You’re In The Right Place For Cash Flow Information & Solutions

OVERVIEW – Information on working capital funding and business cash flow solutions for Canadian business

Business cash flow solutions
are sought by thousands of Canadian businesses everyday. Which solutions are ‘ tried and tested’ and will work for your firm? Let’s dig in.

It’s the finance function and structure of your business that will drive your need for working capital funding. Here we’re talking about short term financing needs, not debt or working capital. (Some businesses do take on working capital term loans if they can demonstrate solid cash flows) The type of industry you are in, as well as how you compete is also a key factor to consider.

Companies that aren’t growing sufficiently or are operating at a loss have even more of a challenge of course – the question becomes clear – how does the owner/ manager transform this loser into a winner?

The management of your working capital revolves around 2 key issues:

Ensuring you have the right financing mix in place for inventory, receivables,

Ensuring your finance solutions come at a cost that makes sense relative to your overall credit quality

We find that many companies get caught up in the technical definition of working capital – defined simply as the relationship of current assets on your balance sheet to current liabilities. That definition is fine but doesnt take into account the movement of those assets and liabilities, especially when it comes to turnover of receivables and inventory. Bottom line? Focus on mgmt and financing of your current assets, not the ratios!

For businesses that sell on credit the management of accounts receivable is where it’s at. Financing of receivables can be achieved in a number of ways, foremost of which is simply collecting your A/R to your terms or even sooner. When external financing is needed your solutions include:

Bank revolving credit lines

Non bank A/R Financing (our recommended solutions is Confidential Receivable Finance)

Asset based lines of credit which consolidate your A/R and inventory assets into one borrowing facility. These are predominantly non bank solutions offered by commercial finance firms

It’s important to not that while cash flow Working Capital Fundingcomes out of the management of your current assets it also comes out of delaying payables to the extent that your firm can still maintain it’s relationships with suppliers as well as staying solvent.

The type of financing you need for working capital and cash flow solutions also depends on the industry you are in, your cash conversion cycle, and the amount of gross margin your firm commands on product and services you offer.

If you’re looking to maximize financing for your cash flow and working capital needs 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 needs.

Writer Stan Prokop 7 Park Avenue Financial :
http://www.7parkavenuefinancial.comWorking Capital FundingBusiness 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 :


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