Know The Happiness Formula For Cash Flow Financing And Working Capital Problems ?

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Are You A Great Cash Flow Manager ?


Information on cash flow financing management and working capital problems and their solutions in the Canadian business space.

Cash flow financing in Canada. Is there in fact a ' happiness formula' for solving and managing through cash flow problems? In our opinion it's really a combination of management as well as sourcing the proper solution based on your firm’s particular situation.

Let's examine some tools, tips and strategies around what we might consider a ' Happiness Formula '! in Canadian business financing .

A good way to address the topic is to focus on 3 sub topics - understanding what is in your financial statements, using that information to work through your cash flow cycle, and, finally, financing cash producing assets... properly.

We have said it before, and of course we'll say it again, too many business owners and financial managers focus on their financial statements from a viewpoint to looking primarily at their income statement, perhaps then the balance sheet.

Guess what though; probably the most important way to view cash flow management and to identify working capital problems is in that third part of your financials, it’s the ' Cash Flow Statement '. For us old timers it was also aptly called ' Sources and Uses ' and we're talking cash of course! We love the line ' Cash ... where got ... where gone'!


So what we are saying is that this particular part of your financials can lead you to our sought after 'Happiness Formula.’

The simple part of looking at this statement is the fact that it quickly identifies the gap between profits and cash - and as most business owners know they are often, if not always, NOT the same!

The bigger that gap is of course a solid place to and time to start thinking about solving working capital problems.

So how do you in fact secure the proper cash flow financing in Canada. And don’t forget that it’s not just about surviving in business; it’s about growing your business. That growth will simply enhance the value of your company.

The cash flow statement will properly identify your overall business or operating cycle. In fact it’s even a precise calculation that you can use to track how long 1 Dollar flows through your company, from order to collected receivable. The longer the time gap the more working capital problems and challenges you have.

Cash flow financing come from two areas, borrowing, or simply turning your assets such as A/R and inventory over. Naturally you also want to manager your fixed assets so they are in a proper relation to your overall equity and capital structure.

And those solutions to cash flow finance in Canada? They are varied - they include chartered bank facilities, asset based non bank lines of credit, receivable and inventory financing that are again non-bank in nature. Additional sources are monetization of tax credits or the sale and leaseback of owned assets.

Still searching for the Cash flow Happiness Formula? Speak to a trusted, credible and experienced Canadian business financing advisor today.

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com


Click HERE for 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 .

' 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

Refinancing? Solutions Your Company Can Live With Via A Restructuring Loan Or A Bank Special Loans Takeout

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Looking For A Restructuring Loan For Refinancing Your Business ?




Information on refinancing your Canadian company when a restructuring loan is required . Why Special Loans situations are not ‘special’ !

Many Canadian companies find themselves domiciled in the town of ' Dire Straits '. That’s when a 'relocate ' via restructuring loans and refinancing is in order. In certain other cases extreme situations might exist whereby a Canadian chartered bank or other institution has in fact ' called ' their loan, putting them in the unenviable situation of being in what our banks call ' Special Loans ‘. And we'll promise to hold off on the humor around the work ' special '!

When you consider your firm is either in, or a candidate for refinancing or restructuring
that involves a focus that’s combined with what the finance folks call the ' stakeholders '. They include owners of the firm, lenders, and of course key suppliers. These situations are often dynamic and time sensitive, further adding to the excitement!

What are some of the benefits of working with someone, or a team that is experienced in this area? Naturally finding an individual or a firm that is as serious about your turnaround as you are is key... it’s that ' people thing ' we hear about so often. You're looking for both technical synergies and of course... solutions.

Naturally the final outcome of any restructuring can be different. It could involve the sale of the firm, a partial sale of equity, of more simply, a refinancing of the business that addresses the key issues and problems.

'Assets ' are key to turnaround and restructuring. Whether they are hard assets or perhaps future cash flows under recurring revenue model its all about keeping customers and injecting new cash flows into the business.

So what are some key elements required to get your firm out of ' SPECIAL LOANS ' and back into a day to day operating business cycle that you can live with .?
They might include asset sales, supplier term renegotiations, or financing of badly needed to assets to sustain and grow the business.

There are some key things you can expect in any restructuring of your company. First of all it usually takes longer than you think, a worst case scenario re timing is never wrong to have in place.

Financing solutions in Canada that work well with special loans takeouts include asset based credit facilities, bridge loans, sale leasebacks, and working capital financing re A/R and inventory programs that margin current assets to the maximum allowed.

The bottom line - restructuring and refinancing of any firm, small or large is rarely a fun cake walk! But solutions exist, so seek out and speak to a trusted credible and experienced Canadian business financing advisor today for the experience and special attention that this challenge requires




Click HERE for 7 PARK AVENUE FINANCIAL

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.

