YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE SOLUTIONS!
SOLUTIONS FOR WORKING CAPITAL AND CASH FLOW 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
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
Business financing solutions drive growth, manage cash flow, and ensure long-term success in a competitive marketplace.
Unlock the funds your business needs to thrive with the right financing solutions.
CANADIAN BUSINESS FINANCING SOLUTIONS
Business finance solutionsarise because your company typically has revenues, working capital (on the balance sheet), assets, and… you guessed it… no cash flow !
UNLOCK BUSINESS SUCCESS WITH OPTIMAL FINANCING SOLUTIONS
Securing the right business financing solutions is critical for entrepreneurs and established business owners alike.
Whether you’re looking to expand operations, purchase new equipment, or manage cash flow, understanding the various financing options available can significantly impact your business’s success. Small business loans offer fast and flexible funding options ranging from $5000 to $300,000 to support various small companies in different industries.
In today’s competitive market, navigating the complex landscape of business finance requires a keen understanding of various lending products and strategic planning.
Term loans can be used to finance future purchases of assets by spreading purchases on one or many term loans up to a pre-authorized amount. This article will explore the most effective financing solutions, providing insights to help you make informed decisions and propel your business forward.
WORKING CAPITAL IS NOT REAL CASH FLOW
To many business owners, it’s an irony that they have what their accountants ( and the finance textbooks) tell them is a good ‘ working capital ‘ position yet sometimes or always discover they have cash flow challenges.
THE RELATIONSHIP OF PROFIT TO ASSET TURNOVER IN CURRENT ASSETS
It’s difficult to avoid at least some of the accounting lingo on why that situation exists - at the heart of the matter is the simple fact that profits on the income statement don't equal cash on hand on the balance sheet.
UNDERSTANDING CASH FLOWS IN YOUR BUSINESS LEADS TO BUSINESS SUCCESS
The business owner/manager's ability to analyze, understand and address cash flow is the ' make or break' of business success.
IT'S ALL ABOUT ... TIMING!
Cash flow is essentially all about timing. Managing short-term financing needs is crucial for day-to-day operations and the ability to take advantage of business opportunities.
DSO AND INVENTORY TURNS ARE KEY TO WORKING CAPITAL LIQUIDITY
We've always found it somewhat ironic that your accountants' and textbooks' definitions of ' working capital ' refer to current assets that can be liquidated into cash within a one-year period!
Naturally, more working capital is better, but you can have all the working capital in the world and still go broke quite quickly—simply because you aren't either turning your assets into cash or monetizing them in a manner that makes sense for your company. That is the ultimate solution to cash flow management!
GETTING A HANDLE ON YOUR OPERATING CYCLE
Your ability to move a dollar faster through your entire operating cycle, or to monetize a/r and inventories for positive cash flow allows you to consider other options such as investing in more equipment and technology, paying owner dividends, or paying down any ' term debt' your company has.
We spoke about either turning assets over faster - i.e. higher inventory turns, better collection of receivables. But what are the external financing methods you can utilize to eat the working capital/cash flow divergence?
CANADIAN BUSINESS LOANS AND FINANCING SOLUTIONS
Those business finance solutions, when it comes to cash flow 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 - Good credit score required
Securitization
YOUR FINANCIAL STATEMENTS HAVE THE ANSWER
Over the years, we have found that most businesses, certainly in the SME and small business Commercial sectors, rarely examine ' PAGE 3' of their financial statements.
Clients we talk to can be forgiven for this, as the accounting world has done a great job of presenting this page,' The Cash Flow Statement,' in a very technical manner, breaking it down into 3 different analyses of cash. The ' operating cash flow' portion of this part of your financial statement is often key to understanding what’s happening to cash as it flows through your business.
KEY TAKEAWAYS
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Understanding Financing Types: Knowing the various financing options, such as loans, lines of credit, and alternative funding, helps in selecting the right solution.
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Creditworthiness: Maintaining a strong credit profile is crucial for accessing favourable financing terms.
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Cash Flow Management: Effective cash flow management ensures timely repayment and optimal use of borrowed funds.
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Application Process: Navigating the application process efficiently can lead to faster access to funds.
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Terms and Conditions: Understanding the terms and conditions of financing agreements prevents future financial strain.
CONCLUSION
If your business has sales prospects, assets, and not all the cash you need, call 7 Park Avenue Financial.
We are a trusted, credible, and experienced Canadian business financing advisor with a track record of success in providing business financing solutions that address working capital challenges, allow you to grow your business, and manage cash business needs.
FAQ
What are the most common types of business financing solutions?
The most common types include working capital loans, unsecured business loans, lines of credit, equipment financing, and invoice financing.
How can I determine which financing solution is best for my business?
Evaluate your business needs in the small business financing marketplace, your creditworthiness, and your repayment capacity around issues such as the monthly payments, interest rate, etc., to choose the most suitable financing option. In some cases, equity financing may be a potential consideration.
What are the benefits of unsecured business loans?
Unsecured business loans provide quick access to funds without collateral, making them ideal for businesses lacking substantial assets. A good credit history is required to secure funds for this business loan, and an unsecured loan is typically unavailable for a new business.
How does equipment financing work?
Equipment financing involves obtaining funds to purchase or lease equipment, with the equipment as collateral for the loan.
What should I consider when applying for a business line of credit?
To ensure the credit line meets your business needs, consider your credit score, interest rates, repayment terms, and flexibility.
What is the difference between secured and unsecured loans?
Secured loans require collateral, such as property or equipment, while unsecured loans do not, relying instead on the borrower's creditworthiness.
How can invoice financing benefit my business?
Invoice financing allows you to access funds tied up in unpaid invoices, improving cash flow and enabling continued operations.
What is a merchant cash advance and when should it be used?
A merchant cash advance provides a lump sum of capital in exchange for a percentage of future sales, applicable for businesses with fluctuating revenue. An online application is often the first step in the 'MCA' process.
How does peer-to-peer lending work for businesses?
Peer-to-peer lending involves borrowing funds directly from individual investors through an online platform, often with competitive interest rates.
What are the advantages of Canadian Government SBLloans?
SBL government-guaranteed loans offer favourable terms, lower down payments, and more extended repayment periods, making them accessible to small businesses with solid business plans from the participating financial institution. The term/amortization schedule of the loan has considerable flexibility, and there are no hidden fees.
Under the program, equipment for business purposes and leasehold improvements can be funded with good payment terms. Since 2022, the program has also included working capital for current operations. Startups/new company projects, as well as franchises, are funded under the program.
What factors affect the approval of a business financing application?
Key factors include credit score, business financial health, industry risk, and the lender's criteria.
How does alternative financing differ from traditional bank loans?
Alternative financing options such as ABL lending, factoring, or merchant cash advances (short term working capital loans ) typically have faster approval processes and more flexible terms than traditional bank loans.
Why is cash flow management important in business financing?
Effective cash flow management ensures a business can meet its financial obligations, maintain operations, and avoid over-borrowing or defaulting on loans.
