Our blog highlights Canadian Business Financing solutions via receivable finance , equipment finance, working capital financing, asset based lending, business acquisition financing,franchise finance, and tax credit monetization via SRED and Film Tax Credits. Our goal is to educate and assist Canadian businesses with their financing needs. You Are Looking For Canadian Business Financing! Welcome to 7 Park Avenue Financial Call Now ! - Direct Line - 416 319 5769
WELCOME !
In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.
Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.
Monday, December 23, 2013
Sred Program Claims : Become Master Of Your Domain When It Comes To Tax Credit Financing
Financing Your R&D Claim In Canada – The Why – The How !
OVERVIEW – Information on financing SRED ( SR&ED) program claims in Canada. SR&ED tax credit financing makes more sense than you think!
Financing Sred Program claims in Canada is big business. Why should the business owner/ financial manager consider tax credit financing under Canada's SR&ED program? Let's dig in.
Several billion dollars of Canadian govt funds are given each year to the several thousand firms in Canada that participate in innovation and technology via their funded research.
Numerous misconceptions exist around the program - issues such as ' who is eligible ' ... 'are start ups eligible ' ... 'does a company have to be profitable to claim SRED ', etc. By the way, even if your firm is unincorporated you could still apply for SRED funding! ; Although the majority of claims submitted and that are financed tend to be for legal Canadian entities.
The reality is that even companies that are in the pre-revenue, or in the early stages of gaining sales traction can still apply, and no, you don't have to be profitable yet. And the amount to be claimed? It varies by province because it’s a combo of federal and provincial monies, but as a broad rule typical SR&ED claims amount to approx. 40% of your total spend in R & D innovation and process improvements.
The key to achieving SRED approval is of course a ' quality ' claim. Many first time claimants we talk to sometimes struggle with preparation of their claim. Here's where the word ' expert' truly has meaning , as SR&ED claims are, more often than not, prepared by external consultants ( 'SR&ED Consultants/Engineers ' ) who have experience and expertise ( hopefully!?) in your industry.
In the last couple years a ' crackdown' of sorts has occurred around these consultants, with questions being raised about the fees they charge, which are often on a contingency basis ., and the aggressiveness of claims that are filed . Since we're addressing SRED tax credit financing you can assume that who prepares your claim and the quality of that claim is one of several important factors that play a role in financing.
Companies claiming SR&ED credits typically, and correctly so, view their filed claim as a ‘Receivable’. Naturally it's a government receivable, the one issue being of course that until your claim is audited and approved it's not 100% clear that it will is 100% approved! So many firms book that receivable, some book a more conservative amount, and then the ' waiting game' begins!
The financing of your SR & ED claim alleviates of course the ' waiting' for the financial and technical audits that come from the program. We'll never fully understand why, but banks are more than reluctant to finance these claims, and when they do so, as we have pointed out in the past, it’s in the context of their entire relationship with your firm, including external collateral they hold.
Enter SR and Ed financing. The finance process around your claim is very straight forward, a simple business application and accompanying data is all you need to get started. Innovation exists even in financing! , so claimants will be surprised to know that recent trends in SR&ED bridge loan financing allow firms to receive financing prior to their claim being filed, which was not always the case.
So yes, you can wait 3, 4, 6, even 12 months sometimes to receive your SR and ED claim funding chq, but if your firm requires or can use the additional working capital and cash flow now seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
with tax credit financing for SRED Program claims expertise.
Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian companies , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded in 2004 - Completed in excess of 90 Million $$ of financing for Canadian corporations .
Info re: Canadian business financing & contact details :
7 Park Avenue Financial = Canadian SR&ED Tax Credit Finance Expertise
Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing with the intelligent use of experience '
Stan Prokop
Sunday, December 22, 2013
CRA SRED And Film Tax Credits : Is It Art Or Science Behind Financing Your Claims
Financing Canadian Tax Credits Shouldn’t Be ‘ Adventure Time’ ! SR&ED And Film Financing
OVERVIEW – Information on financing CRA SR&ED Credits and Film Tax Credits often makes maximum sense with minimal downside . Here is why, and how!
CRA Sred (SR&ED) and Film Tax Credits are quite a good example of the concept of success when it comes down to the question of ' art or science'. And that pertains to tax credit financing also; we maintain it shouldn’t be ' Adventure time' when it comes to the finance of your SRED or film, television and animation credits. Let's dig in.
