Understanding And Solving Canadian Business Solvency
OVERVIEW – Information on tools , techniques and solutions around business solvency in Canada . Cash flow and working capital tracking is easier than you think !
Business Health - We're pretty sure dedicated business owners and financials managers care about their business health, and solvency, as much as they care about their personal issues.
And the results of not caring about overall financial health and liquidity in your business are of course disastrous, up to and including business failure. It also goes without saying (but we’ll say it!) that you're in a position to survive and grow when you have business working capital and access to solutions that provide those funds.
The symptoms of poor cash flow should be obvious to every business owner; they include:
Vendor / supplier concerns
Slow receivables
Faulty financial reporting
and on it goes!
When you are on top of things and you have the ability to attract financial solutions. That's a much better position to be in than being ' hat in hand ' in front of a bank or a commercial finance company when your firm is probably closer to ' dire straits ' than poised for growth .
What then are some of the solutions for business working capital and solvency? They in fact are more numerous than you think, and they often can be used in combinations. They are:
Receivable finance
Sale Leaseback Financing
Asset based bridge loans
Comprehensive non bank asset based lines of credit
Purchase order / Supply Chain Financing
Chartered bank business credit lines/term loans
The challenge of course is to ensure which solutions suit your company and when. Here's where you need to take the ' big picture ' outlook as to the business working capital solutions that more perfectly suit your firm’s situation.
To ensure which solutions work you of course need a solid handle on meaningful information from your financials. Unbelievably not every business owner/manager knows how to either pull together the data, or interpret it.
Simple relationships in your financial statements make your banker or non bank lender somewhat of an ‘oracle '
when it comes to predicting business failure. We recommend to clients that they become their own oracle!
Business relationships of the numbers in your financials are both long term and short term. The common word for these relationships is ' ratios’, we prefer our own terminology of a ' relationship '.
When you look at some of the shorter term ' relationships ' in your financials you are really looking at two things; and they are so obvious most owners/managers can't see the forest for the trees.
What are those two things? They are ' changes' and ' movement '. Just keeping track of simple changes in operating expenses, day’s sales outstanding, inventory turns, etc will make you the oracle of your business future. And whether it’s a balance sheet or income statement relationship we assure clients there's meaningful data in them there numbers!!
When you both have a handle on, and care about your cash flow solvency the solutions to growth and operations challenges will become a lot more clearly.
Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with Canadian working capital solutions.
CANADIAN CASH FLOW FINANCING AND BUSINESS SOLVENCY 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_solvency_cash_flow_working_capital.html
