abundant - depending on where you are in the business maturity cycle - i.e. start up, growth, mature, etc. Those solutions include solid banking support, receivable and contract finance, inventory and P.O. finance solutions, and asset based lending and equipment finance.

Speak to a trusted, credible and experienced Canadian business financing advisor on how you can utilize these to... dare we say it... not go broke!



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_problems_solutions.html