Working Capital Finance: Unfiltered Business Credit Loan Solutions

Time To Preorder Your Working Capital& Cash Flow Solutions

OVERVIEW – Information on working capital finance in Canada. Business credit loan solutions reflect the hard reality of the cash flow needs of Canadian business

Working capital finance might just be a good thing to ' pre - order ' when it comes to an owners'/financial managers search for a business credit loan financing. We're ' unfiltering ' some of the reasons and benefits for that type of thinking and planning. Let's dig in.

Your company's ability to both generate cash and properly finance your assets is often termed the ' lifeblood' of your business. Technically speaking working capital seems pretty simple - only requiring a quick look at your balance sheet and subtracting ' current liabilities' from ' current assets'.

But the real issue, practically speaking in our ' unfiltered' format is that you need to ensure you have a path to liquidity for those liquid/near liquid assets on the balance sheet. How you manage and finance them is really the key to business health. By the way, lenders, or even investors will always look at all that as a key metric around whether your firm will get a business credit loan or investment of some sort.

The other benefit of working capital finance, other than general ' business health' we've referred to is that a positive flow of funds in your business allows for growth and expanding your products and services.

On the other side of the coin what really happens when you've got negative working capital? It's here that your financial creditors and suppliers raise the ' red flag’. Ironically this might even be in a time when your sales are growing, with the real picture being that money tied up in receivables and inventories is simply not moving.

The whole issue of ' assets' is key to cash flow and working capital finance. Even though your assets might be sizeable on the balance sheet if you don't have operating liquidity you won't stay in business over the long term - instead your company is working its way downward to that 'edge of slippery slope''.

Whether you're a start up or an established business the same challenge needs to be faced - ensuring that revenue monetization covers operating expenses.

While various simply analytical tools are available to monitor and assess your working capital finance needs one of the best ones is the ' turnover ratio ' - taking your net annual sales and dividing it by the average working capital during that time period. Safe to say that only businesses relying on investing in A/R and inventories have this challenge- as retail or ' all cash ' firms generate cash quickly.

The policies and techniques we've highlighted are the essence of achieving a business credit loan - including tactics such as financing assets properly and managing expenses.

The actual financing tools for a business credit loan and asset monetization are numerous. They include:

A/R Financing
Inventory Loans
Bank and Non Bank revolving credit lines
Sale leasebacks of owned assets
Tax credit financing
PO Financing
Royalty finance solutions

Good financial planning will allow you to anticipate (aka ' pre order ') working capital finance solutions that make sense for your firm or industry. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you with an ' unfiltered' view of cash flow 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 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

Cash Flow Based Financing Solutions: Key Benefits & Issues

It’s a ( Cash Flow ) Gusher !

OVERVIEW – Information on cash flow based financing solutions in Canada and the importance or working capital management for business success

Cash flow based business financing solutions deliver on what every business owner/financial mgr. dreams of - their business being a (cash flow) gusher! It was actually Warren Buffett

that coined the term ' endless gushers of cash ' as one of his key investment criteria. Let's dig in.











It's no secret that owners/mgrs prefer their business to ' throw off ' cash, as opposed to using it. That constant use of funds requires that you either inject more into the company or come up with a financing strategy that fixes the problem - and there are several!

We've observed over the years, particularly in the SME Commercial sectors, that working capital and cash only seems to be a problem when it dries up - the constant day to day focus of generating sales and managing your business often defocuses the business on cash flow and turnover of key assets such as inventory and A/R.

That ability to grow sales while managing key ' current assets ' is key to success in business - you have only to watch the business news TV stations to hear every day the focus on ' cash flow' ' ' free cash flow' and ' ebitda'. Winning on those areas allows you to grow the business and put funds into owner pockets; shareholder pockets in the case of those large public companies.

As we have noted, the ability to manage cash is as much a need as the requirement to get a cash flow based financing solution. It's a combination of ' technique' and ' policy’ and ' solution' that gets you to where you want to be. Having ' assets' alone just doesn’t work - at least in the long run.

