YOUR COMPANY IS LOOKING FOR SOLUTIONS FOR BUSINESS FINANCE PROBLEMS!
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
Every business faces financial challenges, but with the right strategies, you can overcome them and ensure your company's growth and stability.
Are financial problems holding your business back? Discover the solutions that can turn your challenges into opportunities!
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Business Financing & solutions that solve the issue of cash flow and working capital – Save time and focus on profits and business opportunities
7 Park Avenue Financial: “Canadian Business Financing with the intelligent use of experience”
How to Solve Business Financial Problems: Overcoming the Finance Challenge!
Business finance problems and financial issues in Canada?
It’s no secret to Canadian business owners and managers that the funding they need to solve those challenges all depends on the firm's overall borrowing quality. Banks and commercial lenders make it their business to ‘ predict ‘ failure.
EFFECTIVE SOLUTIONS FOR BUSINESS FINANCIAL CHALLENGES
Solving business financial problems is always a major challenge for many business owners and entrepreneurs.
Typical cash flow problems can significantly impact your business, such as cash flow problems, too much debt, or the inability to secure conventional financing. Let 7 Park Avenue Financial show you practical solutions to overcome financial hurdles, allowing your business to stabilize and grow.
HOW TO ACCESS THE FUNDING YOU NEED
But what can the owner/manager do to ensure the right access to choices for loans and working capital, and can the right type and amount of financing lead to the successful turnaround of your firm’s financing fortunes, especially when dealing with cash flow problems? Let’s dig in!
PROPER BUSINESS FINANCING AND FINANCIAL MANAGEMENT WILL HELP BUSINESS PERFORMANCE ISSUES
An excellent approach is to ensure that the type of financing you seek corrects the poor performance your company might be experiencing due specifically to a lack of or wrong funding.
Proper financing can also improve cash flow by providing the necessary resources to manage and enhance your business's cash flow. We speak to clients regarding 2 1/2 solutions to funding challenges in Canada.
HERE ARE THE 2 1/2 SOLUTIONS TO YOUR BUSINESS FINANCE AND CASH FLOW PROBLEMS!
They can be broadly grouped into:
Traditional
Alternative
And the 1/2? That comes about through better knowledge and management of existing assets. Effective cash flow management is crucial for maintaining financial stability and ensuring smooth operations. That might include refinancing assets under a sale-leaseback or just common-sense basics such as better receivable and inventory turnover.
LOOK AT YOUR COMPANY FROM THESE 4 DIFFERENT WAYS
At 7 Park Avenue Financial, we caution small business owners and managers to ensure that their financials reflect the true value of their assets and liabilities.
A cash flow statement is crucial in understanding a business's financial health as it shows more than just the cash on hand, including short-term investments, bank deposits, and other assets. This allows you to look at your company in 4 different ways -
Immediate liquidity challenges
Debt structure
Operating Performance
Profitability
IT'S ALL ABOUT BUSINESS LIQUIDITY
It could probably be debated, but ‘liquidity’ is the best predictor of immediate financial problems. Here, it’s all about the ‘Current Assets’ part of the balance sheet - how you manage those inventory turns, receivable days outstanding, etc.
Better asset turnover and financing of current asset accounts on the balance sheet often address small business cash flow challenges. Understanding cash flows, including the net amount of cash going in and out of a company, is crucial for managing a small business's daily, weekly, and monthly cash flow.
HAVE YOU INVESTIGATED ALL OF THESE DIFFERENT SOLUTIONS TO BUSINESS CREDIT?
Immediate solutions in this area include bank or non-bank business lines of credit commensurate with your overall credit quality.
To increase cash flow, consider strategies such as offering discounts, effectively managing inventory, creating a financial cushion, and exploring profit-making opportunities.
Other solutions include Purchase order or contract financing, future revenue stream finance, and receivable sales programs typically achieved through a receivable discounting facility. All of these fall into one of two categories we have already mentioned: traditional or alternative!
That’s a nice segue into our next point, which is that those other three areas—debt, operational efficiency, and profits—will, dictate whether you should explore traditional or non-traditional Canadian business financing solutions.
WHAT DO BANKS AND COMMERCIAL LENDERS LOOK AT TO ASSESS BUSINESS LENDING
Regarding business finance, the bank or commercial lenders you’re working with will examine your financial performance history closely.
Poor cash flow management can significantly impact business lending decisions, as lenders assess the ability to track revenue and expenses effectively. However, good commercial lenders pride themselves on ‘ failure prediction ‘.
That’s why it’s important for the owner/manager/CFO/Controller, etc., to ensure all the bases are covered in the 4 different ways we’ve offered above to assess your historical and current financial performance and your ability to meet repayment terms.
How do the right financing solutions then fix your business finance problems?
Properly executed, they will show that a turnaround solution is in place and be able to fix financing challenges within a generally specific timeframe.
HERE ARE BUSINESS FUNDING SOLUTIONS TO INCREASE CASH FLOW AND WORKING CAPITAL CHALLENGES
If you want to ensure you have the proper fixes and solutions to support sales growth, seek out and speak to a trusted, credible, and experienced Canadian business financing advisor like 7 Park Avenue Financial, who can assist you in traditional and alternative finance.
Achieving healthy cash flow through efficient operations is crucial for maintaining profitability and sustainability.
