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 financing in Canada comes with several finance options for the business owner/financial manager. When and which of these options makes sense for your business. Let's dig in.
There's not much argument that that premier type of cash flow financing for your business is bank financing - but let's be frank and agree that bank credit is not always available in the amount and nature of your business needs. It goes without saying that the other attractiveness around bank credit is that it is always the lowest cost of financing vis-a-vis interest rates.
When your firm is outside the scope of borrowing from Canadian chartered banks, what are the options? The reality is that many commercial finance companies have filled the gap when it comes to alternate cash flow and working capital solutions.
In many cases, you can actually duplicate the style of bank offerings, with the only drawback typically being higher rates. Additionally, these offerings tend to be ' asset ' based, focusing on one or a group of assets to provide you with the financing you need. Further comfort comes from the fact that these financings can almost always provide all the capital you need.
It's important to distinguish between working capital needs and debt, as the solutions we're talking about are cash flow-focused - i.e. your business operating needs.
Here are the 5 Working Capital Options you may wish to consider for your business:
A/R Financing
Inventory Finance
Asset-based business revolving credit facilities
Refundable Tax Credit Financing
PO Financing / Sales Royalty finance
Probably the most popular solution used by thousands of firms is Receivable financing. By immediately cash flowing your sales, your firm replaces receivables on your balance sheet with cash at your option. As your business grows, your facility can be adjusted at any time to increase the amount of borrowing. Advances under this method of financing, in fact, are even more generous than the bank - typically, they are 90% of all receivables under 90 days.
By considering and exploring such options as CONFIDENTIAL RECEIVABLE FINANCING, you're in effect mirroring the same type of facility as a bank line of credit. Only the paperwork is different, and you're able to bill and collect your own accounts without any notification to any other party. It's ' business as usual ' financing!
Asset-based lending, also called ' ABL', takes your business credit line one step further. It considers your A/R, inventory, and equipment and puts these all under one liquid borrowing facility. As we have noted, inventory financing is now a part of the borrowing mix! The higher cost of this financing can easily be justified when it comes to covering your operating needs, maintaining relationships with key suppliers and vendors, and of course, job #1 - growing your company.
If you're focused on taking your company to the next level and are currently unable to negotiate traditional bank financing, seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you on the exploration trip of working capital options for your business.
Stan Prokop