Stan Prokop

Turbo Charge Your Banking Via A Business Line Of Credit ABL Revolver!

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Small, medium or large? We're not talking about a coffee cup size... we're referring to the fact that no matter what your size of business your access to a business line of credit is the lifeblood of your company. That's why an ABL revolver (ABL = asset based line of credit) is potentially the solution to turbo charge your working capital and cash flow.

Let's examine how.
Clients seem to always wrestle with the fact that they don't really understand the differences between this type of business financing and banking as opposed to a 'regular' operating facility with the bank. The differences could not be more dramatic. While a bank facility (by the way, we are all for them also, when they work! ) focuses significantly on your balance sheet ratios and over all profitability, etc the ABL revolver solution hones in on one issue only - your assets and their overall quality and size. It is on that quality and size that the ABL business line of credit is structured.


Borrowing power is what business lines of credit are of course about. When you utilize the ABL approach you in effect leverage all the power of the assets, which certainly isn't like what we like to call ' traditional bank borrowing '

.
So, why would a business such as yours want to unlock that borrowing power? The reality is there are some very recurring needs for firms which choose this type of business financing. First of all they either can't get or can't get enough working capital borrowing power against their inventory, receivables and equipment. Secondly, all sorts of other problems, challenges, and yes opportunities can e overcome with an asset based line of credit.


Many examples exist of firms who have doubled and in some cases tripled their business financing access via this type of finance. The answer is simple - it's based on asset size, not ratios and covenants and external collateral.
Those include firms which have large seasonality issues, companies who which to merge with or acquire a competitor on an asset financing basis, and, most commonly, firms that view themselves in turnaround or restructuring mode when it comes to where they are at in their life cycle - i.e. coming out of a challenging economic time or negative business event (operating losses, etc).
Did we just say ' operating losses '?

Yes, the reality is that even firms who are experience operating losses and could otherwise not achieve maximum operating cash flow are excellent candidates for ABL financing. We should mention that the type of facility you get, the pricing on that facility, and how the facility works vary within ABL revolver financing depending on your overall transaction size and asset coverage.


We must never forget also that these type of facilities never bring debt to your balance sheet, you view them similarly as an operating line, in that you are just monetizing your assets for working capital and cash flow - the only difference is you've got tremendous flexibility around borrowing power - because you are borrowing against a base of receivables, inventory, unencumbered equipment, and in some cases real estate also.


In summary ABL revolver financing gives you a full service business financing, its cost effective, addresses almost every financing problem you have had related to cash flow, and is available in facilities from 250k to many millions of dollars.
It somewhat of a secret to many that some of Canada's largest corporations choose this type of financing over a traditional bank facility. Speak to a trusted, credible, and experienced Canadian business financing advisor on why ' ABL ' give you that ' turbo charge' boost in cash flow we've talked about.

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com



' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.

Stan Prokop





















Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698


Article Source: http://EzineArticles.com/6059576

Key Issues In Factoring And Receivable Financing . Bringing Clarity To Solutions For Funding Receivables In Canada

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Clearing The Air On Canada’s Most Misunderstood Business Financing Solution




Information on factoring in Canada . How receivable financing differs from a bank borrowing solution and why funding receivables is becoming more of a proven successful strategy for the Canadian business owner

Key differences in banking and receivable financing have the ability to get the Canadian business owner and financial manager confused. Let's try and UN - confuse some of that information to provide some clarity as to why thousands of firms are gravitating to receivable factoring in Canada.

The core differences are in fact quite clear... how they are interpreted and what sort of solution you ultimately choose is where things get exciting! And those key difference - they arent as complex as you might thing. Simply speaking they are that the ability to borrow in this method of Canadian business finance revolves solely around the size and quality and value of your sales. Point number two is that this is not, we repeat ' not debt ' financing - so you are in effect just monetizing assets for cash flow. And that’s a good thing.

And our third difference - simply that the type of facility that you undertake when choose the strategy of finance via funding receivables is critical. That’s because your firm is not a borrower per se, you are a party to a 3 way business transaction involving your firm, your factoring partner and your client.

Quite frankly though it’s our recommendation to leave your client out of it! Is that possible? It absolutely is if you choose a confidential receivable financing facility that allows you to bill and collect your own A/R without notice to any other party - i.e. your client! And this can be easily accomplished if you have the right assistance and guidance from receivables professional.

