Struggling With Cash Flow Issues ? Working Capital Financing Solutions Can Help Unlocking The Secrets To Business Cash Flow Problems !

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YOUR COMPANY IS LOOKING FOR WORKING CAPITAL SOLUTIONS!

CASH FLOW MANAGEMENT STRATEGIES AND SOLUTIONS TO IMPROVE CASH FLOW

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

 

 

WORKING CAPITAL SOLUTIONS THE COMPETITION DOESN'T WANT YOU TO KNOW ABOUT

 

 

 

Solutions to working capital problems for Canadian entrepreneurs work best when they come from the real world .. we can call it  ' main street financing '.

 

Yes, you're right - this isn't the time for ' crowdfunding ' !... what a concept that is  .. having a million people send you $1. We wish we had thought that one up.

 

THE MOST COMMON CASH FLOW PROBLEMS IN SMALL BUSINESS

What then do the Canadian business owner and financial manager do regarding cash flow problems and working capital solutions when cash flow shortfalls are tightest? Even well-operated companies require cash flow solutions for their profit and growth objectives; clients of 7 Park Avenue Financial tell us they just want to know how to get there.

 

We will discuss the common causes of cash flow shortages and what is at the root of these poor cash flow problems - Obvious issues are typically slow-paying customers or the seasonality that might occur in any business or industry - Many businesses also encounter unexpected expenses.

 

IS YOUR BUSINESS EXPERIENCING  ANY OF  THESE  COMMON  CASH FLOW PROBLEMS AND CHALLENGES?

 

Inability to pay bills and  meet vendor/supplier obligations

Unable to meet obligations around long-term debt financing

Missed opportunities for growth

Excessive reliance on the owner's personal funds to avoid a cash flow crunch

Inability to meet  payroll obligations

Reduced vendor and employee satisfaction and morale

High growth leads to lower cash flows as profits do not equal cash in a business - Expaning and a focus on growing quickly will always lead to a loss of cash flow as additional staff and investments will require external business financing

 

  

BOUNCING  BACK TO POSITIVE CASH FLOW  

Cash flow is of course 'fuel' that will drive the combinations of growth and more profits, and allow you to run day-to-day operations with greater ease. Your working capital is tied up in the current asset accounts on the balance sheet - that includes cash on hand,  accounts receivable and inventories for those businesses selling products versus services.

 

It's all bout cash going out versus cash coming in! Liquidity problems will lead to the ineffective running of the business and cash flow is always seen by business lenders as a key financial indicator of business financial health - Fast-growing and profitable businesses can easily have cash troubles.

 

 

 

2 WAYS TO ACHIEVE THE OPTIMAL BALANCE IN YOUR CASH FLOW

 

Cash flow problems and growth goals are usually tied together in some manner - problems for small businesses can be solved by a business owner by focusing on two key areas :

SALES .. AND ASSET TURNOVER!

  

Asset turnover is sometimes a bit of a surprise  to business people that aren't necessarily grounded in finance, but the issue of turning over your assets, in fact, opens up a wide variety of potential solutions, most notably:

MONETIZING AND CASH-FLOWING YOUR BUSINESS  ASSETS

 

  

By financing your assets and at the same time focusing on better turnover your overall profit/growth situation improves, almost immediately.  It’s all about ensuring your cash reserves :


Turning Inventories

Collecting Receivables Faster

Financing Long Term Assets Profitably

  
  
  

SOLUTIONS TO WORKING CAPITAL & CASH FLOW NEEDS - TRADITIONAL AND ALTERNATIVE FINANCING OPTIONS 

 


Working Capital Facilities

Short Term 12 Month Working Capital Loans Paid From Future Sales

Receivable Financing / Factoring / Confidential Receivable Finance

Asset Based Lending / Non Bank Asset Based Business Lines Of Credit

Chartered Bank Solutions

Leasing / Sale Leaseback

Tax Credit Monetization

P O Financing / Supply Chain Financing

All these key solutions can be structured from both traditional and alternative finance firms. Even better, certain solutions, structured properly can be cobbled together to increase your firm's total access to credit.  It's all about monetizing the balance sheet, and your sales!


