Business Financing In Canada : Reclaiming Your Right To Loans & Capital With The Right Financial Lenders

Looking For The Swiss Army Knife Of Business Financing In Canada ?

OVERVIEW – Information on business financing in Canada. Are you familiar with a whole new array of financial lenders and loans and cash flow and working capital solutions available to your business?

Business financing in Canada has the kind of challenges that sometimes makes business owners/ financial mgrs feeling they would like a Swiss Army Knife strategy - that iconic tool that is always versatile in almost every situation. What types of financial lenders can provide your firm with loans and cash flow solutions that you need? We're talking about underwriting innovation. Let's dig in.

Most business folks these days realize that business finance is a whole new ball game these days.

In many niches of business finance needs alternative and even online lenders dominate the capital space.







Along with traditional business loans and credit facilities from Canadian chartered banks a whole array of solutions is available these days , everything from financing SR&ED tax credits and other current asset cash flow strategies such as A/R financing , inventory loans, PO financing, equipment finance, etc.

What is the appeal of alternative and online financing such as equipment leasing portals, etc? Simply speaking it’s a combination of time and efficiency complemented by the fact that a real finance approval is just around the corner - as many firms cannot acquire lowest cost bank financing due to requirements of length in business, as well as profit and cash flow and debt criteria.

While some might think that any form of nontraditional financing is the 'WILD WEST' the reality is that governments and even banks are focusing on alternative and online ' FINTECH ' ( financial technology )

solutions that services start ups and middle market firms in Canada.

The actual profile of firms that are the best candidates for alternative financing includes businesses, (perhaps like yours?) that are growing, hold some debt already and have very uneven cash flows with need for more business credit.

We note also that a lot of traditional financing prefers ' upstream' larger transactions and financings under say... a million dollars dont always get the attention they deserve given the fact that SME drives the economy. We must emphasize though that bank rates are at an all time low and any alternative nontraditional or online finance comes with a higher cost.

Time is money of course and business people have little patience these days for long approval cycles from banks or other traditional lenders.

Note also that we're not talking about consumer lending here, with heavy reliance on personal credit scores and personal assets, net worth etc. While the owner financial history may be a factor in almost all levels of financing in the SME (small to medium enterprise) sector it should never be the key factor in loan approvals.

What type of financial package should the owner /mgr be prepared to share with a business lender? The basics include:

Financial statements
Bank statements
Business plan and cash flow forecast if available (these two can be efficiently prepared at a low cost with expert outside assistance and will enhance your loan requests

Are you financially aware of business financing solutions available to your firm? Some top experts maintain that owners/mgrs continue to talk to banks when in fact they already know they don't meet criteria required!

If you want to be ' market aware' of financing solutions available to your company seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can be that Swiss Army Knife for loans and cash flow solutions you require today.



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 10 years - Completed in excess of 100 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 & 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

Business Financing Turnaround : Restructuring & Fixing With Business Finance Solutions

Turn Around ! Turnaround Business Finance Solutions : How To Fix Your Company

OVERVIEW – Information on solutions for a business financing turnaround. Restructuring finance solutions to bring your company back from the brink

The business financing turnaround , commonly called ' restructuring finance ' becomes a necessity when companies find themselves on the brink of failure. The ability to turn your company around focuses on several key issues, not the least of which is ' new ' money or refinancing. The goal? Turn a business into a ' performer'. Let's dig in.

While in many cases a firm could be viewed as ' stagnant ‘it’s unfortunately a bit more dramatic than that, and whether it’s a people solution, or a monetary one the ' fix' is needed, but the solution unclear. In more dramatic circumstances a firm can be merged or acquired into a new entity.

While financial fixes and business financing solutions are almost always required it's important to note that issues such as mgmt, industry dynamics, and competition are other key factors in longer term success

What types of financing make a turnaround more plausible? Several key solutions can typically effect a positive turnaround. They include:


Revisiting operating credit line needs via a bank or Asset based lender

A/R Financing / Inventory Finance

Unsecured cash flow loans

Equipment finance/ sale leasebacks

Term loans secured by assets or cash flow

In many cases a combination of different financial solutions will bring a total solution.

More than ever the 2008-2009 financial crisis re-emphasized the fact that traditional financing can almost always not meet the needs of a turnaround. Bottom line - traditional bank type financing is not mandated to fund financial distress - simple as that. In fact even high hyper growth is rarely financeable by banks, whether financial losses or balance sheet issues are evident or not.