It shouldn't be a secret (but unfortunately it is for many!) that Canada has some great (aka ' generous') business tax credits. In the case of our two examples:
SR&ED (sometimes called 'SRED ')
MEDIA
businesses in industry and entertainment can compete effectively with other businesses all over the world.
CRA Sred claims, in many cases involve some element of information technology. And when it comes to the media industry - film, TV, and animation ' IT' technology has rapidly changed the entertainment industry. That bodes well for Canada of course as it ranks high in the world for trained people, country stability, and a strong banking and straightforward ( mostly !) tax and tax credit system. In summary, top experts tell us that Canada has one of the best overall environments for research and entrepreneurship in the world.
The Canadian dollar is certainly one factor in the cost, and the financing of tax credit claims in research or film. In recent times the 'Canuck buck’ reached parity and has somewhat backed off. We'll leave the currency predictions to the experts - we'll focus on the actual financing of your credits.
SR&ED:
Sred credits are a combo of federal and provincial incentives. On a broad basis the thousands of companies that participate in the program receive a refundable credit (which can be financed for cash flow purposes) in the general area of 30% of their entire spend.
While the program was static for awhile some major changes CRA Sred (SR&ED) and Film Tax Credits happened over the last year or so. In some ways these to a certain degree affect the financing of your claim, but not in a dramatic or negative fashion. One of those changes is the elimination of machinery and equipment acquired in your R&D; so when it comes to financing your claim the overall financeable amount might in fact be lower given you can't claim assets acquired for research.
One other ' change ' in the overall philosophy of the program was to focus on who was preparing your SR&ED claims and what they were charging. That probably struck fear and terror into the hearts of the SR&ED preparer industry - known as ' SR&ED Consultants '. As in all aspects of business the dust eventually settles and good credible honest consultants that charge a fair price will always survive.
FILM / TV/ ANIMATION CRA CREDITS:
Producers of content in the media industry are eligible for tax credits also, and yes, they can be financed also! These credits are typically prepared by a qualified or experienced tax credit accountant - we suppose they are the medias equivalent of the SRED Consultant.
Producers/owners of Canadian content simply put together a request around which they are Vis a Vis ownership, their budgets, productions costs, funds spent, etc - In effects it’s a business application.
Tax incentives in the media industry can range from anywhere up to 40-50% depending on what is spent and in what categories. Credits are a combo, again, of federal and provincial incentives. Provinces compete somewhat ferociously for your film, TV, animation or Transmedia projects as they view the employment and capital spending in this area a valuable commodity.
Our focus is financing these claims, and some may wonder why we talk about two very diverse credits - i.e. SRED and MEDIA. Our response - simply that in some cases even Media projects, can file for SR&ED claims.
And with respect to the actual financing of claims financing is very similar. Bridge loans on your SRED and Film credits are structured as loans with no payment, and are reconciled at the end when the government sends you funds. Loans are typically in the 70% ' loan to value' area, and you receive the balance of funds, less financing costs when the government remits on your claim.
If you're interested in financing, or getting some help with preparation of your claim seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can eliminate a lot of the ' ADVENTURE’ when it comes to CRA SRED and FILM TAX CREDITS.
Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian companies , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded in 2004 - Completed in excess of 90 Million $$ of financing for Canadian corporations . Info re: Canadian business financing & contact details :
7 Park Avenue Financial = SR&ED and Film Tax Credit Finance Expertise
Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing with the intelligent use of experience '
Stan Prokop
Saturday, December 21, 2013
A Working Capital Management Sale : Here’s Your Best Deals On Cash Flow Financing
2013 – What Went Wrong With Your Working Capital And Cash Flow Challenges
OVERVIEW – Information on business funding and capital financing in Canada. What solutions are available for effective cash flow management and business success
Working Capital Financing – that’s a challenge that faces every Canadian business owner and financial manager. It’s that time of the year for ‘Sales ‘! To be successful in today’s Canadian business environment (an environment that includes strong competition and difficulties in accessing financing) Canadian business has to ensure that have all their financing options up for review. Let’s dig in.
Lets take a look at some of these options, which include revolving lines of credit that are alternative in nature – these non – bank operating lines margin your firms receivables, inventory, and tax credits , equipment and real estate, in a manner that provide you with maximum financing for your business growth needs .
How does the business owner assess the need for working capital? That comes from carefully reviewing your firm’s financial statements and determine what is working and what isn’t.
