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
business owners and financial managers. How can working capital inance challenges
be reduced? Let's dig in.
Numerous factors affect your ability access the right amount of funding you need to run
your 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 profits
fluctuate tremendously year o!er year.
"urning proits into cash low is of course another story. #n traditional ' ban$ lending '
it%s a strong re&uirement, as opposed to alternati!e financing which often focuses on
assets and collateral in your business. 'nd e!ery business owner $nows that in the (M) *
small to medium enterprise + sector most times a personal guarantee of some sorts is of
course re&uired. "hose personal guarantees are a discussion for another day.
Let's recap traditional and less than traditional methods of financing cash flow and
wor$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 $ind of cash flow contingency plan that might
include !arious forms of ' bulge financing ' solutions, or approaching suppliers and
lenders for a payment moratorium of sorts. "hose are tough to do, by the way.
-nfortunately many clients we meet don't always ha!e a handle on their financial
performance. #n some cases they are ' rear focused' , ha!ing only historical data , which is
challenging if no financial forecast or financial statement strategy is in place re reporting
and analy.ing.
/usinesses with a handle on financial performance ha!e much greater credibility with
lenders0 it%s as simple as that.
1emember also that while cash low inancing solutions are the fi2 from an e2ternal
perspecti!e it ma$es e!en greater sense to manage your assets to create internal cash
flow.
"hat is done by ha!ing strong '31 controls and turning in!entories o!er faster if
in!entory is a $ey part of your business. Naturally financial statement tools and other
forms of business software greatly aid the business owner3finance mgr today. 4nowing
your 5(6 *day%s sales outstanding+ and in!entory turns and days outstanding payables is
a fundamental you must $now to be successful. 7atch the business news on "8 at night
and 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 (usiness
Financing Ad+isor with a track record o success who can help you reduce those cash
flow and wor$ing capital challenges.
'/6-" "H) '-"H61,
Stan 6rokop 7 6ark A+enue Financial :
http:**www'7parka+enueinancial'co&
/usiness financing for Canadian <irms , speciali.ing in wor$ing capital, cash flow, asset
based financing , )&uipment Leasing , franchise finance and Cdn. "a2 Credit <inance .
<ounded =>>? Completed in e2cess of @> Million A of financing for Canadian
corporations . Ino *Contact :
7 6AR8 A#$92$ FI9A9CIA0 : CA9A;IA9 CASH F0OW FI9A9CI9,
$<6$RTIS$
Ha+e A =uestion *Co&&ent On Our "log Or Canadian "usiness Financing
Alternati+es >
CO9TACT:
B Par$ '!enue <inancial
(outh (heridan )2ecuti!e Centre
=@C> (outh (heridan 7ay
(uite D>C
6a$!ille, 6ntario
LEF BFG
;irect 0ine H ?CE DC@ IBE@
Oice H @>I G=@ =EID
$&ail : spro$opJBpar$a!enuefinancial.com
' Canadian /usiness <inancing 7ith "he #ntelligent -se 6f )2perience '
Stan 6rokop