2,450 Ways To Pinpoint Cash Flow Problems Via Working Capital Solutions In Canada

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INFORMATION ON BUSINESS CASH FLOW SOLUTIONS

Cash flow problems and working capital solutions to those challenges that are faced by Canadian business. Are we really saying there are 2,450 ways to pinpoint the problem? In a way yes. Let's explain.

Although cash flow challenges are more than ' intuitive ' in the real world (that’s where we ourselves work) Canadian business owners and financial managers often fear or just simply don't understand how to quantify those problems. The reality is that the actual problem can be quite clear if you go to your financial statements, preferably on an ongoing basis.

Let's assume you can identify 2 data points in your financials - the number of simple relationships you can look at with those 2 numbers is of course 2.
3 different numbers or data points in your business numbers would allow you to calculate 6 relationships, 10 for example would allow you to calculate 90 relationships. Finally, if you identified 50 numbers in your balance sheet, income statement, or cash flow statement you would, you guessed it, be able to formulate 2,450 calculations. It's of course a geometrical solution we have just laid out.

So, your next question is of course ' what the heck is your point?! )

It’s simple actually; the relationships we are talking about are in fact more commonly called ' ratios' by financial types. Naturally you don't have to calculate 2,450 ratios to in fact get some meaningful data from your financials; a small handful will do nicely!

Let's examine quick examples to show you how you can very quickly pinpoint cash flow problems in your firm. Let's take 3 data points, your sales and your working capital. The working capital calculation is current assets over current liabilities on your balance sheet. Isolate those three data points and do the calculation. The actual calculation is Sales / Working capital.

Congratulations, you have just completed your working capital turnover calculation! It measures how your company is in fact managing your cash flow, because as sales go up inventories, receivables and payables rise also. All of those have been captured in our final calculation! In effect you have just mastered a simple way to compute the very complex relationship within your firm on a daily basis as you sell and collect.

Important to note that the number in and of itself is not meaningful. When you track it over time, say monthly, it becomes VERY meaningful. And for the purposes of this ratio a lower number is a better number.

It's also important to note that each industry in Canada will have a different number as a result, ranging anywhere from 2 to even 18. Each industry is different.

We're not accountants but what we have hopefully demonstrated is that any business owner or manager can use any number of data points in their financial results to pinpoint cash flow problems and performance.

It's all about asset management; in our example it’s those current assets that pay bill and allow you to make loan payments. Your goal is to manage the ' cash on hand ' account in your business well enough to put you in constant survival mode - and it's a jungle out there!

In Canada various solutions exist for cash flow problems. They include receivable financing, bank lines of credit, asset based lines of credit, monetization of tax credits, and supply chain finance. Each of these works in a different way, but all provide you with working capital solutions.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with score carding and solving your cash flow challenges.






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

2 Signs Your Business Is Going Broke And Your Solutions For Fixing Business Cash Flow Problems

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INFORMATION ON BUSINESS CASH FLOW SOLUTIONS

Can you spot (or have you spotted already) business
cash flow problems inside your firm? A better question might be - have you got some solutions to those problems! We've got some insights into both today.

Business failure, temporarily, (or otherwise!) often comes back to cash flow and working capital. In some cases it's an ongoing situation that saps management strength - at other times it's a time bomb inside your firm, seeming ready to explode at any time as you hit the proverbial cash flow shortage wall!

Your ability to perceive this challenge and correct it is of course critical.

Let's get to the meat of the matter... jumping right into the matter. Here are 2 key areas or reasons why you might be ' going broke ‘, and maybe not know why. The term ‘ going broke ‘ is a bit unsophisticated .. but anyway …here goes!
Your ongoing challenges might involve one of these, or both . We'll let you make the call.

Sign # 1- your cash flow cycle. Simply speaking it’s the relationship around the ' in’s and outs' of your business. It's the time cycle between collections and payables. We met with a CEO yesterday of a larger firm who commented that in his cash flow cycle they typically get paid by clients before suppliers are paid. They are in the food industry - and that would be typical. When that issue is reversed, i.e. suppliers needing to be paid before clients pay you face a cash flow cycle problem.

And by the way, you need the right mix of those ' current assets ' when it comes to turnover. When your a/r or inventories become ' bloated ' that's a sign of ' going broke '.

Sign # 2- Leverage. It's a common term that the business financial folks use. It's essentially the fixed costs in comparison to the profits you can earn from selling more. As you look to buying more assets, or even buying a competitor that leverage issue becomes critical. Buying more assets and taking on more fixed costs just puts more pressure on you to breakeven, let alone make a profit.

