YOUR COMPANY IS LOOKING FOR BUSINESS CASH FLOW SOLUTIONS!
FIXING BUSINESS CASH FLOW
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
Navigating the ebb and flow of financial resources is a perpetual challenge for businesses, but understanding solutions for a cash flow problem can be the key to sustainable growth and success.
Are unpredictable cash flow fluctuations hindering your business's growth? Discover essential strategies to overcome cash flow challenges and propel your business forward.
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer SOLUTIONS TO CASH FLOW PROBLEMS and solutions that solve the issue of working capital challenges – Save time and focus on profits and business opportunities
Overcoming Obstacles: Proven Solutions for Cash Flow Resilience
INTRODUCTION
Have business cash flow problems?
Ever feel like putting out on 'APB' on working capital for your company, in an earnest search to solve the disappearance of your cash flows and your ability to cover business expenses ? Short-term challenges? We've got some internal (as well as external) solutions. Can small businesses ever have enough cash - probably not! Let's dig in.
TECHNIQUES TO MANAGE CAPITAL IN YOUR BUSINESS
Top experts tell us that the key to successful working capital is to understand the techniques you have available to manage business capital flows.
THE DUPONT MODEL
We've long been a fan of the ' DUPONT MODEL ‘. Without getting too technical it's a formula developed by a DuPont engineer many years ago that assesses how your profit margins, asset turnover, and debt load work together to show you how you are doing on sales and cash. It can be set up on a simple spreadsheet and can be nicely tracked to show you how you are ' INTERNALLY ' managing assets and business cash flow. Check it out.
But why do you actually have to have a strong handle on cash flows? One simple reason is that it underpins your business and gives you credibility with all your lenders, as well as owners of course.
CONSIDER A SR&ED BRIDGE LOAN
A lot of clients we meet are still in early or, alternately ongoing development of their products and services. Developing that costs money and if your firm is taking advantage of the SR&ED program in Canada (trust us, your competitors are!) then you also can finance your SRED claim for immediate cash flow. It is a great tool to fund your company, most particularly if you're in the early stages of revenue and have a need to manage cash flow carefully
GOOD GROSS MARGINS ARE KEY TO BUSINESS SUCCESS
Your gross margins are also an important part of your cash flow. Think about it. The ability to cover your costs, realize greater profits and then turn over assets such as inventory and receivables basically creates a cash flow source for your firm.
Those sales at a higher price allow you to monetize current assets via bank credit lines and non-bank asset-based business lines of credit.
HOW CAN THE BUSINESS OWNER IMPROVE CASH FLOW VIA INTERNAL METHODS
Keep in mind that you, the business owner or financial manager can dramatically affect cash flow in 3 ways:
1. Turn assets over more quickly - monitoring current assets and current liabilities - business owner must review and interpret their cash flow statement
2. Lower your costs
3. Raise prices
We'll let you take care of costs and pricing, and our focus will be on asset monetization and proper borrowing.
If your firm can satisfactorily manage your inventory and A/R they will always yield more cash flow.
When you borrow to finance cash flow and working capital you do that through either working capital term loans or asset monetization... What though are the factors that dictate who you can borrow for enough cash flow, and from and how?
FACTORS THAT AFFECT YOUR COMPANY'S ABILITY TO BORROW FOR WORKING CAPITAL
Those factors include:
The size of your company - i.e. assets and revenues
Your current overall cash flow situation
Financial credibility re current borrowing arrangements, quality of financials
THE COST OF FINANCING
The rates and costs of different types of working capital financing (receivable finance, inventory financing, SR&ED finance, asset-based non-bank lines of credit, Canadian chartered bank financing) vary based on those factors noted above. Over the long term, these solutions will provide your firm with the funding you need. It's all about financing sales and the balance sheet.
KEY TAKEAWAYS
Cash Flow Forecasting: Predicting and planning for future financial fluctuations, aiding decision-making via cash flow statements and ensuring stability toward positive cash flow
Working Capital Management: Efficiently handling current assets and liabilities for smooth operations and financial stability and the ability to take early payments for discounts
Invoice Factoring: Selling accounts receivable to a third party for immediate cash, bridging cash flow gaps to avoid negative cash flow issues based on sales growth
Short-term Financing Options: Accessing funds quickly through lines of credit, cash advances, or trade credit to cover expenses and common cash flow problems, or seize growth opportunities.
Inventory Optimization: Managing inventory levels to minimize costs while ensuring the availability of the business's cash flow
CONCLUSION
If you're anxious or require further investigation into how ' THE OTHER HALF ' of small business deals with the disappearance of cash flow call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor with a track record of success of solving business cash flow problems .. and solutions!
FAQ: FREQUENTLY ASKED QUESTIONS/ PEOPLE ALSO ASK / MORE INFORMATION
How can cash flow forecasting benefit my business?
Cash flow forecasting allows you to predict and plan for future financial fluctuations, enabling better decision-making and ensuring your business stays financially stable.
What is working capital management, and why is it important?
Working capital management involves effectively managing your company's current assets and liabilities to ensure smooth operations and financial stability, crucial for sustaining day-to-day operations and supporting growth initiatives.
How does invoice factoring work, and how can it help my business?
Invoice factoring involves selling your accounts receivable to a third-party company at a discount in exchange for immediate cash, providing a quick infusion of capital to address cash flow gaps and fund business operations and good cash management
What are some common short-term financing options available to businesses?
Short-term financing options such as lines of credit, merchant cash advances, a business credit card, and trade credit payment terms offer quick access to funds to cover immediate expenses or capitalize on growth opportunities, albeit with varying terms and interest rates.
How can inventory optimization strategies improve cash flow?
Inventory optimization involves managing your inventory levels efficiently to minimize carrying costs while ensuring product availability, helping to free up cash tied up in excess inventory and improving overall cash flow.
What are the typical eligibility criteria for business loans?
Business loan eligibility criteria may vary depending on the lender and loan type but commonly include factors such as credit score, business revenue, time in operation, and collateral availability.
How do economic factors impact cash flow management?
Economic factors such as interest rates, inflation, and market demand can significantly affect cash flow by influencing sales revenue, operating costs, and borrowing costs, highlighting the importance of adapting financial strategies to changing economic conditions.
What role does technology play in cash flow management?
Technology plays a crucial role in cash flow management by providing tools and software for automated invoicing, real-time financial reporting, cash flow forecasting, and expense tracking, enabling businesses to streamline processes and make informed financial decisions.
