YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE SOLUTIONS!
UNDERSTANDING THE CASH FLOWS OF YOUR COMPANY
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
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Email = sprokop@7parkavenuefinancial.com
Cash flow financing provides essential capital for businesses by leveraging future revenues to address immediate financial needs.
Unlock immediate capital to overcome your cash flow challenges today!
BUSINESS CASH FLOW FINANCING SOLUTIONS
Cash flow financing works by leveraging future cash flows as collateral, allowing businesses to secure funding without needing physical assets. Operating financing for Canadian companies often plays ‘ hard to get ‘! So, how do owners, mgrs and entrepreneurs beat that ‘ slow and painful’ feeling regarding business cash flow loans? Let’s dig in.
Boost Your Business Growth with Cash Flow Financing
Cash flow financing can be a lifeline for companies seeking to maintain liquidity and support daily business operations when traditional lending solutions are unavailable. Focusing on sales, assets, and cash flows as collateral, companies can secure immediate funding to cover expenses, invest in growth, and navigate financial challenges. Let the 7 Park Avenue Financial team help you close the cash flow gap!
CASH FLOW IS BUSINESS HEALTH
No one seems to dispute the need for cash flows as being vital for the health of a business. Positive cash flow is crucial for meeting financial obligations and ensuring the business's overall health. We’re the first to admit that great sales and great profits (paper profits?) are great and desirable, but the lack of working capital or access to future capital is also key to your long-term business future.
Top experts tell us that a solid majority of businesses in Canada say it’s tough to access cash flow solutions and capital. They also say it’s tougher to collect money from their customers more and more!
HAVE YOU LOST CONTROL OF FINANCING ACTIVITIES OPTIONS
In the short run (not the long run), your company can survive as you encounter hard cash flow bumps, often called ‘ bulge needs ‘.
That’s partly because the owner/manager is still relatively in control—he or she can juggle payables, adjust non-fixed costs, etc. However, in the long run, you lose a lot of control and financing options as conditions deteriorate or start to look permanent. Debt repayments can significantly impact cash flow, reducing the availability of financing options for business expansion.
Your business cash flow statement, the third part of your financial statements, will provide an excellent insight into where cash has gone and where it has come from in your business. Formally called the ‘ statement of cash flows,’ it is an often overlooked document but is vital to understanding your business funding needs.
PROFITS DO NOT EQUAL CASH FLOW!
Another great irony of business is that even if your business is profitable, it can run out of cash.
Net cash from financing activities is calculated by subtracting cash outflows from cash inflows, and a positive or negative net cash flow can indicate a business's financial situation.
BUSINESS LIQUIDITY
The whole concept of cash ‘coming in’ and being controllable seems relatively simple. The amount of cash generated directly impacts business liquidity, as it determines the net cash available for operations and investments. At the heart of the matter is the simple premise that you’re taking in more cash regularly than you’re
HAVE BANK SOLUTIONS FOR DEBT REPAYMENT DRIED UP?
The hard reality of business financing in Canada today is that borrowing also becomes more expensive when your company no longer has access to bank credit, so
CANADIAN BUSINESS FINANCING CASH FLOW SOLUTIONS
Planning cash flows and simple forecasting can help you identify the right solution for your business. That ' what if' becomes more important than ever.
And those solutions to operating financing nirvana? They include:
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
Purchase Order Financing
Short Term Working Capital Loans/ Merchant Advance
Securitization
KEY TAKEAWAYS
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Invoice Financing involves using outstanding invoices to secure a loan or line of credit. It helps businesses access cash tied up in receivables, providing immediate liquidity.
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Merchant Cash Advances: A funding method where businesses receive a lump sum in exchange for a percentage of future credit card sales. It's ideal for companies with consistent credit card transactions.
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Revenue-Based Financing: This type of financing involves receiving capital in exchange for a share of future revenue, aligning repayment with business performance.
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Accounts Receivable Financing: Companies use their receivables as collateral to get loans. This accelerates cash flow, making funds available faster than waiting for customers to pay.
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Working Capital Loans: These are short-term loans designed to cover everyday operational expenses, ensuring that businesses can maintain smooth operations during cash flow shortages.
CONCLUSION
It's also safe to say that if your business is profitable and you manage assets properly, you will always generate a little more cash. That then limits the need to over-borrow. If profits aren't currently in your picture, you need a solid turnaround plan as you consider operating cash flow funding options.
Want to eliminate that often ' slow and painful ' journey into business finance alternatives?
Call 7 Park Avenue Financial , a trusted, credible, experienced Canadian business financing advisor who can help you on the ' smart money ' path.
FAQ
What is cash flow financing?
It is a funding method in which future cash flows are used as collateral to secure immediate funds for business needs.
How does invoice financing work?
Invoice financing allows businesses to use unpaid invoices as collateral to get immediate cash, improving liquidity without waiting for customer payments.
What are the benefits of merchant cash advances?
Merchant cash advances provide fast access to capital by leveraging future credit card sales, ideal for businesses with consistent sales.
How can revenue-based financing help my business?
Revenue-based financing offers capital in exchange for a percentage of future revenues, aligning repayment with business performance.
What is the purpose of working capital loans?
Working capital loans cover everyday operational expenses, ensuring smooth business operations during cash flow shortages.
How does cash flow forecasting aid in financing?
It predicts future cash inflows and cash outflow, helping businesses plan and secure the necessary funding.
Can cash flow financing be used for business expansion?
Yes, cash flow lending solutions provide the necessary funds without waiting for increased revenue.
What are the risks associated with cash flow financing?
The main risks are overleveraging the balance sheet and underestimating future revenues, which can strain business finances if not managed properly.
How do short-term loans differ from other cash-flow financing options?
Short-term loans offer quick repayment terms, making them ideal for urgent cash needs, unlike longer-term financing options that might not immediately solve a company's cash flow needs.
What types of businesses benefit most from cash flow from financing?
Businesses with strong, predictable cash flows, such as retail or service industries, benefit most from cash flow financing and cash flow loan solutions.
What documents are required for cash flow financing?
Typically, businesses need to provide financial statements, proof of revenue, and accounts receivable details to secure cash flow financing.
How does asset-based lending relate to cash flow financing?
Asset-based lending uses company assets as collateral to secure loans, complementing cash flow financing by providing additional funding options.
Can cash flow financing improve my credit score?
Yes, timely repayment of cash flow financing can positively impact your business credit score, enhancing future borrowing potential.