We always point out to clients that although our focus today is discussing the financing of a business A/R the reality is that this type of facility can be nicely combined into a comprehensive working capital solution that bundles up your receivables, inventory, and even unencumbered equipment into one borrowing facility. That's supercharging your borrowing ability, and often delivers additional financing anywhere from 50 -100%, or more of cash flow power.

The general consensus is that receivable financing is expensive. While some may argue strongly that it is it is important to understand that the way the industry delivers pricing is not in the form of an interest rate per se. It’s in actuality a discounted amount based on receivables covered under the financing arrangement.

What's more important than rate in actuality, we feel is your ability to now borrow as much as you need to based on sales revenue, new contracts, large orders, etc . And if you're on top of your receivables and inventory turns all we are saying is that you're turning over more assets... more often, and that equates to... you guessed it... more profits.

Speak to a trusted, credible and experienced Canadian business financing advisor on what makes sense for your firm when it comes to a receivable financing program that best suits your needs. Finally... clarity!

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com


Click HERE for 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 .

' 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 Challenges At The Fiscal Cliff ? Navigating Loan Interest Rates And Finance Capital Solutions

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Business Funding .. When You Need It



Information on business financing in Canada . How to assess interest rates on finance capital based on asset and cash flow financing strategies

It's actually pretty easy today for Canadian busines owners and financial managers to feel that business financing is hardly easy anymore. To put it in the context of recent events in the U.S. the business owners in Canada actually often feel they are at the edge of the ' fiscal cliff '.

And boy does that cliff seem steep sometimes as we see competition in our businesses closing in on us every day. But if your new or emerging competitors are raising financing capital and accessing finance solutions and interest rates commensurate with their credit quality... why can't you?

The answer of course is... you can... if you know how, who to talk to, and are focused on a realistic solution that makes sense for your company.

One of the big mistakes that some business owners / managers make when it comes to financing is that they focus on only one solution ( unfortunately they also might be focusing on the wrong one !) when in fact there are a number of capital and finance solutions that are quite complimentary to each other . As an example we often get calls from existing or potential clients looking for ' inventory financing ‘. While this can in fact be achieved (it’s not easy by the way) the reality is that this type of solution is often best achieved in the context of a ' comprehensive ‘ asset based business line of credit by a non bank finance firm.

We're also assuming that your business is past the ' friends and family' stage which has business entrepreneurs accessing capital via family loans and gifts, credit cards, collapsing of savings, personal lines of credit, etc ... While interest rates on those might be great they typically can only get your business so far - so if you're in it for the long haul, or established already its time to move on - to real business financing!


So... getting ' fully funded ' to operate or grow. What can you as the owner /manager do to achieve that? A good start is understanding the difference between debt and equity. While most people understand that equity means new partners and dilution of ownership they often don't understand that their business is not ready for angel investors and VC’s. So debt financing is the option, but we're talking about debt financing... done right!

Having a solid business plan or executive summary is key to financial funding success. At its most basic it covers off a very simple concept - how you will use the funds and how will financing be paid.



Another key take away for your navigation of debt financing? Simply that a lot of financing solutions bring debt to your balance sheet ; when in many circumstances you can simply monetize assets without bring debt to your financials . Those solutions include:


Non bank lines of credit

SaleLeasebacks

Bridge Loans

Receivable Financing/ Factoring

Tax Credit Monetization

Securitization of A/R portfolios.

Unsecured cash flow loans

Etc! Bottom line - a lot of new capital commensurate with interest rates that makes sense for your firm, and no long term debt on the balance sheet. That's a good thing!

Flexibility is key to proper business financing. Many finance solutions come with higher rates, at least for an interim period. But if they are sustainable and can allow you to take the business to the next level then they just might make a lot of sense. And boy is that better than giving up equity or going down the road of searching for ' investors ' when that solution simply isn’t attainable or doesnt make sense.

Seek out and speak to a trusted credible and experienced Canadian business financing advisor on how you can access finance capital for your firm.





Click here for 7 PARK AVENUE FINANCIAL


7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.

Stan Prokop

Sources Of Business Capital In Canada . Financing Your Company From Startup Capital To Advanced Growth Stages

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The Reality Of Business Financing In Canada. Opening the Coffers !



Information on sources of business capital in Canada . Financing a startup to advanced growth stages requires these types of expertise and information

There are, of course, limits to the sources of business capital financing
that your firm can achieve in the Canadian business environment. And by the way, that pertains to whether you are a startup or a more mature company looking for advance growth.

Those limits are about the amount of equity you might be able to put in, or raise, and of course the debt levels and type of external financing that you can be approved for. Issues such as personal guarantees and the amount of debt your firm can manage become paramount.

