YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE AND CASH FLOW
SOLUTIONS!
SMALL BUSINESS FINANCING & CASH FLOW LOANS FOR CANADIAN BUSINESS
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
Business financing in Canada, especially when it comes to cash flow challenges, often feels like ' 3rd down, 110 to go “for the Canadian business owner and financial manager. It just might be time to break up with those challenges and focus on solutions around the types of cash flow loans available to your company in the consideration of financing a business. Let's dig in on Canadian financial solutions for your business needs.
UNDERSTANDING WHAT YOUR CASH DRIVERS ARE WHEN ASSESSING THE PROBLEM OF CASH FLOW
It's important to, of course, understand what, in fact, the cause of the problem is when it comes to working capital needs. In business, these are often known as the ' drivers ‘of cash flow. When you know what those drivers are, it's much easier to focus on solutions - the right solution.
Naturally, your profits themselves are one of those key drivers, as well as your depreciation policy. Not every business owner knows that the basic finance definition of profit is your income plus depreciation over any given period of time, i.e. quarterly, annually, etc.
ADDRESSING RECEIVABLES, INVENTORY, AND ACCOUNTS PAYABLE
However, it’s the levels and management of current assets and current liabilities that are also key.
Let's get back to those current assets and liabilities - it's there that lies your greatest challenge as well as the key to financing solutions. Increases in accounts receivable and inventory drive cash flow needs. And you able to slow down payables also makes you more cash flow positive. Naturally, that must be done while keeping key suppliers and lenders generally satisfied with you as a customer.
HOW TO FINANCE YOUR WORKING CAPITAL AND CASH FLOW NEEDS
How then do business finance current assets - Typical ' traditional' solutions include Canadian chartered bank lines of credit and term loans? When those cannot be accessed, numerous other solutions are available from financing companies in Canada - they 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 Cash Advance
Securitization
Smaller firms should make sure the credit score of company principals is acceptable, typically in the 600+ range. Whether it's a term loan from a business bank or credit union or a short term working capital fix from an alternative lender your ability to provide the requirements of that particular financing is key - allowing you to explore financing solutions that are critical to the ongoing growth of your products and services. Your goal = grow your business via asset financing for financing cash flow requirements.
IT'S ALL ABOUT ASSET TURNOVER
Remember also how you manage these assets that is the ultimate scorecard of your business cash flow needs - the ability to turn over receivables and increase inventory turns makes you a cash flow winner and less reliant on external financing.
FINANCING LONG TERM ASSETS VIA THE EQUIPMENT LEASING SOLUTION
Fixed asset needs also play a key role in your overall management - it is highly recommended to purchase or finance assets out of credit lines as that is a classic mismatching of uses and needs of cash. The optimal solution is Lease Financing, allowing you to spread payments over the asset's general useful life. 80% of Canadian businesses use lease finance at one time or another.
Many industries have specific cash flow needs - your firm might be highly capital intensive or, at the opposite extreme, a service business with no major assets.
SEASONAL CASH FLOW AND BULGE FINANCING NEEDS
In many cases, cash flow needs are driven by what we call ' the bulge. ‘ It might be the seasonality of your business, or perhaps a large new order or contract that places extreme cash flow pressures on your business. Here's where early planning and the ability to match a business financing solution to your need are key.
In the case of financing acquisitions a business purchase loan might be the required solution, Talk to the 7 Park Avenue Financial team for finance to purchase an existing business and access to small business capital solutions.
CONCLUSION
Looking for a small business loan? Always remember to distinguish between a short term business loan or a long term permanent solution. Business credit forsmall businesses is a major challenge. Small business owners should have available to them the type of financing that is available for their business needs. If you're looking to fix or improve present and future cash flow needs while avoiding that ' 3rd down 110 to go ' feeling, seek out and speak to 7 Park Avenue Financial - a trusted, credible and experienced Canadian business financing advisor. It's time to break up ' with cash flow problems and move on!
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
7 Park Avenue Financial/Copyright/2021/Rights Reserved
