YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE & CASH FLOW 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
Oakville, Ontario
L6J 7J8
Working capital cash flow financing challenges, we've found. Create huge ' Creativity Deficits ' in the minds of Canadian business owners and financial managers. They tell us they are constantly looking for a finance solution that doesn't have an ' expiry date ‘! We're happy to share some of those solutions. Let's dig in.
THE CASH CHALLENGE OF SMALL BUSINESSES IN CANADA
If you think when you're watching the business news that only large corporations are addressing cash flow issues, imagine what the SME Commercial companies in Canada must address. How does the business conserve cash and arrange financing that is ' evergreen ' in nature - allowing you to utilize assets and sales to cash flow your operating and growth needs.
UNDERSTANDING DIFFERENCES IN WORKING CAPITAL AND CASH FLOW IS KEY
Business people get working capital and cash flow mixed up a lot, we have found - your day-to-day working capital is made up of your investment in A/R and inventory and at the same time recognizes accounts payable. Poor payables management often destroys key supplier relationships.
It's important to use your cash flow for the right types of financing - you should be utilizing equipment leases for assets that have a longer economic life.
CONSIDER ALL FORM OF TRADITIONAL AND ALTERNATIVE FINANCING IN CANADA - WHICH ONES SUIT YOUR NEEDS
Don't also forget that existing assets can be refinanced via sale-leaseback strategies, bridge loans, or refinancing of any of your company’s commercial real estate - even 2nd mortgages can bring additional capital into your business. Government guaranteed business loans can help finance leasehold improvements and fixed asset needs - rates and terms are excellent - commensurate with the same financing the ' big boys ' access.
THE IMPORTANCE OF A BUSINESS CREDIT LINE
The ultimate short-term financing tool for any business is a commercial business credit line. Banks do that best and at the lowest cost. Problem - not every business qualifies with demanding criteria such as high owner net worths, personal guarantees, debt and cash flow covenants that meet bank standards. While banks have the lowest cost of capital, as well as ample capital, not everyone qualifies.
WHAT TO DO WHEN THE BANK SAYS NO!
The solution for not qualifying at the bank? The good news is multiple sources of short term financing exist:
Non-bank asset-based lines of credit
Inventory financing
Refundable tax credit finance loans ( SR&ED Credits )
WHAT IS THE BEST FOR OF SHORT TERM ALTERNATIVE FINANCING
A/R Financing (We always recommend CONFIDENTIAL RECEIVABLE FINANCING) Here, you bill and collect your own receivables with no notification to suppliers, clients, etc. You control cash needs and flow.
WORKING CAPITAL TERM LOANS INJECT PERMANENT WORKING CAPITAL INTO YOUR BUSINESS
Remember also that a company can inject ' permanent working capital ' via a working capital term loan. It's simply a cash flow with fixed repayment terms. That solution brings debt onto the balance sheet, though, and is very different from ' monetizing ' assets such as accounts receivable, inventory... and equipment. Naturally, bank and working capital term lenders also like to see healthy owner injections of capital - which is not always possible our clients tell us! The two main criteria for working capital loans are a good cash flow ratio and reasonable debt/equity.
We're always amazed at business owners or their managers running significant businesses without proper planning using things such as a simple cash flow forecast. One famous saying tells us that ' revenue is vanity, profit is sanity, but cash flow is king '!
STICK TO ASSET TURNOVER FUNDAMENTALS!
Never forget also that it's not just access to the financing solutions we've mentioned that bring true cash flow success - you must turn inventories, grant prudent credit.
CONCLUSION
Those basics will allow you to foresee potential ' bulges' in cash flow needs and have better-negotiating leverage with your bank or a commercial finance firm. Seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can put you on track to permanent solutions to Canadian business financing challenges.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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