Friday, January 24, 2014

Business Financing Health : Recognizing Finance Options

Secrets o Business Health !nd Ho" hey Relate o Financing Options O#$R#%$& ' %n(or)ation on (inance options (or *anadian co)panies+ Ho" does the o,erall - health. o( your co)pany a((ect type and a)ount o( (inancing you need or are eligi/le (or0 Business Financing Options in Canada often depend on the overall health of your

company. A lot of questions can be answered by simply looking at some very basic and fundamental numbers and relationship in your financials. The doctor is in. Let's dig in!

ey to any business financing or survival for that matter is the whole issue of solvency . !ere owners and managers want to assess the level of assets and de/t+ Lenders will always want to focus on owner equity" with a more refined focus of this number being ' tangible net worth. #inance options will also depend on your ability and need to meet current financing commitments. !ere we will point out that even a company that has had its loan called can still get very strong levels of alternative financing based solely on the asses of the business. This type of financing typically is called 1 !SS$ B!S$2 3$42%45 1 and can come in many forms" both term debt and operating debt. They provide a path back to what many term ' traditional financing '. The asset lending we've mentioned" when it comes to operating financing" will almost always revolve around receivables and inventory. The si$e" quality" and management of these two assets will dictate what type of financing you need... and... as importantly are eligible for. %ou can properly measure" and help manage these two assets in some basic simple ways. &n the case of A'( it simply calculating your ' day)s sales' in receivables turnover. *ince the sale of inventory translates into a sale and then a receivable the management and tracking of A'( and inventory is a great way to track business health. 6+S+ The big

companies do it all the time" all day" every day" and more often than not senior management is compensated on the management and performance of these two assets. &n the past" and we suppose we're doing it" we've suggested to clients that they track a simple chart that shows sales growth and then measures that same growth against the growth of A'( and inventories" +hen looking at finance options it's important to assess whether you are looking for business financing to operate" start" or e,pand. &n addition to traditional finance solutions offered by the Canadian chartered banks numerous other solutions work. They include!7R Financing &or8ing capital ter) loans %n,entory (inancing !sset /ased lines o( *redit SR9$2 a: *redit Bridge 3oans 5o,t S)all /usiness loans ;to )a:i)u) <=08>

*eek out and speak to a trusted" credible and e,perienced Canadian business financing advisor who can help you assess business health and finance options that suit your operating or growth requirements.

Stan 6ro8op . ? 6ar8 !,enue Financial : http:77"""+?par8a,enue(inancial+co)

/usiness financing for Canadian #irms " speciali$ing in working capital" cash flow" asset based financing " 0quipment Leasing " franchise finance and Cdn. Ta, Credit #inance . #ounded 1223 . Completed in e,cess of 42 5illion 6 of financing for Canadian corporations . &nfo 'Contact -

? 6ar8 !,enue Financial @ Business Finance Options $:pertise A

Ha,e ! Buestion 7*o))ent On Our Blog Or *anadian Business Financing !lternati,es 0

*O4 !* :

7 8ark Avenue #inancial *outh *heridan 0,ecutive Centre 1492 *outh *heridan +ay *uite :29 ;akville" ;ntario L<= 7=> 2irect 3ine ? 39< :94 @7<4 O((ice @ 42@ >14 1<@:

$)ail ? sprokopA7parkavenuefinancial.com ' Canadian /usiness #inancing with the intelligent use of e,perience '

Stan 6ro8op