Avoiding Your Minute By Minute Cash Flow Crisis

OVERVIEW – Information on working capital finance alternatives in Canada . The right financing sources make the difference in the financial growth and success of your business.

Working capital finance, we’ve always thought, should be somewhat like a ‘ buffet ‘ of financing sources for Canadian business owners and financial managers. These folks are trying to avoid the seemingly ‘ minute by minute’ cash flow crunches that any business might experience. Let’s dig in.

So, where’s the buffet? working capitalNo one doubts the number of products and related services supplied by Canadian chartered banks – including both cash flow financing products as well as traditional term loans. Suffice to say that our banks are focused on providing large amounts of almost unlimited capital to businesses that present limited risk. Naturally thousands of businesses in Canada don’t fall into this category of both need and size – therefore alternate sources of capital are as important as ever.

The alternative to bank financing for working capital and cash flow needs is the commercial finance companies that are more comfortable with risk and are less regulated than our banks. A great example of this are the ‘ asset based ‘lenders that dominate the market.

These firms lend against collateral and assets – with much less focus on those ‘ratios’ and ‘ covenants’ that our banks tend to focus on. The result? Greater access to capital and terms and structures that business owners can live with as they grow revenues and. hopefully…profits.

One of the main areas of commercial financing in Canada that is a solid substitute for bank financing is receivable/factoring finance. These solutions, coupled with creative mgmt of vendor payables will often provide the business owner/financial manager with the short term working capital they need. That includes the ‘seasonal’ or ‘bulge’ needs that many firms experience in their search for cash flow.

One area that is often misunderstood or overlooked by business in Canada is the Canadian Govt Small Business Loan. While not a good example of a ‘ working capital ‘ or ‘ cash flow ‘ solution it’s a solid financing mechanism for equipment or leasehold improvement needs.

While many businesses in Canada continue to search for the holy grail of debt financing or VC finance solutions they often overlook alternate methods of financing theirbusinsses that don’t dilute equity , and these solutions often allow the business owner to avoid credit cards and personal collateral mortgages as the solution to capital needs.
Bottom line – separate your business financial life from your personal financial life is what we’ve always counseled clients.

What do both traditional and alternative business lenders focus on in assessing your overall credit needs? Cash flow projections are critical, and when properly prepared and both limit the amount you need to borrow and potentially highlight ways in which you can better manage cash.

Those same cash flow projections will typically also identify whether you need long term debt of some sort of short term cyclical working capital and cash flow. The reality of business financing is that short term borrowing are typically cheaper and don’t add debt to the balance sheet.

So what are those forms of different working capital solutions? They include:

A/R Financing
Inventory Finance
Asset based non bank lines of credit
PO Financing
Tax Credit (SR&ED) bridge loans
Sales/Royalty Financing

If you’re looking for the ‘ buffet ‘ when it comes to working capital and finance sources, with a view towards ending those daily cash flow crisis’s seek out and speak to a trusted credible and experienced Canadian business financing advisor who can assist you with proper evaluation of your cash flow needs .

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

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

Office = 905 829 2653


‘ Canadian Business Financing With The Intelligent Use Of Experience ‘

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.