YOUR COMPANY IS LOOKING FOR CASH FLOW FINANCING
SOLUTIONS!
SOLVING BUSINESS 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
A financial turnaround can transform a struggling business into a profitable entity through strategic planning and operational adjustments.
Unlock the path to business revival and financial stability today!
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Financial Turnaround 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”
Turnaround: Financing Strategies
Can a problem become a crisis? More cash needed?
You bet it can. When your business cash flow is a problem potentially verging on a crisis, implementing a turnaround strategy and some analysis into what happened and how you fixed it sure helps! Let’s explain.
Periods of financial stress can occur even in well-managed companies, making it crucial to address financial pain and stabilize the business's finances.
Financial Turnaround: The Roadmap to Business Profitability
Financing your business turnaround can be a lifeline that can save a struggling business from the brink of failure and return it to growth and profits!
It's all about your newfound ability to generate cash flow and support the business daily. Talk to the 7 Park Avenue Financial team about the financing tools and solutions you can use today!
When companies apply for loans from banks or non-bank commercial financing companies, the business's cash flows related to their operations are key. Those funds will fund expansion and encourage additional growth and financing to profit and grow your customer base.
IS CASH FLOW A CONSISTENT DAY-TO-DAY JUGGLING ACT?
A ' constant juggling act ' is how many clients and business owners we talk to describe the day-to-day challenge (let alone planning!) of business operations and growth regarding operating and funding your business and cash inflow.
Were you looking for one more good analogy? One author described cash flow management as juggling bowling pins, spinning knives, and flaming torches. Enough said!
THE SOURCES AND USES OF ' CASH '!
We've often spoken about the very simple problem around cash flow issues.
Of course, business owners have hardcore cash in their business bank account, but when it comes to ' flow,' everything changes.
It becomes a dynamic of sorting out where you are using and getting cash and where you can get cash by perhaps managing your business differently.
SOLVING COMPANY CASH FLOW PROBLEMS
So, how is cash flow managed?
You can also improve business cash flow by taking on debt, increasing profits, and, our favourite and most important, ‘Managing assets '.
As you can guess, we're not huge fans of taking on long-term debt or giving up ownership equity, so we focus on the importance of cash flow management for long-term success—one critical aspect is managing accounts receivable and providing payment terms to clients.
Who wouldn’t recognize the importance of a small business's two asset turnover functions?
4 INDICATORS REQUIRING CASH FLOW CRISIS MANAGEMENT
We all know the results of a cash flow crisis gone bad. They include :
1. Supplier/vendor relations,
2. Employee morale,
3. Lender concern
4. Short Term Cash Flow crisis impacts any small business's competitive strategy and growth
The path to these problems becomes very steep when operating losses continue, wrong financing is put in place, and creditors sue for payment or attempt to realize the security you have provided.
Some solid cash flow planning helps in several ways - You are in a position to plan cash needs, lenders feel more confident about your plans, etc.
CASH FLOW FINANCING SOLUTIONS TO AVERT THE CRISIS AROUND BUSINESS CASH FLOW PROBLEMS
How to Deal With A Cash Shortage? At 7 Park Avenue Financial, our financing solutions in Canada include:
A/R Financing - Business sales generate accounts receivables, and investing in current assets on your balance sheet plays a key role in cash generation and cash management. Business owners realize cash is not profit, and it's that cash that flows in and out of your business at any given time that is the key to the successful day-to-day survival of your business and a return to positive cash flow and the ability to pay bills.
Inventory Loans
Access to Canadian bank credit - Obtaining a business line of credit solution from a bank or commercial financing company extends the resources of your business to improve cash flow.
Non-bank asset-based lines of credit/line of credit
SR&ED Tax credit financing
Equipment / fixed asset financing -Leasing, instead of buying equipment purchases and other assets such as technology, can be an expensive capital commitment, as well as the costs associated with maintaining and replacing assets. Technology financing is a great way to fund needed but constantly depreciating assets versus borrowing money via term loans!
Cash flow loans
Business Credit Card
Royalty finance solutions
Ultimately the business owner by experience and planning can put the right plan and solution in place. Your goal: Creating cash and then using it!
KEY TAKEAWAYS
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Financial Restructuring: Reorganize financial obligations to improve balance sheets and reduce debt load.
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Cash Flow Management: Ensure liquidity by optimizing the timing of cash inflows and outflows.
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Debt Management: Management team should Negotiate with creditors to restructure existing debt for more manageable terms based on company's ability
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Operational Efficiency In Corporate Restructuring: Streamline processes and reduce waste to lower operational costs when financial stress occurs in a tightened lending environment
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Revenue Enhancement: Implement strategies to boost sales and diversify income sources.
Business owners can sometimes get confused about their businesses' sales and cash flows, and growing sales in higher-growth businesses can mask many underlying problems. Sales are truly profitable when they are collected!
CONCLUSION - CASH FLOW STRATEGIES FOR SURVIVAL
A constant priority of every business is the ability to prioritize liquidity—these days, challenges exist everywhere, up to and including supply chains around product and inventory issues. Long-term planning around cash management is the key to profitable business success, as is understanding the solutions and actions available to mitigate problems.
In summary, what’s the best way to avoid cash flow problems or even a crisis? Yes, you can borrow more and sell equity, but the easiest and most important way is to convert working capital into accounts (A/R and inventory) into cash faster. Oh, and by the way, if you can increase sales and reduce some costs, you're a true cash flow superstar! Here's a link to a great article by FORBES focusing on business cash management.
