Could Your Company Benefit From Financial Re-Engineering?Com

OVERVIEW – Information on the value of commercial refinancing loans in Canada. Financial re-engineering via business refinance solutions can save, and strengthen your company for future growth

 

Business refinance in Canada might often require some ‘ financial engineering’. If that is ‘ in the cards’ Comfor your firm what are the issues that might need to be addressed. What solutions for commercial refinancing loans, new debt, or asset monetization might make the most sense in your particular situation? Let’s dig in.

Whether it’s a turnaround situation, or propelling your company to future growth it’s all about knowing your finance options.

What then are the objectives of the business owner/ financial manager when it comes to assessing those finance alternatives? They include understanding the amount and type of working capital you need as well as the implications that come with those financing strategies

There are various tools the owner/manager can utilized to analyze why some strategies might work while others might not. It’s difficult to undo the wrong financing strategies, and expensive! And by the way, how you mange your assets is equally as important as how you finance them.

Cash flow management is of course key in succeeding business. When owners/managers have a handle on their ‘ cash flow cycle ‘ it’s almost as if they can visualize how cash is used, and how changes in A/R and inventories and payables affect the inflows and outflows of cash.

Finance re engineering strategies for capital inflows to your business can only be accomplished in really 5 different ways.

Let’s take a look at those and determine which strategies might work for your firm.

1.Taking on new debt of a long term nature – This can be achieved via equipment financing , temporary bridge loans, sale lease back strategies , and consideration for working capital term loans . Here it’s important to ensure you have the right maturity on any loan and your considerations should be around cost, any risk posed to the business, and the restrictions that some types of debt bring with them – i.e. covenants, personal guarantees, etc.

2. Increasing equity capital – While long term equity is often desirable it also dilutes ownership , and negotiations , discussions, and terms via Angel investors, VC’s, and Private Equity Groups can bring in significant capital its often a journey that most businesses can’t sustain – let along be worthy of

3. Sales increase working capital – simple as that. What many business owners find out the hard way is that the build up in receivables and inventories increase working capital, they do that by textbook definition only. That investment in receivables and goods decreases cash flow. That’s where the prudent management of current assets comes in.

4. Decreasing current assets – It’s here the business owner/manager will find the most options around proper financing engineering of their business. They include:

Canadian chartered bank credit lines/term loans

ABL (Asset Based Lending) non bank business lines of credit

Tax credit loans (Primarily SR&ED tax credits)

Sales/Royalty financing

Receivables and/or inventory financing – these are subsets of the Asset based lending solution

5. Selling fixed assets or utilizing a proper sale leaseback strategy

If your company can, or needs to , benefit from a business refinance strategy that make sense for your business/industry seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can ensure its ‘ in the cards’ that a financing re-engineering is around the corner.


Author: Stan Prokop
7 Park Avenue Financial :

http://www.7parkavenuefinancial.comCom
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 :

http://www.7parkavenuefinancial.com/business-refinance-commercial-refinancing-loans.html

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