Unless you're in an ' all cash' or retail business Accounts receivable is the heart of cash flow. Unfortunately the real world dictates that owners/mgrs can't predict when clients will pay. That issue, combined with you operating expenses and need to purchase materials and assets is kind of the heart of cash flow 101.

Firms that have larger ticket items/assets for sale as part of their revenue should also consider offering vendor financing to clients. This generates sales and improves cash flow - given that full payment is received when your client accepts the product.

A/R Financing is often at the heart of cash flow based solutions for your business. If bank credit facilities can't be accessed the ability to finance your receivables via a third party commercial firm is key. These facilities, known as invoice financing, factoring, A/R discounting, etc typically provided up to 90% of cash as soon as you generate invoicing. Our recommended solution in this area is CONFIDENTIAL RECEIVABLE FINANCING, allowing you to bill and collect your accounts with no notification to other clients.

Those other ' cash flow based financing solutions'? They include:

Working capital term loans
Tax credit financing
Asset based non bank lines of credit
Sale Leasebacks
Royalty Finance
PO Financing

If you buy into the concept of making your business a ' cash flow gusher ' seek out and speak to a trusted , credible and experienced Canadian business financing advisor who can assist you with your working capital and growth 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 CASH FLOW FINANCING 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

Growth Financing In Canada : Are You Mapping Your Business Finance Options Correctly

Perks and Pitfalls In Growth Financing In Canada

OVERVIEW – Information on growth financing solutions in Canada. Business finance options to grow your company work best in a well mapped out and planned strategy

Business finance options , when it comes to growth financing are more successful when they are mapped out properly. We're examining the perks and pitfalls of growth finance. If you have no growth plans you have no worries at all! Let's dig in.


The ability to determine or calculate how fast you want to grow depends on several factors, one of which is financing. In some cases you might want to grow ' non organically ' - that is to say buying/acquiring another firm. Given that debt and equity are essentially the only two considerations you have which one works for you. More importantly what types of debt financing are available?

At certain points in time your business is well past that start up stage- it's time for take off! The majority of businesses in the SME COMMERCIAL area have limited equity options, so it’s all down to either debt... of monetizing assets they already have. If you don't have some record of success at this point financing will almost always be a challenge.

If you buy into the fact that growth should be carefully mapped out it's critical to have a business plan that demonstrates both your operating as well as growth requirements. The ability to assess collateral will often point to commercial finance companies, as opposed to banks, for the financing you need. When outside collateral and personal guarantees don't cut it with the bank commercial finance firms have numerous options to run / grow your business.

They include:

A/R Financing
Royalty Finance
PO / Contract financing
Asset based non bank business lines of credit
SR&ED Financing
Equipment financing/Sale Leasebacks
Working capital term loans
Unsecured cash flow loans
Govt Guaranteed 'SBL' Loans

While financing costs are higher but give you finance alternatives, and the ' perk' here is of course that equity funding can be avoided with ownership being fully maintained. Remember also that your own operating cash flow can be a large component in your growth plans. Profits and asset turnover in receivables, inventories and payables mgmt will produce cash flow that can grow your company.

Bottom line, it's ' back to basics' mgmt! - A combination of internal liquidity and proper use of outside business credit.

Management of those items will also decrease the amount of operating credit line you require. And if your business requires larger capital investments Equipment financing via capital and operating leases is a choice preferred by most financial officers/owners.

As a business owner/financial mgr growth financing means utilizing your ' financial toolkit' of internal and external tools as they relate to outside financing , selling or refinancing your assets, and taking on the right amount of debt to grow your business.

If you want to have a solid grasp on the' perks and pitfalls' of growth financing , as well as having access to business options that make sense for your firm/industry 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 mapping out growth finance options.


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 :

http://www.7parkavenuefinancial.com/growth-financing-business-finance-options.html



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

Financing Businesses In Canada: Tapping The Motherlode In Loans Via The Right Criteria For Business Loan Success

How Much Money Does Your Business Really Need ? You’d Be Surprised

OVERVIEW – Information on financing businesses in Canada.
What type and amount of business loan works for your company, and is a loan the real solution to financial success ?

