OVERVIEW – Information on the financing and working capital needs for Canadian business . A true cash flow finance strategy requires information about your growth and operating plans and is often unique to your industry and business.
Working capital shortages, seeming either permanent, or temporary, quickly have business owners in the SME (small to medium enterprise) commercial sector realizing one thing… Growth sucks… the cash flow out of your business. So the question quickly becomes: What is the right cash flow finance strategy for your company? Let’s dig in.
One top expert in the cash flow field surely put it right: Cash flow shortages are the ‘first law of entrepreneurial gravity ‘! Part of that conundrum is the fact that achieving growth through a focus on mostly higher sales ( and hopefully profits ) often has the business running short of working capital given that new assets often need to be purchased or replaced, and the fact that the build up in receivables and inventory add to the cash flow exit .
In many cases relationships with suppliers can be strained during this period as it’s a vicious circle of business with each participant in the supplier / customer relationship each trying to maximize their own cash and profit position.
While your financial statements will ‘ always’ tell the tale it’s a hard fact of business that many owners/managers don’t necessarily know how to interpret this data. Complicating the problem is that financials reflect what just happened, not what is going to happen! The three basic parts of the cash flow part of your financials will clearly identify your actual operating cash, what money came into the company via any equity, and what went out via borrowing. (By the way, the solution to that is basic effective cash flow forecast planning)
With respect to cash flow planning it quickly becomes obvious to business owners that when done properly they have a new roadmap to removing the stress out of running out of cash, as well as being able to maximize opportunities for growth in sales and profits.
How then does the owner achieve that ‘ blast off ‘ strategy we referred to. The essence of your solution is around monetizing assets you already have and /or accessing the right types of debt that match your credit profile and your needs. In the SME COMMERCIAL FINANCE sector these solutions include:
Bank credit facilities
Non bank asset based business credit lines
Financing your refundable Tax Credits (Sr&Ed)
Equipment Leasing/Sale lease backs
Sales / Royalty financing
Working capital term loans
These solutions are both traditional and alternative in nature .Every choice you make in a cash flow finance strategy will affect your business in terms of financing costs and access to new working capital, permanent or operating.
If you’re looking for the solutions to the fact that ‘ growth sucks … the cash flow out of your business ‘ 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 a cash flow strategy that makes sense for your business and industry.
7 Park Avenue Financial :
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 – Completed in excess of 100 Million $ of financing for Canadian corporations . Info /Contact :
7 PARK AVENUE FINANCIAL = CANADIAN WORKING CAPITAL AND CASH FLOW FINANCE EXPERTISE
7 Park Avenue FinancialSouth Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
‘ 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.