Our blog highlights Canadian Business Financing solutions via receivable finance , equipment finance, working capital financing, asset based lending, business acquisition financing,franchise finance, and tax credit monetization via SRED and Film Tax Credits. Our goal is to educate and assist Canadian businesses with their financing needs. You Are Looking For Canadian Business Financing! Welcome to 7 Park Avenue Financial Call Now ! - Direct Line - 416 319 5769
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In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.
Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.
Sunday, June 15, 2014
Purchase Order Financing : The Hidden Genius Of P O Finance Companies
Finance Solution # 68 : P O / Contract Financing
OVERVIEW – Information on purchase order financing in Canada. The ingenius role played by P O finance companies in growing sales revenues when traditional financing can’t be achieved
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
Purchase order financing in Canada . We've labeled it finance solution # 68. While there probably aren't 67 other different unique financing solutions ahead of it , ( although there is more than you think ) it's safe to say it's probably the least well known, or thought of finance solution in CANADIAN BUSINESS FINANCING .
Let's examine how P O FINANCE COMPANIES market and offer the... dare we say it the ' genius ' of purchase order finance. Let's dig in.
Many businesses in Canada lose out or are forced to step back when it comes to taking on contracts or orders when they realize they don't have the financial resources to successfully fulfill client needs. It might be a single order or a large ongoing contract.
Enter the P O financier. But why then is this a solid solution for growing sales /revenue in a big manner? The answers are perhaps not well known, but simple:
Purchase order financing is not debt
Suppliers/vendors are very comfortable with the concept as they are assured payment
Properly constructed no transaction is really too large when it comes to opportunities that involve legitimate vendors and clients
The added expertise of the Purchase order financier often adds value to the overall transaction
Whether a firm is a start up of established qualifications are still the same to benefit from this unique financing - a verifiable non cancellable order, a legitimate client, and your ability to demonstrate a solid profit margins on the transaction. (P O financing is in fact ' genius ' financing - but its one of the most expensive forms of business finance solutions)
So how exactly does PO / Contract finance work? What are some of the key mechanics? It starts with understanding that sales revenues are generated from inventory and receivables. Your suppliers for orders or contracts are in effect guaranteed payment for products shipped to your firm under the P O finance facility. The alternative for paying suppliers in advance is to have established bank credit lines in place, and for a variety of reasons that often is impossible for many companies.
So the essence of offerings from P O finance companies is that your firm has the ability to fulfill an order, your client must have the ability to pay for it, and your vendor must be an established firm as independently verified by the finance company.
If your firm wants to utilize or better understand finance solution # 68 - Purchase Order Finance then consider seeking out a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you in fulfilling sales and contracts traditionally outside of your firms ability to deliver . It's ' genius'.
Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
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 90 Million $ of financing for Canadian corporations . Info /Contact :
7 PARK AVENUE FINANCIAL = CANADIAN PURCHASE ORDER FINANCING EXPERTISE
Stan Prokop
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