YOUR COMPANY IS LOOKING FOR WORKING CAPITAL FINANCE!
SOLUTIONS FOR SMALL BUSINESS LOANS FOR WORKING CAPITAL
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
Suite 301
Oakville, Ontario
That type of simple cash flow spreadsheet has saved many a business owner from the surprise of a working capital financing crisis- the irony of which is often brought about by that great positive in business - sales revenue increases! It's the great irony of business that high growth leaves your firm with paper profits and no cash.
3 KEY ISSUES IN WORKING CAPITAL NEEDS AND ASSUMPTIONS
Depending on how your business is currently financed other issues that need to be addressed in your working capital business projections include:
New personnel needs
Asset requirements/replacement around your production activity
Ability to repay any current long term debt payments obligations such as leases / real estate mortgages, etc as well as offer better credit terms to clients
So bottom line it's all about cash inflows and outflows
ASSET TURNOVER IS KEY!
Naturally, your ability to manage your current assets is also what working capital loans are all about. In this case, we're talking about inventory turnover and accounts receivable management. Combined with your ability to get a handle on sales these current assets ultimately determine your financing needs. Solid turnover of assets will help lower interest rates and costs of borrowing and place less dependence on personal guarantees, personal net worth, a credit score, etc.
ACHIEVING PROPER BUSINESS LOAN FINANCING - 4 IMPORTANT POINTS TO CONSIDER
Knowing when you have the proper financing in place is pretty easy to spot as you monitor business activity. You should strive for the following:
1.Knowing you have the cash you need when you need it to meet obligations and repayment terms
2. You have the ability to consider growth and investment
3. Your A/R and inventories have acceptable turnover ratios for a line of credit solution
4.You're comfortable with the costs of your working capital financing - namely that those costs are achieving the return on investment at an acceptable interest rate
HERE ARE SOME OTHER BUSINESS FINANCING SOLUTIONS FOR CANADIAN BUSINESSES
What then are the finance solutions that address short term working capital business needs? While a cash term loan might be the answer (provides cash but takes on debt on your balance sheet) more optimal solutions include:
A/R Financing / Invoice 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
Purchase Order Financing
Short Term Working Capital Loans/ Merchant Advance/Business Credit Cards/Lump sum cash loans
Securitization
The government of Canada Small business loan is also a solid solution for early-stage companies, startups, etc
CONCLUSION
It's a well known business term that ' cash flow is king ' and your firm's ability to access working capital and sources of cash under borrowing terms that makes sense for your company is key . Focus on your needs and what information and financial formulas that you require to ensure new business capitla makes sense.
Understanding key terms such as days sales outstanding and inventory turns will allow you to better asses your ability to meet financial obligations and minimize the investments you need to make into higher levels of a/r and inventories.
Technically speaking if your small business can’t meet short or long-term obligations - that infers insolvency or business failure. While that is the extreme many clients we meet simply have ' bulge ' needs for one-time issues or opportunities, and one of several of the above-noted solutions fixes that.
Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success and get back that ' comfortable ' feeling knowing you have accessible business working capital and financing solutions for survival and to take advantage of growth projects, r&d around intellectual property, etc.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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