YOUR COMPANY IS LOOKING FOR CASH FLOW AND WORKING CAPITAL 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
Has your firm got cash flow in the crosshairs? Confused about that ' working capital formula ' you keep hearing about.
For many Canadian business owners and financial managers, it's clear - something isn’t working. Business seems kind of back to the usual collapses (of everything), pandemics included, and the average SME business owner and financial manager find they have less working capital and lending solutions available than they had in the past.
DO YOUR COMPANY HAVE ACCESS TO BUSINESS CREDIT AND WORKING CAPITAL CASH FLOW SOLUTIONS
Industry experts point out that the actual access to business credit and cash flow solutions is more and more a great predictor of survival.
Naturally, our banks and major financial firms have websites and advertisements that indicate they are providing more credit to great companies like yours. Sorry for the sarcasm...
It's no secret that lending standards are tighter than in the past, there are certainly not a lot of looser credit standards and criteria these days.
Here's a big irony - a large number of businesses in Canada actually run their businesses on credit cards - both business, and... You guessed it, personal. Working capital providers looking at loans for startups also place a certain emphasis on the credit profile and management experience of the owner/owners.
THE DANGERS OF MIXING PERSONAL CREDIT AND BUSINESS CREDIT
The one danger there of course is that the owner’s personal financial life is significantly mixed into the business. Banks are a good example of placing a strong emphasis on an owner's ' credit score ' . In general, that's not a good thing. One study in the states indicated that business owners seem to squeeze about 5k of revenue out of every 1k they spend via business credit cards... it could be worse we guess. All of a sudden that 0% interest rate on a new card must seem tempting we suppose.
In a perfect world (and we know it isn't) you want your company to be able to have enough cash for all your business needs, all the time. That’s of course where the imperfect world comes in.
What really happens is that you spend a lot of cash sometimes, and in those good months you receive a lot of cash from clients for goods and services delivered... For start-up firms or companies with a lot of seasonality in their business, it's even a rockier road.
If the business owner and financial manager track 'the numbers' over time he or she will find that at times when they have high inventories and receivables they are generally running out of much-needed working capital/cash flow.
MAINTAINING A BALANCE IN YOUR CASH FLOW NEEDS
Here's a fundamental concept that every business needs to get a handle on: You can raise cash flow by drawing down all the cash you have in the bank, borrowing via lending solutions - short term or otherwise, or raise additional owner equity. But you can’t keep doing any one of those all the time!! There needs to be a balance and a strong look at why you are always running low on cash.
Is there a most recommended way to access cash flow? More often than not it’s an internal solution, reducing A/R and inventory and managing payables carefully.
9 SOLUTIONS TO BUSINESS CAPITAL WORKING CAPITAL / CASH FLOW
Great lending solutions for your cash needs both traditional and alternative and include:
A/R Financing
Inventory Loans
Access to Canadian bank loans/line of credit
Non bank asset based lines of credit
SR&ED Tax credit financing
Equipment / fixed asset financing
Cash flow loans
Royalty finance solutions
Government Of Canada Small Business Loan Program - The Guaranteed federal business loan
CONCLUSION
Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your business financing needs.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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