Guess What Your Business Needs? Working Capital and Small Business Finance Loan/Loans Options
Just picture your firm having access to all the working capital you need. Seem impossible? Not really… if you have a solid understanding of your options and your firms capability of qualifying or executing on those options.
Whether you’re the largest corporation in Canada or a small new start up (and everything in between) your business needs working capital. In Canada small business financing loans and financing arraignments for working capital are limited to a handful of possibilities – but being aware of what they are and qualifying for them could be the solution to your constant focus on cash flow via some sort of working capital loan.
It is probably easier than you think to ensure you are addressing the cash flow challenge correctly – where it gets somewhat ‘ thorny ‘ is matching a solution to the problem or locating an expert that can provide you with the business financing assistance you need.
Two key elements of your first step working capital assessment are your gross margins and your turnover. That’s the big problem we have with text book / academic solutions to working capital – they point you to the text book calculation – give you a formula which essentially has you subtracting current liabilities form current assets, and voila! the inference is you have working capital. However, our clients have never paid a supplier or completed a company payroll with a ratio!
To properly assess your working capital needs focus on understanding your turnover – how much inventory do you carry, what are the days outstanding in inventory, and as importantly, or more importantly, are your receivables turning over. Have you realized that for many firms 80% or so of the total of all the business assets you have are tied up in A/R, inventory, and, on the other size of the balance sheet let’s not forget payables.
So can you have financial success based on your new found knowledge and analysis of your cash flow and asset turnover. We think you can.
Canadian business financing solutions to small business finance loans really revolve around a couple viable solutions. Typically, in our experience Canadian chartered banks cant satisfy your business working capital needs – if only for the reason that they rarely finance inventory and require significant merit in your overall financials, profitability, external collateral, personal credit worthiness, etc.
So, where do you go from there? The other solutions are very viable and can take you to a potential 100% turn around in cash flow – they include working capital financing as a bundled line of credit on a/r and inventory via an independent finance company. For firms that are larger we believe the ultimate tool is an asset based line o f credit that provides high leverage margining on all you business assets. Other more esoteric solutions, but still very viable although somewhat misunderstood are securitization, and purchase order financing of new contracts and orders. (Your suppliers are paid directly for the orders you have in hand – what could be better than that?)
Finally, coming up the road at lightening speed is factoring and invoice discounting. We mention them lastly but they are probably the most popular method, gaining traction everyday. Our favorite is confidential invoice financing, allowing you to control your financing.
So there you have it. You have identified new ways to determine the need; we have outlined 4 or 5 solutions that will take the guess work out of working capital. These loan and financing options are available with a bit of research, and, if you choose, speak to a Canadian business financing advisor who can provide you with timely and valuable assistance in your cash flow needs.
Corporate Finance – Methods to Finance Corporate Growth
It can be very difficult for small and mid-sized businesses to compete with their large corporate counterparts because they lack the necessary access to working capital. It takes money to grow your company and size should not limit or dictate how that happens. Now, there is an innovative and flexible solution to finance corporate growth by selling account receivables.
When it comes to business finance, corporate conglomerates have the advantage of large coffers as well as better influence for obtaining needed credit Historically, SMBs have been limited in their options to access affordable money, but all hope is not lost as innovative alternative solutions have emerged.
Small to mid-sized businesses can level the playing field through invoice financing. By posting outstanding invoices on the online auction marketplace, owners get access to cash quicker than the typical 30-90 day invoice due date. In fact, it is possible to receive competitively-priced money in as little as 24 hours.
This quick, flexible and seller-friendly solution of tapping into what makes up about 60% of a business’s funds opens up a tool for growth and an opportunity to compete with larger companies.
For example: A small owner has an opportunity to expand his operations into another part of town or in another city, but he needs working capital to make a down-payment on a new building or to outfit and buy inventory for a new distribution center.
By selling invoices – when the company owner chooses and at a price he’s willing to pay – from his best customers, he can access the working capital he needs to secure whatever growth investments he needs to make. Because the bidding is open to a global network of accredited institutional investors, the seller gets a competitive cost of funds.
