YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE SOLUTIONS!
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Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
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7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Direct Line = 416 319 5769
Email = email@example.com
The business working capital search often has owners/financial managers/entrepreneurs with that ' are we there yet?) feeling as they struggle for finance options for their companies. That's of course because that journey is often endless as your business grows / experienced challenges. The importance of being ' right' in this area can't be over-emphasized. Let's dig in.
Working capital is dependent on sales and assets, as you generate revenues which become receivables you’re in a better position to reduce your short term obligations such as payables and loan and operating commitments. The big ' IF ' is if you are turning those assets over and generating quality receivables. It all about how ' efficient' your business is, and that's what of interest to suppliers, lenders, or potential investors.
Problems often arise when sales fluctuate dramatically, leaving your company in a negative working capital position. The worst part of sales fluctuation is of course when sales go down dramatically- at this point not even better collections can reverse the tide. These times, your ability as an owner/financial manager is challenged to the hilt.
There are some ways to address working capital challenges in the absence of a sales slump. One of these is to sell of inventories if that asset class is a part of your business - one other solution is to consider a SALE LEASEBACK of existing assets. Often simply trying to forecast your short term needs by careful analysis of your balance sheet accounts will also avoid cash crunches.
It's important to point out that every industry has different working capital needs, and some finance options will work for some but not all. Companies dependent on cash sales or fast inventory turns can often escape working capital drama. Even more challenging is the steep hill ' start-up ' businesses face as they try to be taken seriously by banks and commercial lenders. The ' shortlist ' of working capital solutions includes:
Bank Credit Facilities
A/R financing from commercial finance companies
Inventory finance - suited for retailers or as a combination of A/R and inventory business revolving credit facilities
Working Capital Term Loans
Asset-based non-bank revolving credit facilities.
Lease financing - preserves cash flow and credit lines as you match long-term assets with minimal cash outlay.
In accessing the right working capital finance options for your business it's critical to be ' educated' about your firms overall financial position. Consider also seeking out and speaking to a trusted, credible and experienced Canadian business financing advisor who can assist you in ensuring you're ' right ' about the perfect finance options for your business.