accounts receivable cash flow financing

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Cash Flow Financing : You Have To Deal With Accounts Receivable & Here’s How
Ready For A Gabfest On Cash Flow Financing ?








You've arrived at the right address ! Welcome to 7 Park Avenue Financial

Financing & Cash flow are the  biggest issues facing business today




7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769
Office = 905 829 2653

Fax = 905 829 2653

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Cash flow financing in Canada requires that business owners/financial mgrs take a positive outlook on how they finance... and manage their ongoing accounts receivable investment. Many aspects of this subject are somewhat misunderstood... so welcome to our ' gabfest ' on this area of business financing.


It's commonly accepted that a positive cash flow in a business is king (or queen). The ability of your firm to on an ongoing basis acquire and pay for assets, meet payrolls,  and bring down outstanding debt levels is of prime focus to your company.


 While there is a fairly big distinction between running your business day to day versus growing your company on a long term basis. Different types of financing are required for each of those two categories of a company's maturity. While happiness means different things to business owners clearly most would agree that happiness factor in owning or running a business can be measured by positive cash flow.


Of course your company could adopt a ' not for profit ' and negative cash flow stance but that will only lead to insolvency, highlighting the importance of  running and financing your business properly.


Cash flow is such a broad term in business it has the ability to be misunderstood fairly often. Financial analysts/textbooks define it as ' net income plus depreciation’. By the way depending on the amount of depreciation of your assets company losing money or trending downward can actually have positive cash flow - however we don't recommend that as a strategy!


A great mystery to many owners is why ' paper profits' look great but a daily cash flow crisis occurs... daily! Often the reason?  Your investment in accounts receivable!  The ' cash poor ' feeling relates to the payment habits and ability of your clients, and the ability to manage that process/function. And if your company is cash flow intensive that requires funds to be spent on inventories, equipment, etc.


How then do owners/ financial mgrs finance their A/R investment? Solutions include:


Bank credit lines


Accounts Receivable non bank financing solutions such as factoring - Our recommended solution in this area is CONFIDENTIAL RECEIVABLE FINANCING , allowing you to bill , collect and finance your A/R investment without notification to any clients, suppliers, etc


Asset based non bank business lines of credit, allowing you to create a business line of credit facility based on any combination of A/R, inventory, and even owned equipment


The goal in these solutions - generate more, or at least as much! business cash flow as you are spending.


Looking for a clue as to whether you are winning, or losing this battle ? Take a good look at your cash flow statement provided by your accountants. Page 3 is the cash flow statement - focus on cash flow from operations. If that number is negative you should be addressing a fix.


That's our ' gabfest ' on the importance of accounts receivable and cash flow financing.  If you're looking for financing solutions and tools to your business seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your needs.

' Canadian Business Financing with the intelligent use of experience '