YOUR COMPANY IS LOOKING FOR CASH FLOW & BUSINESS CAPITAL!
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?
CONTACT US
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
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer working capital solutions – Save time, and focus on profits and business opportunities
7 Park Avenue Financial: “Canadian Business Financing with the intelligent use of experience”
Working Capital Financing Solutions
Working capital financing solutions often make Canadian business owners and financial managers feel that only a miracle will solve their business financing challenges.
When they understand the timing it takes to achieve proper business financing successfully and is armed with the right information, they will better know how to ‘ reboot ‘ financing issues in their company. Let’s dig in.
Cash Flow Crunch? Working Capital Financing is Your Business Lifeline
Your business is growing, but cash flow gaps threaten your operations. Unpaid invoices pile up while expenses mount, creating constant stress and missed opportunities.
Let the 7 Park Avenue Financial team show you how Working capital solutions provide immediate access to funds, converting your receivables into ready capital and keeping your business moving forward.
3 Uncommon Takes On Working Capital Funding
- Working capital funding can be strategically used for supplier negotiations and early payment discounts
- Seasonal businesses can leverage it for counter-cyclical expansion
- It serves as a risk management tool during market volatility
ARE CANADIAN BANKS THE ONLY GO-TO SOLUTION?
When it comes to ‘ time’ around a flexible finance solution, the standard ‘ go-to ‘ in Canada is our chartered banks. Here, you have the lowest cost of borrowing capital in Canada, with numerous solutions for term and revolving business credit.
Understanding and managing your business credit score is crucial as it significantly influences your borrowing potential and loan eligibility. A poor credit score can negatively impact your future financing options.
For smaller firms, getting an unsecured business line of credit is possible. But even if your banking facilities are, in fact secured, they are always ‘ low cost’ and flexible relative to the number of services offered
TRADITIONAL FINANCING TAKES TIME TO PUT IN PLACE
So what is the big problem? In many cases, it’s the time it takes to get such financing in place, compounded by the criteria your company needs to meet to get approved.
It is so low-cost and difficult to get—that is the conundrum. Various types of working capital financing options are available, each with its advantages and disadvantages, and depending on your specific business circumstances, they can be quicker to secure.
WHAT IS BANK CRITERIA FOR BUSINESS CREDIT APPROVAL
By the way, are those criteria items for working capital financing approval?
They include (but are not limited to!) clean balance sheets with tangible equity, income statements demonstrating profits, key ratios that must be satisfied, such as debt to equity and positive cash flow, and an evaluation of a company's current assets and liabilities.
WHAT ARE ALTERNATIVE BUSINESS FINANCE OPTIONS FOR CASH FLOW IN CANADA
What are the options? Numerous non-bank solutions fill the gap in cash flow capital in Canada. While these solutions almost always CANNOT match the cost of bank financing, they fill the gap nicely.
Fixed assets are illiquid and cannot be easily converted to cash, unlike current assets that are part of working capital. Businesses must consider fixed assets and working capital when developing financial strategies.
Typically, these solutions 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
Business Credit Cards
Royalty finance solutions
Purchase Order Financing
Short Term Working Capital Loans/ Merchant Advance
Securitization
ALTERNATIVE FINANCING IS TAILORED TO YOUR SPECIFIC NEEDS
These solutions tend to be specifically structured to your needs and are secured by the assets they finance.
So, ultimately, the question that the business owner/financial manager faces is really the issue of access to the financing needed, not the cost.
MANAGING CASH FLOW WITH WORKING CAPITAL
Effective cash flow management is crucial for businesses to maintain their financial health. Working capital is vital in managing cash flow and providing the necessary funds to meet short-term obligations.
How Working Capital Affects Cash Flow
Working capital has a direct impact on a company’s cash flow. Positive working capital indicates that the business has sufficient funds to meet its short-term obligations, while negative working capital can lead to cash flow problems.
Here are some ways working capital affects cash flow:
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Accounts Receivable: A high accounts receivable balance can tie up a significant amount of cash, affecting the business’s ability to meet its short-term obligations. Efficiently managing accounts receivable ensures that cash is collected promptly.
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Accounts Payable: A high accounts payable balance can also impact cash flow, as the business may need to pay its suppliers and creditors promptly. Managing accounts payable effectively can help maintain a healthy cash flow.
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Inventory Management: Effective inventory management is essential to maintain a healthy cash flow. Excess inventory can tie up cash, while insufficient inventory can lead to lost sales. Balancing inventory levels ensures the business can meet customer demand without overextending its resources.
By managing these components effectively, businesses can maintain adequate working capital and ensure their short-term financial health.
BENEFITS OF WORKING CAPITAL FINANCING
Working capital financing offers several benefits to businesses, including:
Improved Cash Flow
Capital financing can help businesses improve their cash flow by providing the necessary funds to meet short-term obligations.
This can help companies:
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Manage Accounts Receivable and Payable: With additional funds, businesses can manage their accounts receivable and payable more effectively, ensuring they have the cash needed to operate smoothly.
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Maintain Healthy Inventory Levels: Access to working capital financing allows businesses to maintain adequate inventory levels, preventing stockouts and lost sales.
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Meet Short-Term Financial Obligations: Businesses can use working capital financing to meet their short-term financial obligations, such as paying employees and suppliers on time.
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Invest in Growth Opportunities: With improved cash flow, businesses can invest in growth opportunities, such as expanding their operations or launching new products.
By improving cash flow, businesses can reduce their reliance on short-term debt and maintain a stable financial position.
This can also help businesses to:
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Enhance Their Credit Score: Consistently meeting financial obligations can improve a business’s credit score, making it easier to secure future financing.
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Increase Borrowing Capacity: A strong financial position can increase a business’s borrowing capacity, providing more options for future financing needs.
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Reduce Interest Rates: Improved financial health can lead to lower interest rates on loans, reducing the overall cost of borrowing.
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Improve Financial Health: By maintaining sufficient working capital, businesses can ensure long-term viability and success.
Working capital financing is valuable for businesses that want to maintain healthy cash flow and support their everyday operations.
Case Study:
A Toronto-based manufacturer faced seasonal cash flow challenges. A Working capital funding solution provided $200,000 in flexible funding, enabling inventory purchases during peak season.
The result was 40% revenue growth and improved supplier relationships through early payments.
KEY TAKEAWAYS
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Understanding receivables conversion speed drives optimal financing decisions
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Credit quality assessment determines approval likelihood and terms
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Seasonal patterns impact working capital needs significantly
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Invoice verification processes affect funding speed
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Documentation requirements influence application success
CONCLUSION
Are you looking to ' reboot ' your business with working capital/cash flow solutions?
Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can help you address issues of Alternatives/Costs/Time Involved ;
That 'miracle' your business is looking for might be around the corner.
FAQ
How quickly can I access working capital financing?
Approval decisions typically occur within 24-48 hours, with funding available within 1-3 business days.
What documentation is required? Basic requirements include:
- 6 months of bank statements
- Recent financial statements
- Accounts receivable/payable aging reports
- Business tax returns
- Confirmation of business owner's personal credit
What are the qualification criteria?
Key factors include:
- Minimum 6 months in business
- Monthly revenue above $30,000
- Good business credit standing
- Strong accounts receivable quality
How does working capital finance differ from traditional loans? Working capital finance focuses on short-term operational needs with:
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Faster approval processes
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More flexible terms for ability to achieve positive net working capital
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Less emphasis on long-term credit history
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Asset-based lending options
What industries benefit most from working capital financing?
Key beneficiaries include:
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Manufacturing
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Distribution
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Retail
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Professional services
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Seasonal businesses
