Solving Cash Flow & Working Capital Finance Challenges In Canada ! SME Commercial Financing Solutions

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You Don’t Need A Fortune Teller To Predict Business Cash Flow Challenges Ahead

OVERVIEW – Information on cash flow challenges faced by small and medium business owners in Canada. Solving the working capital finance challenges creates a path for sales and profit growth

Working capital finance challenges in Canada don't require a fortune teller to know that cash flow challenges exist or will exist in your company.

It would be great to hear our clients say they have no problems in this area of Canadian business financing. Unfortunately that's rarely the case. Let's dig in.

Let's look at the root of some of those working capital challenges; what are the real issues, and what's really causing the problems? Next step after that? Solutions!

It's of course great to have sales - and sales and profits are even better. In general when you have those you have the essence of a healthy business. But those are in effect what we could call paper transactions and it always comes back to 100 year old clichés such as ' cash is king ' and 'the sale isn't made until you're paid '.

That cash is required for all those boring things, paying suppliers, paying employees, and meeting your obligations on loans and leases and other business commitments.

Your challenge is typical - how then do you create a flow of cash in the long term, as well as addressing short term bulges to ensure you have liquidity.

Naturally when you have a good handle on cash flow everyone views you in a positive light, most importantly your suppliers and lenders.

The solutions to cash flow challenges often come out of inability to plan or address the right type of cash flow solution. You run the risk of liquidity problems when you current assets aren't able to be converted in a timely manner into cash - those assets are typically receivables and inventory.

There isn't a day when we don't run into a textbook type of working capital finance challenge - it's as simple as requiring product to satisfy regular or new large orders, generating invoicing, and then waiting 30, 60 or 90 days for payment. That is the textbook challenge when we talk to clients asking us for assistance in solving cash flow problems.

So hopefully we have done a pretty good job of telling you what your problems and challenges are - let's address some real world solutions!

At the core of working capital finance challenges are you inability to access business credit. We encourage all customers to seek Canadian chartered bank business credit when they are in a position to do so.

The problem though? Unfortunately many clients can't meet business net worth, personal net worth, and liquidity ratios and covenants your bank might require. Also we strongly believe that inventory financing by banks in Canada is increasingly more difficult to achieve.

Our recommended solution? Don't borrow - monetize. That's the best advice and plan we set out with clients in order to solve cash flow problems. You could get a working capital cash flow term loan, but that just creates additional debt on your balance sheet. Instead, take those assets you already have on your books and monetize them - those assets are the previously mentioned inventory, A/R, and in some cases tax credits due your firm as well as unencumbered equipment.


Liquidity for those assets can be achieved by a receivable financing program, an asset based line of credit, or a short term bridge loan on an asset such as a tax credit or paid for fixed asset such as equipment.


Many of these solutions are outside the chartered bank system in Canada - they are the new world of alternative finance ‘and can be accessed by talking to a trusted, credible and experience Canadian business financing advisor.
Your ability to monetize your assets, keep suppliers paid and current as well as having the ability to grow your business is key to long term business success.


Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 13 years - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com


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 '

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

Choose Your Sources of Working Capital Finance for Business Credit

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You have choices in sources of working capital finance and in business credit solutions.

It is all about understanding the problem and knowing where to go for the solution, so let's look at those two key issues. Understanding the problem is not something you have to read about, as a business owner and financial manager in Canada you live the capital 'crunch' or 'challenge' every day.

Working capital is best understood as your operating capital, and you have investments in receivables, inventory, that's where your investment currently lies, and your goal is to monetize those assets in the best manner possible.

The textbook definition doesn't really help us out - our accountants and analysts tell us to go to the balance sheet, subtract current liabilities from current assets, and, voila! That's working capital!

One of the biggest contradictions that you need to understand is the issues of assets, profit, liquidity and turnover. Once you have a handle of those the concept of working capital and, more importantly, the solutions start making more sense.

We hate those textbook definitions we referred to, but we will agree that the calculation we shared needs to be positive - you do need more inventory and receivables combined as measured against payables and other short term liabilities. How you manage those short term assets of A/R and inventory is the challenge.

Many business owners quickly realize that one of their liabilities, i.e. payables, is actually a large asset in measuring capital and managing it. That is because if you can continue to convert inventory into A/R into cash, and slow down payables you are achieving working capital progress.