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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Cash Flow Management: Effective cash flow management ensures a business can meet its short-term liabilities and invest in growth opportunities. It is crucial to become a more profitable business with a higher return on investment, and this can be achieved by focusing on good cash flow management and leveraging accounting practices to improve financial performance.
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Financing Options: Understanding various financing options, such as loans, lines of credit, and equity financing, helps businesses choose the best funding sources.
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Expense Reduction Strategies: Identifying and reducing unnecessary expenses improves profitability and sustainability.
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Financial Planning and Budgeting: Creating and adhering to a financial plan and budget enables businesses to forecast needs and allocate resources efficiently.
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Debt Consolidation: Consolidating debt into manageable payments helps reduce interest costs and simplifies financial management.
CONCLUSION
Call 7 Park Avenue Financial, a trusted, credible, and experienced Canadian business financing advisor who can assist you with your business funding needs when addressing small business cash flow financial challenges, running a business, or striving for growth.
P.S. Your takeaway? Focus on seeking expertise in the 2 1/2 ways of financing the right funding - Traditional, Alternative, and... Internal!
FAQ
What are common business financial problems?
Common financial problems include cash flow issues, high debt levels, insufficient capital, and unexpected expenses. Understanding these challenges is the first step in addressing them effectively.
How can I improve my business cash flow?
Improving cash flow involves optimizing receivables and payables, reducing unnecessary expenses, and securing short-term financing options like lines of credit.
What financing options are available for businesses?
Businesses can explore financing options such as bank loans, lines of credit, invoice financing, and equity financing to address their financial needs.
How do I create a financial plan for my business?
Creating a financial plan with tools such as accounting software involves setting financial goals, forecasting revenues and expenses, and regularly reviewing and adjusting the strategy to ensure it aligns with business objectives.
What is the importance of expense reduction in solving financial problems?
Reducing expenses helps increase profitability in the company's finances and free up capital for investment in growth opportunities, making it a crucial strategy in avoiding financial crisis.
How can I improve my business credit score?
Improving your credit score involves paying bills on time, focusing on business efficiency, reducing outstanding debt, and regularly monitoring your credit report for errors.
What are some revenue growth techniques for businesses?
Revenue growth techniques include diversifying product offerings, expanding into new markets, increasing marketing efforts, and improving customer retention.
How can I manage my business inventory more effectively?
Effective inventory management involves tracking inventory levels, forecasting demand accurately, and implementing just-in-time inventory practices to reduce holding costs.
Why is an emergency fund important for a business?
An emergency fund provides a cushion to cover unexpected expenses or revenue shortfalls, helping ensure business continuity during tough times.
What are the benefits of accounts receivable management?
Proper accounts receivable management ensures timely payment collection, improves cash flow, and reduces the risk of bad debts.
How can high interest savings accounts benefit my business?
High interest savings accounts can provide liquidity and help grow your cash position. These accounts often offer interest rates significantly higher than the national average, allowing your business to earn more on the money saved. This can be particularly beneficial for maintaining a healthy cash flow and ensuring funds are readily available for unexpected expenses or investment opportunities.
What role does financial planning play in solving business financial problems?
Financial planning helps businesses set clear financial goals, allocate resources efficiently, and anticipate future financial needs, making it easier to solve financial problems as they arise.
How can debt consolidation benefit my business?
Debt consolidation simplifies repayment by combining multiple debts into a single payment, often at a lower interest rate, making managing and reducing overall debt easier.
What strategies can I use to reduce business expenses?
Reducing business expenses can involve negotiating better terms with suppliers, cutting non-essential costs, implementing energy-saving measures, and outsourcing non-core activities.
What is the Government Small Business Loan Guarantee Program?
The Small Business Loan Guarantee Program in Canada, formally known as the Canada Small Business Financing Program (CSBFP), is a government initiative designed to help small businesses obtain financing. This program aims to make it easier for small businesses to get loans by sharing the risk with lenders. Here are some key points about the program:
Purpose
The program is intended to assist small businesses in obtaining the financing they need to start, expand, modernize, or improve their operations.
Eligibility
- Business Size: Available to businesses with gross annual revenues of $10 million or less.
- Type of Business: Most for-profit small businesses are eligible, but farming businesses, not-for-profit organizations, and charitable organizations are excluded.
Loan Details
- Maximum Loan Amount: Up to $1 million for any one borrower, of which no more than $350,000 can be used for leasehold improvements or equipment purchases.
- Types of Financing: Loans can be used to finance the purchase or improvement of land, buildings, and new or used equipment. They can also be used to finance leasehold improvements and the purchase of new or existing leasehold improvements.
How It Works
- Application: Small businesses apply for loans directly through participating financial institutions (banks, credit unions, caisses populaires).
- Lender Decision: The financial institution makes the decision to approve the loan, conducts the due diligence, and is responsible for administering the loan.
- Government Guarantee: The government guarantees up to 85% of the loan amount, reducing the risk for the lender and making it more likely for the business to receive financing.
Benefits
- Access to Capital: Helps small businesses access the financing needed to grow and succeed.
- Risk Sharing: The government’s guarantee reduces the lender’s risk, encouraging more lending to small businesses.
- Business Growth: By facilitating access to funds, the program supports business expansion, job creation, and economic growth.
