YOUR COMPANY IS LOOKING FOR WORKING CAPITAL AND CASH FLOW TOOLS AND SOLUTIONS!
WORKING CAPITAL FUNDING FOR YOUR COMPANY
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
CONTACT
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Cash Flow Financing and working capital solutions – Save time, and focus on profits and business opportunities
7 Park Avenue Financial: “Canadian Business Financing with the intelligent use of experience”
Small Business Working Capital Financing: SME Solutions
The constant battle for working capital finance solutions for Canadian business owners is a continuous journey.
And sometimes it’s a scary one, maybe not as scary as some of those popular Zombie movies… but pretty close sometimes!
Can we share some finance cash flow tools and knowledge?
You guessed it… there are. So, of course, we're talking about the funds that are hopefully … ‘ working ‘ in your short-term operations.
Understanding key concepts is critical before we can provide you with that toolkit of solid cash flow solutions.
So the concept of ‘ net working capital, which is the difference between your short-term assets and liabilities, is critical—payment terms to suppliers and how you manage accounts payable factor into that type of analysis.
Cash Flow Crunch: Your Business's Silent Growth Killer
Your business is thriving, but cash flow gaps threaten your momentum. Late-paying customers and seasonal fluctuations strain your operations, while opportunities slip away due to limited working capital.
Let the 7 Park Avenue Financial team show you how Small business working capital financing provides the strategic buffer you need, enabling you to confidently maintain operations, seize growth opportunities, and navigate seasonal challenges.
3 Uncommon Takes:
- Working capital financing can be more cost-effective than early-payment supplier discounts
- Strategic use of working capital loans can improve vendor relationships and credit terms
- Working capital financing can serve as a hedge against market volatility
2 KEY AREAS OF BUSINESS SUCCESS FOR SMALL BUSINESSES
And at the end of the day, the final success you have in financing your business comes down to two key areas of working capital:
How do you manage those assets
How do you finance those assets
It's as simple as that.
Naturally, issues around margins, cost of goods sold, and balance sheet debt should also be key focus areas.
Both startups and established small businesses across diverse industries may be businesses eligible for working capital loans.
You’re on a constant journey with this whole issue when you think of it. We read an analogy the other day where you might be considered either a warrior or a wizard regarding certain aspects of business success. We suppose we are saying that you must be a bit of both.
ASSET TURNOVER IN KEY CURRENT ASSET AND CURRENT LIABILITY ACCOUNTS IS KEY FOR WORKING CAPITAL
The ‘warrior‘ aspect of today’s issue is your constant effort to turn over assets, but at the end of the day, you have to be a bit of a wizard, significantly if you are growing, because that investment in receivables and inventory is in effect your permanent investment.
So, both your lenders and you have a vested interest in how you are doing on that issue—especially if bankers, other lenders, lessors, etc., have loans outstanding and are concerned about your working capital prowess!
Negative working capital, where liabilities exceed assets, can signal potential financial trouble, while positive working capital indicates better financial health and growth potential.
When you consider it, the real challenge of finance cash flow tools is using a financial solution with an appropriate rate and risk level.
So, what are some of the working capital solutions that your firm can employ?
They might be one or several of the following:
A/R Financing
Inventory Loans
Access to Canadian bank credit/term debt
Non bank asset-based lines of credit
SR&ED Tax credit financing
Equipment / fixed asset financing
Cash flow loans
Royalty finance solutions
A CASE STUDY EXAMPLE:
A Canadian maritime supplier faced significant seasonal fluctuations in cash flow. By securing $275,000 in working capital financing, they:
- Increased inventory purchases by 40%
- Improved supplier terms by 15%
- Grew revenue by 28% in six months
- Expanded to two new locations
- Maintained positive cash flow through off-season
KEY TAKEAWAYS
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Understanding cash flow cycles drives successful working capital management
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Revenue timing impacts determine optimal financing structures
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Seasonal fluctuations require strategic capital planning
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Vendor payment terms affect working capital needs
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Customer payment patterns influence financing requirements
CONCLUSION ON CASH FLOW
It's all about balance sheet financing and figuring out how to finance sales revenues.
While we would all probably agree that it would be great to have a precise formula for which working capital solution worked best, that’s not the real world! It simply becomes a case of ensuring that the sales increase you enjoy is appropriately financed.
You want to be able to do that proactively. We can't count the number of clients we meet who are in emergency cash flow crunches.
Why? Because they didn't plan or use some essential analytical tools to measure the performance of their receivables, inventory, and payables.
Check out the ' working capital ratio ' or ' quick ratio ' as one tool most lenders use to view your financial statements. It measures current assets and current liabilities - at 7 Park Avenue Financial we have always thought it has some deficiencies around turnover of assets and accounts receivable and inventory turns versus absolute dollars, but it is a widely used mechanism for lending.
Measuring how your cash flows are affected is key to business funding success.
Call 7 Park Avenue Financial, a trusted, credible, experienced Canadian business financing advisor who can assist you with your finances and help you determine how much working capital you need - It doesn't have to be scarier than a Zombie movie to get your business running smoothly!
FAQ
How does working capital financing improve business operations?
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Enables bulk inventory purchases
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Supports payroll during growth phases
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Allows for equipment upgrades
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Helps manage seasonal fluctuations
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Provides emergency cash flow buffer
What makes working capital loan financing different from traditional loans?
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Faster approval process
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More flexible terms
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Revenue-based repayment options
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Less emphasis on personal credit
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Shorter commitment periods
When is the best time to secure working capital financing?
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Before peak seasons
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During growth opportunities
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While negotiating supplier contracts
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When expanding operations
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Prior to major equipment purchases
What types of businesses benefit most from working capital financing?
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Seasonal operations
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B2B companies
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Retail businesses
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Manufacturing firms
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Service providers
How quickly can working capital improve cash flow?
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Immediate access to funds via solutions such as the merchant cash advance or invoice financing / invoice factoring
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Same-day vendor payments to help cover everyday expenses
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Rapid inventory acquisition
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Quick staffing solutions
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Instant emergency response
What collateral is required for working capital loans?
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Some programs require no collateral
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Accounts receivable can serve as security
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Inventory may be used as collateral
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Equipment can back the financing
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Personal guarantees may be needed by a financial institution
What are the typical repayment terms for short-term working capital loans?
How does working capital financing differ from equity financing?
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Maintains ownership control
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Faster funding process for facilities such as a business line of credit
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Interest rates deliver Lower long-term costs than equity dilution
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More flexible usage around debt payments
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Simpler exit strategy
What factors determine working capital financing costs?
When should you avoid working capital financing?
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Long-term asset purchases should be made with leases or term loans
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Struggling business turnaround
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Personal expenses
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Non-revenue generating activities
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Debt consolidation
