YOUR COMPANY IS LOOKING FOR REFINANCING SOLUTIONS!
NEED LOAN WORKOUT AND RESTRUCTURING ASSISTANCE?
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
Direct Line = 416 319 5769
Email = sprokop@7parkavenuefinancial.com
Turnaround Financing in Canada is required when your current financial obligations with banks or other lenders are deemed 'non-performing.' The right kind of restructuring finance in workouts such as this can return your company to financial health. Let's dig in.
IT'S ALL ABOUT THE ' ASSETS'
Of course, distressed companies must clearly demonstrate a willingness to turn their financial situation around in a debt restructuring. When it comes to the workout and restructuring process in a company turnaround, it's all about ' assets' and ' asset quality in most cases. These need to be refinanced in a manner that removes financial distress in the business without typically resorting to additional owner equity, which is difficult to achieve at these times.
Sometimes your situation might be company-specific; other times, it's systemic to your entire industry at certain points in the business/economic cycle as it relates to your financial restructuring.
THE FOCUS ON CASH FLOW AND BALANCE SHEET
Effective financing is a key part of any capital restructuring workout scenario. Although it's often far from being the only challenge, it's certainly a key one. The focus will always be on cash flow and the balance sheet. Simultaneously, a lot of time will be spent on cost-cutting, relationships with suppliers, etc.
KEY FINANCING SOLUTIONS FOR A CORPORATE RESTRUCTURING
What then are the financing mechanisms that are a part of restructuring finance? Because Canadian chartered bank solutions are often rare for SME Commercial workouts, many alternative or quasi-traditional financing are the only solutions. These include:
Receivables financing
ABL Solutions - Asset-based business credit lines that combine A/R, inventory and equipment into one borrowing solution; Asset based lenders are one of the most solid solutions for refinancing needs
Equipment Financing / Sale Leasebacks
Cash Flow Loans - secured/unsecured
Tax Credit Bridge Loans
THE COST OF CAPITAL AND INTEREST RATES IN A RESTRUCTURING
Typical financing rates and costs for the above solutions are almost always higher than bank financing. It's essential to note that these solutions we have noted, while effective, typically are a bridge back to traditional financing and the ability to recover fully. Every business owner's goal in workouts and distress scenarios is to retain operating control without giving up the business to lenders or another party.
During the restructuring, any assistance you receive will typically always be focused on the concept that the business can be saved and its ability to get back to profits and cash flow positive scenarios. The ability to maintain relationships with lenders and trade creditors is key. In many cases, your new business plan is shared with suppliers and creditors to maintain credibility. 7 Park Avenue Financial business plans meet and exceed the expectations of banks and commercial lenders.
CONCLUSION - BEST PRACTICES IN FINANCIAL TURNAROUNDS
Restructuring and turnaround situations are often a race against the clock to have the ability to ensure funding flexibility is available as needed throughout the turnaround process. The ability to stabilize the company and maximize the monetization of assets is key.
If you're looking to open the vault of doomsday financing solutions and get help in credit workout and restructuring, speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you in accessing business credit solutions as part of the restructuring finance process. Let our team's experience facilitate restricting financing that allows you to complete a financial renewal of the business, often providing a bridge back to traditional Canadian business financing solutions.
FAQ: FREQUENTLY ASKED QUESTIONS
WHAT IS RESTRUCTURING AND TURNAROUND?
A turnaround is the recovery process that a business undertakes when it has been performing sub-par in financial performance, profit generation - To avoid a financial failure, the restructuring process is initiated to save the business. Leveraging company assets through loans or monetizing existing assets allows the company to structure a financial plan and move forward.
WHAT IS TURNAROUND FINANCING?
Turnaround financing is the process of acquiring business loans and asset monetization strategies that allow a company to restructure and return to a plan that supports growth and profitability. Assets and cash flow solutions are a key part of the turnaround financing process.
WHAT ARE TURNAROUND STRATEGIES?
The turnaround strategy is how a company undertakes the challenges of overcoming financial failure in key areas of the business, such as the balance sheet and cash flow generation. Returning a company to normality and the ability to generate process is the key goal of a turnaround. Focusing on the company's key assets such as receivables, fixed assets, inventory, or real estate allows a plan to be developed to support new financing.
WHAT IS A TURNAROUND PLAN?
The turnaround plan is developing a road map back to liquidity and financial performance by identifying the key reasons for insolvency and putting a reversal process in place to fix a troubled firm.
Click here for the business finance track record of 7 Park Avenue Financial.
