Secure Working Capital Financing For Your Business Today ! Cross The Threshold and Check Out Confidential Accounts Receivable Financing Today

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YOUR COMPANY IS LOOKING FOR CANADIAN BUSINESS FINANCING!

ALTERNATIVE WORKING CAPITAL FINANCING OPTIONS FOR BUSINESSES

You've arrived at the right address! Welcome to 7 Park Avenue Financial 

        Financing & Cash flow are the biggest issues facing businesses today 

                              ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?

CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

EMAIL - sprokop@7parkavenuefinancial.com

 

                                                                      

GUIDE TO WORKING CAPITAL FINANCE SOLUTIONS - WHAT YOU NEED TO KNOW

 

 

"Working capital management is a discipline that requires daily attention and continuous improvement." - Unknown 

 

 

Accounts receivable financing is becoming more and more popular as an alternative financing and working capital financing solution for Canadian business owners and financial managers.

 

 

WHAT IS WORKING CAPITAL FINANCING? 

 

Working capital finance is the funding of your business's day-to-day operations that provides cash flow to cover short terms expenses of the business. Typical expenses include salaries and payroll, short-term liabilities such as rent, and the purchase of inventory. To run a business successfully cash flow is needed to operate and grow the business and a number of solutions / business loans are available.

 

There are a number of sources of working capital loan financing - working capital loans, revolving credit facilities via a business line of credit, supplier financing, and a/r financing- aka ' factoring ' receivables for business customers.

 

 

WHAT IS FACTORING? 

 

Factoring A/R is a true form of an asset financing arrangement. Your company uses its receivables - ' AR ' as collateral in a financing arrangement. The financing can be on one receivable, all your receivables, and, more commonly, some or all of your receivables on an ongoing basis.

 

The industry tends to refer to the term 'factoring' as the day to day description of accounts receivable financing.

 

"Poor cash flow is the biggest killer of small businesses." - Robert Kiyosaki

 

 

THE ROLE OF A/R FINANCING FOR BUSINESS GROWTH AND EXPANSION

 

Factoring or receivable financing allows Canadian business owners to receive immediately, on billing, cash for the receivable. A portion of the invoice is always held back, representing a traditional 'holdback' plus some of the lender's financing fee. We would point out that the holdback is always paid back to your firm as soon as your customer pays the invoice.

 

The company receives an amount that is equal to a reduced value of the receivables pledged. The age of the receivables has a large effect on the amount a company will receive. The older the receivables, the less the company can expect - Generally speaking, invoices over 90 days cannot be sold - therefore no cash flow will result in those items.

 

 

 

 

 

  

^{WHAT'S THE BEST RECEIVABLE FINANCING FACILITY AND HOW DOES IT WORK?}

 

  

  

 

 

At 7 Park Avenue Financial, we recommend Confidential Receivable Financing as our recommended solution for clients with monthly receivable portfolios in excess of 250k. There is virtually no upper dollar limit on this type of facility. Under this type of non-notification financing your firm bills and collects its own receivables, with no notice to any clients, or suppliers,. etc. Your company receives all the benefits of a/r financing and factoring with none of the pain!

 

Another related alternative to your a/r financing needs is Purchase Order Financing, which facilitates the funding of your large orders or contracts if financing can't be arranged for that type of order. The solution pays your suppliers and allows you to take on large orders and contracts to propel business growth and profits.

 

  

NON-RECOURSE VERSUS RECOURSE FINANCING - HOW IT WORKS  

 

Factoring, or accounts receivable financing helps companies unlock capital that is invested in accounts receivables. Accounts receivable financing on some occasions transfer the default risk associated with the accounts receivables to the financing company; this type of facility is set up as a non-recourse facility, meaning the lender or finance firm that is doing your factoring in fact accepts the credit risk associated with the ultimate collection of your accounts receivable.

 

How does the lender do that - quite frankly the receivable portfolio originated on your customers in effect is 'insured' by the lender. We will let you guess who pays for that and if it is included in your cost of financing. Yes, you are right, you pay. Typically the cost of such insurance adds at least a percentage or two to your cost of financing.

