OVERVIEW – Information on operating financing needs and solutions for Canadian companies. Business cash flow loans and alternatives are key to long term success
Operating financing for Canadian businesses often plays ‘ hard to get ‘! So when it comes to business cash flow loans how to owners, mgrs and entrepreneurs beat that ‘ slow and painful’ feeling? Let’s dig in.
No one seems to dispute the need for cash flow as being absolutely vital for health of a business. We’re the first to admit that great sales and great profits (paper profits?) are great and desirable, but the lack of working capital or access to future capital is also key to your long term business future.
Top experts tell us that a solid majority of businesses in Canada say it’s tough to access cash flow solutions and capital. They also say it’s tougher to collect money from their customers more and more!
In the short (not the long run) it’s perfectly possible for your company to survive as you hit hard cash flow bumps in the road, often called ‘ bulge needs ‘. That’s partly because the owner/mgr is still relatively in control – he or she can juggle payables, adjust non fixed cost, etc. However, it’s that long run you lose a lot of control and financing options available as conditions deteriorate or start to look permanent.
Another great irony of business is also the fact that even if your business is profitable it can run out of cash.
The whole concept of cash ‘ coming in’ and being controllable seems relatively simple. At the heart of the matter is the simple premise that you’re taking in more cash on a regular basis than you’re spending. That whole concept is essentially the ‘liquidity’ in your business, sometimes becoming ‘ lack thereof’!
Few businesses that are new, emerging, or in the SME COMMERCIAL area in general have a problem with too much cash these days. In fact their issues revolve around accessing credit. It’s that access to credit and liquidity that in fact allows you to continue to increase sales.
The hard reality of business financing in Canada today is that borrowing also becomes more expensive when your company no longer has access to bank credit, so it’s at this time that finding the ‘ right ‘ solution to your business is key.
Part of the solution to the Canadian business finance conundrum is knowing how much you need to borrow, and whether that comes in the form of taking on more debt, or perhaps the better solution of monetizing existing assets. Simple cash flow planning and forecasting can help you identify the right solution for your business. That ‘ what if’ becomes more important than ever.
And those solutions to operating financing nirvana? They include:
A/R Financing/Factoring/Confidential Receivable Financing
SR&ED Tax credit monetization/PO and Contract Financing
Unsecured cash flow loans
Non bank asset based lines of credit
It’s also safe to say that if your business is profitable and you are managing assets properly you will be generating a little more cash all the time. That then limits the need to over borrow. If profits aren’t currently in your picture you of course need a solid turnaround plan.
Want to eliminate that often ‘ slow and painful ‘ journey into business finance alternatives? Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you on the ‘ smart money ‘ path.
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
Direct Line = 905 302 4171
Office = 905 829 2653
‘ 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