YOUR COMPANY IS LOOKING FOR BUSINESS CASH FLOW FINANCING!
CASH FLOW AND WORKING CAPITAL FINANCING OPTIONS
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
Unlock immediate cash for your business with Business Cash Flow Funding, a powerful tool to enhance your financial stability and growth potential via positive cash flow
Struggling with poor cash flow? Discover how Business Cash Flow Loans & Funding can transform your finances instantly!
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer BUSINESS CASH FLOW FUNDING & solutions that solve the issue of cash flow and working capital – Save time and focus on profits and business opportunities
Canadian Business Financing with the intelligent use of experience
Discover the Benefits of Business Cash Flow Funding
BUSINESS CASH FLOW FUNDING SOLUTIONS
Business cash flow financing: Is your firm getting enough? It's probably just us, but we have never met a client who, unlike more giant corporations, has too much 'cash on hand'! Small businesses and large corporations will agree with that!
Maintaining a healthy cash flow is critical for business success in today's competitive business landscape. As most businesses know, profits don't equal cash—this excellent article from the Harvard Business Review emphasizes that point.
An innovative financial strategy such as AR financing allows businesses to convert outstanding invoices into immediate cash, ensuring steady operational funding and fostering growth opportunities. By understanding the nuances and benefits of business cash flow funding, companies can unlock new avenues for financial stability and expansion.
CASH FLOW IS ABOUT DAILY OPERATING NEEDS
The whole idea of having enough cash flow and working capital is to provide liquidity for your daily operating needs while allowing you to grow your firm.
2 KEY CASH CHALLENGES
The challenge, therefore, becomes how much cash you need and where to get it. (There are only two places to get this cash.)
If the Canadian business owner and financial manager have a good handle on his or her cash flow needs, you can pay back any secured debt and run your firm.
So what factors in fact determine if you're 'getting enough' when it comes to cash flow loan needs? Well, first of all, it’s about the level of risk you want to take in running your firm on a daily basis with either just enough cash, ACCESS TO CASH or with a buffer that you're comfortable with.
CASH FLOWS FLUCTUATE
While your debt payments might be fixed—in fact, they probably are—the reality is that circumstances occur to all firms that make your cash inflows fluctuate.
BANK FINANCING IS ONLY ONE SOURCE OF CASH FLOW FINANCE
So, how can you ensure you have access to capital for short-term operating needs? That's the $50,000.00 question.
Of course, you can access a business loan via bank financing, short-term and long-term, if you qualify for a Canadian chartered bank business credit line. However, that might come with commitment fees for unused balances, compensating balance requirements, and the challenge of dealing with the bank when sales and financial performance decline.
Good balance sheets and the ability to demonstrate profitability are key. Small business owners want to access bank finance at attractive interest rates. Small or early-stage firms will require principals with good management experience, a business track record, and a solid credit score.
2 SOURCES OF BUSINESS FUNDING
We previously referenced only two sources of business cash flow financing: internal profits and operations and external working capital financing.
So can the business owner/manager actually accelerate cash, ensuring you’re ' getting enough' from an internal perspective. You sure can!
Accelerating collections and understanding your 'float times‘ regarding cheque processing, lockbox operations, etc., can help.
INVOICE REGULARLY
We actually think there are firms out there they invoice once a month. Nothing could be worse... so invoice your clients as soon as you have earned the right to do that by shipping your products or completing your service delivery.
Sometimes, you should revisit customer terms and perhaps require deposits for work to be done.
MANAGE PAYABLES PROPERLY
Delaying payments requires a fine line of management thought.
Of course, you should pay creditors to terms, but not before then—stretch them as long as possible without altering vendor relationships, which can be highly valued.
If you have a sales force compensation plan, you could adjust commissions relative to receivables collected, not sales made. We fully realize we've just made an enemy of the sales force, but it’s a cruel world! Analyzing the cash flow statement in your financial statements will help business owners understand the sources and uses of funds.
EXTERNAL SOURCES OF BUSINESS FUNDING FOR CANADIAN BUSINESS
Business cash flow financing externally consists of bank lines of credit, non-bank working capital facilities that secure receivables and inventories, and, don't forget the new kid on the block, asset-based business credit facilities. The business owner can sometimes consider sale-leaseback or tax credit financing where appropriate.
QUICK SUMMARY OF CASH FLOW FINANCING SOLUTIONS
A/R Financing
Inventory Loans
Access to Canadian bank credit
Non bank asset based lines of credit
SR&ED Tax credit financing
Equipment / fixed asset financing
Cash flow loans / Term Loan
Royalty finance solutions
Government Of Canada Small Business Loan Program - Guaranteed federal business loan
Sale-Leaseback Financing
Merchant Cash
KEY TAKEAWAYS
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Accounts Receivable Financing - Understand how unpaid invoices can be turned into immediate cash to improve cash flow.
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Cash Flow Management - Learn the essential strategies to keep your cash flow steady and predictable.
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Working Capital Solutions - Explore different financial products to ensure your business has the cash it needs.
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Non-Recourse Factoring - Discover how to use invoice factoring without risking unpaid invoices affecting your finances.
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Invoice Discounting - Learn about selling invoices at a discount to access funds and enhance liquidity quickly.
CONCLUSION
So, is your small business getting enough?
If not, call 7 Park Avenue Financial, a trusted, credible, and experienced Canadian business financing advisor in cash flow lending, for assistance on working capital needs for business cash flow financing.
FAQ
How does business cash flow funding work?
Business cash flow funding involves selling your outstanding invoices to a factoring company in exchange for immediate cash.
What are the benefits of business cash flow funding?
The primary benefits include improved cash flows, immediate access to funds, and reduced risk of unpaid invoices.
How much does business cash flow funding via factoring cost?
The cost varies depending on the factoring company and the terms of the agreement, typically involving a small percentage of the invoice value as a fee. Fees are not expressed as interest and interest payments.
Is business cash flow funding suitable for small businesses?
Yes, it's particularly beneficial for small businesses that need to maintain a steady net cash flow without waiting for invoice payments which can create a negative cash flow based on the company's investment in receivables and inventories.
What is the difference between recourse and non-recourse factoring?
Recourse factoring holds your business liable for unpaid invoices, while non-recourse factoring transfers the risk to the factoring company.
How can business cash flow funding help in a financial crisis?
It provides immediate access to cash, helping businesses manage expenses and stabilize operations during financial challenges.
Can business cash flow funding improve my credit score?
Indirectly, by ensuring timely payments and reducing the need for high-interest loans, it can help maintain a better credit profile. A cash flow forecast is a useful tool for all businesses that borrow money.
What industries benefit most from business cash flow funding?
This funding method benefits industries with long payment cycles, such as manufacturing, transportation, and staffing.
How do I choose the right factoring company?
Consider factors such as reputation, fees, terms, and industry experience to select a factoring company that meets your business needs.
What documentation is required for business cash flow funding?
To initiate the funding process, you'll need to provide invoices, proof of delivery, and client information. A merchant cash advance solution will require 3-6 months of bank account statements to asses cash inflows.
What is invoice factoring in Canada?
Invoice factoring in Canada is a financial service where businesses sell their unpaid invoices to a factoring company in exchange for immediate cash, improving their cash flow.
Why should Canadian businesses consider invoice factoring?
Canadian businesses should consider invoice factoring to access immediate funds, reduce the risk of unpaid invoices, and maintain a healthy cash flow without taking on debt.
How does invoice factoring differ from a traditional loan?
Unlike a traditional loan, invoice factoring doesn't require repayment over time. Instead, it involves selling invoices for immediate cash, providing a quicker and often more accessible funding solution.