Based on the amount of working capital needed, the seller chooses which invoices to list, how much he wants for them and how much he will pay for the advance. This allows him to finance corporate growth opportunities, like opening a new storefront, with fewer restrictions and more control and flexibility than traditional financing.
Billion dollar corporations had to start somewhere and many of them began as a one storefront business. Taking calculated risks, spending money and obtaining the right financing to meet their working capital needs, gave them opportunities to grow into much larger entities. Small and mid-sized businesses that have hopes of remaining competitive in their industry must look to growth and expansion- and they need a significant amount of working capital to do it.
Participating in this real-time auction for accounts receivable is an efficient and affordable alternative solution for accessing the funds. This can mean the difference between purchasing new equipment that makes production more efficient. And, as a result, making the business more competitive with its larger counterparts.
With this alternative solution for invoice financing, the seller maintains complete control of his funds. He does not have to deal with the hassles of all-asset lien restrictions or covenants that can limit his spend flexibility and focus on business growth.
In business finance, corporate entities that have the size and influence have an edge, but with invoice financing on the receivables marketplace, small and mid-sized businesses can not only keep up with the competition, but enhance overall financial performance.
Finance Jobs in Kuwait
Kuwait, an Arab emirate in Western Asia, is bordered by Saudi Arabia and Iraq on the south and the north. Its name implies the meaning ‘fortress built near water’ as it is located on the shore of the Persian Gulf. The economy of Kuwait is hugely dependent on oil reserves and petroleum exports ranking fifth among the oil and petroleum rich countries of the world.
The economic market of Kuwait has proved resilient after the global downturn made an exit. The financial sector has witnesses a boom in post recession period following the path of recovery. Kuwait is an extremely rich country and is estimated to have 10% of the world oil reserves. Apart from oil and petroleum, other major industries of Kuwait include shipping, real estate, cement, desalination and financial services.
Financial industry includes services offered by both financial institutions and banking sector. This industry is involved in management of money and encompasses a broad range of organizations including banks, insurance companies, credit card companies, stock brokerages, consumer finance companies, investment funds and other government sponsored enterprises. The finance jobs in Kuwait are now growing with billion dollars of investment being made to bring it back to its boom position. As it is a wide industry, finance professionals get plenty of career options when looking for jobs in Middle East.
Finance jobs in Kuwait are available for professionals from all around the world and ask for highly skilled and well qualified candidates. The level of vacancies offered to expatriates covers all managerial, assistant and executive positions. Some of the jobs in finance in Kuwait include positions for auditing, accounting, finance, administration, etc. for directors, managers, executives, senior managers, officers, assistant managers, analysts and other levels.
The finance professionals are paid well in Kuwait that makes it a favorable career destination for many. Jobs in Middle East are especially popular all around the world for being well paying and offering comfortable lifestyles. It is an ideal destination for those looking for saving a fortune in a matter of few years as Kuwaiti employers pay attractive amounts of money that too tax-free. This means that whatever you earn is entirely for you to keep, you can save or spend it the way you want. Thus, high tax-free salaries offered for finance jobs in Kuwait have become a major puller for financial experts from outside the country.
It is always helpful to explore a place before moving and settling down in it. Middle East conspicuously lies in a different part of the world and is therefore, bound to follow different culture and lifestyle. So, you should perform a detailed research on the customs, religion, culture, laws and living standards of the new country. As you are familiar to the new society, you are able to adapt easily to them and their people. You should never wait for a surprise by going to the place uninformed as it may or may not be a pleasant one. You will feel welcomed and comfortable if you are aware of the place as it follows a different set of beliefs. For this, you may join online forums and communities that bring you closer to expatriates living there.
Being a member of expat community will help you get the true picture of the personal and professional environments in Kuwait. Even before taking up a job in Kuwait, you would know what to expect and what not. Make sure you have gone through the contract carefully and understood everything to avoid confusions in later stages. So, go grab your job in Kuwait and create a fortune!