Too much leverage ultimately will lead to business failure.

Remember also that one of the biggest misconceptions in business is that profits aren't cash. Lenders in Canada generally aren't impressed by romantic, slick company names, high ambitions and future profits. They focus on cash flow and the quality of earnings - when you track income and cash flow over time they should gradually come together.

Our final advice - seek out the ' bad news ' in your cash flow problems - and understand where they are coming from.

Solutions in Canada are abundant - depending on where you are in the business maturity cycle - i.e. start up, growth, mature, etc. Those solutions include solid banking support, receivable and contract finance, inventory and P.O. finance solutions, and asset based lending and equipment finance.

Speak to a trusted, credible and experienced Canadian business financing advisor on how you can utilize these to... dare we say it... not go broke!







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

ABL Asset Based Finance

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How To Recognize These Early Warning Signs For Your Need for The New Paradigm In Revolving Lines Of Credit

ABL asset based finance can be the solution for business revolving lines of credit when your current finance strategy isn't working. And what are those early warning signs? They include situations where your financing currently just isn’t working due to financial challenges you have experienced in the past. They also include acquisition scenarios, turnarounds, and the proverbial double edged sword, high growth.

The simple reality is that although the ABL credit lines have essentially the same goal they in fact get to that goal line in a very different manner. Both the chartered bank facility as well as the ABL line provide you with a bridge for financing from the time you receive customer payments while all the while generating expenses.

Receivables are often the primary component of an ABL strategy. The ABL facility is not capped, so as your sales grow so can the facility, it’s as simple as that. All of this might seem similar to a bank solution, so whets the real difference. One is in fact margining, in that asset based lines of credit, with respect to the a/r component, are usually margined at 90% - typically the bank is at 75%. Although the reporting is generally stricter with ABL the reality is that the tradeoff is significant, you can borrow more and are not focused on staying within any pre set credit limit.

Many clients we talk to don't understand the daily mechanics of how the asset based lender operates given they are not a bank. (The ABL is generally not a bank, but it actually can be sometimes). The typical way this is handled is via a separate blocked account where all the deposits you receive are handled separately from your operating account. Simply speaking you get money from the ABL via your operating account, and your receipts go into the other account. Naturally both accounts are fluctuating all the time.

While some of these terms and the actual ABL facility itself might seem ' new ' the reality is that this type of financing has been happening for decades in the U.S. and is enjoying more popularity everyday. In effect it has become ' mainstream'.

While we have focused on receivables as one component of the ABL strategy the other parts are inventory, equipment, and even real estate. All of these are neatly combined into one revolving facility, enhancing your overall borrowing power. The fact that they are margined at much higher rates than a chartered bank facility simply becomes a ' win ' for your firm.

While banks focus on profits and cash flow, which sometimes are difficult to achieve! the ABL asset based finance revolving lines of credit focus on Assets! Therefore typical bank requirements such as debt to equity, tangible net worth, cash flow coverage, etc simply don’t apply in ABL finance.

ABL can cost more (it can also cost less by the way), and as we noted it require more reporting to your ABL partner. However, if it can provide solutions to growth, turnaround, acquisition, and survival we think it certainly merits your investigation. Often times the higher price of the facility can easily be offset by proper usage of funds to generate profits and savings.

Speak to a trusted, credible and experienced Canadian business financing advisor if you with to look at the new paradigm in business line of credit.


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

Here’s Some Keys To Unlock Business Operating Cash Flow With Solutions That Work

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INFORMATION ON BUSINESS FINANCING SOLUTIONS IN CANADA

Here's to not losing your keys. We're talking about the keys to unlocking business operating cash flow and the solutions that come with that Canadian business financing challenge.

We're big fans of confusion, because hopefully it enhances our reputation of providing clarity around issues such as business cash flow! That term is often confusing to many business owners, and financial managers.

The reality is that you will ultimately be judged by others, i.e. suppliers, bankers, lenders, lawyers, and other professionals as to how well you manage and understand that business concept.

That cash flow plan is really one of the most important documents in your business. Where confusion reigns is that it is often inter mingled with profits, income and revenue, which really are all pure accounting terms.

As we have pointed out in the past, cash does not, we repeat, does NOT equal profits, The short example is that your firm probably has a payroll this week, but in fact has not collected monies owing to you for sales you have made previously, perhaps a month or so ago. And, as we have pointed out, although you have recognized that revenue you in fact have not been paid. The short comment... it's pretty simple - You dont pay bills with revenue, just cash!