Many companies are already close to the brink and find themselves in the category of ' special loans' in the workout departments of banks and other lenders. If there is one finance solution that's more common a fix than others in restructuring finance it's the ABL (asset based lending) solution. That can come in the form of fixed asset financing, or more often than not a total facility that refinances your receivables, inventory, fixed assets up to and including any applicable real estate.

Asset finance can often quickly fix situations where access to operating credit is either limited or nonexistent in the face of continued ability to generate sales.

Asset lending in the wake of a turnaround situation will always be more expensive than traditional finance.

If you're looking for a financial ' fix' 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 restructuring finance needs.



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 10 years - Completed in excess of 100 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 & 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

Business Financing In Canada: You Can Trust These Asset Finance Loan and Credit Solutions

Financing The Black Hole Of Business Growth & Capital Needs

OVERVIEW – Information on business financing in Canada. Asset finance strategies and the right type of loan are in constant demand for companies seeking to access credit & capital

Business financing challenges in Canada sometimes may have business owners/financial mgrs feeling like they have fallen down the ' black hole ' with that ' no way out ' feeling accompanying that.

Whether it be asset finance, a business loan, or revolving credit facility the ability to find a solution you can trust for the immediate/intermediate and long term is what good corporate finance is all about. Let's dig in.

That ' black hole' we're talking about often has to do with the stage of growth and success your company is in. No secret that start up, all the way up to SME (small to medium enterprise) firms probably face more challenges.

Their ability to add people, assets, and additional cash flow often comes at a time when traditional bank financing is unavailable, or at least unavailable in the amount they want. For those firms that are ' bankable ' it's all about ensuring that you understand the facilities provided and the ramifications and requirements of Canadian chartered bank borrowing.

Loan applications to banks, whether for operating or term facilities should be accompanied by a business plan, your financials, and cash flow forecasts. For firms that are unable to produce a proper plan or exec. summary help is available from people such as your accountant or external business financing advisor.

It's interesting that when we talk to clients about potential financing solutions their focus (understandably so because they are entrepreneurs) is typically on sales and profits. That coupled with the fact that ' profits are an opinion but cash is a fact ' often has owners/ mgrs missing the fact that cash is in fact the lifeblood of your business.

Getting back to those sales revenues though, it is in fact important to understand that the rate of growth of those sales will often dictate the amount and type of outside financing you will need. We say ' outside financing ' only because solid operating mgmt of inventories, receivables and payables can in fact add positive cash flow to your business... big time!

Many firms in mature industries that have slow or moderate growth in fact produce cash, not use it. The euphoria that comes with sales revenues success is often tempered with the fact that all your cash is tied up in working capital needs via inventory and A/R. Bottom line - it's tough to be a cash cow!

Some firms even consider selling their business too early if only for the reason that they can no longer deal with financing challenges. The ability to estimate how much cash or capital you need for people, plant and sales growth is key. Financial solutions for your business, both traditional, and alternative, include:

A/R Financing

Inventory Loans

SR&ED tax credit financing

Equipment leasing/ asset finance term loans

Sale Leasebacks

Commercial mortgages

Bank business credit lines

Non bank asset based full business lines of credit

PO / Contract Finance

Sales / royalty financing


If you feel you're either in, or capable of falling into the ' black hole' of business financing voids seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can deliver on solutions you can trust to grow.. and survive.



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 10 years - Completed in excess of 100 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 & Contact Details :


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCING






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

Business Financing In Canada : What You Need To Know About Loans & Working Capital Finance

Fallen Into A The Business Financing Void ?

OVERVIEW – Information on business financing and loans in Canada. Masterminding the term loan / working capital finance solution

Business financing almost always involves taking on debt - most owners and financial mgrs are somewhat reluctant to take on forms of finance that don't necessarily help to build the wealth and equity in their business.

But both business loans and working capital finance, done properly, allow a business to handle growth and profits in a manner that reaches their business goals. Let's dig in.

Remember also that often business credit lines and other asset monetization techniques (examples: sale leasebacks / tax credit financing, non bank credit lines) bring new capital and cash to your business but don't necessarily add debt to the balance sheet. These techniques balance themselves based on assets you already own or generate.

In some cases owners must rationalize the fact that they ultimately do in fact need some new permanent working capital or owner equity in the business. One way to measure the need for permanent equity/working capital needs is to simply assess your business credit line fluctuations.

If credit lines are constantly being used to the max there is a suggestion to both you as owners, as well as any other lenders you have, that the inability to meet debt obligations or cash flow needs could be just around the corner.

