You’re Forgiven !

business cash flow financing

Information on business cash flow financing in Canada. Funding your company requires a basic knowledge of this of used term!

We find that the term, or concept ‘ cash flow ‘ is widely misunderstood – having different meanings to different parties.

There are at least 7, if not more, methods in which the term is utilized in a number of areas of finance.

First of all the term is of course just a general term used in finance literature and textbooks relating to investments, etc.

When we see a company financial reports in the press there are often references to cash flow in the financial reports of the firm.

Getting even more specific, there are three parts to any financial statement, the balance sheet, the income statement, and the Cash flow statement. In older times this cash flow statement was called the Sources and Uses statement – simply indicating where a company got the money, and where they spent the money.

Some financial analysts refer to a company’s ‘ funds statement ‘ and designate the total funds provided by operations as ‘ cash flow ‘.

Confused? We’re not there yet. Financial managers and business owners use various types of analysis when making long term investments for the company. They use sophisticated financial analysis known as rate of return, payback analysis, and, guess what ‘ discounted cash flow ‘ analysis.

When a business owner is planning he will often prepare, and refer to, his ‘ cash flow ‘ budgeting.

And finally, business owners and financial mangers refer to; cash flow;
controls as they monitor the flow of funds and the control of those funds inside any company, small or large.

Financing business cash flow needs comes from solutions such as :

A/R Financing

Inventory Loans

Tax Credit Financing

PO Financing

Bank lines

Asset based non bank business lines of credit

Working Capital Term Loans

What becomes clear is that ‘ cash flow ‘ has become somewhat of a ‘ catch all ‘ wording and is somewhat confusing as more often than not it does not reference actual ‘ cash ‘ on hand, or evens the flow!!

Most financial people would probably agree the purest form of ‘ cash flow ‘ is in fact one of the items we have mentioned above – that is to say its the cash referred to in the company’s CASH FLOW STATEMENT – we referred to it as one of the three pillars of any financial statement . The common calculation of this number is the net income of the company, plus the depreciation, which was not an actual cash outlay.

In summary, we have seen that the term cash flow means a lot of different things to different people – Business owners, and financial managers should know what method of cash flow they are utilizing, its uses, and how it will be interpreted by lenders, financial analysts, shareholders, etc. Looking for help ? Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success .
And yes, you are forgiven for misunderstanding the term!

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
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 905 302 4171

Office = 905 829 2653

‘ Canadian Business Financing with the intelligent use of experience ‘


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.

Stan Prokop


7 Park Avenue Financial
Canadian Business Financing