Is there a perfect way to measure your working capital needs and progress? One of those methods is to check into the 'cash conversion cycle '- It's a tool you can use to measure how low a dollar takes to flow through your company. It simply takes your inventory and receivable days outstanding, subtracts your payables days outstanding, and there is your final number. It's a great long tool to understand your progress over long periods of time.

In order to achieve solid cash flow you need to increase turnover - that can be done by accelerating cash flow by borrowing against receivables, or selling receivables via a factoring process.

Your working capital solutions in Canada are limited, but they are very focused and real. Your can increase cash flow today with no ones assistance simply by accelerating turnover of your assets such as receivables and inventory. If you feel your challenge is more of a long term nature a term loan (if larger these loans are called subordinated debt) is the solution.

You can also generate unlimited capital by entering into an asset based lending or facility with a non bank finance firm. Don't forget that term loans for working capital add debt and obligations to your balance sheet, so we often suggest to clients that the best solution is in fact monetizing your assets, not borrowing more - that where asset based lines of credit work best.

So whats it all about - it's a case of understanding what it is, looking at how your firm performs in key metric areas of turnover, etc, and then choosing a solution that works best for your firm, whether that is long term in nature, or a bulge type facility that augments your daily cash needs. Speak to a trusted, credible and experience working capital business financing advisor to determine what choice is best for your firm.

Stan Prokop is founder of 7 Park Avenue Financial - http://www.7parkavenuefinancial.com
The company originates business financing for Canadian companies and is a specialist in working capital, cash flow, and asset based financing. In business 6 years the company has completed in excess of 45 Million dollars of financing for Canadian corporations of all size. For information on Canadian business financing and contact details please see:


http://www.7parkavenuefinancial.com/sources_working_capital_finance_business_credit.html


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 '


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





Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

Article Source: http://EzineArticles.com/5076795

Business Financing In Canada : What You Need To Know About Loans & Working Capital Finance

Fallen Into A The Business Financing Void ?

OVERVIEW – Information on business financing and loans in Canada. Masterminding the term loan / working capital finance solution

Business financing almost always involves taking on debt - most owners and financial mgrs are somewhat reluctant to take on forms of finance that don't necessarily help to build the wealth and equity in their business.

But both business loans and working capital finance, done properly, allow a business to handle growth and profits in a manner that reaches their business goals. Let's dig in.

Remember also that often business credit lines and other asset monetization techniques (examples: sale leasebacks / tax credit financing, non bank credit lines) bring new capital and cash to your business but don't necessarily add debt to the balance sheet. These techniques balance themselves based on assets you already own or generate.

In some cases owners must rationalize the fact that they ultimately do in fact need some new permanent working capital or owner equity in the business. One way to measure the need for permanent equity/working capital needs is to simply assess your business credit line fluctuations.

If credit lines are constantly being used to the max there is a suggestion to both you as owners, as well as any other lenders you have, that the inability to meet debt obligations or cash flow needs could be just around the corner.

The whole issue of credit lines versus ' term ' borrowing is critical to the business owner/mgr. That's because it's important to match business needs with the right type of debt.

Longer term fixed assets, i.e. plant equipment, technology needs, etc, should be financing via Equipment financing or term loans. Here a lease versus buy analysis prepared by your accountant or equipment lessor should help you make the right decision. A key caveat here is that you should always be comfortable that your sales and profits and cash flows will be in a position to retire leases or loans your business takes on.

Businesses who are considering taking on loans are often driven by their inability to collect receivables or address inventory needs. These situations truly are fixed by proper revolving credit lines being in place .For companies that can't access bank credit ABL (asset based lending) facilities are the perfect solution. That funding of receivables and inventory helps the ' disruption that your slow paying clients have caused!

There's no question that the true ' magic' in business success if strong sales, profits, and little or no debt. But properly managed loan and working capital solutions play a key role in long term business survival. If you're looking to fill the void in your cash and capital needs seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help you mastermind right solutions based on your company/industry needs.


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 - Completed in excess of 100 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 & Contact Details :


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCING EXPERTISE

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 '

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 Finance: Unfiltered Business Credit Loan Solutions

Time To Preorder Your Working Capital& Cash Flow Solutions

OVERVIEW – Information on working capital finance in Canada. Business credit loan solutions reflect the hard reality of the cash flow needs of Canadian business

Working capital finance might just be a good thing to ' pre - order ' when it comes to an owners'/financial managers search for a business credit loan financing. We're ' unfiltering ' some of the reasons and benefits for that type of thinking and planning. Let's dig in.

