YOUR COMPANY IS LOOKING FOR CASH FLOW FINANCING!
SMALL BUSINESS WORKING CAPITAL LOANS SOLUTIONS IN CANADA
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
Working capital shortages can almost always be reversed with the right asset monetization or business cash flow loans. It's no secret that challenges can quickly become a nightmare when not identified and properly addressed promptly. Let's dig in.
3 KEY BASICS TO CASH FLOW FINANCE
Critical to implementing the right solution is the understanding of some key basics - they include:
Understanding your ' cash flow cycle' within a typical 12 month period
Halting and managing cash outflows
Being able to accelerate cash receipts via proper credit and collection policies
ASSET TURNOVER IS ALSO THE KEY TO BUSINESS MANAGEMENT
Your company can improve overall business health with proper cash flow management and external and internal financing. We've mentioned above that ' cash flow cycle. ' It's simply the ability to understand how a dollar flows through your company and how long it spends in inventory, account receivable, etc. It is safe to say that accounts payable management and focus also play a key role in long-term business cash flow success - allowing the business owner to determine what type of working capital loan or funding is required to fund and grow the business needs of the company.
7 SOLUTIONS TO CASH FLOW SUCCESS - WHAT YOU NEED TO KNOW!
But what solutions are, in fact, available to halt the oncoming of a cash flow crisis. They typically include:
Bank lines of credit - interest rates are at an all-time low for bank borrowing.
Asset-based non-bank lines of credit (Known as ' ABL ' they are the alternative to Canadian chartered bank facilities - While the interest rate is higher in alternative finance, it becomes a question of access to capital versus cost of capital
A/R financing / Accounts Receivable Funding (this comes in a variety of shapes and sizes)
Inventory finance
Working capital loans (permanent injections of working capital) - Typically a term loan solution with repayment terms structured to your needs
Purchase order/Contract financing
Tax Credit Financing (SR&ED Tax credits)
Non-Bank Line Of Credit Via Asset Based Lending
Merchant Cash Advances / Business Credit Cards
There is a lender emphasis on the personal credit score and credit history of the owner/owners in all types of small business loan funding.
WATCH YOUR DAYS SALES OUTSTANDING, AND INVENTORY TURNS TO LOWER FINANCE COSTS AND INCREASE PROFIT
These are the external financing solutions available to any firm that wants to avoid a cash flow crisis. Internally, owners and financial managers can better monitor and accelerate cash via constantly assessing days of sales outstanding, inventory turns, and payables days outstanding. Oh, and don't forget expense management.
INVESTIGATE THE CURRENT RATIO FORMULA AND MONITOR THAT NUMBER
A simple cash flow forecast can easily anticipate upcoming working capital and cash shortages. A simple trick - Constantly monitor the relationship between A/R and sales every month, in the form of a ' ratio.' If that ratio is greater than one? Danger ahead! Simply speaking, cash flow problems are upcoming as you are running out of cash.
Your company is either eligible for bank financing, or it is not. Bank finance solutions in Canada are low cost and flexible. In some cases, your company might be qualified, but not in the amounts needed.
SHORT TERM FINANCING STRATEGIES
Short-term shortages must be addressed by short-term financing strategies, typically lines of credit, A/R financing, and inventory finance. Many businesses of a small to medium size are considering A/R finance these days. This tool turns everyday sales into everyday cash. Our recommendation is to consider CONFIDENTIAL RECEIVABLE FINANCING. While more expensive than bank lines, it provides unlimited financing and allows you to bill and collect your A/R in a matter similar to bank credit facilities.
CONCLUSION
If you want to avoid the small business cash flow nightmare via proper business cash flow loans and asset monetization strategies, seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your working capital needs. Business owners owe it to themselves to ensure they have long-term bases covered when it comes to their business needs.
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Stan Prokop
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