YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE SOLUTIONS!
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?
CONTACT:
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
Business finance strategies require some serious investigation and consideration in any company's asset funding and loan needs. The reality is that every company is in a different stage of growth or success, therefore requiring different solutions. Lack of or improper solutions lead to what we've called that ' terminal event ‘... business failure. Let's dig in.
While working capital needs often measure business success because they typically reflect sales growth and 'paper profits, 'the reality is that it always comes back to cash flow as the ultimate measure of success... and, by the way.. survival.
While the optimal goal is to have some ' cash reserve, ‘or at least access to that cash via a business line of credit, those two goals are not always attainable. It's important to note that almost always, some simple cash flow ' forecasting' can help identify future bulges in cash and financing needs.
Compounding the problem is that many industries require different levels of capital expenditure and working capital investment. The winners in this category are ' service companies' who require much less spending to attain sales revenues. This is opposed to mfr's who invest in equipment and inventory and have a longer cash cycle.
In some cases, your firm might be investing in R&D, which forces an even longer business cycle. When we meet clients facing R&D capital needs, we encourage them to take advantage of Canada's SR&ED program, which allows you to recover a large portion of your research spend. By the way, those refundable tax credits are financeable and allow you to accelerate that cash outflow back into your bank account aggressively!
When financing becomes a key consideration, many owners don't want to look to new equity, thereby ' diluting' their ownership.
Unfortunately, companies who don't focus on managing their receivables and credit will find themselves in those ' dire straits' that can, unfortunately, lead to our ' terminal event. ' If bank lines aren’t available, then owners/financial mgrs should consider A/R financing or Asset-based non-bank lines of credit. These types of facilities allow you to draw against ongoing sales and receivables. They don't work when your sales are in a death spiral or if you're not focusing on good collection turnover.
Remember also that new cash coming into your firm will only come from a handful of resources, namely collecting your sales receivables, borrowing, and efficient use of supplier credit.
The ' cash gap ' can be filled by debt, equity, or monetizing existing assets via sources of funding such as A/R finance, equipt leases and loans, sale-leaseback of assets, working capital term loans, or exploring the possibility of unsecured cash flow loans.
If you're focused on 'avoiding ' our terminal event through the use of proper financing solutions and techniques, speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you in ' up and running' cash flow and business finance.
Click here for the business finance track record of 7 Park Avenue Financial
