Financing Working Capital

Financing Working Capital

When it comes to finding working capital for your business operations, what are you options? Here are insights from our team of business financing experts.

Every business needs working capital to support their day to day operations. In some cases, working capital is funded entirely by profits, supplier terms or shareholder injections. In other cases, payment terms and varying circumstances can put significant strain on working capital.

We take an in-depth look at your business’ cash flow cycle and help identify gaps that require working capital funding. Then we work with all of our funding sources, whether it be banks, credit unions, crown corporations, private lenders or equity partners, and we find the best possible financing solution for your business. We can help business finance their inventory, receivables, purchase orders, labour and any other inputs for their business.

Lack of liquidity and working capital should never be the reason you turn down a sale!

Operating Lines of Credit

Operating Lines of Credit can be a very useful tool for growing your business. Many banks have preferences on how they extend operating lines of credit to business. Some lines of credit are secured by operating assets like accounts receivable and inventory, some are secured by real estate or equipment. And in some cases banks will extend unsecured lines of credit. We help business partner with the best bank for their business to help get them access to the most capital possible at the best terms.

Trade Finance

Some banks extend trade finance solutions whereby they will finance your entire trade cycle by way of Trade Finance Solutions. From the day you receive a purchase order to the day you get paid, banks will finance up to 100% of the costs you incur fulfilling your orders. These costs include input goods/supplies, labour and manufacturing, shipping and sales commissions.

Receivables Finance

Once you’ve issued an invoice, banks will finance up to 90% of the invoice total so that you can get paid today from the bank, while you extend terms to your customers. This allows you to offer flexible terms to your customers that can aid in winning new business.

Purchase Order Finance (PO Finance)

Bank’s will offer financing on the input goods required to fulfill a purchase order. So long as you have a contract in place from a buyer that can be vetted, banks will finance the entire purchase order excluding your profits and they offer flexible terms in doing so.

Cash Flow Loans

Banks will provide cash flow injections based upon proven cash flow of a business. If you’re looking for cash to expand, or cash to acquire a new business, banks will provide loans based purely on your cash flow. Funding amounts is usually determined based on the EBITDA (Earnings Before Interest Depreciation and Amortization) of your business and the business being acquired (if applicable).

The finance environment can be a very complex space. We assist businesses in identifying their specific financing need and partner them with the best financing provider.