 

The Canadian marketplace is dominated by a variety of firms that will factor accounts receivable. These firms are either divisions or subsidiaries of large U.S. or other foreign countries, or they are smaller Canadian-owned, operated and funded firms. Typically the latter type of firm, the Canadian single entity, has difficulty in accessing all the funding it typically might need for a large number of transactions. The factoring business requires a significant amount of capital.

 

When a Canadian business originates an account receivable financing it is prudent for the company to ensure they understand the overall profile, reputation, and capabilities of the firm that will be financing your accounts receivable.

 

Unless the business owner negotiates a very special type of facility the accounts receivable financing firm generally has a good amount of customer contact with your customer base; they will want to validate your invoices, confirm customer acceptance of your invoice and products and services, and in most cases follow up directly with your customer for payment.

 

In summary, Canadian firms can increase cash flow by the use of the alternative financing method known as 'accounts receivable financing', commonly called factoring. Cash is secured for your receivables soon that your customer actually paying for it - As we have pointed out that comes at a cost in both financing cost as well as some level of customer intrusion.

 

  

THE BENEFITS OF EFFECTIVE WORKING CAPITAL FINANCING  

 

  

Effective working capital solutions such as factoring and other types of  a/r financing provide numerous benefits for a business via surplus capital - Those benefits include :

 

The ability of the company to  cover temporary gaps in  cash flow to fund payment obligations - along with effective accounts payable management  a business can maintain liquidity

 

Working capital solutions typically bring no debt to the balance sheet and do not require additional collateral as well as a limited emphasis on personal guarantees

 

Short-term working capital and accounts receivable financing solutions are faster to obtain and are often tailored with a strong level of flexibility for the borrower - Traditional lending financial institutions such as banks are known for longer credit approval timelines as well as often demanding additional collateral

 

Effective working capital financing and management improve asset turnover in key areas of the business such as accounts receivable and accounts payable and leads to greater profitability and return on assets. Additionally, these types of financing are 'non-dilutive' and do not require any equity transaction or ownership change.

Typically these financings increase as sales and business assets grow!

 

  

 KEY TAKEAWAYS - WORKING CAPITAL MANAGEMENT 

 

" Don't ignore working capital " Thats from a great Harvard Business Review article

 

 

Businesses use working capital finance solutions to fund everyday operations

Short-term financing solutions around working capital needs should not be used for the purchase of long-term assets or investments in long-term operations

Businesses that experience seasonality or cyclicality in their business model or industry are prime candidates for short-term financing

Depending on the size and creditworthiness of the company good business and personal credit scores are required

 

CONCLUSION - UNDERSTANDING BUSINESS WORKING CAPITAL NEEDS AND CASH FLOW

 

Canadian business owners should dutifully look into who they are dealing with, their capabilities and their procedures.

 

Speak to 7 Park Avenue Financial, a trusted and credible expert with a track record of business finance success to determine their best receivable finance/working capital and business loan solution.

 

 FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION

What is working capital financing?

 

Working capital financing is a borrowing arrangement to fund the daily operations of a business when a firm does not have consistent cash flow.  Proper business financing solutions allow a business to achieve optimal business growth via business financing solutions such as short-term loans, lines of credit and overdrafts, and accounts receivable financing. Steady cash flow allows a company to sustain its growth objectives.

 

Businesses of all sizes and in every industry will typically require working capital finance to expand sales and operations. The majority of small businesses in Canada utilize these solutions to bridge cash flow gaps and ' lumpiness' in cash inflows

 

  

Why is working capital financing important?  

Working capital financing is important   as it allows a business to maintain funds to continue the daily operations of a business - without access to a sufficient amount of working capital a company may not be able to meet short-term obligations or maximize growth opportunities in sales revenues,

 

  
What are the different types of working capital financing?   

 

Different types of working capital finance include short-term working capital loans, lines of credit /  a revolving credit facility, business credit cards,  invoice factoring via trade credit receivable financing, and sr&ed financing solutions for refundable tax credits - Other ' venture debt ' type solutions include purchase order financing, MMR lines of credit, and merchant cash advances. Different needs and circumstances make every possible financing solution unique to a business based on sales and the company's balance sheet and businesses will only pay interest on amounts borrowed and used in any facility.

