YOUR COMPANY IS LOOKING FOR CASH FLOW FINANCING SOLUTIONS!
YOUR BUSINESS FIX FOR COMMON CASH FLOW PROBLEMS
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
Suite 301
Oakville, Ontario
L6J 7J8
Business cash flow problems often feel like placing business owners and financial managers in a sort of ' survival course ‘. When a business knows how to measure, improve, and source cash flow solutions suffice to say things can only get better! Let's dig into those cash flow issues for small business owners and .. solutions!
ADDRESSING COMMON CASH FLOW PROBLEMS IN SMALL BUSINESSES IN CANADA
Even the largest corporations in the world recognize the need for cash flow management and access to financing solutions. For businesses in the SME Commercial sector, it requires an even more concentrated effort.
DON'T GET CAUGHT OFF GUARD WITH BUSINESS FUNDING NEEDS
We meet with many business owners/managers that sometimes seem, or get ' blindsided' by the external environment. That's why it's important to spend some time planning - in effect, it's all about the ' what if ‘. In effect, you're attempting to link your sales to collections, other loan payments.
ARE YOU ADDRESSING THESE POTENTIAL CASH FLOW MISTAKES
Where business owners/managers miss the boat, either in a small way or entirely, is forgetting the changes that happen in working capital accounts; simply speaking the changes in A/R and inventory that over time constantly change your cash needs.
It's important also to understand you need to forget about the ' cash flow' that goes into investing in items such as equipment, technology. Here it's important to mention that financing solutions such as EQUIPMENT LEASING make perfect sense almost always as a business can match future benefits of assets to cash outflows.
CAUSES OF CASH FLOW PROBLEMS
A good way to look at solving cash flow problems is by assessing the ' gap ' that arises in business as funds go in and out of your business. That gap highlights the causes of cash flow crunches for business owners.
One method of 'fast-tracking' business cash flow is to look closely at how you manage and finance your A/R. Many firms offer, or consider offering a ' discount' to their clients for prompt payment. Many customers can't or don't buy into this method. And certainly, all of your customers in total would never all at once buy into paying you promptly.
The discount/factoring fee is a 1-2% reduction in your profit margin but delivers instant cash flow! Over the long term having enough cash is a reasonable trade-off. The ability to have a solution to get paid for short term day to day funding needs is exactly what you have been looking for. Every business owner wants to be able to pay their bills on time and maintain valuable vendor/supplier relations versus struggling with poor cash flows all the time.
An alternative solution to achieving full success with this strategy is to finance your receivables through a discount receivable financing program. That 2% that you considered offering your clients for prompt cash payment is essentially the same cost as when you utilize a program such as CONFIDENTIAL RECEIVABLE FINANCING. The difference is of course that you are in charge, as any or all of your sales can be converted into immediate cash flow
If you can demonstrate you are eligible for bank financing it's clear that that same cash flow benefit can be achieved. However, in order to do that you must demonstrate a solid historical cash flow, profits, positive shareholder equity, as well as personal covenants from owners.
5 SOLUTIONS TO BUSINESS CAPITAL NEEDS
Other methods to ‘survive’ and win regarding the cash flow gap include:
Inventory financing
Merchant advances
Asset-based non-bank lines of credit
Tax credit Monetization (SR&ED BRIDGE LOANS)
Purchase Order Financing
CONCLUSION - CASH FLOW PROBLEMS AND SOLUTIONS
Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in running and finishing the working capital survival challenge!
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
7 Park Avenue Financial/Copyright/2021/Rights Reserved
