YOUR COMPANY IS LOOKING FOR BUSINESS CASH FLOW FINANCING!
Working Capital Finance Solutions When You Need Them
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 / CONTACT US - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
Is the lack of business cash flow a potential ' GRIM REAPER ’ for Canadian businesses of any size? We certainly think so, and that’s why the ability to figure out / measure what isn’t working and what solutions are needed should be ' job 1' for the Canadian business owner and financial manager who is concerned about their working capital position.
BALANCING SALES, PROFITS AND CASH FLOW!
The goal of course is simple, and it’s to achieve the right balance of both profits and cash flow liquidity. Easier said than done, as we are prone to be saying these days, but the sad state of affairs is that most clients we talk to are focused on revenue and profits and don't have the best handle on business cash flows. And even when the problem has been identified on the balance sheet or elsewhere where does the business owner/manager go for solutions?
It seems as if the Grim Reaper of negative cash flow seems to be stalking us all the time!
The actual management of cash flows is really about how well you handle turnover and the overall quality of your ' current asset ' accounts. They are actual cash or business lines of credit you have access to, accounts receivable turns, and inventory turns. And, as we said, it’s a case of quality, not quantity. We get a big kick out of what many financial analysts and accounts deem to be the best measurement of liquidity, and that’s the ' current ratio ‘. In reality, this number looks great, even fabulous if you have uncollectible receivables and slow-moving inventory. But don't get us started...
FUNDING SOLUTIONS FOR CASH FLOW GENERATION AND WORKING CAPITAL INCREASES
At the core of understanding your business cash needs is the concept of arranging your finances so that short term cash flow needs are in fact met by short term asset financing. Typically in Canada that comes from various types of financing that might include:
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
Royalty finance solutions
Working Captial Term Loans
In order to determine which one of these is right for your firm the business owner must focus on the amount of financing you require, the rates of that particular finance vehicle, and your overall ability to get approved for the financing you believe you need.
Many of the non-traditional sources of working capital solutions, some of which are referenced above have in fact become more popular and well known simply because Canadian business has found it more difficult and challenging to access proper liquidity solutions from Canadian chartered banks over the past several years, although, on balance, this seems to be improving. And remember that traditional bank financing can be withdrawn at any time if the bank calls the ' demand ' loan based on the perceived risk in your business, or industry. Think Automotive, circa 2008-2009, or Pandemic 2020!
CONCLUSION
Managing and having access to working capital cash flow and solutions is one of the greatest challenges for any business. Dropping the ball on this issue will ultimately lead to business failure.... simply speaking... the GRIM REAPER wins.
Speak to a trusted, credible and experienced Canadian business financing advisor for proper solutions to business liquidity.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
7 Park Avenue Financial/Copyright/2020/rights reserved
