Here’s Your Breakdown Of Financing Sources For Cash Flow And A/R Finance

OVERVIEW – Information on financing sources in Canada that augment working capital . Cash flow and AR Finance solutions are at the heart of sound company financing practices

Financing sources for cash flow and a/r financing are at the heart of the sometimes complicated business of cash mgmt and working capital financing . We’re breaking down the basics. Let’s dig in.

The ultimate effect of poor business financing strategies is of course failure of the company; the ability of the business owner / financial mgr to manage inflows and outflows of capital also has a key effect on profitability. Many businesses in the SME commercial segment of the Canadian economy don’t even practice rudimentary cash flow planning – doing that successfully and regularly allows owners/mgrs to get a better handle on their expenses and receivables.

Proper mgmt of your business operations allows business to generate more sales or take on more contracts, and also make any necessary investments in R&D or equipment needed.

Bank lines of credit, which requires typically collateral over all the assets of your company , while providing usually all the credit line you need to run your business also has some limiting factors, not the least of which is the fact that the bank won’t allow other senior or junior lenders to access that collateral security .

However, no one denies the fact that bank capital provides the lowest cost of flexible ‘ interest only ‘ financing when it comes to revolving lines of credit. Key factors that allow you to be approved for bank credit lines are of course clean financials that exhibit profit and a healthy balance of debt and owner equity. And did we forget to mention personal guarantees of the owners?

Short term financing sources also are internally manageable. We’re talking about your ability to manage trade creditors and suppliers. After your business establishes itself with suppliers, large and small, payables mgmt allows you to extend cash flow needs by delaying payables via extended terms.

Don’t forget also that managing your own receivables and cash flow leads to higher profits, lower bad debts, and less reliance on outside financing.

Many owners/mgrs, particularly in start up or early stage growth augment cash flow by using personal resources such as credit cards, home equity, etc. While thousands of firms compliment cash flow needs with those two resources sooner or later the company must face the fact that financing a large amount of day to day expenses with personal credit probably leads to more troubling questions! That’s a domino theory you don’t want to explore.Cash Flow And A/R Finance

Financing your sales via the sale of your accounts receivable, aka ‘ factoring’ is a very specialized form of cash flow financing. A/R finance allows you to access cash as soon as you generate a sale and issue an invoice. A properly implement AR Finance strategy (our recommendation is a CONFIDENTIAL RECEIVABLE FINANCE strategy) will finance unlimited growth and sales and does not come with all the requirements of Canadian chartered banks.
Other short term sources of capital include :

Inventory loans
Sale Leasebacks
SR&ED Tax Credit Financing

If you’re looking for the payoff in proper financing sources for your business seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your cash flow finance needs.

Stan Prokop – founder of 7 Park Avenue Financial –

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years – Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info & Contact Details :

7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653

Fax = 905 829 2653

‘ Canadian Business Financing with the intelligent use of experience ‘

Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.

7 Park Avenue Financial
Canadian Business Financing