OVERVIEW – Information on financing tools and techniques for Canadian businesses. Business cash flow problems can be eliminate – here’s how
Business cash flow problems have us recalling that saying ‘ don’t sweat the small stuff ‘. However in the financing challenges your company faces , working capital/cash flows are never ‘ small stuff ‘ issues and often can make or break, and even save / ruin your business depending on how you address them. Let’s dig in.
By the time your business is facing daily working capital challenges everything seems ‘ immediate’! Challenges of meeting term or supplier obligations have some owners/managers searching for creative ways to stem cash outflow. Some of those creative ways include using CRA HST and employee super priority obligations in a less than constructive manner.
Growing your Tax Obligations is highly NOT recommended! A separate acct for your tax obligations might actually not be a bad idea. Using an outside payroll service who will handle those remittances is also a solid cash mgmt good habit.
So how do business owners ‘avoid’, as well as ‘ fix ‘ business cash flow problems? Under the avoid category there are some time tested strategies that will always work well. These include:
Focusing on proper payables mgmt – without ruining supplier relationships for key vendors. Slowing payables and speeding up collections is Cash Flow mgmt 101 – Some top cash flow experts actually recommend you assess payables in a ‘ must pay/important to pay/flexible to pay’ viewpoint. Negotiating extended payment terms in a proper documented manner gives you maximum flexibility in key cash outflows.
So what about actual credit solutions to those business cash flow challenges? Canadian chartered banks are quickly become not the only providers of business credit. Although non bank commercial financing solutions will always be more expensive than bank capital and the right non bank lenders are also well focused on building relationships and giving you back some sense of control.
What are those ‘ cash flow fixes’ available to replenish working capital and positive cash flows that are alternative to bank solutions?
Refundable tax credit bridge loans
Non bank asset based business credit lines
Sale Leaseback Options
Unsecured cash flow loans
How you finance your working capital needs is the financial interaction of your assets and finance solutions that make or break your business. Canadian businesses run out of cash for some reasons that are simply just too obvious that they are missed! They include:
High sales growth – leaving you highly invested in A/R and inventory – but not cash!
Paper profits that don’t equal cash flow generation
Poor asset turnover / heavy investment in fixed assets / poor margins
If you’re focused on saving your business future with proper financing, while avoiding business cash flow problems, 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 needs.
7 Park Avenue FinancialSouth Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
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.
‘ Canadian Business Financing With The Intelligent Use Of Experience ‘
7 Park Avenue Financial
Canadian Business Financing