The whole issue of credit lines versus ' term ' borrowing is critical to the business owner/mgr. That's because it's important to match business needs with the right type of debt.

Longer term fixed assets, i.e. plant equipment, technology needs, etc, should be financing via Equipment financing or term loans. Here a lease versus buy analysis prepared by your accountant or equipment lessor should help you make the right decision. A key caveat here is that you should always be comfortable that your sales and profits and cash flows will be in a position to retire leases or loans your business takes on.

Businesses who are considering taking on loans are often driven by their inability to collect receivables or address inventory needs. These situations truly are fixed by proper revolving credit lines being in place .For companies that can't access bank credit ABL (asset based lending) facilities are the perfect solution. That funding of receivables and inventory helps the ' disruption that your slow paying clients have caused!

There's no question that the true ' magic' in business success if strong sales, profits, and little or no debt. But properly managed loan and working capital solutions play a key role in long term business survival. If you're looking to fill the void in your cash and capital needs seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help you mastermind right solutions based on your company/industry needs.


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 10 years - Completed in excess of 100 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 & Contact Details :


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

Financing & Corporate Loan Success : Beating the Odds In Business Cash Flow Solutions

May The Force ( Of Business Cash Flow ) Be With You

OVERVIEW – Information on how owners/mgrs can assess business cash flow needs . Financing and corporate loan success depends on the understanding around certain internal and external ‘ forces ‘

Financing business cash flow requires that your company is in a position to beat the odds of the many firms that can't or don't know how to access corporate loan or asset monetization. In fact there are key' forces ' in business finance that affect how you'll grow sales and profits. So... may the force be with you! Let's dig in.

The classic scenario of your sales and profits not equaling cash in the bank is in fact the key ' opportunity ' the owner/ financial mgr has to turn their cash flow around. Your ability to buy needed assets is also key.

So what in fact are those forces that need to be addressed? One top expert lists them as follows, and these should always be considered when addressing business financing challenges and opportunities:

Keeping your tax obligations up to date

Ensuring you have the right amount of (good) debt and that your company can repay it

Ensuring you have day to day working capital availability

Solid mgmt of those areas of your business will allow owners and stakeholders to either increase the value of their company or take mgmt dividends, bonuses, salaries, and other distributions.

For assets you need to purchase there is no better strategy than utilizing equipment lease financing. The ability to avoid hefty down payments or to save your line of credit for daily operating needs is key.

Many firms like to ensure they have several months of cash, or cash availability on hand to meet future debt and growth scenarios. That type of solid planning allows you to make the right choices in your business, as opposed to reactive measures which often end up with wrong financing and loan decisions being made.

Business owners should also try and separate their personal financial life from their business as much as possible as it relates to personal guarantees, business credit card debt, etc. The bottom line you want to keep both your ' business cash cow ' and your ' personal cash cow ' healthy.

The concept of real ' operating cash flow ' is critical for owners and financial managers to understand. It starts with your profits at the end of the month and then adding in all the changes that take place in 3 categories- Receivables, Payables and Inventory.

Remember also there are two types of debt, loans, and operating facilities, the ability to use each one properly is key to your business success.

If you're looking to properly manage those ' forces' of cash flow it key to understand when certain types of key business financing solutions will work for your firm. They include:

Bank credit lines

Non bank asset based lines or credit

A/R financing

Inventory loans

Equipment finance / sale leasebacks

SR&ED tax credit financing

If you want to beat the odds consider seeking out and speaking to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your business cash flow and financing needs.



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 10 years - Completed in excess of 100 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 & Contact Details :



http://www.7parkavenuefinancial.com/business-cash-flow-financing-corporate-loan.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

Business Financing Solutions : Distress Workout Finance Alternatives

S.O.S. Financing Needs – Answering Your Call For Business Finance Help

OVERVIEW – Information on business finance workout alternatives. The ability to identify financing solutions when your business is in, or on the verge of financial distress is key to long term survival

Distress financing solutions are required when businesses find themselves in financial jeopardy. Often called ' workout finance alternatives ' it's a case of your company sending out that S O S call for help , that term being of course the Morse Code for assistance. Your ability to take charge of the ' workout ' and implement a proper cash flow and capital plan is key to long term business survival. Let's dig in.

The ability to understand what your firms financial alternatives are also comes with the obligation of knowing where these resources are. Being unprepared at a time when your business financing needs are critical will only lead to failure.

