Turnaround Financing : Spring Forward With A Restructuring Expert & Specialist
by
stanprokop
Turnaround financing in Canada is a restructuring of your finance arrangements. This might come out of a fall in fortunes or even a crisis of sorts. Knowing what steps to take at that time is key , including expert help of a specialist . Let’s dig in.
Naturally the goal of any business owner / financial manager in a turnaround situation is to ensure stability in the business while at the same time ensuring there are possibilities for survival, and yes… growth again. Unfortunately at this time the confidence of any existing lenders is at an all time low and must be dealt with.
One basic formula for such a change in finances is simply to assess your funding possibilities from two sources – internal, plus of course focusing on new external lenders who more often than not at this point will be focusing on the actual value of your business assets. In certain cases this might be a prudent time to consider the sale of certain assets, or, if they are critical to the business and unencumbered, a sale leaseback might be appropriate.
While equity capital from owners or an outside investor might also do the trick your business none the less will still no doubt require some fundamental changes. Suffice to say that owner or outside equity chances are also at an all time low during this period of transition.
The issue of personal guarantees is always a thorny one with the owners of the business – whether guarantees were in place prior it’s safe to say they will probably be a part of any new financing to some or all extent.
The question any asset or non asset based lender will ask during this period is pretty simple – You cannot ‘ PROCEED TO GO ‘without some solid proof of the company’s ability to generate or have cash in the future. One of the key areas lenders will also focus on at this time is to ensure all arrangements with CRA / REVENUE CANADA are brought up to date, have a pay down arrangement in place, or most likely, will be taken out with new financing.
If you thought a CASH FLOW FORECAST was a textbook item in the past welcome to the real world, at this point it’s key to be able to present a realistic sales and cash flow forecast for the business. This should be utterly realistic at this point and reflect the real sales and cash inflows and outflows of the business.
The combination of a realistic turnaround plan, your cash flow forecast, as well as how you are going to handle and refinance existing assets helps guarantee a successful turnaround. Many types of financing can address the turnaround of your business – they inlcude Asset based lending, receivable financing, equipment/sale leaseback scenarios, etc.
If you’re looking to ‘spring forward’ and not look back on a successful restructuring seek out and speak to a specialist in this area , a trusted, credible and experienced Canadian business financing advisor who can assist you with your needs.
Stan Prokop
Stan Prokop – founder of 7 Park Avenue Financial http://www.7parkavenuefinancial.comOriginating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years – has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Stan Prokop – 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 90 Million $ of financing for Canadian corporations . Info /Contact : Stan Prokop – 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 90 Million $ of financing for Canadian corporations . Info /Contact : http://www.7parkavenuefinancial.com/turnaround-financing-specialist-restructuring.html
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Turnaround Financing : Spring Forward With A Restructuring Expert & Specialist}