So how does the business owner/financial manager actually figure out how much to borrow, and then whether for it's short-term financing needs? And don't forget the overriding question which is knowing how to balance the eternal questions of more debt or adding equity as examples of cash flow problems that must be addressed. 

Remember that many of the cash flow solutions here monetize assets and sales and don't require ANY dilution of equity! That's a good thing from the business owner's point of view.


For companies that have inventory, it all starts at some sort of production cycle...  but even service industries in technology or other areas have their own flavour of a working capital cycle.


A very simple rule to address working capital problems is that whenever your receivables and inventory grow you are going to have to address more working capital solutions... it's as simple as that.

  

  

28% of small business owners say they lose sleep over cash flow problems; 48% say they pay others before paying themselves; and 28% had experienced cash flow problems such as postponing hiring - SOURCE: STAPLES

 

  

  

CONCLUSION - CASH FLOW MANAGEMENT STRATEGIES FOR WORKING CAPITAL

 

There are many different types of working capital solutions for your business - as in all aspects of business financing, there are advantages and disadvantages to each solution - Making the right decision around the best solution for your company is job #1 for small business owners.

 

Cash shortages have numerous negative effects on a business and 'cash-strapped' businesses have problems that must be addressed.

 

The ability of a business to achieve positive cash flow and positive net working capital becomes the lifeblood of the company. Liquidity shortages are common in the majority of small businesses in Canada - Planning around effective cash flow management empowers your business to grow and succeed.

 

   

A Small business cash flow problem can devastate a business.

 

Speak to 7 Park Avenue Financial,  a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success. Discover how you can address cash flow challenges... the right way. That is of course if your crowdfunding strategy doesn't work... and you can pretty well count on that one! Talk to our team about your business survival plan via healthy cash flow!

 

  

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

 

What are cash flow problems, and how do they affect businesses?

Cash flow problems arise when inflows of cash into the business exceed current obligations - That's when a business is challenged to pay accounts payable and meet payroll obligations - Naturally growing the business in that situation is very difficult. Common causes of funding shortages include:

Low profitability - price rises won't always discourage clients and may also lead to perceived value for products and services

Overinvesting

Rapid expansion without financing in place - Uncontrolled business growth leads to cash shortfalls for businesses over-forecasting growth and expenses, it is important to distinguish between profitability and cash flow.

High fixed costs

Unexpected expenses

The owner draws from the business

Poor inventory and a/r management

Seasonal fluctuations in sales

 

  

What is working capital, and how can it help businesses solve cash flow problems?

 

Working capital is the funds that a company has available to fund day-to-day operations - Key balance sheet accounts such as inventory and accounts receivable are key components of working capital. Companies should review trade credit payment terms and focus on enforcing sound credit and collection policies.

If a business improves its working capital it can cover day-to-day operations and consider growth opportunities - Numerous small business financing solutions can be addressed to fix cash flow challenges - they include short-term working capital loans known as merchant cash advances, as well as other solutions such as invoice financing/factoring - Business lines of credit are the optimal solution. Cash flow statements in business financial statements outline the sources and uses of cash in a business. 

 

How do different working capital solutions work, and what are their advantages and disadvantages?

 

 Different working capital solutions work in different manners - for example, businesses utilizing factoring financing have the ability to sell invoices to third-party commercial financing companies, enabling the business to achieve immediate cash as sales revenues are generated. Inventory financing to fix cash flow problems can be combined with numerous asset-backed lending solutions with inventory being used as collateral for a borrowing base in combination with accounts receivable.

What can businesses do to prevent cash flow problems in the first place?

