How To Make A Success Story Of Your Business Cash Flow

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    Cash Flow Financing In Canada : Reducing Working Capital Finance

    Challenges

    How To Make A Success Story O !our "usiness Cash Flow

    O#$R#I$W % Inor&ation on cash low inancing strategies and solutions in

    Canada ' Working capital inance can &ore easily (e accessed with this inor&ation

    Cash low inancing in Canada is rarely termed a great success story by Canadian

    http://www.7parkavenuefinancial.com/http://2.bp.blogspot.com/-AyHzX7c98Yg/VC0l6cO-rxI/AAAAAAAASAM/EDwUusx6a5c/s1600/stan%2Bprokop%2Bcanadian%2Bbusiness%2Bfinancing%2Badvisor.jpghttp://2.bp.blogspot.com/-FkI80aKlyjE/VC0mieJp1KI/AAAAAAAASAU/fkkrycjKZAU/s1600/SUCCESS%2BSTORY.jpghttp://3.bp.blogspot.com/-JYYTDZW9PV4/VC0lr90DPPI/AAAAAAAASAE/GWceEzs4GBk/s1600/contact%2Bus.jpghttp://1.bp.blogspot.com/-Pnb7EohO_y4/VC0lk_ozOYI/AAAAAAAAR_8/nsfmIvCAO-0/s1600/7%2Bpark%2Bavenue%2Bfinancial%2Bcanadian%2Bbusiness%2Bfinancing.jpghttp://www.7parkavenuefinancial.com/
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    business owners and financial managers. How can working capital inance challengesbe reduced? Let's dig in.

    Numerous factors affect your ability access the right amount of funding you need to runyour business. Profit or the amount of it is certainly one of them. Many firms are

    profitable, but only marginally and in a lot of cases we see with clients those profitsfluctuate tremendously year o!er year.

    "urning proits into cash lowis of course another story. #n traditional ' ban$ lending 'it%s a strong re&uirement, as opposed to alternati!e financing which often focuses onassets and collateral in your business. nd e!ery business owner $nows that in the (M) *small to medium enterprise + sector most times a personal guarantee of some sorts is ofcourse re&uired. "hose personal guarantees are a discussion for another day.

    Let's recap traditional and less than traditional methods of financing cash flow andwor$ing capital. "hey include the following

    Traditional Canadian chartered (anking ) credit lines*ter& loans

    A*R inancing

    In+entory inancing

    Working capital ter& loans

    ,o+ern&ent S&all (usiness loans ) structured as ter& loans (ut with &a-i&u&

    le-i(ility around pay&ent

    Asset (ased lines o credit ) .These / A"0//s transor& all your (usiness assets into

    one re+ol+ing credit line

    Ta- Credit Moneti1ation

    2nsecured cash low loans3 oten ter&s / su( de(t/ or / &e11anine4

    Sale lease(acks o owned assets ) this &ight include assets in one o two categories )

    e5uip&ent and real estate

    #n some cases it ma$es sense to form some $ind of cash flow contingency plan that mightinclude !arious forms of ' bulge financing ' solutions, or approaching suppliers andlenders for a payment moratorium of sorts. "hose are tough to do, by the way.

    -nfortunately many clients we meet don't always ha!e a handle on their financialperformance. #n some cases they are ' rear focused' , ha!ing only historical data , which is

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    challenging if no financial forecast or financial statement strategy is in place re reportingand analying.

    /usinesses with a handle on financial performance ha!e much greater credibility withlenders0 it%s as simple as that.

    1emember also that while cash low inancing solutionsare the fi2 from an e2ternalperspecti!e it ma$es e!en greater sense to manage your assets to create internal cashflow.

    "hat is done by ha!ing strong 31 controls and turning in!entories o!er faster ifin!entory is a $ey part of your business. Naturally financial statement tools and otherforms of business software greatly aid the business owner3finance mgr today. 4nowingyour 5(6 *day%s sales outstanding+ and in!entory turns and days outstanding payables isa fundamental you must $now to be successful. 7atch the business news on "8 at nightand you'll notice the ' big boys 9, those ma:or successful corporations always ha!e a

    handle on these numbers , "hey're the $ey elements of the cash flow operating cycle.

    #f you're loo$ing to be a (-CC)(( ("61; in your mind *or that of your competitors+see$ out and spea$ to a trusted3 credi(le and e-perienced Canadian (usinessFinancing Ad+isor with a track record o success who can help you reduce those cashflow and wor$ing capital challenges.

    /6-" "H) -"H61Stan 6rokop 7 6ark A+enue Financial :

    http:**www'7parka+enueinancial'co&

    /usiness financing for Canadian

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    Alternati+es >

    CO9TACT:

    B Par$ !enue (outh (heridan 7ay(uite D>6a$!ille, 6ntario

    LEF BFG

    ;irect 0ine E D@ IBE@

    Oice @>I G=@ =EID

    $&ail spro$opJBpar$a!enuefinancial.com

    ' Canadian /usiness

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