YOUR COMPANY IS LOOKING FOR BUSINESS ASSET FINANCE SOLUTIONS!
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
Financing cash flow needs for Canadian businesses must often have many business owners/financial mgrs feeling as if they’re on a ' bouncy castle with a patchy power supply'! Talk about insecurity. When it comes to business asset finance, it's all about ensuring you understand how your firm's cash flow relates to your sales cycle. Let's dig in.
Do you really know where your cash flow and working capital comes from? Essentially it’s either from your balance sheet - i.e. your business credit lines and the amount of owner equity on your balance sheet. That is then complemented by the cash you generate from your sales cycle. Here it's about asset turnover and the proper financing of those assets - i.e. inventories, receivables, and fixed assets.
Your ability to turn revenues into cash is all about timing and will ultimately determine your business's success. Strong asset turnover will also limit the amount of borrowing you require in monetizing your assets or financing new equipment/technology needs.
So how much cash do you need to run your business? We could defer to our lawyer for an answer (' Well.. it depends'), but instead, we'll say that it is, in fact, relatively easy to both understand and plan your cash flow needs.
So how then does your revenue affect how you manage and finance cash flow needs. Simply speaking, any delays in the entire sales cycle (we’re talking from sale to collection of your goods/services) will slow down your cash flow. In effect, until you collect your money from clients, you are a ' consumer' of cash, not a ' generator. '
There are 3 areas you need to focus on to ensure maximum cash flow and minimizing cash flow finance needs:
Solid financial controls around credit extension/collection
Understanding your client base - repayment discounts, terms, etc
Knowing which finance solution (Traditional or alternative) works best for your firm
These solutions include:
A/R Financing
Inventory Finance
Working Capital Term Loans
Tax Credit Monetization Financing
Government Guaranteed Business Loans
PO/Contract financing
Sales royalty financing
Asset-based business credit lines - revolving facilities that allow you to borrow against receivables, inventory and equipment
Equipment Leasing/ Sale Leasebacks
Ensure you understand how these work, what amt of financing they deliver on, what covenants or guarantees are required, etc.
If you're focused on relieving that insecurity related to business asset finance, speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with financing cash flow needs.
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Stan Prokop
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