YOUR COMPANY IS LOOKING FOR THE RIGHT
WORKING CAPITAL SOLUTIONS!
THE ASSET BASED LENDING SOLUTION TO BUSINESS CAPITAL
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
Cash flow finance solutions are all about transforming your sales revenue into cash flow for your company. Sometimes it's easy, more often than not... it isn't. Various forms of asset financing are available to achieve that goal - they come with different costs, structures, and implications. Let's dig in.
WHAT IS THE DIFFERENCE BETWEEN WORKING CAPITAL AND CASH FLOW
One of the things that business owners don't often recognize is the need to take a hard look at the ' difference' between working capital and cash flow in their business. What? There's a difference? There sure is we tell our clients - because the textbook situation occurs when your sales are growing, things are great, your accountant tells you that you're making a profit... the only issue .. you feel you're constantly in a cash flow crisis.
WHAT IS THE CASH CONVERSION CYCLE?
The best way to look at it is to simply view cash flow as the funds generated at specific times. It relates directly to what we call the ' cash flow conversion cycle ' which simply tracks the time it takes for money to flow through your business... and end up in the bank.
PROFITS DO NOT EQUAL CASH
The profits you show on your income statement almost never approximate the amount of cash you have in the bank. How does the business address financing the working capital accounts: receivables, inventory, and work in process? Numerous solutions are available. A few bring new debt on the balance sheet, which often isn't desirable (for example - a working capital term loan).
HERE ARE CANADIAN BUSINESS FINANCING SOLUTIONS YOU CAN ACCESS TODAY AT 7 PARK AVENUE FINANCIAL
The other solutions which typically 'monetize' your working capital accounts simply cash flow your assets - into capital... today. Those solutions to borrow money? They typically include:
Canadian chartered bank lines of credit
Non-bank asset-based lines of credit
Inventory Finance
Receivable finance
Tax Credit Monetization (Financing your SR&ED claim)
Working Capital term loan
Unsecured Cash Flow Loan
Purchase Order Financing
Sale-leaseback of owned assets
WHAT IS THE BANK CRITERIA FOR BUSINESS FINANCING
Certain types of cash flow finance solutions require traditional credit criteria - for instance, banks insist and require clean strong balance sheets, profits, and solid historical cash flow. Thousands of business owners and financial managers can't meet these criteria, so other solutions are still relatively easily attainable - they often come at a higher cost but still provide all the capital you need.
THE NON BANK ASSET BASED BUSINESS CREDIT LINE
An example - The non-bank asset-based line of credit. It provides a revolving credit facility that monetizes your A/R, inventory and equipment into one business line of credit. While often 2-3 times more expensive than current low bank rates it’s still a solid method of achieving cash flow finance.
CONCLUSION
We mentioned already that profits and assets don't equal cash. If there is any good news in this statement it's that if you do have positive working capital - i.e. assets to cover your short and long-term liabilities you are solvent. But how you manage and finance those assets will ultimately determine the success of your business.
If you are looking for ways to transform assets into cash and manage growth seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow needs.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
7 Park Avenue Financial/Copyright/2021/Rights Reserved
