How to Use The Short Term Working Capital Business Loan For Business Capital

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How to Get Ahead in Business Financing with The Short Term Working Capital Loan

Short term business capital loans for Canadian business is all about having to make a choice in your business financing strategy. Business owners and financial managers want choices in their business . Those large Bay street type firms have all the financing it needs it seems, but what about the little guy. Enter working capital lenders !

If your business can't obtain any, or enough cash flow then the working capital loan might be the solution you are looking for . The industry is very popular now and it seemed to rise up out of the popularity of what was known as Merchant Advance type firms who often help finance retail firms, restaurants, etc.

Our clients always ask why then can't get get the same type of funding from their bank. There are several reasons , and it's not that big of a mystery.

The working capital lender is looking mainly on your sales revenues from a size perspective . Typical working capital loan rates are reasonable when you consider they are short term in nature and are not collateralized by the assets of your business. That's a big thing when you differentiate it from bank financing . Our friends at the banks seem a bit obsessed with ratios and covenants and guarantees!

Although bank financing is cheaper it is simply isn't available for all firms looking to borrow capital.

Working capital loan rates are based on short terms , ie 1 to 18 months, and typically are for up to 10 to 20% of your annual sales.

Business capital loans such as 'merchant advances' have been popular for some time now . The time to fund is very quick and is generally one of the more popular forms for alternative financing these days. In effect you are monetizing future sales , and that can be a powerful business finance strategy.

24 Hours to Improving Short Term Working Capital Loan

Funds from business capital loans allow you to take supplier discounts, purchase inventory , increase your a/r and in inventory turns. Overall its a solid return on equity strategy.

Only you as business owner or financial manager can decide if this business funding is right for your firm. But now you've got a choice you might not have been aware of.

Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success to ensure you choose the right method of financing when you're at the crossroads!





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 !





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

Top Working Capital Funding and Facility Solutions

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Information for Canadian business owners on working capital funding and the type of working capital facility for a small or medium sized company  that will meet your firm's needs. How to measure and recognize the need for a cash flow solution that meets your firms requirements.

What Is A Working Capital Loan

Every Canadian business owner and financial manager wants to know that their firm has financial health in the short term. Your company's ability to access cash  means only one simple thing - you have the ability to pay off your short term liabilities such as accounts payable, taxes, source deductions, etc.

Those larger companies have access to a lot of other means of capital, venture capital, private equity, etc. Our focus is on SME Canada , those small and medium sized enterprises that are the backbone of the economy, in good times, and those less than good times !

So do you, in fact, need a better type or working capital facility today, and, if so, what are your options. We can't cure the patient unless we can confirm he is sick... so how in fact do you determine if that working capital need exists. It could not be simpler. Go to your balance sheet, add up cash, receivables, and inventory, and if they in total don't cover your accounts payable, guess what... the patient has a problem.

Two points worth mentioning, we fully realize the most successful business managers and owners know intuitively that they have a challenge in the area of cash flow. It's simply recognizing that on a day to day basis more and more time is devoted to working capital management - i.e. collections, invoicing, juggling payables, etc.

What Is A Working Capital Loan? Who Are The Working Capital Lenders

There are very specific cash flow solutions for your working capital funding requirements. But believe it or not many of them can actually be fixed internally. Your ability to negotiate better terms with your suppliers is a critical cash flow factor. More importantly, many business owners don't focus on the turnover and quality of your current assets such as receivables and inventory.

By effectively measuring and monitoring your turnover in receivables and inventory can significantly improve cash flow.

Technically we're talking about reducing day's sales outstanding and calculating inventory turnover. Your goal is to reduce the amount of time it takes for a dollar to flow through your company. It is all about managing those  ' working capital ratios '.

So we have identified the problem, and the measurement issues around that problem, let's focus on solutions and the financing of working capital.

In a perfect world, and we know it's not, your Canadian chartered bank would be financing all your receivables and inventory on an ongoing basis, and when you need it to offer up a bulge type facility to take you through a working capital rough patch. That type of working capital facility is generally referred to as a business operating line of credit.

As we said, it's not a perfect world apparently!... And thousands of firms, perhaps yours, don't have access to this type of facility. So the Canadian marketplace offers up a number of solutions, for medium-sized and larger firms the alternative is an asset based line of credit that comes without the restrictions of a bank facility ( ratios, covenants, outside collateral, etc) but in fact provide you with more working capital than a bank could.

 For smaller firms, a working capital facility term loan is available via the government related bank in Canada. For smaller and medium sized firm's receivable financing facilities, known as factoring, can turn your receivables into a constant ATM machine, albeit at a higher cost.

So what's our bottom line. Simply the right business loans via a working capital facility will put life back into the patient, your company! Knowing what facility works best, what your options are, etc is really the only challenge, Speak to a trusted, credible and experienced Canadian business financing advisor to guide you through to the right cash flow solution.


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 competencies 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

















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

Article Source: http://EzineArticles.com/5364669

Working Capital Lenders Have The Right Model For Your Finance Lending Needs

Cash Flow Drivers ( And Passengers ) : Working Capital Issues & Solutions In Canadian Business

OVERVIEW – Information on working capital lenders in Canada and the solutions they provide in cash flow and working capital finance lending in the SME Commercial finance segment of Canadian business

Working capital lenders are a critical part of the SME COMMERCIAL FINANCE lending arena in Canada. When it comes to your 'cash flow drivers' in your company it’s the right finance solution that counts. It should be your goal to be a ' driver' on that cash flow bus, not a passenger! We're examining some of those solutions to ensure you've got the right finance model in place. Let's dig in.

Various parts of your business play a key role in the cash flow/working capital conundrum. The ability to generate a profit is certainly very close to the top of the list. The increases and decreases in your working capital account are next in line. Finally, other cash outflows come from the need to buy fixed assets - although the majority of businesses finance those needs via lease financing and term loans.

Business owners quickly realize there's a huge difference between profit and cash flow. If you or your accountants are showing a positive working capital position on the balance sheet that doesn’t necessarily mean that you are generating positive cash flow from operations. It's short term working capital lenders that provide the solutions to those investments you are making in A/R, inventory, and other misc. investments.

And those solutions? They include:

Canadian chartered bank business credit lines

Non bank asset based credit lines

Inventory Financing

Refundable tax credit finance - primarily the ' SR&ED' program

Sale leasebacks

Unsecured cash flow loans

PO/CONTRACT financing

Sales/royalty finance solutions

As you convert those inventories and receivables into cash you repay those facilities.

Cash flow finance lending is made by banks and commercial finance lenders based on your overall ' risk profile. This includes the perceived values of your assets, how you convert them, and the controls and practices you have in place.

That ' risk profile ' also determines whether you can finance your business via a chartered bank or a commercial ' specialty lender'. Many businesses need to seek non bank solutions due to issues such as volatile financial changes in their business or simple seasonality needs that drive high fluctuations in cash flow needs.

In most cases your company will always be able to generate higher borrowing levels via commercial lenders who provide you with more margins on the levels of your assets - although typically at a higher cost.

The value of, and turnover of your A/R and inventories is the essence of solutions from working capital lenders.

If you're looking to access proper financing from those cash flow drivers in your business 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 your finance lending 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 LENDING 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