Correct Time To Assess Business Financing Services & Solutions?
OVERVIEW –  Information on business financing services in Canada that can accelerate cash flow and working capital needs for the owner/manager. Why are these tools and solutions important and where are they available?

 

 

Cash flow and working capital needs are often ‘ timeless’ in business. But when exactly is the best time to assess business financing services and solutions. It’s almost… always. Let’s dig in.

Financing needs of course vary by industry and type of business, but if your business requires the means to both manage and accelerate cash flow help is often around the corner. It’s just difficult sometimes to find that corner!

The greatest irony in business or at least one of those ironies is the whole concept of sales and profit vs. cash flow performance. Cash flow almost always lags. But can the owner/manager source the tools to solve the problem? Top experts in Canada in fact tell us that working capital solutions are in fact the 2nd most priority for owners/entrepreneurs. (Sales and Mktg. were first)

In some circumstances the amount of gross margin and profit relate directly to the type of financing you can either achieve or handle. A solid example of this might be RECEIVABLE FINANCING, i.e. managing the 2nd most liquid asset on your books next to cash. While A/R finance provides unlimited working capital your firm must have the gross margins to be able to absorb the additional costs that come with that financing service.

Although many businesses operate in industries that are seasonal it’s crucial for the owner /manager to secure either traditional or alternative financing. Businesses are forced to consider those ‘ alternative ‘ options when Canadian chartered bank financing is either ‘ unavailable’… or ‘ not enough’.

What many business owners and even their financial managers don’t realize is that by simply managing current assets better, and effectively ‘ monetizing ‘ them allows the company to avoid taking on more debt or raising equity via some source.

What are those ‘ ASSET MONETIZATION’ tools and business financing services? They include:

Bank lines of credit (low cost/flexible/more difficult to attain)

A/R Finance – cash flowing your receivables as soon as sales are generated to the extent you need cash

Inventory Finance – Particularly suited to retailers and mfrs and distributors

Tax Credits – Cash flowing Govt SR&ED Credits

ABL’S – (Non bank Asset based lines of credit that bundle all your current
Assets into one borrowing facility

Purchase Order/Supply Chain Finance – the ability to fund larger orders or contracts where financing otherwise might not be available

Businesses in the SME (small to medium enterprise) commercial area tend to ‘ struggle’ more with business financing challenges. Naturally that slows down their desires to grow dramatically, take on new products and services, or buy a competitor.

The ability to understand your cash flow needs, whether that is monthly, quarterly or annually will almost always benefit ownership/management. Current studies by experts suggest that over 60% of businesses prepare some form of cash flow forecast need.

So kudos to that man or woman that coined ‘ CASH IS KING’ phrase.cash flow working capitalIf you want to become more ‘ literate ‘ to business financing services that can alter your financial success seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
Find out ‘ what’s up ‘ with working capital finance solutions that can help change the future success of your company in a positive manner.

Author: Stan Prokop – founder of 7 Park Avenue Financial

http://www.7parkavenuefinancial.com

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:

CONTACT:

Greg LaBella
7 Park Avenue Financial
Off.   905 829 2653

Cell   905 302 4171
greg@7parkavenuefinancial.com

 

7 Park Avenue Financial
Canadian Business Financing