YOUR COMPANY IS LOOKING FOR WORKING CAPITAL FINANCING!
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
Like other aspects of working capital management in business, financing cash flow needs often need a ' fresh look ' when it comes to addressing the operating and growth needs and your changes in working capital. Let's dig in.
THE WORKING CAPITAL CHALLENGE IN CANADA
While a surplus in cash might always be the goal of the bottom line for most businesses in the SME (small to medium enterprise) sector, the actual reality is that it’s a working capital shortage that is more often than not the challenge. A true measure of a company's success is the focus on cash management.
ARE YOU WINNING OR LOSING IN BUSINESS FUNDING NEEDS / ASSESSING THE NET WORKING CAPITAL FORMULA
How the business owner / financial manager deals with that can often be the deciding factor for winning or losing in Canadian business. Your cash flow statement, a key part of your financial statements, will help address the focus on net working capital and business funding needs. That relationship between current assets and current liabilities ( the current ratio ) is key to understanding the need for sources of capital - Your liquid assets that can be converted into cash denotes business success. The amount of working capital you need will be directly related to your business operating activities.
Those changes in working capital are related directly to successful asset turnover in accounts receivable and inventory. Most business owners recognize also that management of accounts payable is directly related to cash management and short term obligations as are your margins and profits in your cost of goods sold line item on the income statement.
What business person doesn't relish the thought of putting capital to work to grow more sales and profits, right? In some cases the constant need for capital expenditures places stress on capital needs, depending on what type of business you are in and whether its's ' capital intensive'.
Of course, the worst-case in both not managing your working capital or inability to access alternative or traditional financing is total business failure. While we're the first to espouse ' alternative ' business financing solutions, we're also the first to point out that even alternative financing solutions can be extended if your firm is perceived to be in a death spiral.
WHAT ARE USES OF WORKING CAPITAL?
What then are some of the positive uses of managing working capital and have access to more cash? They include:
Expanding your business into new product or service areas
Being able to take out more funds for shareholders with the expense of a hit to your financials
Improving relations with suppliers and key vendors
Reducing debt and lowering financing costs
WHAT SOLUTIONS ARE AVAILABLE TO BUSINESS OWNERS FOR CASH FLOW NEEDS?
How then do owners/ financial managers address cash flow issues? While the most common is a Canadian chartered bank overdraft facility there are numerous other ways to access cash flow and finance assets.
They include:
A/R financing
Asset-based lines of credit (they monetize receivables, inventory and fixed assets all into one facility
Inventory finance
Tax credit monetization
Securitization
Sale-leaseback
Working capital term loans
IS BANK FINANCING YOUR ' GO TO' - WHAT TO DO WHEN THE BANKS SAYS ' NO'
While bank financing is the 'go-to ' solution for almost everyone, ' go-to' is often impossible if your firm can't meet bank criteria for lending.
MONETIZING ASSETS IS THE KEY
Remember that except for working capital term loans all the solutions we have referenced monetize assets and allow you to cash flow assets, with no new additional debt coming onto the balance sheet.
ACCOUNTS RECEIVABLE - YOUR SECOND MOST LIQUID ASSET
A/R financing is often the most comment and logical solution to working capital finance. That's because next to actual cash on hand that you have in the bank it’s the closest asset to cash that you have!
WHAT IS THE BEST TYPE OF ACCOUNTS RECEIVABLE FINANCING
Looking to increase working capital in the short term without bringing long term debt to the balance sheet?
Our recommended solution to clients in this area is the CONFIDENTIAL RECEIVABLE FINANCING solutions. It allows you to bill and collect your own accounts and receive advances of 90% of all sales you generate into your business ledgers. And by the way, it's your call as owner or manager to access how much you need and when; similar to a bank facility you of course only pay for what you are using, so it makes more sense than ever to manage your receivables efficiently.
CONCLUSION
If you're looking for that ' new way ' to address the problem of accessing cash to run your business and increasing working capital seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can take you behind the scenes in real-world finance solutions and ensure funding is available to grow your revenues in products and services.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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