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5 Revolutionary Breakthroughs In Working Capital Business Loans & Cash Flow In Canada !
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| Guest post by: Stan Prokop |
Article Overview: Information on working capital and cash flow business loans and non – loan solutions for Canadian business
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5 Revolutionary Breakthroughs In Working Capital Business Loans & Cash Flow In Canada !
Mission impossible? We're going to try and re program your business brain around some innovative ways to look at working capital and cash flow solutions for Canadian business - and it might be a loan scenario... and then again it might not?
And about that word ' revolutionary '... we'll leave that up to you to decide. However, we're quite sure we've got some working capital and cash flow innovation coming your way.
A popular term these days is ' the liquidity gap ' - it is simply the challenge that small and medium sized businesses tend to face in Canadian business financing. When you really think about your balance sheet that liquidity gap more often than not tends to focus on the investment you carry in receivables and inventory.
Also, financing options utilized in the past - we tend to call them ' traditional financing ', don't seem to be available, and when they are they don't suit your needs re size, type of facility, and external collateral and guarantees that might be required.
No one is more a fan of Canadian banks than us. We love them. Canadian business owners and financial managers seem to struggle with why they can't get financing for the bank. We heard a great explanation of that recently.
So, have we got a great story for you? As Canadians we put our funds into a bank, we also seem to have this feeling that we should be able to get it out anytime we want it. That's the story! Because in a simplistic way the banks can't really over lend to small and medium businesses because that is not the deal it made with me as a depositor. So I apologize for that! I made a deposit; I didn't contribute to a start up hedge fund!
Anyway... working capital and cash flow solutions are clearly available from Canadian chartered banks - but repayment from you must be certain- so have those good balance sheets and additional collateral and guarantees ready.
Back to those ' revolutionary' working capital solutions we have talked about. And as we said, they might not be a pure ' loan '.
From our point of view some of the most innovative ways to achieve 'cash flow nirvana ' might be facilities you have never heard of. What are they?
5 of the best solutions you should consider are as follows - purchase order financing, asset based lines of credit, merchant advance loans, C I D receivable financing, and tax credit monetization.
A short recap of those? Purchase order financing allows your supplier to be paid directly by the financier. based lines of credit']);"> Asset based lines of credit are facilities based on current and ongoing values of your total inventory and receivables. Are you a smaller or retail oriented business? Merchant advance financing provides cash flow today for sales you make tomorrow.
Everyone has heard of factoring. But C I D receivable financing provides you with the same benefits, i.e. same day cash flow on sales, but you bill and collect your own receivables without notification to clients, suppliers, etc. And finally, got a SRED claim to be filed? Monetize it today with a SR &ED bridge loan.
Want more info? Seeing the potential benefits already? Speak to a trusted, credible and experienced Canadian business financing advisor for a working capital business loans and solutions that maximize your cash flow requirements. It's as simple as that.
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About the Author: Stan Prokop RSS for Stan's articles - Visit Stan's website Stan Prokop is the founder of 7 Park Avenue Financial . The firm specializes in business financing for Canadian companies in the areas of working capital , asset based lending, SR & ED tax credit financing, equipment financing, franchise financing and banking .
Click here to visit Stan's website Is Your Company Properly Exploiting Equipment Lease Financing In Canada What You Need To Know About Equipment Leasing Companies in Canada Equipment Leasing Canada Your best rates Your best Terms 5 Things You Didnt Know About Asset Based Lending in Canada SRED Financing How to cash flow your Sred tax credit for Cash Flow and Working Capital |
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