  
How does a business determine how much working capital financing the business needs?  

 

Determining working capital financing needs are determined by examining the working capital ratio and operating cycle and asset turnover of a business in key current assets and current liability accounts such as accounts receivable, inventory, and accounts payable.

 

What factors should I consider when choosing a working capital financing provider?

In choosing a working capital financing provider for small business financing a company should consider factors such as interest rates on the facility, miscellaneous fees, as well as repayment term flexibility offered in the financing solution. Businesses should align themselves with reputable lending institutions and established financing providers who can meet the specific funding needs of the business.

 

SOURCES/CITATION

"What You Can Do About Excess Working Capital" by Michael C. Mankins and Lori Sherer, published in the July-August 2016 issue.

1. "A Smarter Way to Improve Cash Flow" by Richard V. Hays and Frank V. Cespedes, published in the May 2014 issue.

2. "The Most Neglected Fact About Cash Flow" by Philip Campbell, published in the May 2017 issue.

3. "The Case for Behavioral Strategy" by Dan Lovallo and Olivier Sibony, published in the March 2010 issue (which includes a section on working capital management).

 

 

Click here for the business finance track record of 7 Park Avenue Financial

Business Cash Flow A Problem? Here’s 6 Working Capital Financing Methods

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How To Manage / Increase  Business Cash Flow

Business cash flow! In times of economic or industry turmoil most business owners and their financial mgrs would probably be happy with  1 solid working capital financing solution for  cash flow business needs. We'll beat that and give you 6 ways to improve your business finances going forward . All of these solutions are accessible immediately if you have the right help . How is that for alternative solutions to your working capital and cash flow needs? Let's get started.


The funding of working capital continues to be a large challenge for Canadian businesses of all size - The business owner/financial mgr wants to be able to comfortably run the company on a daily basis, as well as growing the company.

That requires funding of potentially different types,  and along the way those suppliers and employees want to be paid on time also!  That's called running a business.

What's Your 2nd Most Valuable Liquid Asset In The Business ?

The most liquid asset any business always has, (next to cash) is your receivables. Working capital financing is best generated by the collection, or financing of your receivables. This can be done by:


1. Faster collections - Many companies should consider offering a discount for prompt payment - a typical offer might be 1-2 % for payment on delivery or withing 10 days for example


2.Financing / selling your receivables as you generate sales revenues


This type of financing is called receivable discounting or factoring, and is becoming increasing popular every day. If your company qualified  for bank credit, i.e. traditional bank financing, then setting up a business line of credit is optimal . When this type of facility revolves up and down based on your selling products and services and getting paid the facility is operating well


3.You've spent your valuable business capital - would you like to get it back ? Clients of 7 Park Avenue Financial  

always ask what we mean by that.  Any equipment you have already paid for can often be refinanced, the technical term is

Sale Leaseback

That strategy, or a short term bridge loan with the equipment as security is exactly what our clients need to bridge the cash flow gap.


4. We spoke above about receivable financing - one of the best facilities for Canadian business is a combo working capital facility that finances, or ' margins ' both your A/R and your inventory. Since many firms previously couldn't finance their inventory either elsewhere, or via banks, the combined liquidity of borrowing against your A/R and inventory is a true power punch! Typical this type of financing is known as an:

Asset Based Lending Facility

This makes most sense when the facility is at least in the 250k range, and business owners/mgrs will be please to know there is virtually no upper limit in this type of business credit . The facility will grow as your sales and assets grow . Unlike bank lines of credit these are more flexible when it comes to growth business owners will probably recognize the most bank lines of credit are reviewed annually and place a heavy emphasis on issues such as personal guarantees, covenants, financial ratios, and outside collateral . Those issues are NOT the underpinnings of asset based business lines of credit.



