YOUR COMPANY IS LOOKING FOR CASH FLOW FINANCING 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
Business cash flow management .When it gets to the stage where you're ready to call 911 Working Capital things are usually getting pretty tough. Let's examine some key tools, and, more importantly, solutions around what experts tell us is a constant challenge for the Canadian business owner and financial manager. Let's dig in.
Even understanding some of the real basics will always help your firm out, and when you know where to go and what Canadian business financing solutions are available you're certainly in a position to maximize the finances you need to run/grow your business. When you understand liquidity issues that's often a first step in avoiding the proverbial cash crunch.
As one of our favourite business finance pundits put it, its the balance sheet that shows where the bodies are buried ' and I guess we are saying that when you solve the puzzle of how your assets are operating within your balance sheet you're in a strong position to put ' the fix', or ' the fixes ' in place.
We often meet clients who somehow are a bit more surprised than we think they should be when that cash flow crunch occurs. It's as if it just happened. While we suppose there are some events that can very quickly precipitate a working capital shortage (perhaps the quick loss of a very large client, etc) the reality is that these sorts of issues are probably a bit more in what we could call ' creep mode ‘.
So what are those issues? They include slow-moving or inventory that’s obsolescent, accounts receivable that are being collected to slowly ( or not at all ?) , and prepaid accounts and fixed asset balances that are bulking up your balance sheet but doing nothing for cash flow. When you can successfully talk to and address the balance sheet asset accounts that will or can convert into operating capital you're in a position to survive, grow, and even get big fast!
Don't forget also that the whole concept of cash flow (it’s actually a complex concept and a simple one!) revolves around tying your income statement into the balance sheet when you're looking at your overall financial position. It goes without say that and term or asset monetization lender is going to be looking at how you manage the dynamics of those cash flows.
What are then some sources of cash flow financing? They include:
Chartered bank operating lines of credit
Receivables financing/discounting
Working capital term loans
Non-bank asset based lines of credit
Sale-leaseback of owned fixed assets
Tax credit monetization
Purchase order/supply chain finance
One of the best ways to analyze and manage business cash flow is to constantly monitor the changes in your sales as they relate to your operating expenses, and , as important, or more so the increases in your accounts receivable and inventory levels. Keeping it simple - we're saying that if your sales are growing at 25% make sure inventory and A/R levels aren't growing at 40%!
If you run your company incredibly efficiently when it comes to asset turnover and management, and aren't in high growth mode you will actually need little cash flow finance. However, if you’re growing, investing in fixed assets and have significant increases in A/R and inventory you're approaching CASH FLOW 911 modes!
If you want to win the cash flow battle consider some of the monitoring solutions we've provided here seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your finance needs via solutions that work... for your company.
Click here for the business finance track record of 7 Park Avenue Financial 
Stan Prokop 7 Park Avenue Financial/Copyright/2020
