YOUR COMPANY IS LOOKING FOR BUSINESS CASH FLOW FINANCING!
Small Business Working Capital Loans & 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 financing is a critical financial strategy that ensures businesses have the necessary funds to cover daily operational expenses.
Struggling to maintain a steady cash flow? Discover how working capital financing can keep your business afloat.
Working Capital Financing & Working Capital Loan Solutions
How you manage and solve business finance, including working capital and cash flow, in your business… well… makes or breaks you. It’s as simple as that. Ironically, many business owners and financial managers spend a tremendous amount of time in and on their business doing everything EXCEPT addressing those two aspects of their business - capital and cash flow. And the result? Well, quite frankly, you don’t want to know!
Working capital financing can enhance your business's financial health. With the right funding solution, a company can maintain liquidity and manage short-term expenses and unexpected financial challenges, focusing on improving its overall business credit score.
MANAGEMENT OF CASH FLOW DEMONSTRATES HOW WELL YOU ARE SUCCEEDING IN BUSINESS
Managing and solving business cash are tremendous indicators of how well you are running your company re the company’s cash flow. In the eyes of lenders, owners, and anyone else who has a vested interest in your firm’s ability to address working capital management, it is a critical part of the ‘scorecard’ of your business.
BUSINESS CASH FLOW IS ABOUT 2 THINGS!
When we talk about business cash flow, it’s a combination of two things: your ability to manage in the short term, i.e., operate, pay employees, buy products and services, and manage the company's current assets.
-
Your ability to manage in the short term, i.e. operate, pay employees, buy products and services…Your current assets are critical - i.e. good turnover in accounts receivable and inventory- Changes in working capital will ultimately revolve around those two key assets on the balance sheet (currently, liabilities are also essential to manage - ie payables/loan installments)
-
Demonstrating a long-term focus on business viability and meeting lender commitments.
We have demonstrated both a short term and a long term focus.
Furthermore, if you have a handle on today’s topic you’re in a position to spot future problems, then not having to fight those business cash brush fires that seem so common when we talk to clients.
DO YOU KNOW THE THREE PARTS OF YOUR FINANCIAL STATEMENT?
Part of the problem with the way owners and external folks look at and address the issues is the simple fact that information comes from different places, such as the company's balance sheet, income statement, and cash flow statement. Some look at the balance sheet, some look at the income statement, and few, yes, few, look at the cash flow statement.
Case in point? Many years ago, when we toiled in the bowels of corporate finance, we received financial statements from a client. But it was just the balance sheet and income statement. My management asked how the cash flow was. We replied, ‘There was no cash flow statement.’
The response, ‘Why don’t you create one?’
EXAMPLE OF CHANGE IN WORKING CAPITAL MANAGEMENT CASH FLOW
We can assure you that if we hadn’t done that already, the business owners wouldn’t have. Negative working capital can indicate a lack of resources to pay off short-term debts, leading to potential liquidity issues.
With the balance sheet and income statement in front of us, we jotted down net income and depreciation from the income statement. Then we went to the balance sheet and measured the changes in receivables and inventory (those two key current assets) - thereby giving us the purest indicator - operating cash flow. Voila - we were done.
Quite frankly, this was all so long ago (and we’re getting older) that we don’t remember if that client’s cash flow was positive or negative. Suffice it to say it was a key indicator of our ability to deal with the client - i.e. lend funds.
USE SIMPLE BASIC FINANCIAL RATIOS TO SEE HOW YOU ARE DOING
Using simple financial ratios, such as the working capital ratio, you can get a strong sense of how you’re
BUSINESS FINANCE CASH FLOW SOLUTIONS YOU CAN ACCESS TODAY
A/R Financing
Inventory Loans
Access to Canadian bank credit
Non bank asset based lines of credit
SR&ED Tax credit financing
Equipment / fixed asset financing
Cash flow loans
Royalty finance solutions
All of those come with different costs, take a short or long amount of time to implement and have different effects on how you can grow your business. Whether it's long-term debt on the balance sheet or monetizing your receivables through cash flow, there is always a solution as long as you are generating sales!
KEY TAKEAWAYS
-
The funds are used to cover operational costs and are typically repaid within a year.
-
Business Credit Lines: A revolving credit line offers flexible access to funds. Businesses can withdraw as needed and pay interest only on the drawn amount.
-
Cash Flow Management: Effective cash inflows and outflows management ensures that a business can meet its financial obligations and avoid liquidity crises.
-
Invoice Financing: This allows businesses to borrow against their accounts receivable, providing immediate cash flow while waiting for customer payments.
-
Inventory Financing: Loans or lines of credit secured by inventory, enabling businesses to purchase stock without straining their cash reserves.
CONCLUSION
Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you in solving the mystery, aka the measurement and solving of business cash flow finance problems.
Let our team help you find the right working capital finance solution for your business needs funding everyday operations.
FAQ
What is working capital financing?
Working capital financing provides funds to cover a company's short-term operational needs, ensuring smooth business operations.
How does working capital financing benefit my business?
It helps maintain liquidity, manage cash flow, and cover unexpected expenses, keeping your business running smoothly.
What types of working capital financing are available?
Options include short-term business loans, lines of credit, invoice financing, and merchant cash advances.
How do I qualify for working capital financing?
Eligibility typically depends on business revenue, credit score, and financial health. Lenders assess these factors during the application process.
What are the costs associated with working capital financing?
Costs vary by type and lender but generally include interest rates, fees, and repayment terms. It’s important to compare options to find the best fit.
Can I use working capital financing for any business expense?
Yes, funding from working capital finance solutions can be used for various operational expenses, including payroll, inventory, and rent.
What is the difference between working capital financing and a business loan?
Working capital financing specifically addresses short-term needs, while business loans can be for long-term investments and larger expenses.
How quickly can I get funds from working capital financing?
Funding speed varies, but many lenders provide funds within a few days of approval. In some cases, a business owner's personal credit will be a crucial determinant in approval- i.e. merchant cash advances .
Are there any risks associated with working capital financing?
Potential risks include high interest rates and fees, which can impact cash flow if not managed properly.
What should I consider when choosing a working capital financing option?
Consider factors like cost, repayment terms, and how well the option aligns with your business needs.
How does invoice financing work?
Invoice financing allows businesses to borrow against their outstanding invoices, providing immediate cash flow while waiting for customer payments.
What is a business credit line, and how does it work?
A business credit line is a flexible financing option that allows businesses to withdraw funds as needed and pay interest only on the amount used.
How can inventory financing benefit my business?
Inventory financing provides funds to purchase stock without depleting cash reserves, helping manage inventory levels and meet customer demand.
