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
Thousands of Canadian businesses every day seek business cash flow solutions. Which solutions are ' tried and tested' and will work for your firm? Let's dig in.
It's your business's finance function and structure that will drive your need for working capital funding. Here we're talking about short-term financing needs, not debt or equity capital. (Some businesses do take on working capital term loans if they can demonstrate solid cash flows) The type of industry you are in and how you compete is also a key factor to consider.
Companies that aren't growing sufficiently or are operating at a loss have even more of a challenge, of course - the question becomes clear - how does the owner/ manager transform this loser into a winner?
The management of your working capital revolves around 2 key issues:
Ensuring you have the right financing mix in place for inventory, receivables,
Ensuring your finance solutions come at a cost that makes sense relative to your overall credit quality
We find that many companies get caught up in the technical definition of working capital - defined simply as the relationship of current assets on your balance sheet to current liabilities. That definition is fine but doesn't consider the movement of those assets and liabilities, especially when it comes to turnover of receivables and inventory. Bottom line? Focus on mgmt and financing of your current assets, not the ratios!
For businesses that sell on credit, the management of accounts receivable is where it's at. Financing of receivables can be achieved in several ways, foremost of simply collecting your A/R to your terms or even sooner. When external financing is needed, your solutions include:
Bank revolving credit lines
Non-bank A/R Financing (our recommended solutions is Confidential Receivable Finance)
Asset-based lines of credit consolidate your A/R and inventory assets into one borrowing facility. These are predominantly non-bank solutions offered by commercial finance firms.
It's important to note that while cash flow comes out of the management of your current assets, it also comes out of delaying payables to the extent that your firm can still maintain its relationships with suppliers as well as staying solvent.
The type of financing you need for working capital and cash flow solutions also depends on the industry you are in, your cash conversion cycle, and the amount of gross margin your firm commands on products and services you offer.
If you're looking to maximize financing for your cash flow and working capital needs, seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your needs.
