Cash Flow Financing Won’t Make You Skinny .. But It Will ..

OVERVIEW – Information on cash flow finance solutions in Canada . Who offers working capital financing and what happens when your firm doesn’t have it!

Cash flow finance
solutions in Canada. Just this week one of the world’s largest retailers made the news almost everyday with rumors rife around their ability to generate, or access… working capital financing to run their business. The result? Suppliers panicking, competitors cheering, and board members running for the hills.

How can you ensure your business is never going to be in that position? Part of the story is knowing what the problem is and recognizing it. The other half of the solution, we think, is knowing who the real ‘ merchants of working capital and cash flow ‘ are in Canada. Let’s dig in!

Cash flow shortages mean different things to different businesses. In some cases it might mean the inability to replace much needed assets or technology. (By the way lease financing can easily help to address that one). Most business owners in the small and medium (SME) sector in Canada thankfully many times equate cash flow to profits. While incorrect, that’s not a bad thing, we assure you.

The trick to knowing and understanding key cash flow shortage issues is really to track your company’s progress on this issue over time. Where many owners and financial managers ‘ botch ‘ or misunderstand the process is when they get mixed up in what the financial techies call ‘ quality of earnings ‘. That’s really about ensuring you have good asset turnover as well as profits. When assets are incorrectly managed you essentially get poorer because the cash you need is tied up in inventories, receivables, and equipment.

Naturally cash flow in your business goes up and down every day, almost every minute. But over time a sense of what’s really happening is often easy to spot. There are good reasons why cash flow might be temporarily negative, as in investing in new deals, equipment, technology, etc to maintain your competitive position. Just make sure its’ TEMPORARY’!

We’ve referred several times over the years to the W.T. GRANT story. That company changed the way the entire financial world looked at cash flow and profits in the same snapshot. It’s an incredible story – to the outside world the company was doing great- internally inventories built up, receivables were uncollected, and finally outside financing from our ‘ MERCHANTS OF WORKING CAPITAL ‘ was inaccessible. Your know the result of course. Bankruptcy, with analysts all around the world suddenly trying to figure out what happened.

So who then is the mysterious CASH FLOW AND MERCHANTS OR WORKING CAPITAL in Canada? They include:

Receivable financing

Inventory financing

Asset based lenders

Equipment lessors

Tax credit financiers


And lest we forget, Canadian chartered banks.

It is correct that cash flow financing won’t make you skinny, but it will allow you to grow your company, survive, beat your competitors, and generate real profits. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your cash flow finance needs. Don’t be front page business news in the worst way.

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:

7 Park Avenue Financial
Phone = 905 302 4171
Email =

7 Park Avenue Financial
Canadian Business Financing