Financing Working Capital for Better and Faster More Cash Flow
Business owners and financial managers constantly try to avoid the ' liquidity crisis' that can cripple a business . As challenging as it might be for non financial folks to understand different ratios and the structure of their balance sheet those type of issues must be understood and dealt with. That allows you to have ' predictable cash flow '
How does the financial mgr of a business address cash flow, and what is a reasonable working capital loan interest rate ? Answers are easier than you think - things like speeding up collection of your receivables, managing payables and supplier relations carefully, and ensuring you don't have excessive long term debt .
Finally you have understand how you can ' monetize ' your balance sheet to deliver on financing working capital needs. There are a number of ways finance folks have of explaining ' cash flow ' ; a common one is current ratio, simply the relationship between your short term liquidity and your short term obligations;
The reality though? Receivables can be slow to collect and inventories can sometimes turn slowly . If your sales are going up and you are on top of collections and payables your have real operating cash flow.
How then do you monetize the balance sheet - that's what our clients wan to know! They aren't looking for classroom lectures on ratios !
So those solutions ? They are more thank most business owners and financial managers might think. They include:
Traditional bank financing
A/R finance
Asset based lines of credit
Tax Credit Financing ( Typically SR&ED credits )
Sale leasebacks
Inventory financing
Short term working capital loans
So our bottom line? Simply that staying focused on turning over your current assets and financing them properly will accelerate your cash flow and provide the solution for your working capital needs.
It's critical to monetize your balance sheet in the right way, understanding the costs of these solutions, as well as how they work on a day to day basis.
Speak to a trusted, credible and experienced Canadian business financing advisor and has a track record of success.
Don't underestimate the need to address these business financing
issues today.
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
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 .
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
