Business Finance : A Strategy Guide For Your Cash Flow Financing Needs

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<h1>Business Finance : A Strategy Guide For Your Cash Flow Financing Needs </h1><strong> Author: <a href='http://www.articleseen.com/profile_sprokop.aspx'>sprokop</a></strong><br /><p>Business finance, and in particular your cash flow financing needs requires a strategy. Many owners/ financial managers in the SME (small to medium enterprise) commercial sector find themselves constantly falling down into the ' worry hole ' in this aspect of their business. Tired of falling into that hole? Let's dig in. While the phrase ' cash is king ' is sometimes a bit of a cliché suffice to say it's difficult to pay suppliers, employees with promises. The extreme event of poor cash flow is of course business failure. So your ability to view your access to cash flow solutions as the ' lubricant ' that keeps your business running is in fact key. Many businesses that are asset rich find themselves in bankruptcy with assets sold for pennies on the dollar due to the fact that the business was unable to meet their cash obligations. So when it comes to avoiding falling into that ' worry hole' we've talked about it’s a combination of managing your cash and accessing financial solutions that make sense for your industry. What is the difference then in firms that are successful in this area of their business? Clearly it's about anticipating what your cash flow position will be and knowing what solutions are available. While the solutions of: Bank credit lines Non bank credit lines A/R Financing Inventory Finance PO Financing Tax Credit Finance Working capital term loans are the solutions to your problems it's really all about knowing when you need these solutions and knowing which ones you qualify for relative to your particular situation. How does the business address the cash flow needs? The options are quite simple: Take on some form of new debt Delay payables Monetize assets - finance your A/R and inventory, refinance your fixed assets Reduce cash outflow spending Increase sales and asset turnover The constant monitoring of those options is the essence of cash flow 101. Simple cash flow budgets, done properly and conservatively will always help in identifying future cash flow needs. The challenge in budgeting your cash flow and anticipating your finance needs often revolve around your business receivables. Typically these flows of cash are irregular in nature due to your sales volatility and customer payment habits. This is where solid credit extension policies and good collection practices are key. Many businesses that can’t qualify for traditional financing are seeking alternative finance solutions such as A/R Finance. These solutions monetize your sales as soon as you create a sale. The waiting is eliminated and typically comes at a cost of 1-2% of your invoice - for example a 10,000.00 invoice , financed under a factoring solutions would cost you 200$. Effective A/R management, as well as good use of the funds you receive from financing your receivables can be a solid interim solution for your cash flow needs. All industries have different cash flow needs. If you're looking to eliminate that fall into the ' worry hole' of a constant cash flow crisis seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with business finance solutions appropriate to your firm . </p><strong>About the Author:</strong><br /> 7 Park Avenue Financial : http://www.7parkavenuefinancial.com Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations . Info /Contact : http://www.7parkavenuefinancial.com/cash-flow-financing-business-finance.html <p> Article Source: <a href='http://www.articleseen.com/Article_Business-Finance--AStrategy-Guide-For-Your-Cash-Flow-Financing-Needs_317972.aspx'> http://www.articleseen.com/Article_Business Finance : A Strategy Guide For Your Cash Flow Financing Needs _317972.aspx</a></p>

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Keywords : cash flow financing , business finance,

Category : Business : Business