YOUR COMPANY IS LOOKING FOR BUSINESS 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 - INFO@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Email = sprokop@7parkavenuefinancial.com
Working capital finance, we've always thought, should be somewhat like a ' buffet ' of financing sources for Canadian business owners and financial managers. These folks are trying to avoid the seemingly 'minute by minute' cash flow crunches that any business might experience. Let's dig in.
So, where's the buffet? No one doubts the number of products and related services supplied by Canadian chartered banks - including both cash flow financing products as well as traditional term loans. Suffice to say that our banks are focused on providing large amounts of almost unlimited capital to businesses that present limited risk. Naturally, thousands of businesses in Canada don't fall into this category of both need and size - therefore, alternate capital sources are as important as ever.
The alternative to bank financing for working capital and cash flow needs is the commercial finance companies that are more comfortable with risk and are less regulated than our banks. A great example of this are the 'asset based' lenders that dominate the market.
These firms lend against collateral and assets - with much less focus on those 'ratios' and 'covenants' that our banks tend to focus on. The result? Greater access to capital and terms and structures that business owners can live with grow revenues—hopefully...profits.
One of the main commercial financing areas in Canada that is a solid substitute for bank financing is receivable/factoring finance. These solutions, coupled with vendor payables' creative management, will often provide the business owner/financial manager with the short-term working capital they need. That includes the 'seasonal' or 'bulge' needs that many firms experience in their search for cash flow.
One area that is often misunderstood or overlooked by business in Canada is the Canadian Government Small Business Loan. While not a good example of a ' working capital ' or ' cash flow ' solution, it's a solid financing mechanism for equipment or leasehold improvement needs.
While many businesses in Canada continue to search for the holy grail of debt financing or VC finance solutions, they often overlook alternate methods of financing their businesses that don't dilute equity, and these solutions often allow the business owner to avoid credit cards and personal collateral mortgages as the solution to capital needs.
Bottom line - separate your business financial life from your personal financial life is what we've always counselled clients.
What do both traditional and alternative business lenders focus on in assessing your overall credit needs? Cash flow projections are critical, and when properly prepared and both limit the amount you need to borrow and potentially highlight ways in which you can better manage cash.
Those same cash flow projections will typically also identify whether you need long-term debt of some sort of short-term cyclical working capital and cash flow. The reality of business financing is that short-term borrowing is typically cheaper and doesn't add debt to the balance sheet.
So what are those forms of different working capital solutions? They include:
A/R Financing
Inventory Finance
Asset based non bank lines of credit
PO Financing
Tax Credit (SR&ED) bridge loans
Sales/Royalty Financing
If you're looking for the ' buffet ' when it comes to working capital and finance sources, with a view towards ending those daily cash flow crisis’s seek out and speak to a trusted credible and experienced Canadian business financing advisor who can assist you with proper evaluation of your cash flow needs.
Stan Prokop