Financing businesses in Canada has owners/mgr's conjuring up visions of 'tapping the motherlode ' for their operating and growth needs. But what type of business loan works for your business, and when it comes to loans or monetizing your assets you might be surprised as to how much, or little! financing you require. Let's dig in.

When it comes to growing a company its probably natural instinct that owners/entrepreneurs think of relating to the film ' Fast and Furious '. That type of mentality though comes with unreasonable expectations of financial success. Larger corporations actually use a formula called ' sustainable growth rate ' which allows them to calculate, and them manage how much they can grow without taking on more debt.

Whether your firm actually calculates that formula, or simply spends the proper time understanding how you can properly grow your business and take on types of financing that make sense is the measure of good planning.

Other key considerations you need to make revolve around understanding how fast you want to grow and to focus on making a profit as much as hyper -growth. Debt that you take on must relate to reasonable profit expectations. Additionally, many business folks in the SME Commercial finance expectation area simply don't understand their financing options.

Options such as the Govt business loan or utilizing equipment financing can help you grow a business, when utilized properly. Another good example of prudent business financial thinking might be to utilize PO financing as an alternative to taking on other forms of debt when it comes to taking on large orders/contracts.

Start ups and early stage revenue firms comes with a heavy measure of financial risk and limited options for finance The ability at this time to produce proper financials and cash flow projections is key .

Any term lender or asset monetization lender will always focus on a handful of key issues relating to providing your business with financing. They include a focus and analysis of profits, cash flow, owner credit history, and any additional collateral you can bring to the table. By the way, this is not the time to have any CRA arrears, as that's a highly recommended way to be declined for many forms of financing.

While Canadian banks play a key role in financing larger businesses and public companies in Canada the consensus, right or wrong, is that they can't satisfy all the needs of the SME sector in Canada. There is very little risk of new Canadian banks entering the market! That's where commercial finance solutions from non banks make sense and are worth looking into. They include:

A/R Financing
Equipment leasing
Asset based business credit lines
SR&ED finance (applicable to those firms investing in R&D)
Inventory finance
Purchase order financing
Sales/Royalty finance

If you're looking to improve your financial chance of borrowing, and borrowing properly seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you tap the motherlode... properly... and for the right amount!



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 BUSINESS LOAN 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

Financing Loan Solutions In Canada : Financial Reality 101 Around Capital Finance Loans & Cash Flow

Don’t Let Your Business Financing Be A Fruitless Endeavor

OVERVIEW – Information around financing loan solutions in Canada. Capital finance loans and other forms of working capital and cash flow solutions

Financing loan solutions in Canada, more commonly in the SME Commercial finance sector, often have business owners/financial mgrs feeling like they are in the middle of a fruitless endeavor. Addressing the financial reality around their capital needs is critical to business success and growth. Let's dig in.

If there's any good news around that search for business loan financing it’s that the real solutions you need come in many forms- that includes the actual profits in your business, equipment finance, revolving credit lines, commercial mtges, etc. Some firms also undertake the search for equity capital - an even more daunting challenge.

The search for capital finance loans and other forms of financing involves understanding what is determining those needs. Some of those factors include:

The size and growth of your company

Stage of product or service development

Asset turnover in receivables / inventories/ fixed asset needs

The seasonality around your business

Issues particular to your industry

At any event at a certain point the owner/mgr is confronted with the need to obtain external financing. That need is even more exacerbated if financial losses are eroding owner equity.

Many clients we meet are often incorrectly focused on ' loans ' in the sense of taking on new debt when in fact the real need is for 'liquidity' in their business assets. It's those liquidity solutions that smooth out the day to day needs of your business. Those ' cash flow ' (not debt) solutions include:

A/R FINANCING

INVENTORY LOANS

TAX CREDIT FINANCING

BANK OR NON BANK REVOLVING CREDIT LINES (Non bank business credit lines are called ' ABL’s)

SALE LEASEBACK STRATEGIES

These above noted solutions take the day to day ' scrambling' out of your constant cash flow needs. Top experts and studies have revealed that almost 50% of ' capital needs' of a business are often solved by utilizing these solutions.



