On A Scale Of 1-10 How’s Your Business Financing Doing ?

OVERVIEW – Information on business financing in Canada . Asset finance and loan solutions can more effectively be accessed with a solid understanding of your balance sheet

 Business financing in Canada , even when you’re wildly profitable is always still a challenge for owners/financial mgrs. On that scale of 1-10 how comfortable are you that your firm has access and knowledge to the best financing solutions? Let’s dig in.

‘Cash flow is tight ‘ is the common term we hear when we talk to customers struggling with their sales goals. Ironically, as we’ve hinted it even gets tighter when sales and profits are strong. ( Spoiler alert – that’s because you’re building current assets such as receivables and inventories as well as acquiring new assets and technology )

Sometimes it’s almost as if there’s a ‘ leak’ in your funds as the owner/financial mgr struggles to put financing in place. The clues are often in your financial statements, but sometimes difficult to pin down for some.

Those cash flow and working capital shortages can put a huge strain on the business – often straining relationships with suppliers and lenders such as your bank.

It sometimes makes a lot of sense to get a third party outside opinion on your current financial position. That’s when unlocking valuable business finance techniques can really pay off to cover off short term and intermediate funding needs.

It’s no secret that a major focus of business is to increase sales. As important though is the need to ensure you understand what in fact is happening to your overall cash flow. What we’re really talking about is your ‘ operating cash flow ‘ and what ‘ drivers ‘ are in fact increasing or decreasing that cash.

In many cases it’s always best to use longer term financing for acquiring new assets and technology. By the way, even business software can be financed! Your overall profit situation as well as your profit margins will often help drive what financing your firm is eligible for.

Also the types of assets your firm carries on the balance sheet and understanding their size and quality will often also drive finance solutions you need are eligible for.

Assets that can be monetized include:

Receivables

Inventory

Equipment

Tax Credits

Purchase Orders

Solutions such as A/R financing, inventory loans, equipment leasing, sale leasebacks, and SR&ED tax credits can all be ‘ cash flowed’ into immediate liquidity. By the way these solutions tend to be ‘ non bank ‘ in nature and predominantly available through commercial finance companies or alternative lenders.

Newer businesses are often eligible for the Government of Canada Small Business Loan (new loan maximum is $ 1,000, 000.00).

If you want to avoid making ‘ bad decisions’ in the financing of your business seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your capital and cash flow needs.


Stan Prokop –
founder of 7 Park Avenue Financial


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 ‘