Confidential Invoice Finance : Taking The Panic Out Of AR Financing Needs

Let ‘ He Who Does Things ‘ Work For Your Business Financing Needs

OVERVIEW – Information on the benefits of confidential invoice finance in Canada . Reaping the benefits of AR financing requires knowledge around who , what, where, when and why

AR Financing in Canada allows business owners and financial managers to remove some of the ' panic '

that sets in when a cash flow crisis seems to be threatening and just around the corner. Numerous solutions exist for fixing a working capital shortage - one of them; confidential invoice finance seems tailor made for... the fix. Let's dig in.

A/R Finance is really a subset of the broad business solution called ' asset based lending. Many people refer to is simply as ' factoring ' - although that is a generic term that covers numerous types of receivable finance. They include ' invoice discounting ‘, 'notification factoring', ' forfaiting ', ' spot factoring ', non recourse factoring ' etc. .. Etc..! Large well known corporations, some of the largest in the world in fact call it ' Securitization' - they move receivables off the balance sheet constantly in bulk by selling them.

It goes without saying that some of that terminology can be a bit confusing so we'll be zeroing in on just the key basics , including our recommended solution for this method of Canadian business financing , Confidential A/R Finance .

It's interesting to note also that for those clients we talk to that have never even heard of the term that in facts it's been around, and in practice since pre Roman Empire times. And the word ' factor ' comes from Latin meaning ' he who does things '. That ' doing things ' revolves around monetizing the sale between via the monetization of accounts receivable between a ' sellers ‘... that's you, and your customer.

The majority of clients who use A/R finance solutions are in a couple basic categories - they can't get all the financing they need from a bank ( or cant qualify for any finance at all ) , or they are in special situations re turnaround, growth, etc. In the majority of cases solutions such as Confidential Invoice Financing is an interim solution, possibly for a year or two, allowing customers to migrate back to more traditional financing facilities?

In traditional ' factoring ' solutions they concept of ‘notification’ is key '. Here the lender, usually a commercial finance firm requires that your clients be notified about the process of financing your AR. That's because the paperwork surrounding this type of facility is unlike the bank - banks ' collateralize' your receivables , commercial factor firms have paperwork that specifies that sales invoices you finance are in fact ' sold ' to them .

The way to beat any notification , i.e. being ' Confidential ' about this whole process is to enter into a invoice financing facility that allows you to bill and collect your own invoices, without anyone knowing how you are financing your business. Rates and paperwork are essentially the same.

In some cases this financing can be part of an asset based lending facility, allowing you to also finance inventory and equipment as a part of your non bank business line of credit .

So, consider letting ' he who does things ' work for your firms cash flow needs. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you with AR financing that works best , and removes the ' panic ' around cash flow needs.


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 CONFIDENTIAL A/R FINANCING EXPERTISE






Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:

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 '

Stan Prokop