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Looking To Put Cash Flow From Sales On Autopilot ? Here's How !
OVERVIEW – Information on business financing solutions in Canada. Invoice cash funding is all about choosing the right solution via an AR Finance Company
Business financing for many firms in the SME sector involves the necessity to turn receivables into liquidity for the company, in effect we're talking about ' invoice cash '. That term is synonymous with cash flow challenges that hit many firms all the time. How then does the use of an AR finance company assist in meeting that challenge?
Sooner, rather than later is the need for business owners who want cash flow to support their company requirements. In many cases certain industries demand a lot more cash for companies that participate in the sector. That might mean more focus on capital assets, or even research into new products and services.
What happens though when you can't get the financing you need from traditional banks / business oriented credit unions, etc? That's where an AR Finance company comes in.
Your ability to quickly and efficiently set up a receivable discounting facility allows you to immediate remove the problem of waiting 30, 60 or even 90 days for receipt of client funds for your goods and services.
To receive full funding for your receivables from a Canadian charted bank there is of course an extensive loan and business application, with a lot of emphasis spent on historical cash flow analysis, balance sheet analysis, income statement and operating ratios, etc! Invoice cash services eliminate 90-95% of that type of waiting and negotiation.
So why then does ' factoring ‘, the more technical name for invoice cash work and in fact showing more popularity every day. The answer is simple, an immediate flow of funds based on your sales revenues. That becomes most of the solution to what the pros call your ' working capital cycle '. That cycle, simply speaking, is the amount of time it takes a dollar to journey through your company and makes it back onto the balance sheet as cash.
When you finance through an invoice cashing - also called invoice discounting facility, you are not borrowing funds on a long term basis. Your balance sheet does not accumulate debt; you are simply liquidating current assets in a more efficient manner.
Is there any one type of facility in the area of ' invoice cash ' that works better than others? We're glad you asked!
A/R Finance is not always the ' only ' way to fund cash flow needs. Other strategies might include:
Working capital short term/ long term loans
Sale leaseback strategies
Inventory finance
Tax credit finance ( sr&ed refunds are financeable)
Longer term solutions of course involve scenarios such as new equity.
So let's recap: Your business requires additional cash flow. You either have facilities in place and they aren't working, or you are self financing and need cash flow to pay suppliers, employees, etc. Seek out and speak to a trusted, credible and experienced Canadian business financing expert who can deliver on invoice cash for your firms need.
Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing with the intelligent use of experience '
ABOUT THE AUTHOR
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.
Stan Prokop
