Working Capital Financing – Commercial Financing Solutions

Work financing forever is a big challenge for small and medium businesses in Canada. And that certainly doesn’t say that big companies don’t have that challenge, it’s just a case of having more assets and resources to deal with the same challenges.

As a business owner or financial manager of the funding level you need, and the method where you reach the financing really encourages the solution to your challenges. This is important, in understanding your cash flow needs and solutions, to determine whether your working capital financing is needed because of the intensive nature of your business capital – or if you actually need to ‘monetize’, or your ‘cash flow’ assets in an effort to produce more working capital and a turnover that is faster than the fund.

Your focus on cash and business financing is greater if your sales and profits are increasing. However, at the same time the ability to get business credit in Canada remains a challenge.

Bank financing has become more difficult to obtain, and many companies see a non-traditional or alternative financing source to secure the funds they need for working capital.

Another hard reality of working capital financing is that most small and medium-sized businesses are looking for more cash flows with an unsecured basis. This type of financing is very difficult to achieve in the Canadian market, of course in the bank environment rented.

So what source of financial capital can be submitted by business owners and Canadian financial managers and has the potential to use? Let’s cover some basic options – this includes:

Personal savings (not high in the priority list of business owners!)

Business credit card


Loan Terms of Government Work Capital – Financing Business Loans (this is a loan in cash with payments and fixed rates)

Factoring Financing Financing

Asset-based credit lines

When you are looking for working capital financing, one of the main areas that you can start with your own main financial metrics. You don’t need to be an experienced financial analyst to determine at any level of your receivables. In essence if you haven’t realized it (we sure already) is that the receivables and inventory of ‘eat’ cash.

One key point must be made here, if your sales grow at 15% and your receivables grow at 15% it’s not a bad thing. (To calculate only measuring the ratio of the two data points) However, if your sales grow at 15% and accounts receivable at 30% cash flow and your working capital is consumed by the investment you make in A / R and inventory that does not rotate. Collections and inventory turnover are the main aspects of working capital financing.

Commercial financing from the Bank is the optimal solution for small and medium businesses – as has noted that is difficult to achieve. Business funding can be complex and we urge clients to seek advice and guidance of respected commercial financing experts, trusted and experienced to ensure they choose the right tools to complete the challenges of working capital.

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