Look at items such as:
Current debt to equity - calculate by taking current liabilities and dividing by your tangible equity – ratios over 80% signal danger
Debt to equity - take your total liabilities and divide by tangible equity - when the ratio exceed 100 your lenders are financing your firm more than you are
A great ratio in the context of our working capital discussion is:
Turnover of working Capital - Calculated by net sales /working capital. This calculation will give you a strong sense of how efficiently you are using working capital. When sales go up inventories and receivables tend to increase also – as a business owner you need to be buying wisely, and collecting your receivable even more wisely. It’s a great way to look at how you are buying and how you are selling. You don’t want to be put in a position where yourself, or your lenders feel that you don’t have the working capital to run your business and grow the business.
The above 3 examples are what we could call ‘ text book ‘ answers to major working capital and balance sheet issues – quite frankly business owners we meet with intuitively know what those working capital challenges are . What the really need is solutions, not technical finance explanations!
So let’s look at working capital solutions in the Canadian environment. For discussion purposes we will avoid traditional chartered bank financing, which is more difficult to achieve for the majority of small and medium enterprises. Coming off the difficult 2008 and 2008 liquidity crisis worldwide – including Canada balance sheets for many firms are challenged, and income statements are only coming back to life from a growth and profit viewpoint.
So what are some of those solutions you should be investigating? The Canadian business financing landscape is drastically changing – for additional working capital firms should be working with a trusted and experienced advisor in Canadian business financing and examine such alternate solutions as:
- Asset based lines of credit outside of chartered banking – these will margin all your current assets, (including inventory) and allow you to meet your working capital challenges head on.
- Another individual ‘ flavor ‘ of an asset based line of credit is factoring or invoice discounting – This provides business owners with immediate cash for receivables, and if managed properly can be cost effective, contrary to popular belief . Note – our best solution in this area is non notification factoring which allows you to bill and collect your own receivables
- Financing your SR & ED tax credits – why wait for 6-12 months or more for your government grant refund – monetize that tax credit now!
Two other more specialized (shall we say esoteric) methods of working capital financing are purchase order financing and inventory financing.
In summary working capital financing – Canada – continues to be challenging. And contrary to our theme of a year end ‘ sale ‘ it’s a full time year round job for business owners and financial managers .
Explore your options, alternative in nature potentially, and understand the optimal rates, terms, and structures that will allow you to grow 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 capital and cash flow needs.
Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian companies , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded in 2004 - Completed in excess of 90 Million $$ of financing for Canadian corporations . Info re: Canadian business financing & contact details :
Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing with the intelligent use of experience '
Stan Prokop
Friday, December 20, 2013
Why The Sale Leaseback Lease Strategy Is Overlooked And Underappreciated When It Comes To Equipment Financing Loans
Could The Sale Leaseback Be Your Company’s Light bulb Moment?
OVERVIEW – Information on why equipment financing loans or a lease via a sale leaseback strategy is one of the most overlooked business refinancing strategies
A Sale Leaseback , when it comes to equipment financing loans can sometimes be a ' light bulb moment ' when it comes to the answer to a working capital and cash flow solution without taking on additional external debt.
Why is this Canadian business financing strategy sometimes overlooked, and often under utilized? And, even better, how does it work? Let's dig in.
The sale lease back has been around a long time. It typically is used for either refinancing of fixed assets, and in some cases real estate .In both of those cases the same principles apply. And more often than not it’s a way to improve profits and utilized assets that otherwise are only sitting on the balance sheet.
The key to a sale leaseback transaction is to understand some of the basic accounting rules around the transaction. As importantly it's also key to ensure you pick the right ' amortization' or ' term’ for the lease or bridge loan that will finalize your transaction...
A quick example of things going wrong? Let's say your company wishes to do a lease back on your technology assets. It's a solid strategy employed by many. However, tech assets depreciate and become obsolescent faster than many other assets, so refinancing them and picking an amortization of, for example, 5 years doesnt make a lot of sense.
Simply because you will still be making payments on assets that probably need to be upgraded and changed while your firm is still locking into a sale leaseback refinancing payment. So understanding what we call the ' useful life' of the asset is key to a business owner/financial manager’s success in this type of refinancing.
Generally the lease or loan you enter into in this type of transaction should have some common sense attached to it. You need to understand the value of the asset, the costs involved in the refinancing, and some of the accounting and tax issues involved in such a deal.
The key benefit of equipment financing loans or a lease that solidifies your refinancing is the cash it will bring to your balance sheet. You also need to convey to the lessor / lender what the proceeds of the refinancing will be used for, as you do not want it to be viewed as a ' cash grab' for all the wrong reasons.
