Monday, July 30, 2012

Let Financing Receivables Stop That Feeling Of Borrowed Time . “ Lien “ on Canadian Invoice Finance And Factoring For The Solution.






A Canadian Financing Strategy .. that works!


Information on financing receivables in Canada . How the invoice finance and factoring solution helps Canadian business stay cash flow positive!





Financing receivables in Canada. It's no secret that invoice finance, aka ' factoring ' is part of the ' new normal ' when it comes to Canadian business financing.

There are probably thousands of Canadian businesses who constantly feel they are living on borrowed time. That is why invoice financing, collateralized by a ' lien ' on your receivables has become a solution of either choice or necessity for the business owner or financial manager.

Oh and by the way some of the biggest corporations in the world also utilize this method of financing their growth and largest asset, the A/R.

A lot of the activity around financing receivables is, unfortunately, being driven by... yes; you guessed it, your clients. Why is that? Simply because they either by policy, or practice, have chosen to slow down their payments to yourself. We're aware of one case wherein one of the largest companies in the world advised their printers they would pay all invoices on 120 day terms. Talk about a painful hit to cash flow!

While we certainly realize that the typical payments from your clients are probably closer to 60 days these days, (that kind of seems to be the new norm) it allows a financing receivables strategy to ensure you take much less of a hit on your cash flow and working capital.


The triple whammy. That's our own term for what else is happening out there in the Canadian business financing marketplace. Your suppliers slow down, bank financing becomes harder to achieve, and you still want and have the ability to grow your company. Talk about a perfect storm that comes together to challenge your firm in every manner!

One of the reasons that invoice finance is so popular these days is simple that is a ' stable ' source of funding for your firm. What business owner or manager doesnt want a reliable source of funding and working capital .in the current economic environment? That is a basic premise of invoice financing or factoring - the fact that your facility can be reviewed anytime, within pretty well a days time, to be increased based on your needs.

Cost is often a factor that turns off many clients who look at financing receivables. While the cost is higher than traditional bank finance that has to be balance off against access to capital. In trying to present a balanced outlook on invoice finance we also note that you typically have to report more regularly on your business progress - that typically includes monthly reporting on aged receivables, payables, and a balance sheet and income statement snapshot. We don’t think that necessarily is a bad thing though, as many clients tell us that process allows them to understand and run their companies better.

So, if you want to stop that feeling of ' borrowed time ' let a invoice finance firm ' lien ' on your receivables . That immediate uptick in cash flow and working capital should allow for better business performance... with less stress! Speak to a trusted, credible and experienced Canadian business financing advisor today on how invoice finance works, for you.


7 PARK AVENUE FINANCIAL

CANADIAN RECEIVABLES FINANCING EXPERTISE





Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 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 re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/financing_receivables_invoice_finance_factoring.html

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.