5. Many clients are totally unaware the Purchase Order Financing is available in Canada. This is a strong potential cash flow saver, and generator, since your suppliers are paid for product when you order it, once you have received the P O. and entered into a P O finance facility agreement .  The Purchase Order financier  takes the inventory and receivable as security, but in effect finances your whole sale.  While it is an expensive form of financing - typically 2-3 %  per month companies that have good gross margins and could otherwise not facilitate the sale of large new orders and contracts it is a most welcome solution for large contracts, orders, etc.

 Short Term Working Capital Loans - Where Did All These Loans Come From?

6. Canadian business owners are somewhat bombarded by potential short term loans that appear via online firms as well as some ' bricks and mortar ' companies.

Where did this type of loan come from ? The answer is ' from the United States . It originated via a "new" type credit card borrowing in 1995, which has morphed into what is know known as a working capital loan, aka a ' Merchant Advance '.

These loans were for mostly  small businesses  who could not get bank credit or had no personal ability to borrow money for purchasing assets, supplies, etc.

The loans were based on advances against future sales, and were originally focused on the credit card sales of the business .  The industry grew and now services small and medium size companies , including having become very popular in Canada . A typical loan is paid back in 1 year in fixed installments, and the most common requirement is for loans to be approx 10-15% of your firms annual sales. This was a novel new way of lending and has become popular with many businesses.

SUMMARY/BOTTOM LINE :

Ensure you are aware of your Canadian business financing options. Working capital and cash flow are available if you have assets and orders. We have demonstrated that clearly to you via 6 separate solutions. Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success  to to determine what works for your firm.



7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

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

Common Methods Of Financing A Business

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Basic Ways To Finance A Business In Canada

How To Finance A Business In Canada - that's a common challenge for every type of firm, from start up to an established growing business . It's no secret at 7 Park Avenue Financial that business owners and their financial mgrs often feel shackled when it comes to working capital, cash flow , and debt financing options . That's even when it comes to larger established corporations, let alone new clients we meet in looking for SME COMMERCIAL FINANCE options . ( SME = small to medium enterprise ).

Even more of a challenge is how the entrepreneur has to properly evaluate and recognized those options.

A good start ? Simply that one must differentiate between short term cash needs (that’s working capital by the way ) and long term debt and financing solutions . That short term cash flow we're talking about is the cash flow you use on a day to day basis to finance a business - those routine everyday parts of a business - payroll, purchasing supplier inventory, covering your fixed costs, etc!

Naturally if your cash flow is decreasing your firm is unable to meet the obligations you have to suppliers and lenders, including your bank of course, assuming bank financing is in place.

It all boils down to 3 reasons as to why your firm needs working capital ; first you might be a start up, secondly it's those firms that are growing more rapidly than they planned , and finally simply the inability to cash finance day to day business . That latter situation typically involves around the challenge of managing and financing receivables and inventory .

When it comes to smaller businesses in Canada, those that we referred to in the SME category it is not uncommon for banks and commercial lenders to place a good amount of emphasis on the owner personal credit history . As your firm grows it is therefore of critical importance to start properly positioning your company as a business borrower , one with borrowing power based on your balance sheet, income statement, and cash flow statement . By the way, sales and cash flow projections don't hurt also!

Many firms are often unwilling to take on debt, but the good news is that working capital and cash flow financing is often just a monetization of your current assets ( a/r and inventory ), as well as your sales. You don't want to over borrow on sales and assets, as that can typically lead to a false sense of security .

Therefore the best business line of credit ? One that fluctuates!! It's generally a negative situation if your line of credit for your company is close to ' maxed out ' all the time. That typically leads to the financial challenges we alluded to earlier - the inability of your company to run smoothly on a daily basis.


Incurring debt is of course not all bad. It makes perfect sense to borrow and incur debt outside the working capital needs - a good example might be the need for more equipment. Paying for a long term asset out of current operating capital is not recommended. If the equipment generates profits and has a longer term useful life you have made the correct financing decision.

WORKING CAPITAL OPTIONS IN CANADA :

 

In Canada working capital options range from traditional to alternative. A bank working capital facility will margin 75% of receivables and potentially, but certainly not always, a portion of your receivables. Larger firms have access to non bank asset based lines of credit that provide a very healthy margin of cash flow by utilizing 90% of your receivables and anywhere from 30-70% of your inventory.