Have we covered off how the sale leaseback works? In its essence it couldn’t be simpler. Assets you already own that are not encumbered, i.e. they are lien free, are sold back to your lessor/ finance firm. The title transfers to the lender and passes back to your company once payments are completed under your lease back.
In almost all cases some sort of ' appraisal’ value needs to be tied to the deal - both you and the lender benefit from knowing the transaction makes sense re the asset values. And almost all assets can be refinancing via bridge loans, leasebacks. Rates will always be commensurate with overall company credit and asset quality.
If you want to investigate the ' light bulb moment' around the benefits of equipment refinancing loans seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in ensuring you have not overlooked this great refinancing strategy to enhance cash flow.
Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian companies , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded in 2004 - Completed in excess of 90 Million $$ of financing for Canadian corporations . Info re: Canadian business financing & contact details :
7 Park Avenue Financial = Canadian Sale Leaseback Expertise
Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing with the intelligent use of experience '
Stan Prokop
Thursday, December 19, 2013
Business Leasing In Canada : The Secret Of Information Technology Finance is : TIMING
Information Technology Finance Was Made For Your Company !
OVERVIEW – Business leasing is a major provider of information technology finance solutions . Here’s why .. and how
Information technology finance is often all about ' timing'. One of the ways the owner/financial manager can address the challenges that come with financing technologies is the proper use of business leasing. Let's dig in.
So why the theme of ' timing' ?It's because when we meet with clients to discuss their financing needs in the areas of computers, software , telecom, office, etc issues such as :
Budgets
Total Cost
Year Ends
Technological Change
Amortizations
are always top of mind and need to be properly addressed.
In some cases the Canadian business owners/managers have in fact ' cut back’ on their ' IT ' (information technology) spending. That of course works for awhile, but ultimately your competitors tend to have a field day with their ability to leap forward in your industry.
More often than not your technology needs to be what the tech vendor’s call ' refreshed'. In some cases the startling change in tech almost forces the business owner to address newer hardware and software offerings that allow you to significantly ' fast forward' your overall business model.
Just yesterday we spoke to a CEO of a well known Canadian mfg firm who has now been able to offer their clients the ability to change core mfg. processes without scrapping their client’s legacy investments. Naturally the clients now have to address that acquisition in terms of cost, financing, budgets, cash flow, etc. Effective business leasing of tech assets can complement positively all those challenges.
In business it’s all about ' ROI ‘, the infamous ' return on investment'. Top experts in technology tell us that returns on your tech investments can bring anywhere from 30-80% ROI
Financing information technology also has the ability to reduce cost - those same ' experts ' have proven to us time and time again that a large portion of your finances in technology simply go to keeping things running. The one ' sure thing’ in tech advances is that things typically are cheaper, faster, and allow your firm to be more productive and competitive.
When it comes to business leasing in tech it's important for the business owner/ financial manager to understand that all hardware, software and related costs and services have the ability to be financed - typically via an equipment lease.
Financing options vary, so if your firm wants to address the specialized offerings in technology finance around lease documents, residual values, budgeting, software finance solutions, etc 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 information technology finance needs.
Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian companies , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded in 2004 - Completed in excess of 90 Million $$ of financing for Canadian corporations . Info re: Canadian business financing & contact details :
7 Park Avenue Financial = Technology Financing And Business Equipment Leasing Expertise
Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing with the intelligent use of experience '
Stan Prokop
Wednesday, December 18, 2013
Franchising Opportunities : Best Lessons For A Franchise Business Loan
The ‘ Big Reveal’ On Franchise Financing Options In Canada
OVERVIEW – Information on how Canadian entrepreneurs can address franchising opportunities via the proper type of franchise business loan in Canada
Franchising opportunities in Canada require... you guessed it... a franchise business loan of some sorts. Easy to say, somewhat harder to finalize. Let's examine some key points and lessons we've shared with franchisees in their search for ' the big reveal' around achievable franchise finance success. Let's dig in.
The type of franchise you select, i.e. ' the opportunity' part of your vision will often dictate the type and amount of financing you need. Depending on the nature of your chosen franchise you will need capital for one or all of the following -
Franchise fees
Equipment
Leasehold Improvements
Working Capital / Royalty fees
For the majority of clients we work with they typically incorporate the actual franchise fee as part of their own capital /equity investment in the business - in effect its part of that ' down payment '.
