YOUR COMPANY IS LOOKING FOR BUSINESS LIQUIDITY 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
Suite 301
Oakville, Ontario
L6J 7J8
Business liquidity, we've found, means different things to different people. So... don't take this the wrong way, but do you really understand ' solvency finance ' issues when it comes to your firm's current and long-term cash flow needs? Let's dig in.
The challenge around understanding your business's overall liquidity essentially revolves around long-term commitments, recognizable by the term ' solvent.' As all business owners and financial managers know, only too well business also operates in the short term, requiring ' real cash ' to make its commitments.
Another way to explain the situation is as follows - when lenders, as well as investors, look at your firm's overall financial status, they view it in terms of all your assets versus your liabilities. More assets are better!
Your goal? To ensure your company has long-term health as well as meeting its daily commitments. Although it shouldn’t be the case (but unfortunately is), many owners/ managers are ' distracted' by paper profits and sales growth, not foreseeing the ' liquidity ' crisis coming down the road.
Having those assets we spoke about and knowing how to finance them is the key to liquidity - you're 'solvent' on paper and liquid in the bank. Assets, both current and fixed, give you ' financing power' to become more liquid.
However, we're the first to mention that assets poorly managed, valued, or the lack of current asset turnover again brings us back to our point - you're solvent on paper but facing failure in liquidity.
Canadian chartered banks are the best when it comes to providing capital when your business, as well as the economy, is in ' good times. When does that change? Banks are rightfully not prepared to finance financial losses, spiralling sales, etc.
How then does the business owner/manager finance itself properly and avoid the dreaded ' cash crisis' that almost all businesses, large and small, face at one time or another? One solution is ensuring that a business credit line augments your available cash. Canadian businesses can access either bank revolving facilities, or if they don't qualify, ' ASSET BASED LINES OF CREDIT - ' ABL'S are available from commercial lenders.
Typically, combinations of management activity are required to ensure proper liquidity, including structuring credit lines that make sense, managing payables, and addressing key profit/margin issues.
Bankers, as well as those friendly Bay street guys and other commercial lenders, have various time-test tools to assess your solvency and liquidity quickly. These ' ratios’ include net working capital calculations, debt to equity tests, interest coverage, and asset turnover.
Knowing how these tools measure your company is a great asset for any owners/mgr.
Financing mechanisms that help you to both manage liquidity and solvency include:
A/R Financing
Inventory Finance
Working Capital Term Loans
Tax Credit Monetization Financing
Government Guaranteed Business Loans
PO/Contract financing
Sales royalty financing
Asset-based business credit lines - revolving facilities that allow you to borrow against receivables, inventory and equipment
Equipment Leasing/ Sale Leasebacks
If you're focused on ensuring you've got both the tools (to measure) and the solutions ( to solve ) liquidity and solvency issues, speak to 7 Park Avenue Financial , a trusted, credible and experienced Canadian business financing advisor who can assist your firm.
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Stan Prokop
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