A/R Non Bank Financing & Business Credit Lines Aren’t Just Possible – They’re Here!
OVERVIEW – Information on key benefits of factoring receivables for Canadian companies and why this type of business financing can help you get out of the self financing cycle that holds back growth and profits
Factoring receivables is all about knowing you've made the best choice for your Canadian business financing needs. Business owners and financial mgrs have to pick the best firm to facilitate their funding and like most business folks they want to know they have made the right decision. Let's dig in.
First, let’s recap why A/R financing works, and more importantly, how to select the best companies to work with based on your own needs.
There are numerous reasons why you might want to use a factoring receivables strategy to finance your business. The best reason you can have is that you are growing! And growing quickly - Because in that situation you are unable to achieve the sort of traditional financing you need to run and finance your business on a daily basis.
Simply speaking working capital and cash flow become your overwhelming priority on a day to day basis, and that shouldn't be the case!
So, you've identified invoice factoring and financing as your solution - but more importantly you also want to know how it works and how it will both affect and benefit your business on a day to day basis. The reality is that if are a small and medium sized business owner in Canada you are probably relying heavily on what the finance folks call a ' self financing' strategy. That simply means that you are only using your existing cash flow to finance your growth and profits - you are not in a position to, or don't want to... take on more debt for your company.
Enter, stage left, receivables financing companies! They finance your a/r on a daily, weekly, monthly ( it’s your choice!) basis and provide you with same day cash flow as soon as you have generated a valid sale and invoice . Bottom line, you're just cash flowing your sales.
Why then does this strategy appeal to Canadian business owners? Simply because you are not creating debt on your balance sheet, and the personal guarantee situation is all but eliminated and you have the ability, ( if you choose the right partner firm ) to exit this financing at any time .
So, it all seems like a perfect world right? In effect the perfect business financing situation. Well in business it doesn't work that way, there are pitfalls and mistakes you need to avoid when utilizing a factoring receivables strategy.
So what are those mistakes you should not make? Partnering... you need a firm that meets your needs, both geographically, with competitive rates, and the ability to transact with you on a daily basis.
Our recommendation? A Confidential Receivables Finance solution. This allows you to bill and collect your own receivables, finance them when you want, and receive the same rates as your competitors who are using what we call ' old school ‘ factoring - In their case their customers are contacted for payment by the factor firm, and this is unappealing to many Canadian businesses. We, like you, hate that!
Whether we like it or not our clients always focus on rate when talking about a move to companies that will finance their receivables. Factoring rates are perceived as more expensive but in many cases when you factor in use of funds, ability to grow your business, etc the decision is not as difficult as you might think.
Speak to a trusted , credible, and experienced Canadian business financing advisor who is an expert in factoring pricing, picking the best solution for your firm, and negotiating pricing and fees and advances that work best for your future growth and profits .
7 Park Avenue Financial :
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 100 Million $ of financing for Canadian corporations .
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.
Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.