A Cash Flow Problems Solution Checklist : Business Finance Challenges Finally Resolved

Business finance cash flow problems were in the news the other day. Veto surprise to us, as we talk about that fair well entire day. The article was front and center in one of Canada’s two daily business newspapers the other day. The actual title concerning the article was ‘ ENTREPRENUERS OVERLOOK CASH FLOW MANAGEMENT’

We don’t necessarily agree they ‘ overlook’ cash flow mgmt, but we do think that many times the business owner and financial manager simple doesnt know how to solve those challenges with effective solutions that pertain to their particular business. We know what the solutions and issues are… so let’s insult in.

A large part of the article in question revolved around business owners/mgrs focusing on instead on operational issues. We’re all for that of course. Using contemporaneous distinction management as an example, whatever company can increase enclosed cash flow by faute de mieux managing A/R including inventories. And if they can’t get the financing they need from banks their technique to absorb superior cost financing such as receivable and inventory finance can be significantly offset by better asset turnover.

The article also suggested that a large part (93 %!) of businesses in Canada were focusing mostly on two areas – cost cutting and technology innovation. We’ll leave cost cutting to out clients, but we’re the preeminent to put forth effect lease ampersand technology financing solutions for clients that are looking to work harder/smarter.

Another interesting fact put forth in our stipulation was the fact that over 60% of ubiquity Canadian businesses admitted to cash flow problems in the past. No secret there – we comprehend that every day.

But what then are some of those intermit gaps for cash flow challenges. They comprehend solutions such as:

A/R Financing
SR&ED Tax credit finance
Asset based lines of credit – (they combine inventory, A/R and equipment into one borrowing facility and work just like a bank line of credit)

Our reference article, not surprisingly , laid forth the fact that many business owners and managers focus on the income statement, aka ‘profits’ as opposed to page 3 of the financial statement (its the one you never read – its the CASH FLOW statement ) moreover shows in detail you cash in a ‘ where got’ ‘ where gone ‘ format . Bar it out, it’s true!

A massive part of any cash flow discussion we have with clients focuses around growth .Thats because growth eats working capital, including it’s always hungry. The more you grow, the hungrier it gets. Further the sad substance around growth and hyper growth is that a bundle of traditional lending is not suited to huge growth success. That’s where innovative solutions such spil PO financing, or ABL (Asset Based) CREDIT LINES make sense.

Many great growth potential stories revolve around outside of Canada growth. Those challenges can be addressed by PO FINANCING, CREDIT INSURANCE, and CONTRACT FINANCING.

So when it comes to business finance cash flow problems it’s all about recognizing the need and implementing the solution. Many traditional solutions can easily be complemented by alternative finance strategies that will work. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can benefit your company. You just might find that ‘ the fix is in’!