When the busines owner demonstrates he has true control over his business he enhances his or her reputation with a lender, whether that is a banker, a commercial finance company, a lessor, etc.

So what keys can you use to dig deep and unlock the cash flow power within your firm? One way is to maximize management of accounts payable. Properly and effectively managing that time lag between your receipt of goods and services to payment enhances operating cash flow, increasing it. Naturally you don't want to abuse supplier credit.

Managing fixed assets properly is another key to unlocking cash flow. Watch your fixed assets to sales ratio, and you might even consider a sale leaseback on unencumbered assets.

A huge cash trap for which you need a great key is inventory. Monitor inventory performance and the amount of product you carry.

Lastly, and perhaps most importantly, the key to unlocking cash flow power is in your receivables. Have a solid credit policy and ensure your A/R is financed properly, either through a bank or commercial receivable finance company. That latter strategy can turn your company into a real cash flow machine if managed properly.

Keep in mind that you're the one in control of those keys to unlocking business operating cash flow.

Financing solutions are also available to enhance those ' keys ' - speak to a trusted, credible and experienced Canadian business financing advisor about those solutions that might work for your firm .





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

Don’t Make Mistakes In Sources Of Capital And Financing For A Canadian Business Loan. Debt Or Equity? What’s Best?

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INFORMATION ON SOURCES OF BUSINESS FINANCING IN CANADA

You're looking for sources of capital and financing for you Canadian business. A Loan? An equity arrangement? A monetization of assets ? What works best is of course the nagging question that continuously faces Canadian business owners and financial managers.

Many Canadian businesses who contemplate equity type arrangements simply aren’t ready, and it’s also the most expensive form of financing when you consider the ownership dilution that comes with that strategy.

There is usually never an easy or obvious method to get rid of financial challenges. In fact if you're looking at bank financing, which is of course ' debt ' you may well find that the bank feels that more equity from yourself is in fact required in order to obtain that debt. That's a bit ironic sometimes!

Are there any tools available to help the Canadian business owner understand both the cost of debt and equity? There are, of course.

Whenever any Canadian firm looks for financing outside the business there is a cost to the owners. Naturally if you borrow in terms of term debt the additional interest financing costs reduce profits. Selling equity of course reduces no profit, but, and it’s a big one, ownership is proportionately reduced.

We are always preaching to clients that many forms of business financing outside of equity in act do not reduce earnings if in fact you're monetizing assets and have a healthy turnover in key areas such as receivables, inventory and fixed assets relative to overall sales. That’s why we're big proponents of strategies such as A/R financing, supply chain financing, asset based lines of credit, etc.

Earnings and cash flow analysis is a solid way of evaluating debt and equity alternatives.

What then are the key areas you should always focus on when it comes to debt vs. equity analysis? Some solid ones are overall risk with respect to your ability to make payments under any debt scenario.

And whether its debt or equity consider what flexibility you have with respect to any covenants the lender or equity partner might insist on. Always watch your leverage, there is only so much debt your firm can manage and handle.

The irony in either borrowing or looking for some equity is that you're usually in one of two positions, success, or failure! That one never escapes us, as we meet clients who are successful and have a need to finance new growth or expansion, of alternatively, they are currently losing money and have some real deficiencies in their company that need to be fixed.

When you are looking for debt you can be sure the lender will focus on
working capital coverage, leverage, and operating efficiencies. Equity lenders will focus on management, growth potential, and why your business is unique.

If you want to properly understand available sources of capital when it comes to business financing, a loan, or an equity arrangement consider speaking to a trusted, credible and experienced
Canadian business financing advisor
.







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

Guilty As Charged ! It’s OK To Be Accused Of Exploiting Commercial Equipment Lease Companies In Canadian Business Financing

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Information on Canadian Equipment Financing Solutions - Your optimal asset finance solution !

Guilty as charged? You should be. We’re recommending it! We're talking about exploiting commercial equipment lease companies in Canada for your financing needs.

We're told that exploitation is ' utilization, especially for profit'. That’s what we think you should be doing when it comes to considering lease financing in the Canadian marketplace. Let's explain why and how.

Naturally when we talk about ' exploiting ' we think it’s fair to say it has to be to a mutual advantage, i.e. the lessor and you the lessee should be in a win win scenario. It’s all about maximizing the benefits.

To put it simple lease companies solve financial challenges you may be facing in acquiring assets.

We constantly preach that to get into the ' exploitation' mode that we're talking about here you have to know the lay of the land.