While Canadian chartered banks are the obvious ' go to ' for capital and cash the reality is that companies exhibiting financial stress or challenges are not on the bank radar. Banks are of course ' deal makers' but the deals they make are based on the premise that money will always be safe as it can be- so that rarely if ever includes start ups, early stage firms, or companies in financial need. Assets, collateral and cash flow are their focus.

For larger firms exhibiting financial challenges ' equity capital' is often the goal. That however is rarely part of the small to medium (SME) enterprise solution. In some cases financial challenges come out of internal problems, in others it's external - i.e. competition, seasonality, economy, etc. Bottom line, having a clear understanding of the problem helps identify the solution.

While many firms can be financially ' fixed ' with one type of financing the fact is that quite often a cobbling together of different finance alternatives are in fact ' the fix '.

For the majority of business recovery finance solutions we usually turn to the balance sheet. That requires a clear understanding of where the business assets are and what they are worth. Typical asset categories are receivables, inventories, fixed assets/equipment, and in some cases real estate. Assets that aren’t financeable include goodwill and patents, R&D, etc - those two are rarely part of our fix.

True working capital solutions will come from financing that involves current assets. Typical solutions are a reworking of A/R financing coupled potentially with inventory loans...

Common working capital fixes include:

Receivable finance
Inventory financing
SR&ED refundable tax credit finance
Non bank asset based lines of credit
Sale leasebacks


If you're looking for help in identifying and negotiating workout finance alternatives for your businesses seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help answer that S O S call for assistance you might need to make.



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 10 years - Completed in excess of 100 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 & Contact Details :


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS 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

Business Turnaround Strategy Needed ? Consider A Cash Flow Doctor

Information on business cash flow solutions. Implementing a financial turnaround requires specialized expertise. Avoiding business doomsday !

Business turnaround strategy required. That turnaround might cover a lot of issues, but we're talking about the ' CASH FLOW ' issue today. Let's dig in.

Business owners and financial managers know the importance of cash flow and working capital as generated by their accounts receivable and inventory accounts. What is the ultimate effect of a lack of cash flow and working capital - we know the answer - it is a business failure.

It's all about understanding the problem, and then... you guessed it... fixing it! When it's not an intuitive realization, there are some technical ways to assess the problem. That's when you might need what we can only describe as a business cash flow doctor.

You should be looking for someone that understands your financials and business, has a solid track record and experience, and can facilitate cash flow turnarounds by offering up solid and sometimes creative working capital solutions.

Business owners can utilize a financial analysis technique that finance textbooks call the 'DOOMSDAY RATIO '. What is that ratio and what is its significance?

The Doomsday ratio is calculated by the following easy formula:

Cash divided by Current Liabilities.

This is one of the most powerful and effective solvency ratios that a business owner can utilize. Business people might be aware of two other similar ratios, the current ratio and the quick ratio. The current ratio included the firm's current assets, including accounts receivable and inventory. The Quick ratio did the same but excluded inventory.

The business owner can quickly see that the doomsday ratio focuses solely on Cash! We can call it a very demanding ratio because it focuses solely on the liquid gold within the company, cash! As liquid as your receivables and inventory are, they aren't cash yet, and everyone knows the day to day business challenges of converting receivables and goods into a final cash customer payment.

Really the best way to look at the Doomsday ratio is to view it as an ongoing measure of the firm’s cash 'buffer'. The bottom lien is that it will show the business owner what 'cushion' of cash the firm has. Business owners could even choose to monitor the ratio daily, as it could very well warn against impending shortages of working capital.

Many business owners know that it is also not productive to carry cash on hand, particularly in today's low interest rate environment. So it makes common sense that the doomsday ratio may in fact be less than one, but at least we have a number that, on an ongoing basis, we can monitor.

Each business over time has a philosophy and business practice around how much cash is kept on hand. Naturally it's also obvious, and important to know that if you reduce your operating line of credit with you cash you still have the full liquidity of your operating line, but you aren't paying any interest to borrow. That's a good strategy also.

Customers can also enhance their position by factoring or selling their accounts receivable, which would put them in a strong position to generate cash and maintain a positive Doomsday Ratio.

In summary, the analysis technique is a valuable took to monitor cash flow/working capital for any business.

And don't forget to see that CASH FLOW doctor who can implement solutions such as:

A/R Financing

Working Capital Loans

Bridge Loans

Sale leasebacks

Non bank asset based revolving credit facilities

Tax credit monetization

PO Financing

Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success for that business turnaround strategy you require when it comes to refinancing.


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 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.

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













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