Your company's ability to both generate cash and properly finance your assets is often termed the ' lifeblood' of your business. Technically speaking working capital seems pretty simple - only requiring a quick look at your balance sheet and subtracting ' current liabilities' from ' current assets'.

But the real issue, practically speaking in our ' unfiltered' format is that you need to ensure you have a path to liquidity for those liquid/near liquid assets on the balance sheet. How you manage and finance them is really the key to business health. By the way, lenders, or even investors will always look at all that as a key metric around whether your firm will get a business credit loan or investment of some sort.

The other benefit of working capital finance, other than general ' business health' we've referred to is that a positive flow of funds in your business allows for growth and expanding your products and services.

On the other side of the coin what really happens when you've got negative working capital? It's here that your financial creditors and suppliers raise the ' red flag’. Ironically this might even be in a time when your sales are growing, with the real picture being that money tied up in receivables and inventories is simply not moving.

The whole issue of ' assets' is key to cash flow and working capital finance. Even though your assets might be sizeable on the balance sheet if you don't have operating liquidity you won't stay in business over the long term - instead your company is working its way downward to that 'edge of slippery slope''.

Whether you're a start up or an established business the same challenge needs to be faced - ensuring that revenue monetization covers operating expenses.

While various simply analytical tools are available to monitor and assess your working capital finance needs one of the best ones is the ' turnover ratio ' - taking your net annual sales and dividing it by the average working capital during that time period. Safe to say that only businesses relying on investing in A/R and inventories have this challenge- as retail or ' all cash ' firms generate cash quickly.

The policies and techniques we've highlighted are the essence of achieving a business credit loan - including tactics such as financing assets properly and managing expenses.

The actual financing tools for a business credit loan and asset monetization are numerous. They include:

A/R Financing
Inventory Loans
Bank and Non Bank revolving credit lines
Sale leasebacks of owned assets
Tax credit financing
PO Financing
Royalty finance solutions

Good financial planning will allow you to anticipate (aka ' pre order ') working capital finance solutions that make sense for your firm or industry. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you with an ' unfiltered' view of cash flow needs.




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 . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN WORKING CAPITAL FINANCE EXPERTISE



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 '

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 Finance Evaluation : Where’s The Buffet In Your Financing Sources?

Avoiding Your Minute By Minute Cash Flow Crisis

OVERVIEW – Information on working capital finance alternatives in Canada . The right financing sources make the difference in the financial growth and success of your business

Working capital finance , we've always thought, should be somewhat like a ' buffet ' of financing sources for Canadian business owners and financial managers. These folks are trying to avoid the seemingly ' minute by minute' cash flow crunches that any business might experience. Let's dig in.


So, where's the buffet?

No one doubts the number of products and related services supplied by Canadian chartered banks - including both cash flow financing products as well as traditional term loans. Suffice to say that our banks are focused on providing large amounts of almost unlimited capital to businesses that present limited risk. Naturally thousands of businesses in Canada don't fall into this category of both need and size - therefore alternate sources of capital are as important as ever.

The alternative to bank financing for working capital and cash flow needs is the commercial finance companies that are more comfortable with risk and are less regulated than our banks. A great example of this are the ' asset based 'lenders that dominate the market.

These firms lend against collateral and assets - with much less focus on those 'ratios' and ' covenants' that our banks tend to focus on. The result? Greater access to capital and terms and structures that business owners can live with as they grow revenues and. hopefully...profits.

One of the main areas of commercial financing in Canada that is a solid substitute for bank financing is receivable/factoring finance. These solutions, coupled with creative mgmt of vendor payables will often provide the business owner/financial manager with the short term working capital they need. That includes the 'seasonal' or 'bulge' needs that many firms experience in their search for cash flow.

One area that is often misunderstood or overlooked by business in Canada is the Canadian Govt Small Business Loan. While not a good example of a ' working capital ' or ' cash flow ' solution it's a solid financing mechanism for equipment or leasehold improvement needs.

While many businesses in Canada continue to search for the holy grail of debt financing or VC finance solutions they often overlook alternate methods of financing their business that don't dilute equity , and these solutions often allow the business owner to avoid credit cards and personal collateral mortgages as the solution to capital needs.
Bottom line - separate your business financial life from your personal financial life is what we've always counseled clients.

What do both traditional and alternative business lenders focus on in assessing your overall credit needs? Cash flow projections are critical, and when properly prepared and both limit the amount you need to borrow and potentially highlight ways in which you can better manage cash.

