What Happens When Your Company No Longer Has Access To Financing ?
business finance access

 

OVERVIEW – Information on business finance access when companies are financing financial distress. Alternate financing and other types of loans to the rescue.

 

Business finance
access should always be a concern to business owners/ financial mgrs in Canada. Alternate financing loans and other solutions arise out of the necessity to fix what’s wrong with your company. We’re covering some of those ‘ do’s and ‘ don’ts ‘ business finance accesswhen your financing access ‘ dries up ‘. Let’s dig in.

For a starter it’s critical to be able to recognize those warning signs when the financial health of your company is going off kilter. Although business folks always have a fear of their sales revenues going south they rarely associate a huge sales increase with financial distress. In some cases even the simply issue of ‘ seasonality ‘ can affect your firm negatively when it comes to cash flow or working capital needs.

When those sales translate into a change in profits or worse, a huge investment in unpaid accounts receivable, it’s safe to say you could be on the verge of financial distress. Alternate financing, such as A/R Finance solutions such as factoring or asset based credit lines or PO Finance can fix that problem, and are often the sole solution to the dramatic increase in your sales.

Putting the sales revenue issue aside any unattended increase in working capital needs will always highlight cash flow problems – whether you’re making money on paper or not. Pricing, margins and inventory type issues always need attention. Those two solutions can also address an often common problem of the traditional lenders concern (aka ‘ the bank ‘) that your company is too dependent on any one customer.

In some cases your company might not be able to make the investment in areas such as new equipment /technology, or even R&D, for those firms that consider themselves leaders in their industry. Proper equipment leasing and financing strategies, as well as SR&ED Credit financing can often assist in these two respective areas.

On occasion we meet clients where the ugly head of ‘ CRA ARREARS’ has arisen. That failure to pay taxes or divert those intended funds to other areas of your business is a key sign of financial distress, and many forms of alternative finance can ‘fix’ the CRA delinquency issue.

Many firms who are too far down the path in financial challenges find themselves off side with their bank; in many situations they are place in the ‘ special loans – non performing loan ‘ category. This is exactly the time to consider alternative finance loans as your ‘ takeout ‘.

It’s important at times of financial challenge to either reschedule liabilities, restructure your business finances, while at the same time taking a hard look at your operations. In some cases refinancing owned fixed assets such as equipment or real estate can be accomplished via an effective sale leaseback lease or loan. An appraisal, while potentially a cost, has great value to both your company and any proposed lessor/lender.
Bottom line – At these times it’s critically important to take a hard look at your balance sheet and monetize assets or refinance effectively. A cash flow /business plan time investment is also a solid requirement in these times.

If you’re looking to fix your firms financial healthier and ensure access to financing at all times 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 business finance access when it’s most important.

Stan Prokop – founder of 7 Park Avenue Financial

http://www.7parkavenuefinancial.com

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 = CANADIAN BUSINESS FINANCE AND ALTERNATE FINANCING EXPERTISE

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Office = 905 829 2653

greg@7parkavenuefinancial.com

‘ Canadian Business Financing with the intelligent use of experience ‘


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.

 

Stan Prokop

7 Park Avenue Financial
Canadian Business Financing