Here’s A Tour Through Cash Flow Financing Solutions

OVERVIEW – Information on cash flow problems experienced by Canadian firms . What business finance solutions are in place to address management of working capital?

Business finance cash flow problems
were in the news the other day. No surprise to us, as we talk about that pretty well every day. The article was front and center in one of Canada’s two daily business newspapers the other day. The actual title of the article was ‘ ENTREPRENEURS OVERLOOK CASH FLOW MANAGEMENT’

We don’t necessarily agree they ‘ overlook’ cash flow mgmt, but we do think that many times the business owner and financial manager simple doesn’t know how to solve those challenges with effective solutions that pertain to their particular business. We know what the solutions and issues are… so let’s dig in.

A large part of the article in question revolved around business owners/mgrs focusing on instead on operational issues. We’re all for that of course. Using current asset management as an example, any company can increase internal cash flow by better managing A/R and inventories. And if they can’t get the financing they need from banks their ability to absorb higher cost financing such as receivable and inventory finance can be significantly offset by better asset turnover.

The article also suggested that a large part (93 %!) of businesses in Canada were focusing mostly on two areas – cost cutting and technology innovation. We’ll leave cost cutting to out clients, but we’re the first to put forth effect lease and technology financing solutions for clients that are looking to work harder/smarter.

Another interesting fact put forth in our article was the fact that over 60% of all Canadian businesses admitted to cash flow problems in the past. No secret there – we see that every day.

But what then are some of those stop gaps for cash flow challenges. They include solutions such as:

A/R Financing
SR&ED Tax credit finance
Asset based lines of credit – (they combine inventory, A/R and equipment into one borrowing facility and work just like a bank line of credit)

Our reference article, not surprisingly , laid forth the fact that many business owners and managers focus on the income statement, aka ‘profits’ as opposed to page 3 of the financial statement (its the one you never read – its the CASH FLOW statement ) and shows in detail your cash in a ‘ where got’ ‘ where gone ‘ format . Check it out, it’s true!

A large part of any cash flow discussion we have with clients focuses around growth, and thats because growth eats working capital which is always hungry. The more you grow, the hungrier it gets. And the sad reality around growth and hyper growth is that a lot of traditional lending is not suited to huge growth success. That’s where innovative solutions such as PO financing, or ABL (Asset Based) CREDIT LINES make sense.

Many great growth potential stories revolve around outside of Canada growth. Those challenges can be addressed by PO FINANCING, CREDIT INSURANCE, and CONTRACT FINANCING.

So when it comes to business finance cash flow problems it’s all about recognizing the need and implementing the solution. Many traditional solutions can easily be complemented by alternative finance strategies that will work. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist your company. You just might find that ‘ the fix is in’!

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
Phone = 905 302 4171
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