There are some very effective ' subsets' of alternative financing such as a/r financing, factoring, confidential receivable financing . If properly used they can turn your company in an ATM like machine for cash flow and growth financing . Again, its all about effective mgmt and financing of assets such as a/r, inventory, and sales.

Other Alternative Financing Methods

Not everyone knows that you can cash flow SR&ED credits as well as financing purchase orders and contracts. Those 2 alternative finance methods alone allow you to maximize your r&d capital investment and take on larger orders, respectively.

Businesses who can properly represent themselves via their true financial position and growth potential should never feel shackled when it comes to working capital financing. Never ' over borrow ' and ensure you have access to the traditional and alternative financing options that allow you to run and grow your company.



Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success, one who can assist you in identifying immediate solutions... unleashing those shackles of the cash flow challenge .







7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

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

Isn't It Time You Understood Operating Lines Of Credit Alternatives ?

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Is There A Better Way to Access All The Working Capital You Need ? We've Got One !

Operating lines of credit, or Asset based lines of credit , via ' non-bank' lenders, are fast becoming one of the most flexible and popular methods for small, medium, and large customers to finance their operations


. Asset based lending is getting increasing popular with Canadian firms. Terms are more accommodating, and are usually ' non covenant' based . Unpredictable cash flows and seasonality are often other reasons why an asset based line of credit has substantial appeal to business owners and CFO's. These operating loans are totally focused on the assets of the business , most predominately receivables and inventory .


The total focus of the facility is the ' Current asset ' portion of your balance sheet, ie receivables, inventory. In certain cases equipment, real estate, and intangibles can be financed . Credit line facilities are set up based on your borrowing requirements relative to your receivable and inventory assets . Generally receivables under 90 days are financed, as those > 90 days infer uncollectability . Although some focus is placed on over all viability and secondary sources of repayment overall the focus is on the business assets . Rates vary based on size of facility, overall asset quality, and the lender pricing model.


This type of financing provides the firm with significantly more liquidity as the Canadian chartered banks usually lend only 50-75% on current asset categories such as receivables and inventory .


More and more Canadian businesses in the small and medium sized enterprise space are finding it difficult to achieve the operating lines of credit they need from our traditional lenders such as the Canadian chartered banks. These firms are turning to asset based lenders . In our experience many companies are not even aware that such a financing option exists .


Asset based lending places less emphasis on proven track records and financial strength , instead focusing on key business assets such as accounts receivable, inventory, and in some cases equipment and real estate .


True asset based lending should not be confused with ' factoring '. In a factoring environment the company in effect sells their receivables to another firm at a discount . Asset based lending allows the company to bill and collect its own receivables . The loan is paid down and reduced , in a fluctuating manner , as the company collects its invoices .


This type of financing can in effect become a strong lifeline in the current liquidity and credit crisis . Banks traditionally margin receivables in a more conservative manner , and further significant reliance is placed on the customers over all financial health with respect to the current balance sheet and income statements .


The one negative aspect of this type of lending is that it comes with a higher cost . The lender usually has a higher cost of capital and is looking for a significantly higher return than a traditional chartered bank .


In most cases more reporting by the company is often required . That is to say they are more often submitting updated reports related to current receivable and inventory levels . Overall a more rigorous due diligence is in place .


The current asset based lending market in Canada is still quite small , but the industry is clearly growing .


In summary, small and mediums sized businesses should check out asset based lending as an alternative to traditional bank financing . Due to the complexity and relative lack of knowledge around this industry the firm should work with a trusted business financing advisor . Asset based lending can provide unlimited liquidity to firms who are growing - because it focuses on the assets, not the balance sheet and income statement !


Business owners and managers should seek qualified assistance in locating an asset based lender that suits their industry and overall financing requirements re loan size, etc . A study done by the CIBC several years ago indicated that business owners who sought out trusted financing advisors had revenues 76% above those who did not seek a business financing specialist or trusted advisor . Traditionally these types of loans or operating facilities are for firms with under 50 employees .


