Is Your Cash Flow Financing Like A Bouncy Castle On A Patchy Power Supply?

OVERVIEW – Information on financing cash flow from sales in Canada . Managing business asset finance to make your company financially secure.

Financing cash flow needs for Canadian businesses must often have many business owners/financial mgrs feeling as if they’re on a ‘ bouncy castle with a patchy power supply’! Talk about insecurity. When it comes to business asset finance it’s all about ensuring you understand how your firms cash flow relates to your sales cycle. Let’s dig in.

Do you really know where you cash flow and working capital comes from? Essentially it’s either from your balance sheet – i.e. your business credit lines and the amount of owner equity on your balance sheet. That is then complemented by the cash you generate from your sales cycle. Here it’s about asset turnover and the proper financing of those assets – i.e. inventories, receivables, and fixed assets.

Your ability turn revenues into cash is all about timing and will ultimately determine the success of your business. Strong asset turnover will also limit the amount of borrowing you require in the areas of monetizing your assets or financing new equipment/technology needs.

So how much cash do you need to run your business? We could defer to our lawyer for an answer (‘ Well.. it depends’) , but instead we’ll say that it is in fact relatively easy to both understand , and plan your cash flow needs.

So how then does your revenue affect how you manage, and finance cash flow needs. Simply speaking any delays in the entire sales cycle (we’re talking from sale to collection of your goods/services) will slow down your cash flow. In effect, until you collect your money from clients you are a ‘ consumer’ of cash, not a ‘ generator ‘.

There are 3 areas you need to focus on to ensure maximum cash flow and minimizing cash flow finance needs:

Solid financial controls around credit extension/collection

Understanding your client base – re payment discounts, terms, etc

Knowing which finance solution (Traditional or alternative) works best for your firm
These solutions include:


A/R Financing
Inventory loans
Lease financing/ sale leasebacks
Tax Credit Monetization ( sr&ed )
Business credit lines – bank or non bank revolving facilities
Royalty finance

Ensure you understand how these work what amt of financing they deliver on, what covenants or guarantees are required, etc

If you’re focused on relieving that insecurity as it relates to business asset finance 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 financing cash flow needs.


Stan Prokop

7 Park Avenue Financial : business finance solutions canada http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 – Completed in excess of 100 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS CASH FLOW FINANCING EXPERTISE

 

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Office = 905 829 2653

greg@7parkavenuefinancial.com

‘ Canadian Business Financing With The Intelligent Use Of Experience ‘

ABOUT THE AUTHOR
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