Businesses can prevent cash flow problems around poor cash flow management via financial planning in a variety of ways, including the preparation of proper cash flow forecasts and projections around cash flow management and funding needs for a healthy cash reserve based on sales and timing of receipts from customers.

Creating a short-term business survival plan should be a priority - focusing on issues such as profit and expense reduction. In certain situations, a scaling-back plan should be initiated.

In some cases, payment terms can be negotiated with key vendors and clients. Expense reduction around variable costs can also be addressed to ensure enough cash on hand. The goal is to be proactive from a prevention point of view.

Businesses also have the ability to refinance existing debt, allowing the business to achieve lower payments and lower financing costs. High-interest loans should be avoided if possible - Supplier financing can also improve the cash cycle.

    

How do you manage cash flow and working capital?    

 

Tips to improve working capital management and manage cash balances &  cash outflows include:

 

Reduce inventory and a/r investment via more effective asset turnover around days sales outstanding for outstanding receivables / slow payments , as well as  inventory turns in the business's cash flow cycle

 

Manage accounts payable - late payments to suppliers improves good  cash flow but should not be done at risk of supplier relations

 

Investigage short term financing for current assets  and business growth via a cash flow budget - Financing via confidential  invoice discounting allows a business to bill and collects its own invoices while maintaining healthy cash reserves as sales are generated

 

Increase profit margins with a focus on  gross margins and a more profitable business

 

Create proper cash flow projections with the help of proper accounting software  to help determine how much cash the business needs

 

 

 

Cash Flow Financing For Working Capital Solutions. It’s Like A Knife Fight In A Phone Booth Out There!

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INFORMATION ON SOLUTIONS TO BUSINESS CASH FLOW FINANCING CHALLENGES

Cash flow financing challenges and working capital solutions for Canadian business. Keeping your firm solvent / liquid can almost seem like a crisis sometime. We were talking to two of our favorite business marketing guru's the other day and one of them made the comment ' it's like a knife fight in a phone booth ..!’. Wow, we thought, could there be any more a propos comment than that when it comes to business competition and business survival

Naturally it's important to be in a position to ensure you understand the nature of those challenges, why they occur, how to measure or track them, and finally ... put financing in place that ensures business liquidity.

There is a lot of statistics out there that say that a majority of business in the SME sector fail in their first 5 years in business. They simply didn’t have the access to capital they needed to survive. Ever since the 2008 recession/financial debacle cash flow and working capital have become ' job 1' for Canadian business owners and financial managers.

Having observed Canadian business for over 40 years now the one thing that never surprises us is the fact that when a business is enjoying strong success there often exists a general sense of complacency exists within the company. Cash flow seems kind of ok... and if it isn't we've got the bank to support us, right ?The bottom line on that one - fast growth and sales can hide a lot of problems .. for awhile .

The need for working capital for your company arises out of some basic needs - pay suppliers, finance, growth, ensure banks and other creditors are happy .

One term used in business is ' technically solvent ' - the basics on that one are that you have more assets than debts. That's the key to our message today - simply that that is just a calculation, and calculations don't pay bills.

Your ability to finance and monetize those assets is what liquidity is all about. Oh and by the way, if your balance sheet shows more liabilities than assets you're technically bankrupt!

As we have said, you need financing solutions to properly fund those assets, and that growth over time. It also helps that you are focusing on asset turnover - collecting receivables on time, turning inventory within your industry norms, and not mismatching short term cash outflows with long term obligations.

Canadian businesses tend to, on balance, not have a lot of cash on the balance sheet. That's ok if they have the credit facilities to draw on.

How can the business owner or finance manager monitor just how good, or bad the overall situation is? Some very simple calculations such as your days sales outstanding, inventory turns, and debt to equity calculations can provide tremendous insights. Monitoring these over time can provide very relevant information on an approaching crisis.

When your bank no longer seems to support you in a manner that you require we would offer up that they have also been benchmarking those same calculations on your financials. By then it is often too late to mend and repair that bank relationship.

