Working Capital Crunch? There no faster moving target than cash flow solutions as the need arises for Canadian business owners and financial managers. What are in fact some of the most popular cash flow fixes - let's take you inside the world of those. Let's dig in.
The one thing we can all agree on is that todayâEUR(TM)s business seems to move a lot faster. We're pretty sure Heracleitus, a philosopher of sorts centuries back wasnâEUR(TM)t talking about cash flow, but we keep thinking of his great line ' Everything flows and nothing stays '! So itâEUR(TM)s more important than ever for the owner/manager to understand to handle growth and daily operations when it comes to business finance.
Owners and managers of business should always recognize that working capital and their management of same is one of the most important survival tools they have at their disposal.
The other hard reality is that every industries basic economic, business and cash flow dynamics can vary greatly. While we meet many clients seeking financing solutions they believe are unique needs, the reality is that in the big picture most firms in your industry face the same challenges.
Those challenges include the lack of proper bank financing and the constant juggling of payables with cash receipts, and oh yes, those employees seem to want to get paid regularly! Most business owners either don't want to or choose not to deplete personal assets to finance their business - thatâEUR(TM)s why they incorporated in the first place, right? Or certainly it's one of the reasons!
Top experts in finance tell us that almost 1/2 of all business owners at some point or another face the working capital crunch. In some cases that is of course their own doing as they have extended credit to clients in a liberal manner, or not enforced prompt payment from clients.
What then are some cash flow solutions for Canadian businesses experienced the cash flow crunch? Well the most important thing to realize is that the solutions to problems lie inside and outside your firm! What do we mean by that? Simply that the financing ' crunch ' can be many times partially or totally avoided by:
Improving your credit policy
Asking clients for down payments when applicable
Accelerating invoicing to clients (Does anyone still invoice once a month?!)
Improving inventory turnover
Delaying payment to suppliers when it is possible (hint: key word ' possible')
And what about those external methods for the cash flow fix? They include:
Accounts receivable finance/factoring
Sale leaseback of owned assets
Monetizing credit lines
Non bank working capital or asset based lines of credit
Monetizing tax credits
Bridge loans
Going inside the world of the cash flow fix can be daunting for anyone. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your business cash needs.
Stan Prokop [http://www.7parkavenuefinancial.com/stan-prokop]
The one thing we can all agree on is that todayâEUR(TM)s business seems to move a lot faster. We're pretty sure Heracleitus, a philosopher of sorts centuries back wasnâEUR(TM)t talking about cash flow, but we keep thinking of his great line ' Everything flows and nothing stays '! So itâEUR(TM)s more important than ever for the owner/manager to understand to handle growth and daily operations when it comes to business finance.
Owners and managers of business should always recognize that working capital and their management of same is one of the most important survival tools they have at their disposal.
The other hard reality is that every industries basic economic, business and cash flow dynamics can vary greatly. While we meet many clients seeking financing solutions they believe are unique needs, the reality is that in the big picture most firms in your industry face the same challenges.
Those challenges include the lack of proper bank financing and the constant juggling of payables with cash receipts, and oh yes, those employees seem to want to get paid regularly! Most business owners either don't want to or choose not to deplete personal assets to finance their business - thatâEUR(TM)s why they incorporated in the first place, right? Or certainly it's one of the reasons!
Top experts in finance tell us that almost 1/2 of all business owners at some point or another face the working capital crunch. In some cases that is of course their own doing as they have extended credit to clients in a liberal manner, or not enforced prompt payment from clients.
What then are some cash flow solutions for Canadian businesses experienced the cash flow crunch? Well the most important thing to realize is that the solutions to problems lie inside and outside your firm! What do we mean by that? Simply that the financing ' crunch ' can be many times partially or totally avoided by:
Improving your credit policy
Asking clients for down payments when applicable
Accelerating invoicing to clients (Does anyone still invoice once a month?!)
Improving inventory turnover
Delaying payment to suppliers when it is possible (hint: key word ' possible')
And what about those external methods for the cash flow fix? They include:
Accounts receivable finance/factoring
Sale leaseback of owned assets
Monetizing credit lines
Non bank working capital or asset based lines of credit
Monetizing tax credits
Bridge loans
Going inside the world of the cash flow fix can be daunting for anyone. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your business cash needs.
Stan Prokop [http://www.7parkavenuefinancial.com/stan-prokop]
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