FINANCE & LEGAL
REZA GHAZI CEO of Greenflow Financial
Go with the cash-flow LEARN HOW TO COPE AND GROW, WITH THESE HELPFUL TIPS FROM GREENFLOW FINANCIAL YOU OWN A BUSINESS. Any business. What is always on your mind? Most business owners I know would say “cash-flow.” Losing sleep over cash-flow, thinking how to grow their cash-flow, wondering where their next batch of cash is coming from, and how to consistently maintain it. The traditional solution to the cashflow issue is to increase revenue and cut back expenses.Though these two strategies are imperative in running a successful business, they are not the complete or only answers.There are a number of other strategies that business owners can implement to address and improve their cash-flow, both in the short term and the long term. Three such strategies include:
DEBT CONSOLIDATION In some cases, due to a high debt-load, business owners are left with very marginal cash-flow. Most of their earnings go toward payments they have to make as part of various debt obligations, much of which pays for the interest owed to credit facilities. Debt consolidation leads to one payment instead of multiple payments to different facilities, and many times allows for a reduced interest rates as well. This certainly leaves extra cash on the table.
22 Fall 2017
T P CHOICE MAGAZINE
Real estate assets are an economic mechanism that are used to raise needed funds for debt consolidations.
CASH RESERVE Some businesses, when they see consistent revenue, prioritize growth over stability. They do not plan for having cash reserved to deal with unforeseen circumstances. When a business has a good cash reserve, the operator does not feel squeezed if there is a delay in revenue, a normal occurrence for any business. Furthermore, the availability of a cash reserve can serve to reduce the possibility of debt accumulation, and therefore reduce payment of interest. If the business revenue is not high enough to create a cash reserve, business owners can utilize equity from their real estate assets to create that reserve.
Voted Top Choice 20 17
Mortgage Brokerage of 2017 in Toronto
proven both to be a noticeable contributor to the long-term cash-flow of a business, and to assist in the reduction of debt as payment is made towards the principle cost of the property rather than towards a fleeting monthly payment. Ownership, rather than leasing, is also a great asset-building strategy for the business. At GreenFlow Financial, we take pride in assisting business owners to implement the strategies noted above in an economically feasible and time-efficient manner. We use mainly mortgages in conjunction with other financial products to create the building blocks that assist business owners attain their financial goals. We always welcome opportunities to serve. Visit us at greenflow.ca
OWNERSHIP OF APPRECIATIVE ASSETS Making the right investments, even when the payoff comes later in time, helps the long-term cash-flow of the business. A great example is when the business owner decides to purchase a property to run his business from, instead of leasing on a longterm basis. The growth in real estate has
1-800-712-8520 X.100 Suite 300A - 511 King Street West Toronto, ON, M5V 1K4 greenflow.ca