YOUR COMPANY IS LOOKING FOR CASH FLOW / WORKING CAPITAL ALTERNATIVES!
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
Improving cash flow and accessing business working capital solutions is pretty well always a situation of the business owner /financial manager getting comfortable with the right information and solution. There's nothing like a bit of ' higher education’... in balancing those long term and short term business capital needs - so let's dig in.
3 KEY ASPECTS OF WORKING CAPITAL MANAGEMENT
The reality of the situation is that it’s a combination of :
Managing your balance sheet assets- business owners should focus on the company cash flow statement reflecting financial health over a period of time
Granting credit to clients in the right manner - stay on top of payment terms/collections - You can offer prompt pay discounts potentially
Accessing cash flow solutions that match your first overall credit quality.
In many cases, we see in talking to clients they are often focused more on sales generation (which is important) but at the expense of working capital management.
WHAT ARE KEY LENDING CRITERIA OF BANKS FOR A BUSINESS
But are these types of financial solutions difficult to obtain. Truth be told they are if your firm doesn't satisfy what we call traditional criteria by Canadian chartered banks and other 'mainstream' lenders. But if you're in a bit of a credit crunch and don't satisfy the criteria of solid balance sheets, profits, and satisfactory operating ratios it's an upward struggle.
WHAT ARE NON-BANK SOLUTIONS TO BUSINESS CAPITAL
If your firm doesn’t have ' bank support ' it’s a case of exploring alternative solutions that are in fact numerous. They include:
Accounts Receivable Financing
Inventory Finance
Supply Chain/PO financing
Tax Credit Monetization
Business lines of credit that are non-bank in nature
Government SBL business loans
WHAT IS THE COST OF BUSINESS FINANCING
In our clients' minds, unfortunately, it's almost always only about ' the rate ' when it comes to accessing alternate solutions. While ultimately you have to be able to support any form of external financing we maintain that the way you manage external financing, as well as how you use it is in fact a 'fresh way' to look at things.
One way to manage cash flow? Accounts Receivable financing! Our own preferred and recommended solution is Confidential Receivable Financing. While coming at a higher cost than bank lines it provides unlimited access to working capital, as well as the ability to minimize costs by prudent day to day management of your accounts. Don't forget also that no debt is added to the balance sheet, and new found cash flow can help you sustain better supplier relationships and maximizing better pricing on goods and services you order.
HOW TO TAKE A HOLISTIC VIEW TO MANAGING YOUR BUSINESS
As we have said it’s important to take a ' holistic ' approach to cash flow management. That includes:
Monitoring customer credit granting
Accelerating cash inflow via better collections
Taking supplier discounts whenever you can
Ensuring you have a good handle on future cash flow needs
CONCLUSION
Remember also that while any non-traditional financing will always cost more it replaces the need to consider outside equity which is much more expensive when considering your business's cash flow needs.
Your ability to make sure to know how much cash you need in the future will always be a key factor in business success, as well as improving cash flow via external financing. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your financing needs.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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