YOUR COMPANY IS LOOKING FOR BUSINESS CASH FLOW SOLUTIONS
AND WORKING CAPITAL EXPERTISE!
Short Term Business Cash Needs - Solved!
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 AvenueFinancial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Business cash flow problems. Are there some consequences to working capital management and solutions? You bet there are, so let's recap what's important when it comes to this critical aspect of running, managing and growing your business.
Your ability to both manage working capital, as well as finance it will ultimately decide the long term success of your business. (A lot of small things happen along the way too!)
So how in fact can you exhibit good business working capital management and can you in fact measure that concept.
3 QUESTIONS TO ASK YOURSELF ABOUT FINANCING / WORKING CAPITAL IN YOUR BUSINESS
Look at the following points and ask yourself as a business owner or financial manager where you fit in -
1.Do you typically have enough cash on hand to cover your operating needs?
2.Are you in control when you look at the overall daily management of your accounts receivable - small businesses often don't spend enough time looking at their cash flow statement or preparing business plans or projections
3.Does the cost and flexibility of the financing you have in place reflect your overall needs?
It is safe to say that if you answer to any (or perhaps all?!) of the above you're either continually muddling through a cash crisis, or worse, the survival of your company is at risk.
HOW DOES A COMPANY RUN OUT OF CASH?
So how does a firm actually ' run out of cash ' and what can you do to spot this as far in advance as possible? Believe it or not ' fast growth ‘, something the owner and entrepreneurs and managers dream of actually becomes a double-edged sword relative to financing problems. Business owners should take time to understand the ' cash flow statement ' which is one part of the 3 parts of your business financials - that will show you where money is coming from, and where it went !
SALES GROWTH REQUIRES MORE INVESTMENTS IN RECEIVABLES INVENTORY AND NEW ASSETS!
That's because all that growth bulks up your balance sheet and you’re now carrying inventory, receivables, and new fixed assets all of which make you balance sheet rich and .. you guessed it... CASH FLOW POOR and working capital needy! To make matters worse, when sales in fact start to slow down at the same time inventory turns slow and a/r deteriorates you're as close to crisis mode as you ever will want to be. The relationship between your ' current assets ' and ' current liabilities ' is key to understanding your business finance need as long as you can properly manage the turnover in those accounts . A strong current ratio means nothing if your a/r and inventories are not turning properly according to your own particular industry standard. Ensure you understand that current assets and current liabilities relationship as it relates to funding needed .Companies such as Dun and Bradstreet provide business information on acceptable asset turnover per industry .
A key point we make here also is that we're assuming all this growth is bringing you profits. If in fact, it isn’t, i.e. higher costs then you're at the edge of your own fiscal cliff one more time. No business owner wants to be there!
So are we all doom and gloom today? Hopefully, that's not how it's coming off. The reality is simple tools such as a cash flow budget and financing solutions such as:
A/R Financing
Inventory Loans
Access to Canadian bank 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
Those solutions can help you get to the working capital goal line. Oh and by the way that cash flow budget isn’t a sales forecast, it should properly reflect the timing of inflows and outflows to your capital. As small business owners you want to understand the amount of cash you need and how to plan for and finance enough cash to run, and grow your business.
Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in measuring and solving working capital and financing challenges
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
7 Park Avenue Financial/Copyright/2020/Rights Reserved
