YOUR COMPANY IS LOOKING FOR FINANCING SOLUTIONS TO
BUSINESS FINANCING PROBLEMS!
Small Business Finance 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
If there is one benefit of meeting and speaking to numerous companies with small business business finance problems it's that one quickly gets a sense of what financing solutions are needed... and when! Whether your company is a new business or established cash flow and working capital challenge are always around the corner.
EARLY WARNING SIGNS OF BUSINESS FINANCE PROBLEMS
In fact, a lot of what we could call early warning signs in business challenges emerge pretty clearly - even though those same signs are often ignored or misinterpreted by the Canadian business owner and financial manager. Let's look at some of these business warning signals and how you can nip them... in the bud as they say!
Experienced small business owners know that access to capital tends to come and go... it's those good times, bad times and boom and bust that makes the journey somewhat... exciting.
Most owners/managers are simply happy to ensure they have access to the right financial solutions for their company. Even more important is ensuring those solutions come with terms, rates and structures that suit those present situations.
UP TO DATE FINANCIAL STATEMENTS ARE IMPORTANT
The ability of the small business owner to have access to up to date information at any time is critical to both managing your business and having access to solutions. So when we meet a client that can't produce regular monthly balance sheets and income statements that has always been a warning sign of bad things to come.
ASSET TURNOVER IN KEY ASSETS SUCH AS RECEIVABLES AND INVENTORY
Mismanagement of current assets is the real killer in working capital and cash flow problems. If there is any good news in that it’s that there are some great finance vehicles to help you both manage those current assets and address the cash flow challenges that come with any business that's both surviving, and growing. A business line of credit will often solve the build-up in your receivables and inventories as long as inventory turns and days sales outstanding performance are reasonable. Business credit card use might solve day to day issues but that's not a long term fix.
CURRENT ASSET WARNING SIGNALS
Let's take a look at some of those current asset warning signals around financial problems. Key in that category is the double whammy of growth and slowdown in accounts receivable. Not knowing your day’s sales outstanding and the ongoing relationship of sales and receivables is a business killer. Financing receivables in Canada can come in a number of different ways - they include”
Receivable financing/factoring
Comprehensive asset-based credit lines that margin A/R at 90% - Asset Based Lending Works!
Bank credit facilities
All of the above solutions come with different rates and structures - some will work for your firms overall credit quality, some might not. What these solutions do provide though is an immediate increase to your ' cash on hand ‘... and that’s a good thing.
Inventory deterioration or even inventory build-up are also key warning signals to a small business finance problem. It's important to know your inventory turns, and, similar to receivables monitor those inventories so they aren't continually representing more and more a percentage of your total assets.
We've been talking ' current assets' but at the same time, fixed asset concentrations can be a killer also. Here is where proper use of term debt and lease financing is critical.
CONCLUSION
In summary, knowing what financing you need, and when it critical to the fix for some of those early warning signals we've talked about for small businesses. Whether it's a business loan for short-term working capital or invoice factoring ensure you have an up-to-date business plan and cash flow projection for any commercial lending discussions, allowing you to get the best interest rates based on the type of financing needed.
Speak to a trusted, credible and experienced Canadian business financing advisor on ' realistic ' financing vehicles for your firm's operations, challenges, and growth.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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