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?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - INFO@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
Business finance, and in particular your cash flow financing needs, requires a strategy. Many owners/ financial managers in the SME (small to medium enterprise) commercial sector find themselves constantly falling into the ' worry hole ' in this business aspect. Tired of falling into that hole? Let's dig in.
While the phrase ' cash is king ' is sometimes a bit of a cliché, it's difficult to pay suppliers and employees with promises. The extreme event of poor cash flow is, of course, business failure. So your ability to view your access to cash flow solutions as the ' lubricant ' that keeps your business running is, in fact, key. Many asset-rich businesses find themselves in bankruptcy with assets sold for pennies on the dollar because the business could not meet its cash obligations.
So when it comes to avoiding falling into that ' worry hole' we've talked about, it’s a combination of managing your cash and accessing financial solutions that make sense for your industry.
What is the difference then in firms that are successful in this area of their business? Clearly, it's about anticipating your cash flow position and knowing what solutions are available.
While the solutions of:
Bank credit lines
Non-bank credit lines
A/R Financing
Inventory Finance
PO Financing
Tax Credit Finance
Working capital term loans
Are the solutions to your problems. It's really all about knowing when you need these solutions and knowing which ones you qualify for relative to your particular situation.
How does the business address the cash flow needs? The options are quite simple:
Take on some form of new debt
Delay payables
Monetize assets - finance your A/R and inventory, refinance your fixed assets
Reduce cash outflow spending
Increase sales and asset turnover
The constant monitoring of those options is the essence of cash flow 101.
Simple cash flow budgets, done properly and conservatively, will help identify future cash flow needs.
The challenge in budgeting your cash flow and anticipating your finance needs often revolve around your business receivables. Typically these flows of cash are irregular in nature due to your sales volatility and customer payment habits. This is where solid credit extension policies and good collection practices are key.
Many businesses that can’t qualify for traditional financing are seeking alternative finance solutions such as A/R Finance. These solutions monetize your sales as soon as you create a sale. The waiting is eliminated and typically comes at the cost of 1-2% of your invoice - for example, a 10,000.00 invoice financed under a factoring solutions would cost you 200$. Effective A/R management and good use of the funds you receive from financing your receivables can be a solid interim solution for your cash flow needs.
All industries have different cash flow needs. If you're looking to eliminate that fall into the ' worry hole' of a constant cash flow crisis, seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with business finance solutions appropriate to your firm.
Stan Prokop