Managing your assets, measuring that performance, and using debt in manner that suits for firm is key for cash flow financing survival.

In Canada the re are a number of working capital solutions for that ' knife fight in the phone booth ' that proverbial battle for cash flow survival.

Those tools include bank facilities for those that qualify.

Other solutions include receivable financing, inventory financing, leasing assets or sale leaseback scenarios, or a true asset based line of credit that margins A/R, inventory and equipment all under on revolving facility. Two other relatively unheard of solutions are monetizing your tax credits and supply chain financing.

Why should you consider these working capital solutions?
Several reasons, including finally have a handle on accurate and timely information. Also, you prefer to manage growth, not fail from it. Managing day to day cash flow crisis is not … fun!

Speak to a trusted, credible and experienced Canadian business financing advisor on how your firm can successfully win the cash flow challenges you face everyday.






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

Guess What Your Business Needs? Working Capital and Small Business Finance Loan/Loans Options

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Information on working capital solutions and small business finance loan arrangements that make sense for your cash flow needs. Cash flow financing via loans or monetizing your current assets is your challenge - here's how to solve your problem for business financing

Just picture your firm having access to all the working capital you need. Seem impossible? Not really... if you have a solid understanding of your options and your firm's capability of qualifying or executing on those options.

Whether you're the largest corporation in Canada or a small new start up (and everything in between) your business needs working capital. In Canada small business financing loans and financing arraignments for working capital are limited to a handful of possibilities - but being aware of what they are and qualifying for them could be the solution to your constant focus on cash flow via some sort of working capital loan.

It is probably easier than you think to ensure you are addressing the cash flow challenge correctly - where it gets somewhat ' thorny ' is matching a solution to the problem or locating an expert that can provide you with the business financing assistance you need.

Two key elements of your first step working capital assessment are your gross margins and your turnover. That's the big problem we have with text book / academic solutions to working capital - they point you to the text book calculation - give you a formula which essentially has you subtracting current liabilities from current assets, and voila! the inference is you have working capital. However, our clients have never paid a supplier or completed a company payroll with a ratio!

To properly assess your working capital needs focus on understanding your turnover - how much inventory do you carry, what are the days outstanding in inventory, and as importantly, or more importantly, are your receivables turning over. Have you realized that for many firms 80% or so of the total of all the business assets you have are tied up in A/R, inventory, and, on the other side of the balance sheet let's not forget payables?

So can you have financial success based on your new found knowledge and analysis of your cash flow and asset turnover? We think you can.

Canadian business financing solutions to small business finance loans really revolve around a couple viable solutions. Typically, in our experience Canadian chartered banks cant satisfy your business working capital needs - if only for the reason that they rarely finance inventory and require significant merit in your overall financials, profitability, external collateral, personal creditworthiness, etc.

So, where do you go from there? The other solutions are very viable and can take you to a potential 100% turn around in cash flow - they include working capital financing as a bundled line of credit on a/r and inventory via an independent finance company. For firms that are larger, we believe the ultimate tool is an asset based line of credit that provides high leverage margining on all your business assets. Other more esoteric solutions, but still very viable although somewhat misunderstood are securitization and purchase order financing of new contracts and orders. (Your suppliers are paid directly for the orders you have in hand - what could be better than that?)

Finally, coming up the road at lightening speed is factoring and invoice discounting. We mention them lastly but they are probably the most popular method, gaining traction every day. Our favourite is confidential invoice financing, allowing you to control your financing.

So there you have it. You have identified new ways to determine the need; we have outlined 4 or 5 solutions that will take the guesswork out of working capital. These loan and financing options are available with a bit of research, and, if you choose, speak to a Canadian business financing advisor who can provide you with timely and valuable assistance in your cash flow needs.



