OVERVIEW – Information on how owners/mgrs can assess business cash flow needs . Financing and corporate loan success depends on the understanding around certain internal and external ‘ forces ‘
Financing business cash flow requires that your company is in a position to beat the odds of the many firms that can’t or don’t know how to access corporate loan or asset monetization. In fact there are key’ forces ‘ in business finance that affect how you’ll grow sales and profits. So… may the force be with you! Let’s dig in.
The classic scenario of your sales and profits not equaling cash in the bank is in fact the key ‘ opportunity ‘ the owner/ financial mgr has to turn their cash flow around. Your ability to buy needed assets is also key.
So what in fact are those forces that need to be addressed? One top expert lists them as follows, and these should always be considered when addressing business financing challenges and opportunities:
Keeping your tax obligations up to date
Ensuring you have the right amount of (good) debt and that your company can repay it
Ensuring you have day to day working capital availability
Solid mgmt of those areas of your business will allow owners and stakeholders to either increase the value of their company or take mgmt dividends, bonuses, salaries, and other distributions.
For assets you need to purchase there is no better strategy than utilizing equipment lease financing. The ability to avoid hefty down payments or to save your line of credit for daily operating needs is key.
Many firms like to ensure they have several months of cash, or cash availability on hand to meet future debt and growth scenarios. That type of solid planning allows you to make the right choices in your business, as opposed to reactive measures which often end up with wrong financing and loan decisions being made.
Business owners should also try and separate their personal financial life from their business as much as possible as it relates to personal guarantees, business credit card debt, etc. The bottom line you want to keep both your ‘ business cash cow ‘ and your ‘ personal cash cow ‘ healthy.
The concept of real ‘ operating cash flow ‘ is critical for owners and financial managers to understand. It starts with your profits at the end of the month and then adding in all the changes that take place in 3 categories- Receivables, Payables and Inventory.
Remember also there are two types of debt, loans, and operating facilities, the ability to use each one properly is key to your business success.
If you’re looking to properly manage those ‘ forces’ of cash flow it key to understand when certain types of key business financing solutions will work for your firm. They include:
Bank credit lines
Non bank asset based lines or credit
Equipment finance / sale leasebacks
SR&ED tax credit financing
If you want to beat the odds consider seeking out and speaking to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your business cash flow and financing needs.
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
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