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Business financing in Canada. Keeping an eye on what's happening with your company's overall financial position isn't a bad thing, and understand what the problem and fix might be is even better. And even better suggestion for Canadian owners and business mangers is to be able to spot the tell tale signs of trouble... you guessed it... before they seriously begin. And the ultimate goal of course is to be able to have the knowledge to zero in on some solutions that make sense. Let's over off our ' TOP TEN ' today, starting with general liquidity. While very few businesses of a small to medium sized basis carry, or are able to care a lot of cash on hand they should be able to have a strong sense they can convert the right assets into cash when they need them. Focus in on course on your working capital assets, but dont forget those ' treasures in the garage '... business assets that might be owned and have the ability to get refinanced if necessitated. Tell tale sign number two is low cash flow, and that arises out of your ability to turnover working capital accounts properly. That can be more aggressively handled by utilizing bank lines of credit or working capital facilities that are a combination of receivable and inventory financing. Firms requiring larger facilities should explore asset based lines of credit. Tell tale sign number four - shrinking profit margins. This is critical as your ability to monetize sales with good profit margins will ultimately lead to more positive cash flow, and profits. Our 5th sign is more of a warning that you should be billing and recording your revenue properly, and promptly. Bill clients as soon as you are able to ... investigate programs such as cycle billing, allowing you to continually generate sales and focus on the collection of same!
Tell tale sign # 6 - debt load. Watch your leverage and manage your finances with a viewpoint of matching short term finance needs with short term assets - typically receivable and inventory. Debt is good and positive use of leverage even better, but focus on the amount of debt you can realistically handle.
When it comes to trouble sign # 7 we're talking about ensuring your accounting is complete and up to date. Investigate the proper and best method of showing inventory on your financials, and managing inventory as it flows through your business cycle. Don't over expand - that's a sure sign, # 8 in fact that you have a handle on your overall financials and borrowing ability. Dont lose the opportunity to acquire a competitor, or be taken advantage of one by your poor financial condition. Tell tale sign # 9... It's all about the turns, and we're talking about firms that have an inventory component to their financials. Monitor quality of inventory and the turnover of same. That inventory translates into revenue recognition and receivables, super charging your cash flow situation. Trust us that slow paying clients are a sure sign of forthcoming business financing and funding problems. That's # 10 on our list. Receivable financing and bank organization won't view slow paying clients as a great asset for future financing. It's all about staying on top...of your clients. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in both spotting, and solving your company funding and liquidity issues. Stan Prokop - founder of 7 Park Avenue Financial – http://www.7parkavenuefinancial.com Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 85 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info re: Canadian business financing & contact details: http://www.7parkavenuefinancial.com/liquidity_business_cash_flow_financing_funding.html
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