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/6082722

Crowd Funding Strategy Not Working? Next Best Thing? Working Capital Solutions To Cash Flow Problems In Canada

Mastering Cash Flow Solutions in Canadian Business



OVERVIEW – Information on accessing the right working capital solutions for companies with cash flow problems or growth strategies .




Crowd funding not working? We wish we had thought of the concept .... You contact people or advertise in some manner regarding your capital or project needs... a million people send you $1.00... and voila! You're apparently crowd funded!

But getting back to the real world, on the assumption no one is going to send you free capital in one dollar increments ... what then is the Canadian business owner and financial manager going to do regarding cash flow problems and working capital solutions?

Once again your company is at that fork in the road with respect to addressing your working capital and cash flow needs. You've got a profit and growth objective, now you just need to know how to get there.


We all recognize that cash flow is the ' fuel ' that will drive the combinations of growth and more profits. You can achieve that in one of two ways, more sales, and on the other side, better asset turnover. That asset turnover is often a bit of a surprise to business people that arent necessarily grounded in finance.

That issue of asset turnover opens up a wide variety of potential solutions, including monetizing or cash flowing those assets. By financing your assets and at the same time focusing on better turnover your overall profit/growth situation improves, almost immediately. It’s all about turning inventory, collecting receivables faster, and financing longer term assets in the right manner.

In Canada that is done through:

Working capital facilities
Receivable Financing
Asset Based Lending
Bank Credit lines
Leasing/Sale Leaseback
Tax Credit Monetization
PO Financing

The good news is that many of the above solutions can be combined to further increase working capital solutions. The bottom line... its all about monetizing that balance sheet.Your ultimate goal = more cash in less time!

So how do you actually figure out how much to borrow and when. And don't forget the over riding question, taking on more debt or adding equity to your business.

For companies that have inventory its all starts at some sort of production cycle... but even service industries in technology or other areas have their own flavor or a working capital cycle .

A very simple rule to address working capital problems is that whenever your receivables and inventory grow you are going to have to address more working capital solutions.

Speak to a trusted, credible and experienced Canadian business financing advisor on how you can address cash flow challenges... the right way. That’s of course if your crowd funding strategy doesnt work... and you can pretty well count on that one!

7 PARK AVENUE FINANCIAL
CANADIAN CASH FLOW FINANCE EXPERTISE



Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/cash_flow_problems_working_capital_solutions_2.html

Christmas Cancelled Due To Cash Flow Financing! Avoiding Problems And Accessing Solutions To The Working Capital Gap In Canada

Business Financing Not Working For Your Company . Here’s Why!

Information on critical cash flow financing problems , What solutions can the Canadian business owner use to solve working capital problems



Say it isn’t so. Please say it isn't so. But it is so. There it was. The front page of Canada's best known business page, Sept 10/2012. It was a headline that screamed at us to look into it.

What was the story ?It involved one of Canada's most iconic and largest corporations , indicating that the company had chosen to preserve cash due to their investments in growth and the future . The result? Travel cancellations, no new hires, and yes ... and we're quoting here:

‘CUTTING ALL FUNDING FOR CHRISTMAS PARTIES’


We suppose if they had been politically correct they should have said ' holiday parties ' but we’ll weigh in on that one another day ... as in never.


So, cash flow financing. Is it that important that it makes the front page of Business news? Well we have always thought it was so thanks for the vindication.

Let's examine why front page news is where working capital solutions belong. Business owners and managers in larger corporations all the way down to start up realize that its that elusive cash flow that runs their business on a daily basis ; and in the case of our subject company today allows you to plan and grow for the future .

So, it’s all about careful planning, and solutions to not run out of cash. And as we're always saying, you can both access cash flow and working capital solutions, as well as managing your assets to optimize cash.