By the way, focusing on debt and not cash flow when your firm is not profitable is precarious at best. Also many business owners /mgr's are not comfortable with the covenants and restrictions that come with term debt - especially bank requirements that also come with personal guarantees and outside collateral needs.

Another issue adding to the conundrum of finance loan needs is the myriad of new entrants into the business loan market. They are certainly giving banks a run for their money! Many of these solutions no long even require the age old ' eye to eye' contact prevalent in commercial lending.

If you're focused on financing loan solutions and cash flow requirements for your business and want clarity on capital finance loan needs via banks and other commercial lenders seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can reverse that feeling of fruitless endeavor experienced by many in Canadian business financing .


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 LOAN FINANCING 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 '

Stan Prokop

SME Commercial Finance Business Financing : The Lowdown On Alternatives

Avoiding Happy Ears In Canadian Business Financing Challenges

OVERVIEW – Information on SME commercial finance business financing alternatives in Canada . Are you hearing and understanding proper choices in capital and cash flow choices available?

SME Commercial Finance business financing in Canada comes with its share of challenges. One of those is ' Happy Ears '. Happy Ears? That's the name we're giving to information that business owners/ financial managers gather that portrays certain business finance solutions as having only ' pros’, while not hearing the ' cons’. What are they looking for? The lowdown!

Let's dig in.



We don't meet many owners/mgrs that don’t want to grow their business, and the current relatively healthy business cycle has them searching for business loans. That required financing has them facing lending standards and criteria from traditional sources such as ' banks ', and at the same time often somewhat bewildered by a myriad of new alternatives they read and hear about every day. Which solutions are right? without becoming a victim of happy ears?!

One of the signs of a successful business is the ability to plan financing needs in advance - avoiding the large stress that come with desperation finance needs and cash flow crunches. While assessing some of the newer forms of finance out there we encourage clients to not forget tried and tested stand by solutions that have been around for decades. The reason? They work!

New or upgraded assets are a constant requirement of the majority of businesses, service businesses somewhat of an exception. Equipment financing is all about flexibility and cash flow conservation- and those fixed monthly payments are a great planning tool for future cash outflows as you realize over time the assets you're acquiring.

Getting paid right away/ to your terms is a constant challenge for almost every business in Canada - large and small. Enter Invoice Financing, allowing you to cash flow your sales as you generate revenues. But talk about a great example of ' happy ears '! There are so many different types of this method of cash flow finance that owners can easily get locked into a facility that seems great but ultimately doesn't make sense for their firm. Our recommendation in this area is almost always CONFIDENTIAL RECEIVABLE FINANCING, allowing you to bill and collect your own receivables while achieving all the benefits of invoice finance.

P O / Contract financing is a massively misunderstood solution to sales growth that requires financing that might typically not be available. The simple answer to how it works is that it pays your vendors in advance for products on which you have committed purchase orders.


Business credit lines are the heart of the financing need for most businesses in all industries. Revolving credit is a critical need and both bank or non bank solutions should be assessed properly. Non bank asset based credit lines will often deliver higher levels of financing with easier approval criteria - but come at a higher cost. It's the ' trade off'.

Personal guarantees and outside collateral are always issues that come up in the SME commercial finance sector. Top experts consistently agree that your goal should be to separate your business and personal life when it comes to assets, guarantees, etc. Here the ability to deliver a solid business plan and cash flows will often help de-emphasize the needs for personal guarantees - or at least limit them.

If you're looking to properly assess business financing alternatives such as:

Receivable Finance
Equipment Leasing
Business Credit Lines
Refundable Tax Credit Financing
PO Finance
Cash flow loans

with the benefit of assessing all the pros and cons, eliminating those ' happy ears '... 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 those 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 BUSINESS FINANCING 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

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