Thursday, January 23, 2014

Financing Your Business Cash Flow Problems houldn!" Be # ur$i$al Course

ur$i$ing The Cash Flow %a&

'()*(+), - +n.orma"ion on me"hods and solu"ions a$ailable "o "he Canadian business owner and .inancial manager around business cash .low &roblems

Business cash flow problems often feel like placing business owners and financial managers in a sort of ' survival course .

When business knows how to measure, improve, and source cash flow solutions suffice to say things can only get better! Let's dig in. ven the largest corporations in the world recogni!e the need for cash flow management and access to .inancing solu"ions/ "or businesses in the #$ %ommercial sector it re&uires an even more concentrated effort. We meet with many business owners'managers that sometimes seem, or get ' blind sided' by the e(ternal environment. )hat's why it's important to spend some time planning * in effect it's all about the ' what if . +n effect you're attempting to link your sales to collections, other loan payments, Where business owners'managers miss the boat, either in a small way, or entirely, is forgetting the changes that happen in working capital accounts, simply speaking the changes in -'. and inventory that over time constantly change your cash flow needs. +t's important also to understand you need to forget about the ' cash flow' that goes into investing in items such as e&uipment, technology. /ere it's important to mention that financing solutions such as )01+P2)3T 4)# +3% make perfect sense almost always as business can match future benefits of assets to cash outflows. - good way to look at solving cash flow problems is by assessing the ' gap ' that arises in business as funds go in and out of your business. 0ne method of 'fast tracking' business cash flow is to look closely at how you manage and .inance your #5*/ $any firms offer, or consider offering a ' discount' to their clients for prompt payment. $any customers can't or don't buy into this method. -nd certainly

all of your customers in total would never all at once buy into paying you promptly. -n alternative solution to achieving full success with this strategy is to finance your receivables through a discount receivable financing program. )hat 12 that you considered offering your clients for prompt cash payment is essentially the same cost as when you utili!e a program such as C'3F+6)3T+#4 *)C)+(#B4) F+3#3C+3% . )he difference is of course that you are in charge, as any or all of your sales can be converted into immediate cash flow +f you can demonstrate you are eligible for bank financing its clear that that same cash flow benefit can be achieved. /owever, in order to do that you must demonstrate a solid historical cash flow, profits, positive shareholder e&uity, as well as personal covenants from owners. 0ther methods to survive3 and win re4 the cash flow gap include4 +n$en"ory .inancing 2erchan" ad$ances #sse" based non ban7 lines o. credi" Ta8 credi" 2one"i9a"ion : *;)6 B*+6%) 4'#3 < Purchase 'rder Financing #eek out and speak to a "rus"ed, credible and e8&erienced Canadian business Financing #d$isor wi"h a "rac7 record o. success who can assist you in running and finishing the working capital survival challenge!

"an Pro7o& * = Par7 #$enue Financial 4 h""&>55www/=&ar7a$enue.inancial/com Business financing for %anadian "irms , speciali!ing in working capital, cash flow, asset based financing , &uipment Leasing , franchise finance and %dn. )a( %redit "inance . "ounded 1556 * %ompleted in e(cess of 75 $illion 8 of financing for %anadian corporations . +n.o 5Con"ac" > = Par7 #$enue Financial ? Canadian Business Financing olu"ions For Cash Flow Challenges

@a$e # 0ues"ion 5Commen" 'n 'ur Blog 'r Canadian Business Financing #l"erna"i$es A C'3T#CT>

9 :ark -venue "inancial #outh #heridan (ecutive %entre 17;5 #outh #heridan Way #uite <5; 0akville, 0ntario L=> 9>? @irect Line A 6;= <;7 B9=7 0ffice A 75B ?17 1=B< "a( A 75B ?17 1=B< mail A sprokopC9parkavenuefinancial.com B Canadian Business Financing wi"h "he in"elligen" use o. e8&erience B

"an Pro7o&