Asset based lending in Canada is a classic case of a source of capital at the right time, given the current turmoil in the financial and credit markets . Many special situations can be addressed by a constructive asset based line of credit - these include buyouts, cross border projects, and debt restructuring . Many firms that are even in bankruptcy or receivership can avail themselves of a true asset based lending agreement .


Although it is often a more expensive type of financing the case can be made that the asset based financing is much cheaper than the firm issuing additional equity and diluting ownership . Key benefits are improved cash flow, stronger reporting capabilities and the maximization of receivables and inventory financing .






7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

Click Here For 7 PARK AVENUE FINANCIAL website !



7 Park Avenue Financial provides value added financing consultation for small and medium sized businesses in the area of cash flow , working capital , and debt financing .



Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' 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

Who’s The Boss? Are Cash Flow Financing Challenges Managing You? Business Working Capital Management

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Information on Solving Cash Flow Financing Challenges in Canadian Business

Valid question, right? When it comes to your business
working capital and cash flow financing who's running the show, you, or are those two culprits seemingly running your company?

We're remind of one of Yogi Berra's (many) great lines - ' when you come to a fork in the road, take it ‘! That's probably where you are now in many cases. Determining who will win the ongoing cash flow battle for supremacy.

The reality is that you can probably be forgiven for feeling ' Who's the boss ' as statistics show that 82% of business owner don't feel in control or comfortable about their cash flows. So how in fact do you regain that feeling of control that every business owner treasures.

A good start is to know what you're talking about. We've repeatedly said that cash flow is such an over used and misunderstood concept or term. We can get really technical (net income plus deprecation plus or minus changes in working capital components) but unless we're at an accounting trade show/convention that's not really what we're looking for here!

To make things more complex we can make a case that your ' cash flow ' has to do with historical, present, and future needs, making it even tougher to get a handle on.

There are some great tools and also solutions to manage your cash flow financing needs. And again, we're talking about real cash, not income statement profits. That frankly though is a good place to make a very important comment - if your cash flow statement ( it's component # 3 of every financial statement ) differs significantly from your income statement over time you probably will never really regain cash flow control/supremacy.

So lets examine some solid ways to make sure you feel good about that ' WHO'S THE BOSS' question we posed earlier.

First of all, keep your financials up to date and understand them. A small handful of key ratios or relationships you can easily, and we mean very easily monitor over time will allow you to feel ' in control ‘. Simple things like receivable days turnover, inventory turns, sales to fixed assets, etc.

It sure doesn’t hurt to do some methodical cash flow planning. Also, take a look at your overall capital structure from a viewpoint of debt and equity. This allows you to properly take advantage of market growth opportunities, even an acquisition perhaps.

We know we sound like a broken record sometimes, but understand your operating cycle; it’s the amount of time it takes for a dollar to flow thru your company. Match a financing solution to that selling cycle.

Hottest tip today on cash flow generation? It's dont pay anyone! But seriously, managing your payables and disbursements is critical, but we're the first to recognize the importance of supplier relationships. If you have a sales force you might consider paying them commissions when sales are paid, not made. Talk about incenting the collection focus!

If your assets aren’t turning over quickly focus on that. You can also monetize your current assets via

bank lines, asset based lines of credit, working capital lines, receivable financing, inventory financing, and supply chain finance .

Who's the Boss when it comes to cash flow? Hopefully you. Speak to a trusted, credible and experienced Canadian business financing advisor on cash flow financing and business working capital analytics and solutions.






7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

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

The Key To Working Capital Financing - Asset Based Lenders

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Wondering how your competition seems to have all the working capital financing they need and you don't - the key to that answer might just be asset based lenders and the asset based lines of credit they offer to Canadian businesses such as yours.

Let's examine how this relatively new and unique method of business financing can totally alter your business financing success.

The acronym for this type of financing is A B L; simply speaking its daily cash flow provide against your current, and sometimes now so current assets. What do we mean by that? Simply that this facility allows you to margin your receivables, inventory, and in most cases, should you choose, fixed assets and real estate. You are probably saying to yourself that you could arrange financing on your own re those fixed assets and real estate - but we are talking about using those assets as collateral for your daily revolving line of credit. So you aren't borrowing, you are not bringing debt on to your balance sheet, you are just leveraging your ' assets ' (that's the 'A' in ABL!) for daily cash flow and working capital.

