working capital management cash flow , growth

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Working Capital Management Is The Hidden Power Of Cash Flow And Growth   Financing Solutions
Ready To Pull The ‘ Delever’  Stick Via Asset Monetization?

 

 

 

 

 

YOUR COMPANY IS LOOKING FOR  WORKING CAPITAL FINANCE 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?

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7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com

 

Working capital management solutions in Canada.  When it comes to cash flow and growth plans for your company it’s not always about the concern of taking on more debt for your company. Let's dig in on that one.

 

The other day we were listening to the radio as we drove along the Malibu highway in L.A. heading towards Napa... Oh sorry, I think we were actually dreaming and we were stuck in traffic on the Gardiner Expressway in Toronto right near the CNE exit... but we digress...

 

The radio offered a news story about how Americans are back to ' leveraging up on debt ' after some really tough years. Canadians in turn were ' De- Levering '.. We were a bit better off post 2008 worldwide debacle... and were in fact lowering debt loads after some higher spending years.

 

That got us to thinking that companies, when they are in survival and growth mode don't necessarily have to take on more debt if they are planning for sales growth.  And no prudent Canadian business owner or financial manager will in fact want to take on more debt at the expense of Return on Equity. That's naturally a tough decision for the business owner/manager to take on when the natural tendency is that if you're not getting bigger or growing your company won't survive.

 

 

The key point here is that the sales revenue growth you will take on with additional sales causes and increase in your current and fixed assets. Almost no firm, except that of a firm that has no receivables or inventory could achieve profits and sales success without investing in receivables, inventory, equipment and technology

 

In fact most firms that take on a lot of new debt are immediately suspect with their bankers, who prefer the standard 2:1 debt to equity ratio that comes within their lending guidelines.

 

So do you absolutely have to plan for new debt load to success in profits and cash flow and growth? Not necessarily!   One method to avoid high debt levels is the financing of assets already in place, in both traditional and alternative debt mechanisms.

 

 

What are these mechanisms? They include:

 

Receivable financing/ invoice finance

Non bank commercial lines of credit for receivables, inventory/equipment

Operating leases for fixed assets

Tax credit monetization

Unsecured cash flow loans

P.O. Finance/Supply chain financing

 

Naturally not all business debt load is ' bad debt '... If your firm can in fact maintain generally satisfactory debt to equity relationships , while achieving profits, decent return on equity,  and respectable interest rates on term debt your firm can of course maintain a ' CAPITAL STRUCTURE' that is a win win for owners, lenders,  and management.

 

Our bottom line today? Working capital management and cash flow and growth scenarios can be achieved by solid asset monetization. Term debt solutions might make sense, but not in a mandatory manner.

 

If you want to ensure you have working capital management solutions in place to limit debt and still achieve growth seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your business financing needs.

 

' Canadian Business Financing with the intelligent use of experience '