YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE 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?
CONTACT:
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
Business working capital is the lifeblood of every enterprise, fueling growth, sustaining operations, and seizing opportunities in the dynamic landscape of commerce.
Struggling to secure the financial backbone of your business? Discover how optimizing your working capital can unlock growth and stability.
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer BUSINESS WORKING CAPITAL solutions that solve the issue of cash flow and working capital – Save time and focus on profits and business opportunities
Introduction: Key to Business Financing
Business capital requirements in Canada often boil down to some basic truths the business owner/financial manager/entrepreneur needs to address when financing for businesses.
One of those truths? Knowing the true state of their financial condition and what financing they do and don't qualify for when meeting commercial lending requirements in Canadian business.
Business Loans In Canada
Whether you are a smaller or start-up firm looking for information on how to get a business loan or a larger established firm looking for growth financing or acquisition opportunities, we're highlighting 3 mistakes that commercial loan seekers like your company need to avoid making when addressing, sourcing and negotiating your cash flow/working capital and commercial financing needs around issues such as accounts payable and other business debt obligations on the balance sheet
Understand the true condition of your company finances - These are almost always successfully addressed when you spend time on your financials and understand how your financial statements reflect your access to commercial loans & business credit in general
Ensure you have a plan in place for sales growth and financial needs as it relates to commercial financing
Understand the actual hard facts about cash flow which is, of course, the lifeblood of your company
Can you honestly answer or feel positive about all those points. If so, pass Go and collect $100.00!
A good way to address your company's finance plans is to ensure you understand growth finance solutions and manage in a downturn - i.e. not growing, losing money, etc.; It's never fun to fund yourself in an economic or industry downturn such as the COVID pandemic of 2020!
When we talk to clients of new or established businesses, it seems they are almost always talking about sales, so the ability to understand and focus on the differences in their profits and cash fluctuations is key.
How do cash flow and sales plans and projections affect the type of financing you require? For one thing, sales growth usually starts by consuming your cash, not generating it. A poor finance plan will drag your business down, and addressing financing gets tougher and tougher.
What is the right type of business Capital for your firm?
Three basics always emerge when it comes to your search for the right business capital and financing.
The amount of financing you need
The type of financing (debt/cash flow/asset monetization) The business loan interest rate will be dramatically affected by whether you choose traditional or alternative financing solutions. Private business loans in Canada come from non-regulated commercial finance companies, most often known as ' alternative lenders. ' These lenders are typically highly specialized in one ' niche ' of business financing and maybe Canadian firms or branches of U.S. banks and non-bank lenders
How the financing is structured to be manageable with your day to day operations around the company's cash conversion cycle and the working capital cycle
What Finance Company In Canada Can Meet Your Borrowing Needs & Why Is Capital Important In Business
Let's identify and break down key financings your firm should know about and understand if they are applicable and achievable to your business. They include:
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Key Takeaways
Cash Flow Management: Understanding and managing cash flow is crucial for ensuring sufficient liquidity to cover short-term expenses and investments.
Working Capital Loans: Utilizing loans tailored for working capital needs can provide the necessary funds for day-to-day operations and growth initiatives via funding of current assets
Inventory Management: Efficient inventory management minimizes excess stock and maximizes cash flow, directly impacting working capital.
Accounts Receivable Financing: Leveraging receivables to secure financing can provide immediate liquidity, optimizing working capital.
Financial Ratios: Monitoring key financial ratios such as the current ratio and quick ratio helps assess liquidity and working capital efficiency.
Conclusion
If you're focused on not making mistakes in your business finance needs and want to capitalize on the solutions your competitors are probably already using, call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow and commercial financing needs.
FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION
How does optimizing working capital benefit my business?
Optimizing working capital enhances liquidity, improves cash flow, and enables better decision-making, fostering growth and stability.
What are the options for businesses to manage working capital effectively and attain positive working capital?
Businesses can utilize strategies such as working capital loans, inventory management, and accounts receivable financing to manage their working capital efficiently.
How does a company's working capital relate to cash flow management?
The working capital formula represents the funds available for covering short-term operational needs, directly impacting cash flow management and business operations.
What role do financial ratios play in working capital management?
Financial ratios provide insights into a company's liquidity and efficiency, aiding in the assessment and management of working capital to avoid negative working capital situations. Understanding the working capital formula and the working capital ratio, which measures current assets and current liabilities and how you calculate working capital, is key to avoiding insolvency.
What are the common challenges businesses face in working capital management?
Businesses often struggle with maintaining adequate liquidity and positive net working capital, managing inventory levels, and balancing short-term assets and liabilities.
How do you calculate working capital for a business?
To calculate working capital, you subtract a company's current liabilities from its current assets. The formula is:
Working Capital=Current Assets−Current Liabilities
What are the 4 components of working capital?
The four components of working capital are:
- Cash: The funds readily available to the business.
- Accounts Receivable: Money owed to the business by customers for goods or services provided on credit.
- Inventory: The goods and materials held by the business for production or sale.
- Accounts Payable: The money owed by the business to suppliers or vendors for goods or services purchased on credit.
Is working capital the same as profit?
No, working capital and profit are not the same. Working capital refers to the difference between a company's current assets and current liabilities, representing its short-term liquidity. Profit, on the other hand, is the financial gain resulting from the difference between revenue and expenses over a specific period, indicating the company's overall financial performance.
