Getting Comfortable With Cash Flow And Working Capital Solutions

Information on improving cash flow for Canadian business owners and financial managers. Business working capital solutions and management are at the heart of business success


Improving cash flow and accessing business working capital solutions is pretty well always a situation of the business owner /financial manager getting comfortable with the right information and solution. There’s nothing like a bit of ‘ higher education’… so let’s dig in.

The reality of the situation is that it’s a combination of managing your balance sheet assets, granting credit to clients in the right manner, and accessing cash flow solutions that match your first overall credit quality. In many cases we see in talking to clients they are often focused more on sales generation (which is important) but at the expense of working capital management.

But are these types of financial solutions difficult to obtain. Truth be told they are if your firm doesnt satisfy what we call traditional criteria by Canadian chartered banks and other ‘ mainstream’ lenders. But if you’re in a bit of a credit crunch and don’t satisfy the criteria of solid balance sheets, profits, and satisfactory operating ratios it’s an upward struggle.

If your firm doesn’t have ‘ bank support ‘ it’s a case of exploring alternative solutions that are in fact numerous. They include:

Receivable Financing
Inventory Finance
Supply Chain/PO financing
Tax Credit Monetization
Business lines of credit that are non bank in nature
Govt SBL busines loans

In our clients minds, unfortunately, it’s almost always only about ‘ the rate ‘ when it comes to accessing alternate solutions. While ultimately you have to be able to support any form of external financing we maintain that the way you manage external financing, as well as how you use it is in fact a ‘fresh way’ to look at things .

Take A/R financing for instance. Our own preferred and recommended solution is Confidential Receivable Financing. While coming at a higher cost than bank lines it provides unlimited access to working capital, as well the ability to minimize costs by prudent day to day management of your accounts. Don’t forget also that no debt is added to the balance sheet, and new found cash flow can help you sustain better supplier relationships and maximizing better pricing on goods and services you order.

As we have said it’s important to take a ‘ holistic ‘ approach cash flow management. That includes:

Monitoring customer credit granting
Accelerating cash inflow via better collections
Taking supplier discounts whenever you can
Ensuring you have a good handle on future cash flow needs

Remember also that while any non traditional financing will always cost more it replaces the need to consider outside equity which is much more expensive.

Your ability to know how much cash you need in the future will always be a key factor in business success. 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 financing needs.

Author: Stan Prokop – founder of 7 Park Avenue Financial

Originating business financing for Canadian companies, specializing in working capital, cash flow, and asset based financing. In business 10 years – has completed in excess of $90 Million of financing for Canadian corporations. Core competencies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details:


Greg LaBella
7 Park Avenue Financial
Off.   905 829 2653

Cell   905 302 4171


7 Park Avenue Financial
Canadian Business Financing