OVERVIEW – Information on solutions from finance companies and banks on financing cash flow in Canada . Solutions vary by industry and your firm’s overall financial position
Financing cash flow for Canadian businesses often has the business owner/financial manager having that ‘ suspended animation’ feeling; not knowing where or how they can address their financing needs. So how does one ‘ raise the game ‘ in this critical aspect of business and what solutions do banks and finance companies provide to solve the challenge. Let’s dig in.
If the owner/ manager aren’t managing his or her way through a cash flow crisis these days they probably are working on how to grow their company and out do the competition. Challenges often arise from several areas; they might include:
Taking on new larger contracts
Sourcing new equipment need to modernize or run the business
While your accountants can help pin point the problem they more often than not can’t provide the solutions
Where does that badly needed cash flow in your business go then? Sometimes it relates to your firms ability to generate a profit. Remember also that paying your suppliers promptly actually is a negative cash flow, although it’s a fine line in managing key vendor relationships.
When bank financing is not available in the SME COMMERCIAL FINANCE area the challenge is to look at solutions provided by a commercial finance company. That might be a specialized or alternative solution, or a traditional one – i.e. ‘ banking ‘.
A short summary of available solutions includes:
Receivable Financing/Confidential A/R Finance
Revolving bank credit facilities
Non bank asset based lines of credit
Sale leaseback utilization re existing owned assets
Tax Credit Monetization
PO/SUPPLY CHAIN/CONTRACT Financing
Working Capital Term loans
The ability to prepare a simple cash flow forecast will often help highlight the type of solution you need – your business financials and over all health will further qualify what financing you are eligible for – either traditional or alternative.
Remember also that simply managing assets better – i.e. faster receivables collections, better inventory turns, etc will allow you to better qualify for external financing, as well as minimize the amount of debt you have to take on. Remember also that a commercial finance company can also provide solutions that monetize existing assets, so you aren’t necessarily burdened with extra debt.
Raising your game in Canadian business financing can be achieved by monetizing assets and taking on loans / debt that make sense for your firm’s future path. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in eliminating that constant feeling of ‘ suspended animation’ via an action plan for financing cash flow.
Author: Stan Prokop – 7 Park Avenue Financial :
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 90 Million $ of financing for Canadian corporations . Info /Contact :
7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS CASH FLOW FINANCING EXPERTISE
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Canadian Business Financing