AR Financing . Your Every Question Counts When It Comes To Receivable Factoring

Lost Your Operating Manual For Receivable Financing In Canada?



OVERVIEW – .Information on AR financing in Canada . When it comes to receivable factoring what does the Canadian business owner/manager need to know with respect to operating and benefiting from a successful cash flow strategy .




AR Financing in Canada. When clients we speak to think about receivable factoring solutions they tend to have more questions on this solution than some other types of financings. Why is that we thought? We're not 100% sure but we know those questions need to be answered. So our solution, a mini ' Operations Manual ' on A/R finance in Canada.

It's those operations manuals that provide us with ' how to ‘, dangers, warnings, recommendations, so it seemed quite appropriate to adopt that type of information delivery! Let's dig in.

Canadian business owners and financial managers utilize Receivable factoring for a variety of reasons - one main one being it provides your firm with working capital and cash flow without dilution of your ownership equity in the company. It is often viewed as a short term or intermediate finance solution, avoiding long term commitments and long term debt.

It differs from bank financing from a number of perspectives. When you finance you A/R with a bank you provide an assignment of those receivables that you're financing. When you utilizing an A/R finance scenario you simply bulk up on ' Cash On Hand ' as you are in a position to constantly ' sell' your A/R on an ongoing or bulge type basis .

Both factoring and bank receivable finance advances you a per cent age of the value of your sales. In the case of Canadian chartered banks it's a 75% advance; Receivable factoring typically provides you with a 90% advance, so you have more liquidity.

Does our ' Operations Manual ' of advice recommend any one type of AR financing over another. Ours does! It recommends that you consider Confidential A/R finance
which allows you to bill and collect your own accounts - there are no notices to customers, you are completely independent of your finance partner, and at the same time you have the same or better pricing with respect to limits and credit lines.

In effect you're in control. That ability of Canadian firms to run their own businesses without any ' negative ' client reaction from their customer base. That's a good thing! , when it comes to the somewhat more conservative Canadian landscape of business ' perceptions '.

Receivable financing in Canada is a sub set, we can say, of asset based financing... So in many cases your cash flow financing for your receivables can be combined with inventory of fixed asset financing, allowing you to truly ' bulk up ' on capital needs .

The security for your A/R financing is pretty well the same as that of any Canadian chartered bank. Typically its most easily accomplished with the same type of General Security Agreement that collateralizes the financing.

So does the concept of an ' Op's Manual ' when it comes to receivable factoring make sense. If you're concerned about ' how things work '. ‘dangers’ , 'recommendations', etc consider a LIVE operations manual by seeking out and speaking to a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow needs.




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 10 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 :


7 Park Avenue Financial = Canadian Receivable Financing Expertise





7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com



















Stan Prokop