Those same cash flow projections will typically also identify whether you need long term debt of some sort of short term cyclical working capital and cash flow. The reality of business financing is that short term borrowing are typically cheaper and don't add debt to the balance sheet.

So what are those forms of different working capital solutions? They include:

A/R Financing
Inventory Finance
Asset based non bank lines of credit
PO Financing
Tax Credit (SR&ED) bridge loans
Sales/Royalty Financing

If you're looking for the ' buffet ' when it comes to working capital and finance sources, with a view towards ending those daily cash flow crisis’s seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with proper evaluation of your cash flow needs .


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 . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN WORKING CAPITAL & CASH FLOW EXPERTISE


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 '



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

Cash Flow Financing In Canada : Reducing Working Capital Finance Challenges

How To Make A Success Story Of Your Business Cash Flow

OVERVIEW – Information on cash flow financing strategies and solutions in Canada . Working capital finance can more easily be accessed with this information





Cash flow financing in Canada is rarely termed a great success story by Canadian business owners and financial managers. How can working capital finance challenges be reduced? Let's dig in.

Numerous factors affect your ability access the right amount of funding you need to run your business. Profit or the amount of it is certainly one of them. Many firms are profitable, but only marginally - and in a lot of cases we see with clients those profits fluctuate tremendously year over year.

Turning profits into cash flow is of course another story. In traditional ' bank lending ' it’s a strong requirement, as opposed to alternative financing which often focuses on assets and collateral in your business. And every business owner knows that in the SME ( small to medium enterprise ) sector most times a personal guarantee of some sorts is of course required. Those personal guarantees are a discussion for another day.

Let's recap traditional and less than traditional methods of financing cash flow and working capital. They include the following:

Traditional Canadian chartered banking - credit lines/term loans

A/R financing

Inventory financing

Working capital term loans

Government Small business loans - structured as term loans but with maximum flexibility around payment

Asset based lines of credit - (These ' ABL''s transform all your business assets into one revolving credit line

Tax Credit Monetization

Unsecured cash flow loans, often terms ' sub debt' or ' mezzanine’

Sale leasebacks of owned assets - this might include assets in one of two categories - equipment and real estate

In some cases it makes sense to form some kind of cash flow contingency plan that might include various forms of ' bulge financing ' solutions, or approaching suppliers and lenders for a payment moratorium of sorts. Those are tough to do, by the way.



Unfortunately many clients we meet don't always have a handle on their financial performance. In some cases they are ' rear focused' , having only historical data , which is challenging if no financial forecast or financial statement strategy is in place re reporting and analyzing.

Businesses with a handle on financial performance have much greater credibility with lenders; it’s as simple as that.

Remember also that while cash flow financing solutions are the fix from an external perspective it makes even greater sense to manage your assets to create internal cash flow.

That is done by having strong A/R controls and turning inventories over faster if inventory is a key part of your business. Naturally financial statement tools and other forms of business software greatly aid the business owner/finance mgr today. Knowing your DSO (day’s sales outstanding) and inventory turns and days outstanding payables is a fundamental you must know to be successful. Watch the business news on TV at night and you'll notice the ' big boys ‘, those major successful corporations always have a handle on these numbers , They're the key elements of the cash flow operating cycle.


If you're looking to be a SUCCESS STORY in your mind (or that of your competitors) seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you reduce those cash flow and working capital challenges.


ABOUT THE AUTHOR:
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 :


7 PARK AVENUE FINANCIAL = CANADIAN CASH FLOW FINANCING EXPERTISE



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

Cash Flow Financing : Different Working Capital Finance Solutions For Different Problems

The Mission – Should You Accept It ? Fixing Working Capital & Business Finance Challenges In Canada



OVERVIEW – Information on working capital finance solutions in Canada. Here’s how the Canadian business owner / financial manager can address cash flow financing challenges via various options




Cash flow financing means different things to different business owners. But when your overall business finance strategy isn’t working your mission, (should you choose to accept it) becomes accessing working capital finance strategies that make sense specifically for your firm. Let's dig in.

In the world of business survival small problems can become large quite quickly, and no example is better than the one of running out of cash. Top experts tell us those owners, investors, lenders, suppliers focus on ' cash flow ' to gauge whether a company is winning or losing.

That's the big picture, but on a day to day basis working capital financing is relevant because it allows you to meet demands of clients, as well as having the opportunity to take on larger deals, contracts, etc.