Most franchisors, often based primarily on their own experience have a strong sense of the total amt. of capital needed to be successful. With the amount of disclosure franchisors are required to make these days the benefits to the franchisee are clear - so doing your homework in investigating the potential financial success of your business is key.
Repayment for equipment and leasehold needs will typically come from the ongoing cash flow in your franchise. You of course know that, but the goal is to prove that to your lender/lenders. In Canada those lenders are either specialty franchise lenders, banks via 2 types of specifically tailored programs, and misc asset and working capital firms in the general category of leasing companies or working capital providers.
Your ability to prove repayment for your loans will come from your business plan and cash flow forecast. It's an investment of time (with minimal cost) that will prove to your lender/lenders your ability to repay term and operating debt.
Most franchisees most certainly are not accountants, but spending some time understanding some basics around cash flow, break even, and contingencies is a highly recommended pursuit. Advice in this area can easily come from your accountant, business advisor, even other franchisees you may choose to meet and talk to.
In the majority of franchise financing in Canada very little outside collateral is required. The franchise reputation, your business plan, your initial equity investment will more often than not carry you to reasonable chances of success. Lenders will though want to know how you have run your personal finances (credit bureau scores, net worth statements, etc) - lenders can be forgiven for treating most franchises as start up businesses with the risk that comes with any start up.
If you're looking for the ' big reveal' on the truth around basic franchise financing in Canada seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in making the entrepreneurial dream a financeable
reality.
Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian companies , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded in 2004 - Completed in excess of 90 Million $$ of financing for Canadian corporations . Info re: Canadian business financing & contact details :
7 Park Avenue Financial = Canadian Expertise In Financing Franchise Opportunities
Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing with the intelligent use of experience '
Stan Prokop
Tuesday, December 17, 2013
Remove Business Working Capital Action Paralysis : Understanding Commercial Financing Options
You Are Looking For A Simpler Plan For Business Financing Solutions
Information on business working capital solutions in Canada. The right commercial financing company removes the ‘ capital’ obstacle
Business working capital often creates somewhat of a state of ' paralysis' for many business owners. They are almost ' caught in the crosshairs' when it comes to understanding their commercial financing options and demystifying the complexity around the need for those solutions. Is there a simpler way? Let's dig in.
Top experts tell us that when it comes to the SME Commercial sector of business in Canada owners and managers often don't realize the impact of a lack of working capital and cash flow until it's a bit too late sometimes.
In some cases, quite remarkably, they are not even aware of all of the traditional and alternative options they have available to them. They also are often not aware of both government and commercial financing programs that could potentially provide them with the funding options they need.
It is of course not surprising that almost half of business owners or their financial managers tend to only think only of their existing ' bank ' as the sole source of their financing solutions. Financial advice and solutions arising out of that advice also often comes from their accountants , searching the internet for ' Canadian business Financing ', and finally engaging a hopefully trusted, credible and experienced Canadian business Financing Advisor with a track record of success in business working capital solutions .
We recently read a study that indicated that over 60% of business owners stated that at certain times of the year they always need extra funding. That of course could come from seasonality in their business, ' bulge' situations that arise out of large contracts or orders, etc.
That type of short term cash crisis always demands funds and it’s often a case of simply surviving, let alone focusing on long term growth of the business.
Fortunately, or unfortunately? many business owners/managers often rely on their suppliers and vendors as a source of cash - they of course do that by maximizing their supplier credit facilities and then delaying payments as long as they can.
Technically speaking increasing payables in fact does enhance cash flow from operations, but it is often at the risk of the key relationships you need from major suppliers and vendors.
It (almost) goes without saying that your ability to play business working capital financing is really what needs to be done. In the case of cash flow fixed term debt is rarely the solution, so the business owner should consider the following solutions:
Receivable Financing
Inventory Finance
Purchase Order/ Supply Chain financing
Chartered bank business credit lines
Non bank asset based credit facilities (‘ABL’)
Tax credit monetization
Any one or a combination of the above solutions enhances cash flow especially when you are in fact growing your business.
Understanding the impact of commercial financing solutions is key to business working capital. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in unraveling the paralysis that often comes from understanding your working capital options.
Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian companies , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded in 2004 - Completed in excess of 90 Million $$ of financing for Canadian corporations . Info re: Canadian business financing & contact details :
7 Park Avenue Financial = Canadian Commercial Financing And Working Capital Option Expertise
Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
Stan Prokop