YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE!
CASH FLOW LOAN AND FINANCING 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
Business loan challenges aren't always associated with ' fun facts' for Canadian owners/financial managers. When it comes to either cash flow financing, monetizing your assets, or even exploring some equity options, numerous sources might not have been either identified or understood when it comes to cash flow loans. So, when it comes to the question ' what is cash flow ' in funding your business ..Let's dig in!
SEVERAL FINANCING SOLUTIONS REQUIRED?
For the majority of companies in Canada, the concept of a cash flow loan arises to of the business need for working capital - although it is often a debt facility it cal also simply be the monetizing of certain assets - a good example being accounts receivable. However when it's a debt solution the expectation si that future cash flows of your business will be sufficient to pay back the loan.
While in some cases, one simple financing/refinancing loan could do the trick more often than not, it’s a combination of a couple of different types of financing solutions that are required to ' cobble together ' the financing your business needs.
THE SALE LEASEBACK
Businesses that own their facilities or own specific assets such as fixed assets or real estate without liens can utilize a sale-leaseback strategy via a term loan, short term bridge loan, or a lease, to generate working capital.
FINANCING TECHNOLOGY AND BUSINESS EQUIPMENT NEEDS
Lease to own strategies are widespread solutions acquiring assets and minimizing cash outflows in that process. A popular asset category has become computers/tech/software assets that are higher cost and always requiring upgrades. Utilizing assets as collateral for lease financing is utilized by over 80% of North American companies.
ASSET MONETIZATION DELIVERS! THE 'ABL' ASSET BASED LENDING SOLUTION
CASH FLOW LOANS VS ASSET-BACKED LOANS
The best way to approach cash flow financing solutions is to balance outside debt with your ability to maximize your assets totally. A true irony in business is when owners or others perceive high inventory levels and receivables as positive when they are not being turned over and are putting the business at risk. Naturally, having orders/contracts and no inventory to satisfy these is the opposite of that problem and a problem in and of itself. In recent years companies have turned to Purchase Order Financing to satisfy order growth when traditional financing is not available.
In ' ABL ' Financing, much less, if little at all, emphasis is placed on credit score and personal credit history of owners, and many owners take advantage of that issue. ABL loans often stick to borrowing guidelines under borrowing certificates which are established monthly based on sales activity.
MANAGING AND ASSESSING ASSET TURNOVER IS KEY TO FUNDAMENTAL BUSINESS SUCCESS
When running your business daily, you can easily analyze inventory and account receivables levels and performance. These analytical tools ( for example, Days Sales Outstanding ) can become your ' early warning system ' ahead of a financial Tsunami of bad news and financial results, often making it even more difficult to achieve business loan/cash flow solutions via a line of credit or receivables loan as an example.
YOUR BUSINESS CAPITAL STRUCTURE/STRATEGY
While buying assets, financing existing assets, and taking on external debt might seem unrelated in some ways to the business owner, the reality is they are very closely intertwined in your overall business financial plan.
CONSIDER THESES ALTERNATIVE FINANCING SOLUTIONS
You don’t necessarily have to take on debt or take on business term loans to finance working capital - in fact, business credit lines, ABL asset-based credit lines, or inventory and tax credit financing strategies do that job well. Merchant cash advance facilities are more expensive but are easy to access and provide ' quick ' short-term capital for the inevitable credit crunch. This burgeoning industry arose from credit card financing and credit/debit sales for retailers' future sales based on business history as validated by your bank statements.
It's a newer form of short term loans and cash flow lending that suits many small businesses, including retailers for businesses that typically have been in business for at least 2 years. These advances come with higher interest rates but are increasingly popular and, in most cases, can be accessed ' online' - addressing the cash flow gap every company eventually encounters. As a short term business loan, the formula for loan amounts is typically in the range of 10-20% of your annual sales as a typical example, and repayment terms are often custom-tailored via the application process around these popular unsecured loans that are paid back weekly or monthly out of regular incoming cash flow receipts.
The rise of online lenders in commercial business lending can't be underestimated in the Canadian business landscape. Are they right for your business - Talk to 7 Park Avenue Financial about the pros and cons of funding alternatives and different types of small business loans in Canada as compared to bank cash flow solutions.
TALK TO 7 PARK AVENUE FINANCIAL ABOUT BUSINESS FINANCE ALTERNATIVES
It is important always to understand that you will need cash flow financing alternatives to avoid what we can call ' business disruption. And by the way, exploring long-term financing always takes a lot more time than you might think - whether from a commercial finance company or bank.
CONCLUSION
What type of cash flow loans or business loans suit your needs? So, while fun facts' aren’t easily associated with short-term business financing, knowing where to turn and when is key to business success. Seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can provide a current and long-term roadmap to financial success. Small business owners are looking for any cash flow solution that meets their specific industry company needs. Repayment terms are tailored specifically to your firm's needs, unlike standard business term loans.
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Stan Prokop
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