YOUR COMPANY IS LOOKING FOR CASH FLOW SOLUTIONS!
SOLVING YOUR CASH FLOW PROBLEMS
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
Oakville, Ontario
L6J 7J8
Your business cash flow problem seeks a solution. The age-old situation of a working capital/cash flow shortage often is a ' shock ' situation to many Canadian business owners and financial managers.
CASH MANAGEMENT AND ASSET TURNOVER HELP CREATE PROFITS
Every business goal pretty well revolves around creating profits. As that process works itself through your business you should be constantly trying to both manage cash and improve asset turnover.
The business owner's ability to manage, and finance working capital allows it to generate equity, pay taxes and employees, keep supplier short term relations positive, etc.
Calculations around working capital cash flow typically revolve around the relationship of current assets and current liabilities on your balance sheet.
WHAT IS THE OPERATING CYCLE
A great way to look at your business is to constantly be focusing on what we call the ' operating cycle '. It's essentially the ' journey ' that a dollar takes as it travels through your business.
Two drivers in understanding your cash and working capital are your:
1. Revenue recognition
2. Accounts payable management
Business owners should also check out their cash flow statement which is a key part of business financial statements allowing you to see cash from a ' where got /where gone ' perspective.
DON'T FORGET PAYABLES MANAGEMENT
While not often directly understood, most business owners /managers understand that managing payables is a key part of the cash cycle. You increase your cash from operations by delaying payables to the extent that you can, given you don’t want to damage supplier relations. Delaying payables, your major ' current liabilities ' asset is working capital management to the extent you can given vendor payment terms, etc.
FINANCING YOUR INVESTMENT IN A/R AND INVENTORY
If your business isn’t a retail or online business you have an investment in accounts receivable. Numerous financing solutions exist to allow you to better access real cash, as opposed to the A/R and inventory build-up on your balance sheet that is not liquid.
Those solutions include:
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
Purchase Order Financing
Short Term Working Capital Loans/ Merchant Advance
Securitization
WHAT THOSE TEMPORARY CASH FLOW CRUNCHES!
If our businesses were a straight line with totally repeating ongoing transactions a lot of cash flow shortage shock would go away. Unfortunately, that is rarely the case, so seasonal and bulge situations often occur, often along the lines of the ' cash flow shock' we talk about.
The owner /manager's ability to forecast seasonality and bulges in business will always alleviate working capital shock .
WHAT TYPE OF BORROWING FACILITY DO YOU NEED?
At the end of the day, the most common solution to the business cash flow problem is the ability to ensure you have a borrowing facility in place that allows your company to address future cash flow uncertainty.
If your firm has profits, historical cash flow and acceptable financials chartered banks and business credit unions are the solutions for the long term.
FINANCING THE BALANCE SHEET
As long as you have business assets (receivables, inventories, equipment, orders/contracts) numerous non-bank solutions exist to allow you to feel that you have cash flow availability. Funding current assets is a key part of addressing a cash flow crunch.
CONCLUSION
If you're looking to avoid small business cash flow problems shock and ensure you have access to financing solutions that address the right stage your company is in ( start-up, mature, high growth, turnaround, etc ) to grow products and services, so seek out and speak to a trusted, credible and experienced Canadian Business Financing Advisor who can assist you with your financing needs. It's all about the amount of cash you need to satisfy enough cash for funding your company.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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