YOUR COMPANY IS LOOKING FOR BUSINESS FINANCING
FINANCE ASSISTANCE!
Financing Solutions / Small Business Financing
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 US - 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
Unlocking the potential of business financing paves the way for unparalleled financial flexibility and growth opportunities for companies."
"Struggling with business financing? Discover business financing solutions that can be your secret weapon for business growth."
Business Financing and Cash Flow Finance in Canada
The Honour System in Business and the Prompt Payment Code?!
Yes, you heard it right... the honor system in business! It had evolved into something called the 'PROMPT PAYMENT CODE' which had firms signing up to commit they would pay promptly. While we in Canada can only aspire to such a trend... (or legislation)! it's simply tough for us to imagine businesses being nice to each other and paying promptly in normal times, let alone pandemics!
Financing cash flows emerge as a critical tool for companies seeking to leverage their financial operations for growth and stability. These strategies generate immediate cash and support long-term planning, providing a lifeline for businesses navigating through the complexities of modern financial management."
The Impact of Cash Flow Problems on Business Performance
Well, putting the PROMPT PAYMENT CODE aside, the article also pointed out that 25% of all firms experience cash flow problems and challenges that hurt their performance. A lot of that, it was pointed out, revolves around the ability of a company to seriously assess their payment terms and client relationships.
Solutions to CashFinancing Challenges
There are a lot of solutions to cash flow financing for the Canadian business owner and financial manager. One of the immediate ones via lending solutions is simply putting a finance solution in place that solves the 'slow payment' problem with your clients, hampering your ability to run, much less grow your business.
Invoice Finance and Other Financial Solutions
Invoice finance, aka 'factoring', aka 'receivable discounting' is one solution to that problem. That as well as other finance SOLUTIONS such as asset-based non-bank lending facilities, as well as of course Canadian commercial bank business credit lines can do the job very well - restoring the business to positive cash flows.
Utilizing Business Assets for Cash Flow
Those solutions, as noted above, simply take business assets such as receivables and 'cash flow' into operating working capital. Naturally, day-to-day cash flow financing can also be utilized to even finance a company purchase, which is usually financed by a combination of term debt and operating debt. It's important not to confuse working capital solutions with monthly payments/interest payments that come from a term loan.
Addressing Unique Funding Needs
Many Canadian business owners and managers are also not aware that their long term receivables and contracts can also be 'cash flowed' into a business financing solution. Naturally, every business has its own somewhat unique cash flow need - that might be an acquisition or, say in the case of a staffing company, the need to meet payroll! Employees love to get paid.
The Importance of Cash Management
So why business owners should be seriously concerned about their ability to both assess and solve some of the challenges we've spoken of here? The answer is that having a handle on your overall business liquidity helps you measure the difference between cash flow and profits (they’re different!), which is key to any of your short term or senior lenders also. You're also in a position to evaluate investing in assets to run/grow your company.
Evaluating Cash Flow Statements
Taking a good look at your cash flow statement (it's page 3 of your financials - right after the balance sheet and income statement!) allows you to assess how you are operating and turning assets, what you have spent or received on asset purchases or sales, and what you have borrowed or paid out. It also identifies cash flows from external financing you have done, i.e. long term debt; Having a good handle on all those gets your closer to cash flow nirvana!
Available Cash Flow Solutions
The availability of cash flow solutions for your business allows you to be less concerned about cash flow survival. Immediate solutions include:
Key Takeaways
- Invoice Financing: Allows businesses to borrow against unpaid invoices, providing immediate cash flow.
- Asset-Based Lending: Utilizes company assets as collateral for financing, offering a flexible credit solution.
- Working Capital Management: Essential for maintaining daily operations and long-term financial health.
- Cash Flow Planning and Forecasting: Enables businesses to predict future cash needs and avoid shortfalls.
- Short-term vs. Long-term Financing Options: Understanding the differences helps businesses align financing with their strategic goals.
Conclusion
Do we ever see Canadian businesses signing up for our version of a PROMPT PAYMENT CODE OF HONOR?
Well, we’re going to dream! In the meantime call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can get you ‘less concerned’ about business financing and cash flow and working capital solutions in Canada.
FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION
How does business cash flow financing benefit my company?
It offers immediate liquidity, enabling your business to cover short-term needs while planning for long-term growth.
What types of businesses can use cash flow financing?
Virtually any business with receivables or other assets can leverage cash flow financing to improve liquidity.
Are there risks associated with cash flow financing?
Like any financial tool, it comes with risks, such as dependency on borrowing. However, strategic planning can mitigate these risks.
How does invoice financing work within cash flow financing?
Invoice financing allows you to borrow against unpaid invoices, providing immediate cash without waiting for payment terms to conclude
Can start-ups access business cash flow financing?
Yes, start-ups can access it, especially if they have invoices or assets that can be financed, though terms might differ from those for established companies when funding cash flow gaps in the business.
What impact does interest rate have on cash flow financing?
Interest rates affect the cost of borrowing, with higher rates increasing costs and potentially affecting your company's cash flow negatively.
How important is a personal credit score in securing cash flow financing?
A good credit score for small business owners can improve terms and access to financing, though some options focus more on assets or receivables than credit scores.
Can cash flow financing improve my business credit?
Responsible use of cash flow financing can positively impact your business credit by demonstrating reliability and proper financial management.
What's the difference between cash flow financing and a traditional loan?
Cash flow financing is more focused on leveraging current assets or receivables, whereas traditional loans might require broader collateral. Small firms consider short-term working capital loans, also known as a ' merchant cash advance' available from online lenders/ cash flow lenders which are based on funding future cash flow. Startups can also explore the Canadian government's small business loan program. The ' sbl ' program is a solid alternative to traditional business loans with attractive pricing and flexibility.
How do I choose the right cash flow financing option?
Consider your business needs around a business cash flow loan, the cost of financing, and the flexibility offered by the solution to align with your company’s financial strategy.
What role does financial planning play in cash flow financing?
Effective financial planning for business cash flow loans ensures that cash flow financing is used strategically, maximizing its benefits while minimizing potential risks.
How can asset-based lending be a part of cash-flow financing?
Asset-based lending provides a line of credit based on your assets such as accounts receivable, inventory, and fixed assets, offering a flexible way to finance daily operations and attain positive cash flow via business loans that make sense for business needs.
What is the first step to take when considering cash flow financing?
The first step is to analyze your financial needs and situation around a cash flow loan solution, followed by consulting with a financial advisor to explore the best options to fund business revenue growth.