And why are we claiming that this type of working capital financing just might be your key to business success. Simply because you have probably found it has been challenging to get the full amount of business credit you need. In some cases you might have discovered its been a challenge to get business lines of credit of any manner.

So if your competitors are using this type of financing today, who exactly is eligible for it, and is your firm a candidate. The answer is simply that if your firm has a combination of 250k in working capital assets you are immediately eligible for asset based lines of credit. We would add that firms with smaller asset sizes can still monetize those receivables via invoice financing or discounting, but that's not our key focus for today's information exchange.

So now you now the offering are out there. But why should you consider it. Simply because your firm might be in one of a number of special situations - that includes issues such as your need for increased daily operating cash, you wish to merge with or finance an acquisition, you have been unable to obtain inventory financing elsewhere, you are growing to quickly for traditional Canadian chartered banking financing, etc! We are pretty sure you get the picture now!

The benefits to this type of business financing must by now be pretty obvious. It's all about access to working capital financing and cash flow that you couldn't access before. Assets that couldn't be financed are now financeable, and inventory financing, previously limited or unavailable now looms on your growth horizon.

Who are these asset based lenders, and what is the cost of this financing? We'll leave that one for another day, but if you want to investigate asset based lines of credit for your firm ( remember, your competitor probably already has ) then speak to a trusted, credible, and experienced Canadian business financing advisor who will assist you with identifying benefits and the best solution for your current strained needs in business finance.




7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

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



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


Article Source: http://EzineArticles.com/5895090

The Key To Working Capital Financing - Asset Based Lenders

Tweet

Wondering how your competition seems to have all the working capital financing they need and you don't - the key to that answer might just be asset based lenders and the asset based lines of credit they offer to Canadian businesses such as yours.

Let's examine how this relatively new and unique method of business financing can totally alter your business financing success.

The acronym for this type of financing is A B L; simply speaking its daily cash flow provide against your current, and sometimes now so current assets. What do we mean by that? Simply that this facility allows you to margin your receivables, inventory, and in most cases, should you choose, fixed assets and real estate.

You are probably saying to yourself that you could arrange financing on your own re those fixed assets and real estate - but we are talking about using those assets as collateral for your daily revolving line of credit. So you aren't borrowing, you are not bringing debt on to your balance sheet, you are just leveraging your ' assets ' (that's the 'A' in ABL!) for daily cash flow and working capital.

And why are we claiming that this type of working capital financing just might be your key to business success. Simply because you have probably found it has been challenging to get the full amount of business credit you need. In some cases you might have discovered its been a challenge to get business lines of credit of any manner.


So if your competitors are using this type of financing today, who exactly is eligible for it, and is your firm a candidate. The answer is simply that if your firm has a combination of 250k in working capital assets you are immediately eligible for asset based lines of credit. We would add that firms with smaller asset sizes can still monetize those receivables via invoice financing or discounting, but that's not our key focus for today's information exchange.

So now you now the offering are out there. But why should you consider it. Simply because your firm might be in one of a number of special situations - that includes issues such as your need for increased daily operating cash, you wish to merge with or finance an acquisition, you have been unable to obtain inventory financing elsewhere, you are growing to quickly for traditional Canadian chartered banking financing, etc! We are pretty sure you get the picture now!

The benefits to this type of business financing must by now be pretty obvious. It's all about access to working capital financing and cash flow that you couldn't access before. Assets that couldn't be financed are now financeable, and inventory financing, previously limited or unavailable now looms on your growth horizon.


Who are these asset based lenders, and what is the cost of this financing? We'll leave that one for another day, but if you want to investigate asset based lines of credit for your firm ( remember, your competitor probably already has ) then speak to a trusted, credible, and experienced Canadian business financing advisor who will assist you with identifying benefits and the best solution for your current strained needs in business finance.







7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

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.







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


Article Source: http://EzineArticles.com/5895090





Stan Prokop