In some cases the amount of capital you in fact are eligible for may be directly tied to personal assets and guarantees. There is a goal here of course, and that’s to ensure that personal guarantee and personal asset liquidation never happens. A very simple rule of thumb? .... Just ensure that your assets are rising commensurate with your personal guarantees. And don't forget to ensure some sort of liquidation calculation and cost is included in your analysis.

Lenders in Canada, bank and non bank by the way tend to want a lien on as many assets as can be negotiated. More often than not that comes in terms of a ' GSA ' - The general security agreement that covers all your assets. While your main lender typically will always have this other lenders might jockey for this also.


Rates often become big issues when it comes to all capital. What you expect to pay and what might be charged often becomes a harsh reality.
So what can the Canadian business owner and financial manager expect when it comes to ' rates ' in various sources of business capital. Rather that talk about specific rates we can offer this - you can expect to pay very high rates for investors, merchant banks, venture capital, etc.

Lowest rates are achieved through traditional bank facilities, leasing, asset based lenders, etc. And additionally those rates will be commensurate with the amount of capital you need. Whether business owners know it or not they are generally put into a category - those categories include start up, early stage growth, mid market, and mature larger corporation.

That is one of the reasons we have chose not to get into specific rates for approximately 15 types or sources of business capital. To clarify, while your firm might be eligible for an asset based line of credit your rates will vary depending on what stage of financial progress your company is in. Good example - business lines of credit are available for rates anywhere between 5% per annum to 1.5-2% per month. The qualifier? Simply the amount of capital you need and the overall financial position of your company and its owners.

So if there is a theme or a ' bottom line ' today it’s simply that you need to take a hard look at what stage your company is in. That ' stage ' will control the amount and rate of financing you can achieve.

Oh, yes, we almost forgot! Those sources of business capital. They include:

Friends and Family

Banks

Government SBL Loans

Asset based lenders

Bridge loans

Lessors

Mezzanine/cash flow lenders

Merchant banks

Etc!

Speak to a trusted, credible and experienced Canadian business financing advisor on which coffers are available to your firm, at what rate, and under what terms. That's the reality of business finance in Canada.

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

Click here for 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 .

' 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 Working Capital In Canada . Recognize These Implications Of Cash Flow Finance?

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Get out of that ‘ Horses And Bayonets’ Mindset When It Comes To Working Capital Finance Solutions & Approaches



Information on financing working capital in Canada . Business owners/managers must understand the implications of their actions when it comes to cash flow finance . Here is why!

Financing working capital for your Canadian business. Are you still in the ' horses and bayonets' era when it comes to understanding the solutions available for cash flow finance, and the implications of not having the right solution in place?

And excuse that ' guns and bayonets' comment about being old fashioned and out of touch... we just made it up...

Working capital management is a critical success driver for any business. And it not really overly necessary to focus on the word management, it’s simply about adopting a style or consistent manner in which you run your business on an on going basis.

So how do you know when you are successful at financing working capital properly? Are there some benchmarks? There are and some of them might include the fact that you actually have positive cash balances on hand most of the time, although we point out that if you have a bank or non bank line of credit that revolves properly positive cash balances arent always necessary. But what is key is that your working capital facility revolves up and down, a lot, and regularly!

Two other very solid bench marks for knowing you are doing the right thing (or not) is to ensure you understand and have acceptable receivables turnover and inventory management. (If your firm does maintain inventories)

Accounts receivable are your next closest asset to cash. So make sure you know how to measure A/R success or failure, and one of the best ways is to perform a simple ' days sales outstanding ' calculation on an ongoing basis, typically monthly. Bench mark that result against your stated terms to clients and voila! you'll vey quickly know whether you are winning or losing.

You also want to ensure you have access to short term borrowing facilities based on current assets.

They can be bank or non bank in nature, and typically include solutions such as:

Bank business lines of credit

Comprehensive asset based lending facilities

Receivable finance / Invoice financing

Inventory finance programs

Purchase order/supply chain financing

Monetization of tax credits - i.e. your SR&ED claim


When you don't have solutions in place and are unable to meet your general obligations serious problems ensue - at their most extreme you can be judged unable to meet your liabilities - i.e. bankrupt!

How then do cash flow problems present themselves or happen? It's not as complex as the Canadian business owner or financial manager might think. You might be in fact enjoying the double edged sword of ' fast growth '. That typically means you're carrying more inventory and receivables than ever... and exhausting your actual cash resources.

And the ultimate irony? Your accountant tells you that you're actually profitable! It just doesnt feel that way... mainly because cash flows only eventually catch up to profit . Key word: eventually!

Speak to a trusted, credible and experienced Canadian business financing advisor on how you increase liquidity when sales, receivables and inventory demand it.

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

Click here for 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 .

' 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