Therefore it’s important to understand who the players are in the industry and how they differentiate themselves from each other. That could be a full time job in some cases, and apparently you've got one already! ... so it makes sense you want to attach yourself to a lease financing expert who can clearly differentiate the players with respect to their financial offering , their deal size, credit criteria, and types of equipment lease offered.

So in what ways can you exploit lease financing to your advantage. There are several, and if we had to summarize them they would come under the categories of economics, working capital preservation, balance sheet and income statement benefits, as well as just ease of acquisition.

When it comes to economics its all about cost of ownership, and the lease versus buy decision. You have to do some basic analysis around why you want to lease finance and that often boils down to the actual use of the equipment at the end of the lease, not at the beginning as most think!

We constantly see business owners and financial managers in Canada doing a not too bad job of finalizing a lease transaction at inception, but they often fail to consider mid term and end of term economic implications .

One of the great economics with commercial equipment lease companies in Canadian busines is the sale leaseback - it’s a strategy that replenishes your working capital and maximizes your owned, unencumbered assets.

Issues such as taxes and depreciation often fail to excite the business owner as lessee. And count us in that group also! But we do caution clients to discuss accounting, tax and deprecation benefits around business lease financing and how they might positively impact your financial statements.

If you’re an astute lessee you can save hundreds, and often thousands of dollars based on some simple understanding of lease rates, why they are important and why they might not be.

Clients don't always believe us but a low monthly payment or interest rate doesnt mean anything when it comes to other aspects of your transaction such as down payment, skip payments, end of term obligations, calculation of a buyout, etc.

There's an old joke among lessors who maintain they will give you any interest rate you want as long as you sign ' their ' lease contract!

Exploit commercial equipment lease companies to your advantage. Maximize benefits; minimize the downside by some careful analysis. Not feeling qualified? No problem. Speak to a trusted, credible and experienced Canadian business financing advisor. Let’s get exploiting!





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

Who’s The Boss? Are Cash Flow Financing Challenges Managing You? Business Working Capital Management

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Information on Solving Cash Flow Financing Challenges in Canadian Business

Valid question, right? When it comes to your business
working capital and cash flow financing who's running the show, you, or are those two culprits seemingly running your company?

We're remind of one of Yogi Berra's (many) great lines - ' when you come to a fork in the road, take it ‘! That's probably where you are now in many cases. Determining who will win the ongoing cash flow battle for supremacy.

The reality is that you can probably be forgiven for feeling ' Who's the boss ' as statistics show that 82% of business owner don't feel in control or comfortable about their cash flows. So how in fact do you regain that feeling of control that every business owner treasures.

A good start is to know what you're talking about. We've repeatedly said that cash flow is such an over used and misunderstood concept or term. We can get really technical (net income plus deprecation plus or minus changes in working capital components) but unless we're at an accounting trade show/convention that's not really what we're looking for here!

To make things more complex we can make a case that your ' cash flow ' has to do with historical, present, and future needs, making it even tougher to get a handle on.

There are some great tools and also solutions to manage your cash flow financing needs. And again, we're talking about real cash, not income statement profits. That frankly though is a good place to make a very important comment - if your cash flow statement ( it's component # 3 of every financial statement ) differs significantly from your income statement over time you probably will never really regain cash flow control/supremacy.

So lets examine some solid ways to make sure you feel good about that ' WHO'S THE BOSS' question we posed earlier.

First of all, keep your financials up to date and understand them. A small handful of key ratios or relationships you can easily, and we mean very easily monitor over time will allow you to feel ' in control ‘. Simple things like receivable days turnover, inventory turns, sales to fixed assets, etc.

It sure doesn’t hurt to do some methodical cash flow planning. Also, take a look at your overall capital structure from a viewpoint of debt and equity. This allows you to properly take advantage of market growth opportunities, even an acquisition perhaps.

We know we sound like a broken record sometimes, but understand your operating cycle; it’s the amount of time it takes for a dollar to flow thru your company. Match a financing solution to that selling cycle.

Hottest tip today on cash flow generation? It's dont pay anyone! But seriously, managing your payables and disbursements is critical, but we're the first to recognize the importance of supplier relationships. If you have a sales force you might consider paying them commissions when sales are paid, not made. Talk about incenting the collection focus!

If your assets aren’t turning over quickly focus on that. You can also monetize your current assets via

bank lines, asset based lines of credit, working capital lines, receivable financing, inventory financing, and supply chain finance .

Who's the Boss when it comes to cash flow? Hopefully you. Speak to a trusted, credible and experienced Canadian business financing advisor on cash flow financing and business working capital analytics and solutions.






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