The business owner always struggles with debt and although that strategy (taking on debt) is on way of accessing capital it's certainly not always the solution. In fact we tend to favor two better solutions:

Managing asset turnover in receivables and inventory (and payables)

Monetizing assets into cash flow solutions that include:

Bank credit lines
Non bank business lines of credit
Receivable and inventory financing - together or separately
Supply chain / PO financing
Monetizing valuable tax credits under the SR&ED or **Film Tax Program - * unfortunately not all of us make movies though


Canadian business owners and managers need to run their business while at the same time understanding their cash flow cycle - its not that simple - just doing some basic calcs around how long it takes for 1 dollar to flow through your corporations, from the time you buy supplies and services to the point where your valued clients pay you . It doesn't take long for the business owner and manager to understand that cycle can be anywhere from 60 -120- days. And in between that? It's the cash flow gap!

Also, differentiate between making a profit on paper and having cash, or access to cash on your balance sheet. Huge difference.

In Canadian business financing today there are numerous solutions for working capital. Some are called ' alternative ‘... many are newer and innovative, often called ' alternative '. All of them can work for your firm when you understand how they work, what they cost, and what the benefits are.


So, Xmas cancelled. We hope not. But in the meantime, speak to a trusted, credible and experienced Canadian business financing advisor on how you can access cash flow financing that makes sense for your firm... today.

7 PARK AVENUE FINANCIAL
CANADIAN CASH FLOW AND BUSINESS FINANCE EXPERTISE

Cash Flow Financing For Canadian Working Capital Solutions.It’s Like A Knife Fight In A Phone Booth Out There!

Avoiding the ‘ Closed For Business’ Sign!

Information on cash flow financing and working capital solutions for Canadian businesses . Viable traditional and alternative financing exists for your firm .



Cash flow financing challenges and working capital solutions for Canadian business. Keeping your firm solvent / liquid can almost seem like a crisis sometime. We were talking to two of our favorite business marketing guru's the other day and one of them made the comment ' it's like a knife fight in a phone booth ..!’. Wow, we thought, could there be any more a propos comment than that when it comes to business competition and business survival

Naturally it's important to be in a position to ensure you understand the nature of those challenges, why they occur, how to measure or track them, and finally ... put financing in place that ensures business liquidity.

There is a lot of statistics out there that say that a majority of business in the SME sector fail in their first 5 years in business. They simply didn’t have the access to capital they needed to survive. Ever since the 2008 recession/financial debacle cash flow and working capital have become ' job 1' for Canadian business owners and financial managers.

Having observed Canadian business for over 40 years now the one thing that never surprises us is the fact that when a business is enjoying strong success there often exists a general sense of complacency exists within the company. Cash flow seems kind of ok... and if it isn't we've got the bank to support us, right ?The bottom line on that one - fast growth and sales can hide a lot of problems .. for awhile .

The need for working capital for your company arises out of some basic needs - pay suppliers, finance, growth, ensure banks and other creditors are happy .

One term used in business is ' technically solvent ' - the basics on that one are that you have more assets than debts. That's the key to our message today - simply that that is just a calculation, and calculations don't pay bills.

Your ability to finance and monetize those assets is what liquidity is all about. Oh and by the way, if your balance sheet shows more liabilities than assets you're technically bankrupt!

As we have said, you need financing solutions to properly fund those assets, and that growth over time. It also helps that you are focusing on asset turnover - collecting receivables on time, turning inventory within your industry norms, and not mismatching short term cash outflows with long term obligations.

Canadian businesses tend to, on balance, not have a lot of cash on the balance sheet. That's ok if they have the credit facilities to draw on.

How can the business owner or finance manager monitor just how good, or bad the overall situation is? Some very simple calculations such as your days sales outstanding, inventory turns, and debt to equity calculations can provide tremendous insights. Monitoring these over time can provide very relevant information on an approaching crisis.

When your bank no longer seems to support you in a manner that you require we would offer up that they have also been benchmarking those same calculations on your financials. By then it is often too late to mend and repair that bank relationship.

Managing your assets, measuring that performance, and using debt in manner that suits for firm is key for cash flow financing survival.

