YOUR COMPANY IS LOOKING FOR BUSINESS ALTERNATIVE 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
Finance challenges in Canada, in the minds of many business owners and financial managers, are solved through bank business loans. But the new reality is that you might be eligible for more business financing than you thought, and if bank solutions aren’t accessible, a brave new world of alternative finance is out there... Let's dig in.
In a perfect world ( apparently, it's not ), the ability to have all the cash flow you need or to be able to access unlimited business credit lines is the objective of most businesses when it comes to running/growing your company. That challenge of ensuring that sales revenue exceeds operating expenses and commitments to lenders will ultimately decide your business's success.
You become more ' eligible' for business financing via banks and other commercial lenders when you best understand what exactly your capital needs. We're focusing on debt and financing your assets in our discussion, not equity raising, which is a whole other discussion!
The essence of working capital and cash flow financing revolves around the concept of selling your products and services and having to wait 30-60 days for your client payments. (30 days? We only wish!) Business owners and mgrs who wish to finance their business properly need to create cash flow budgets that reflect those inflows and outflows of cash.
In a large majority of circumstances, the cash flow you generate will always come from receivable collections, and that A/R is typically the largest or one of the largest assets on your balance sheet. Financing that large asset can come in several ways:
Bank credit facilities
Commercial A/R Financing
Asset-based non bank business lines of credit (‘ABL Solutions')
Owners/managers will find that if that focuses on solid receivables management, those external solutions we have identified will become more eligible for approval in the amounts required. As an aside, we all know that Canadian chartered bank financing is low cost and flexible, but when that bank solution is not accessible, numerous other alternative finance vehicles exist.
In addition to the aforementioned A/R financing and asset-based credit lines, owners can look to:
Sale leasebacks - selling and leasing back assets is a proven cash flow strategy used by corporations of all sizes.
Refundable tax credit loans (via the 'SR&ED' program)
Royalty finance
Purchase Order Financing
When you need to replenish new assets, companies from start-up large public company status consider EQUIPMENT FINANCING as the most popular method of financing assets from which your company will benefit over time. It’s a matching of cash outflows to asset benefits.
Along with receivables, another often critical asset category is inventory. Bank and asset credit lines can include an inventory component, and firms who sell on cash, such as retailers, have access to inventory credit lines. As a caution, inventory finance is not the easiest to obtain, and careful appraisal of your inventory quality and turnover is key.
Although we always seem to preach asset management and financing techniques to clients, we're the first to recognize the importance of growing sales. Firms that can’t grow or are in a constant decline in sales revenues are often perceived as being in a death spiral of sorts. However, the challenge of growing sales we point out to clients is often one reason cash flow is tight due to the higher investment you need to make in A/R and inventory and fixed assets.
If you're focused on ensuring you understand what financing you are eligible for and what are the traditional bank business loans and alternative methods of finance that make sense for your business, seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you in your finance needs.
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Stan Prokop
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