YOUR COMPANY IS LOOKING FOR CASH FLOW FINANCE ALTERNATIVES!
CASH FLOW AND WORKING CAPITAL SOLUTIONS FOR THE AMOUNT OF CASH YOUR BUSINESS NEEDS!
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
Suite 301
Oakville, Ontario
L6J 7J8
Cash flow finance solutions in Canada. Just this week one of the world’s largest retailers made the news almost every day with rumours rife around their ability to generate, or access... working capital financing to run their business. The result? Suppliers panicking, competitors cheering, and board members running for the hills.
CAN YOU RECOGNIZE YOUR COMPANY'S CASH FLOW CHALLENGES?
How can you ensure your business is never going to be in that position? Part of the story is knowing what the problem is and recognizing it - understanding how much money the business requires. The other half of the solution, we think, is knowing who the real 'merchants of working capital financing and cash flow' are in Canada - potentially allowing you to avoid taking on long term debt capital solutions. Let's dig in!
CASH FLOWS DO NOT EQUAL PROFITS
Cash flow shortages mean different things to different businesses. In some cases, it might mean the inability to replace much-needed assets or technology. (By the way, lease financing can easily help to address that one). Most business owners in the small and medium (SME) sector in Canada thankfully many times equate cash flow to profits as then try to ensure enough cash in the business.
While incorrect, that’s not a bad thing, we assure you. Financing your current assets properly is the key to business funding success. Managing assets such as accounts payable which is a party of your current liabilities is also important of course. Lenders always focus on the relationship of current assets and current liabilities as a key metric in loan and financing approval. Typically 12 months is monitored as a ' within a year ' focus , but owners and lenders can look at changes monthly if required.
So remember, business capital and cash flow are 2 very different things in business, as are working capital and cash. At 7 Park Avenue Financial we easily forgive our clients for mixing up some widely improperly used terms at times by others in business operating activities.
ASSET TURNOVER IS KEY TO MANAGING WORKING CAPITAL
The trick to knowing and understanding key cash flow shortage issues is really to track your company's progress on this issue over time. Where many owners and financial managers ' botch ' or misunderstand the process is when they get mixed up in what the financial techies call ' quality of earnings ‘. That’s really about ensuring you have good asset turnover as well as profits. When assets are incorrectly managed you essentially get poorer because the cash you need is tied up in inventories, receivables, and equipment.
EVERY BUSINESS HAS A CASH SHORTAGE AT SOME TIME! HOW MUCH WORKING CAPITAL DO YOU NEED, AND WHEN DO YOU NEED IT!
Naturally, cash flow in your business goes up and down every day, almost every minute. But over time a sense of what's really happening is often easy to spot. There are good reasons why cash flow might be temporarily negative, as in investing in new deals, equipment, technology, etc. to maintain your competitive position. Just make sure it's' TEMPORARY'!
We've referred several times over the years to the W.T. GRANT story of cash flow collapse. Even Harvard Business Review has written cases on the company's financial failure. That company changed the way the entire financial world looked at cash flow and profits in the same snapshot - i.e. cash flow from operations. It's an incredible story - to the outside world the company was doing great- internally though, inventories built up, accounts receivable were uncollected, and finally, outside financing from our ' MERCHANTS OF WORKING CAPITAL ' was inaccessible. Those balance sheet accounts turned out to be very neglected by management - negative working capital had set in big time as the company had poorly monitored inflows and outflows of funds.
You know the result of course. Bankruptcy, with analysts all around the world suddenly trying to figure out what happened. The accounting industry developed the cash flow statement as a key part of financial statements partly because of that business failure.
WHO ARE MERCHANTS OF CASH FLOW FINANCE!
So who then is the mysterious CASH FLOW AND MERCHANTS OR WORKING CAPITAL in Canada? They include:
A/R Financing/ Accounts Receivable Factoring
Inventory Loans
Access to Canadian bank credit/term loans/long term debt
Non bank asset based lines of credit-
SR&ED Tax credit financing
Equipment / fixed assets financing
Cash flow loans
Royalty finance solutions
Purchase Order Financing
Short Term Working Capital Loans/ Merchant Advance
Securitization
CONCLUSION
It is correct that cash flow financing won't make you skinny, but it will allow you to grow your company, survive, beat your competitors, and generate real profits in the short term and also help to ensure long term business success over a period of time while at the same time successfully managing short term liabilities.
Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your cash flow finance needs. Don't be front-page business news in the worst way.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
7 Park Avenue Financial/Copyright/2020/Rights Reserved