In Canada the re are a number of working capital solutions for that ' knife fight in the phone booth ' that proverbial battle for cash flow survival.

Those tools include bank facilities for those that qualify. Other solutions include receivable financing, inventory financing, leasing assets or sale leaseback scenarios, or a true asset based line of credit that margins A/R, inventory and equipment all under on revolving facility. Two other relatively unheard of solutions are monetizing your tax credits and supply chain financing.
Why should you consider these working capital solutions?
Several reasons, including finally have a handle on accurate and timely information. Also, you prefer to manage growth, not fail from it. Managing day to day cash flow crisis is not … fun!

Speak to a trusted, credible and experienced Canadian business financing advisor on how your firm can successfully win the cash flow challenges you face everyday.





YOUR COMPANY IS LOOKING FOR CASH FLOW FINANCING !

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

Financing & Cash flow are the biggest issues facing business 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 - INFO@7parkavenuefinancial.com






Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

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

Say Yes To Canadian Working Capital Solutions - Say No To Financing Cash Flow Obstacles !

Overcoming and Winning The Cash Flow Obstacle Game In Canadian Business


Information on financing cash flow in Canada. Understanding the root of your financing needs leads to effective working capital solutions .


Today the goal is fairly simple. We'll identify some of the obstacles encountered by Canadian business when it comes to financing cash flow, and, as importantly we'll demonstrate some traditional as well as new forms of working capital solutions for the Canadian business owner and financial manager.

One of the reasons we like talking to clients on this subject is simply for the fact that certain terms in financing, i.e. ' working capital' and 'cash flow' are often overworked and not properly understood.

Let's look at working capital as an example. Your accountant or your text will talk about that being the difference between current assets and current liabilities. We think a more clear way to understand that concept, and certainly a more ' real world ' one is to think of your business having hundreds of daily, weekly , or monthly ' incidents .

Incidents? Yes, incidents such as making a sale, recording a receivable, buying inventory, shipping inventory, finally collecting that receivable, etc. Those tens, hundreds or thousands of incidents change your balance sheet accounts every time, and their year end summary of activity reflects ' sources' and ' uses ' of cash flow - i.e. where it came, where it went!

Your ability to understand the ' turnover ' in your accounts will ultimately reflect your ability to address, and understand cash flow challenges, and our proposed ' fix’ re: solutions.

For a manufacturing company the process is, for example, well defined. Buy inventory... make products, sell and invoice those products, and collect your funds. It's a simple three step process right?

But what happens when your cycle of operations is long, or complicated. That's when financing challenges occur. Canadian business owners must be in a position to understand where profits went, why A/R and inventory might be done but not profits up, and where funds will be found to purchase new assets.

Misunderstanding of cash flow is rampant we feel. We read about it being a ' yardstick measure of success ' in investments. We note our financials have a ' cash flow ' statement. Our accountant gave us a ' discounted cash flow ' analysis, and we're working on a ' cash flow budget. Talk about a very convenient catch phrase!

So once we finally get a handle on understanding and addressing working capital solutions the financing of cash flow becomes a lot easier.

So what about those working capital solutions we spoke of, traditional, and otherwise. Options to enhance your cash flow needs are available to the Canadian business owner.

They include bank lines of credit, government SBL loans for new assets, which in turn save cash outflows for new assets. And don't forget equipment leasing as a solid asset finance vehicle.

Receivables and inventory can be financed via one working capital or asset based lending facility, or separately via boutique offerings through specialized commercial finance firms. More esoteric financing, yet 100% viable and effective are the monetizing of SR&ED claims, as well as purchase order financing.

So what’s our bottom line? Simply that there are achievable goals in addressing working capital expectations - but those goals must be appropriate to the specific cash flow challenge, in terms of structure and rates. Make a commitment to address financing cash flow, and speak to a trusted, credible and experienced Canadian business financing advisor on those very solutions.





Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :


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