Conclusion
In summary, what’s the best way to avoid cash flow problems or a crisis? Yes, you can borrow more and sell equity, but what is the easiest and most important? It is to convert working capital into accounts (A/R and inventory) and cash faster. Oh, and if you can increase sales and reduce some costs, you're a proper cash flow superstar! Here's a link to a great article by FORBES focusing on business cash management.
Are you seeking additional help and expertise in your cash flow problem management challenge?
Call 7 Park Avenue Financial, a trusted, credible, and experienced Canadian business financing advisor who can get you out of working capital crisis mode by understanding cash flow problems and solutions and focusing on the consequences of poor cash management!
When solving cash flow problems, talk to the experts on the 7 Park Avenue Financial team.
FAQ FREQUENTLY ASKED QUESTIONS PEOPLE ALSO ASK MORE INFORMATION
WHAT ARE SOME KEY CASH MANAGEMENT TECHNIQUES
Numerous business cash management techniques are available to the business owner - to supplementing small business needs with a business credit card, managing accounts receivable or enforcing trade credit terms and the benefits around getting down payments or partial payments.
Even the ability to accept online payments will speed up cash flow to the business. Using cash flow forecasts and projections and understanding how to interpret cash flow statements will assist in identifying methods to increase cash flow. Overall, cash management should be the priority of every small business owner.
Small business owners can avert cash flow shortages by understanding their bank accounts' cash flow cycle. Even accounts payable management is key to helping the overall working capital position around solving cash flow problems. Late payments from clients can be assisted in many cases by a factoring company solution, as invoice factoring brings more money into the company soon,
Common cash flow problems always benefit from an immediate payment / early payment solution, such as invoice factoring.
A company's failure will almost always be related to owner misjudgment about the business cycle and the amount of debt on the balance sheet. Good profit margins will not reduce cash needs. Leasing vs. buying assets is a key benefit of any asset-intensive business.
HOW CAN CASH FLOW BE IMPROVED WITH TURNAROUND STRATEGIES IN FINANCE
Methods to improve a company's cash flow of a business include:
Focusing on credit and collection improved performance, including trade credit terms extended to clients
Offering early discount payment options to clients
Reducing accounts payable turnover without disruption to vendor relationships
Managing fixed costs
Focusing on financing assets vs purchasing assets
Maintaining good cash flow projections monthly
Consider short-term financing solutions such as invoice factoring or short-term working capital loans
HOW DOES A BUSINESS HANDLE A CASH FLOW SHORTAGE
To improve the company's cash reserve, tips for surviving cash shortfalls include reviewing clients' credit policies and focusing on down payments or incentives for early payments, such as the popular 2% net 10-day offering.
Companies focus on vendors as they are also a source of cash position management for inventory and service purchases. Maintaining an ongoing cash management/cash flow forecast focused on business expenses is key to good business management, which involves how the owners will manage cash flow and identify how much cash the company needs.
HOW CAN A COMPANY AVERT FINANCIAL DISTRESS
Small businesses can avoid a financial crisis and cash flow difficulties around the business's cash flow by utilizing the resources of experienced third parties such as business financing advisors, lawyers, and accountants, including a potential review of the accounting system/invoicing policies.
Other business owners in the same industry might be prepared to offer advice if they are not direct competitors.
The ability to negotiate with creditors in good faith regarding debt payments and supply them with the backup and information they need is key to an ongoing assessment of your business plan.
How does financial restructuring aid in a financial turnaround?
Financial restructuring helps by reorganizing a company's debt and equity structure to improve financial stability and reduce financial strain with proper working capital solutions
What is the importance of cash flow management in a financial turnaround?
Effective cash flow management ensures a business has enough liquidity to meet its obligations and invest in growth opportunities during a turnaround.
How can debt management contribute to a successful financial turnaround?
Debt management involves negotiating with creditors to restructure existing debt, making it more manageable and freeing up resources for business operations.
Why is operational efficiency crucial in a financial turnaround?
Enhancing operational efficiency reduces costs and improves productivity, allowing a business to operate more profitably during a turnaround.
What are some revenue enhancement strategies used in financial turnarounds?
Strategies include expanding product lines, entering new markets, improving sales processes, and increasing marketing efforts to boost revenue.
What role does leadership play in a financial turnaround?
Effective leadership guides the organization through change, sets the vision, and implements turnaround strategies effectively. Proper financial statements are important.
How can stakeholder communication impact a financial turnaround?
Clear communication with stakeholders builds trust and ensures everyone is aligned with the turnaround objectives and strategies.
What is the significance of strategic planning in financial turnaround?
Strategic planning provides a roadmap for long-term growth and stability, helping the business to navigate challenges and capitalize on opportunities.
Why is asset optimization important in a financial turnaround?
Optimizing the use of company assets ensures they are used efficiently to generate the highest possible returns, contributing to overall financial health.
What is a financial turnaround?
A financial turnaround is a strategic process that involves restructuring a company's operations, finances, and strategies to restore profitability and sustainability.
How long does a financial turnaround typically take?
The duration of a financial turnaround varies depending on the severity of the issues and the effectiveness of the strategies implemented. Generally, it ranges from a few months to a few years.
What are the initial steps in initiating a financial turnaround?
The initial steps include assessing the company's financial health, identifying key issues, developing a turnaround plan, and securing stakeholder buy-in for the proposed changes.