If a business is growing the problem of proper financing is very visible quickly. That's because the internal workings of the company are not allowing sales to translate into cash as quickly as is needed.

Key to understanding your ' cash flow fix' is the ability to separate long term needs from short term requirements. Also, the business owner/manager has two options for the fix - borrow and take on debt, or monetize assets.

Actually there are three options we suppose - the other is to inject new owner equity into the company. Unless you're a company that is considering ' going public ‘, or desiring to have new private capital come in that 3rd strategy is highly ... undersireable! It dilutes ownership per cent age.

Accountants tell us that the working capital part of the balance sheet is represented by ' current assets ' in your financials. Typically they are receivables and inventory. Managing and financing these two assets are your closest chance to achieving cash flow nirvana!

Financing of current assets can be done both traditionally through Canadian chartered bank lines of credit, or alternatively through non bank independent commercial finance solutions.

What are those solutions?

They include:

Factoring / Confidential Receivable Finance
Inventory financing
Business line of credit via a non bank asset based line of credit
Monetizing tax credits (SR&ED loans)
Sale leaseback of fixed assets
Purchase Order/ Contract Financing

Those are all ' asset monetization' strategies - they don't bring new debt to your balance sheet, and bring you one step closer to ' cash in the bank '.

Owner/Managers also have the ability to consider a working capital term loan. If your business has the cash flow to support such a transaction it's a fixed term loan with monthly payments that inject ' permanent' working capital into the business.

The good thing about having a flexible cash flow financing solution in place is that it allows you to eliminate the ' emergencies' that arise out of sales opportunities or bulges in working capital needs.

The best way to assess your needs is to spend some time always looking at sales growth, seasonality in revenues, needs for new assets, and how much A/R and inventory you will carry or need based on that sales analysis.

If there is any ' good news' in the cash flow conundrum it’s simply that there are analytics and solutions available to business owners/managers.

Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who will join you on ' the mission’.




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 :


7 PARK AVENUE FINANCIAL = CANADIAN CASH FLOW FINANCING EXPERTISE








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

Rebooting Your Working Capital Finance And Cash Flow Capital Choices In Canada

Miracle wanted ? Some straight forward solutions to faster cash flow financing in Canada

OVERVIEW – Information on cash flow capital access in Canada . Working capital finance issues are often complicated by issues of cost, timing to achieve, and knowledge of alternatives offered











Working capital finance solutions often make the Canadian business owner and financial manager feel that only a miracle will solve the challenges they face in financing their business. When they understand the timing it takes to successfully achieve proper business financing, as well as being armed with the right info they will have a better idea of how to ' reboot '

financing issues in their company. Let's dig in.

When it comes to the issue of ' time' around a flexible finance solution the standard ' go to ' in Canada is our chartered banks. Here you have the lowest cost of borrowing capital in Canada, with numerous solutions available for term and revolving business credit.

For smaller firms it's even possible to get an unsecured business line of credit. But even if your banking facilities are in fact secured they are always ' low cost' and flexible relative to the number of services offered

So what is the big problem? In many cases it’s both the time it takes to get such financing in place, compounded by the criteria your company needs to meet to get approved. So low cost, and not so easy to get. That is the conundrum.


By the way, those criteria items for working capital finance approval? They include (but are not limited to!) clean balance sheets with tangible equity, income statements that demonstrate profits and key ratios that must be satisfied such as debt to equity and positive cash flow.

What then are the options? The gap it cash flow capital in Canada is filled by numerous non bank solutions. While these solutions almost always CANNOT match the cost of bank financing they do fill the gap nicely.

Typically these solutions include:

A/R Financing

Inventory Financing

PO Financing

Non bank ABL revolving lines of credit

Tax credit monetization

Mezzanine financing

Sale Leasebacks

Royalty/Revenue financing schemes - (relatively new)

These solutions tend to be specifically structured to your needs and are secured by the assets they finance. So at the end of the day the question that is faced by the business owner/financial manager is really the issue of the access to the financing needed, not the cost.

If you're looking to ' reboot ' your business with working capital finance solutions consider seeking out and speaking to a trusted, credible and experienced Canadian business financing advisor who can help you address issues of:

Alternatives

Cost

Time involved


That 'miracle' your business is looking for might just be around the corner.






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 :



7 Park Avenue Financial = Canadian Working Capital Finance Expertise











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Stan Prokop