What Happens When You Don’t Like Your Business Cash Flow Options ? You Investigate These! cash flow

OVERVIEW – Information on business cash flow choices in Canada . How does the business owner/financial manager address working capital needs when things ‘aren’t working’


Business cash flow
is, more often than not, ‘ top of mind ‘ when it comes to solving the working capital conundrum for Canadian business owners and managers. Typically clients we meet want to reverse shortage and find out about other options! Let’s dig in.

All business owners / financial managers know that moving a business forward. Factors that affect cash flow include if and how your sales revenues are growing, what financing your business can bear/attract, and the inability in certain times to address financial distress. Of course the perfect world lets you ‘ self finance ‘ operations and borrow at low rates only when you need to. Bottom line – it’s rarely a perfect world.

So how then does the owner/manager determine when and how to access working capital solutions. Don’t forget also that how you manage and access capital forces your behavior on investing in new assets, growth strategies, etc.

Certain clients we meet have an even larger challenge – addressing export markets and non North American clients. More often than not, in fact almost always traditional and alternative lenders alike will insist on things like credit insurance, letters of credit, etc.

Interested in a recap of your actual business cash flow solutions in Canada? They include:

Canadian chartered bank credit facilities


Confidential Receivable Financing

Inventory Finance

Tax Credit Monetization

Asset based non bank business lines of credit

Working capital term loans (Secured/Unsecured)

Purchase Order/Contract Financing

EDC Credit Solutions

Royalty Financing

Any business financing solution that you undertake should have you focusing on how that solution will aid you to either operate, or grow the business. You are only going to access incoming cash from the following methods:

Generating sales and collecting receivables
Financing Assets
Selling Assets

We note that selling assets is rarely the optimal owner strategy, but refinancing them using such strategies as the sale leaseback option is a solid way to go about things on occasion. Remember also that borrowing involves taking on debt, so both managing and monetizing existing assets is more often than not the way to run/grow your business.

All too often clients we meet and talk to are flummoxed by the fact that sales and (paper/accounting) profits are great… so they wonder whey they are going broke! Here rules to live by include:

Maintaining a cash flow forecast
Watch term debt obligations carefully
Using short term cash flow financing only when needed
Establishing bank or non bank credit lines

Start up or early stage firms will also have a larger challenge in arranging cash flow financing. Firms that are primarily inventory based also face that challenge.

Our bottom line – if you don’t like your current working capital financing situation , reverse that feeling and seek out a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist .

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