YOUR COMPANY IS LOOKING FOR CASH FLOW FINANCING!
SHORT TERM WORKING CAPITAL FOR CANADIAN BUSINESS
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the most significant 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
More often than not, business cash flow is' top of mind ' when it comes to solving the working capital conundrum for Canadian business owners and managers. Typically, clients we meet want to reverse shortage and find out about other options! Let's dig in.
SELF FINANCING IS A CHALLENGE IN A GROWING BUSINESS
All business owners / financial managers know that moving a business forward is a challenge. Factors that affect cash flow include if and how your sales revenues are growing, what financing your business can bear/attract, and the inability in certain times to address financial distress. Of course, the perfect world lets you ' self-finance' operations and borrow at low rates only when you need to. Bottom line - it's rarely a perfect world.
Even managing short term liabilities such as accounts payable is key to long term success in managing your financial obligations as reflected on the balance sheet.
WHEN SHOULD A BUSINESS ACCESS EXTERNAL CAPITAL
So how then does the owner/manager determine when and how to access working capital solutions. Don't forget that managing and accessing capital forces your behaviour on investing in new assets, growth strategies, etc.
Individual clients we meet have an even larger challenge - addressing export markets and non-North American clients. More often than not, in fact, almost always traditional and alternative lenders alike will insist on things like credit insurance, letters of credit, etc.
HERE'S A RECAP OF CANADIAN BUSINESS FINANCING SOLUTIONS
Interested in a recap of your actual business cash flow solutions in Canada? They include:
A/R Financing / Accounts Receivable Funding Solutions
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
Working Capital long term loans
Securitization
WHARE ARE 4 WAYS TO ACCESS BUSINESS CASH FLOW?
Any business financing solution that you undertake should focus on how that solution will either operate or grow the business. You are only going to access incoming cash from the following methods:
Generating sales and collecting accounts receivables - Managing current assets and current liabilities
Borrowing
Financing Assets
Selling Assets
We note that selling assets is rarely the optimal owner strategy, but refinancing them using such techniques as the sale-leaseback option is a reliable way to go about things. Remember also that borrowing involves taking on debt, so managing and monetizing existing assets is more often than not the way to run/grow your business.
4 EFFECTIVE WAYS TO MANAGE YOUR BUSINESS
All too often, clients we meet and talk to are flummoxed by the fact that sales and (paper/accounting) profits are significant... so they wonder why they are going broke! Here rules to live by include:
Maintaining a cash flow forecast.
Oversee term debt obligations.
Using short term cash flow financing only when needed
Establishing bank or non-bank credit lines
STARTUP FINANCING IS A CHALLENGE - TALKE TO 7 PARK AVENUE FINANCIAL ABOUT FINANCING YOUR START UP
Startup or early-stage firms will also have a more considerable challenge in arranging cash flow financing. Firms that are primarily inventory based also face that challenge.
CONCLUSION
A small business will always have a challenge to manage short term obligations, and the amount of working capital you need will always be top of mind for the business owner. If you don’t like your current working capital financing situation, our bottom line is to reverse that feeling and access your company's working capital seek out a trusted, credible and experienced Canadian business financing advisor who can assist you with your business capital and working capital needs.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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