YOUR COMPANY IS LOOKING FOR TURNAROUND FINANCING!
Restructuring & Turnaround Financing 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 - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Turnaround financing? It's associated with financing solutions and specialist techniques when your company is addressing various situations that may or may not be a crisis situation - although it probably feels like one to the Canadian business owner and financial manager.
WHAT IS A FINANCIAL TURNAROUND?
A turnaround financing specialist focuses on a number of different areas - it might be management, products, and sales, however, we're focusing on finance. At 7 Park Avenue Financial, we work with firms that require refinancing on an immediate short term basis with a focus on a longer-term strategy for the company. A solid turnaround strategy should have a goal of bringing improvement and stability to a company's financial situation. Fast & Flexible is the goal. Changing the capital structure for the company to survive is the immediate goal!
Clearly we can think of financing solutions as the ' doctor' that will be putting your company back in order. Statistics tell us that over 50% of companies that are in turnaround mode are eventually ' saved.
UNDERSTANDING THE CURRENT CASH AND DEBT SITUATION
What then should be the goal of turnaround solutions when it comes to Canadian business financing? Ultimately the focus needs to be on getting your company back to some level of cash flow in order to meet your short-term and long-term obligations when it comes to debt levels.
That’s ‘JOB #1 “! After that, you want to be working with someone that has the long term solution in place, with enough financing that gets you to where your firm needs to be. In some cases, you might also need new equipment and assets and production equipment. These can usually be acquired via bridge loans of equipment leasing strategies.
FOCUSING ON WHAT IS NOT WORKING IN CASH FLOW AND PROFIT GENERATION
We often hear the term ' peeling back the onion ' and its a good analogy for our current purposes; because it's all about seeing what isn’t working from a cash generation and profit perspective, and then putting turnaround solutions in place.
These cash flow accelerator finance turnaround solutions might include:
Receivables Finance
Inventory Financing
ASSET BASED LENDING SOLUTIONS ARE COMMON TO SUCCESSFUL TURNAROUNDS
Asset-based lines of credit to replace existing ( or absentee) commercial bank lines ( In some cases your firm might in the SPECIAL LOAN category already at your bank, and ABL lines of Credit are the perfect solution to take your company out of special loans !)
Purchase Order/Supply Chain Finance
Tax credit monetization (Yes, tax credits can be financed)
Sale-leaseback strategies via a lease or bridge loan
SUPPLIER/VENDOR RELATIONSHIPS AND SUPPORT IS KEY
Even suppliers/vendors can be a solid source of new credit and financing if relationships have been and can be maintained. Oh, by the way, consider your landlord in that group, and if you own your own facility it might be time to refinance for working capital and cash flow purposes.
ALTERNATIVE FINANCING VERSUS TRADITIONAL FINANCE IN THE TURNAROUND
The obvious question we get from clients is pretty understandable, and they can be forgiven for asking it: ' Who would provide us with financing in this difficult period ‘. The reality is they are partly correct in their negative assumption, of their turnaround, mostly because they are focusing on traditional lending sources. In fact, many alternative financing strategies work perfectly when it comes to ' THE TURNAROUND '.
That's not to say that Canadian banks and other more recognizable solutions won't address a turnaround - but we can assure you they will need a solid business plan that shows how the company will be fixed and how current and future cash flows and profits will be generated.
CONCLUSION
Time tends to run out quickly when it comes to a company experiencing some sort of liquidity of financing crisis. Now is the time for you to ensure you've got access to someone with turnaround financing skills the company may not have access to. The ability to keep cash flowing at a time like this is critical - that might include shortening receivables cycles, putting in new forms of external financing, or monetizing assets currently in the business.
So, need some help? Turnaround Specialist financing to the rescue! Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your needs.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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