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
Tuesday, October 7, 2014
Confidential AR Finance : The Inside Secret To Financing Receivables Via Factoring
Practically Invisible A/R Financing?
OVERVIEW – Information on how Confidential AR Finance works in Canada . This subset of ‘factoring’ allows businesses to run and grow their business without any 3rd party intrusion . It’s the non bank business credit line for working capital needs.
Confidential A/R Finance is a method which allows Canadian business owners and financial managers to benefit from the best parts of accounts receivable factoring. How is this method superior to traditional AR finance? Let' dig in.
Carrying a business receivable of course always involves some level of risk. Your ability to both manage and monetize your sales into cash is one benchmark of any successful business. That cost of extending business credit to customers is a key part of how factoring works, and in particular confidential receivable finance, also known as non - notification factoring.
If you’re not financing your receivables through a bank you either are self financing, and comfortable and successful with that, or are simply unable to meet bank starts for all the working capital business credit you need.
Naturally if you your business can't finance your working capital and cash flow needs you are not in a position to support sales through the ability to finance customers, purchase inventory, and fund operating expenses.
While the majority of clients we meet seem to focus on both trying to understand how this method of financing works , or what it costs they seem to forget some of the other key benefits of financing your firm in this manner.
Those benefits include:
The ability to substantially strengthen and increase supplier relationships - i.e. paying them on time, purchasing more
The ability to capitalize on opportunities for growth - that might include larger contracts or new customers in other geographies within Canada or the U.S. (Non North American receivables tend to need to be financed via credit insurance of some type)
Your overall business credit rating is critical to your long term success and factoring via confidential AR finance as payables can more easily be managed among all suppliers
Don't forget also that typically there is no upper limit in your borrowing power under a commercial A/R financing facility. That differs substantially from Canadian chartered bank credit lines, if only for the fact that those bank facilities tend to be capped at a certain limit. We should mention also that many customers who can in fact get approved by a bank often find
themselves in the position of having a low cost of funds but not being able to access all the capital they need.
So how does Confidential A/R finance work ?While it is priced competitively to other forms on non bank financing it allows you to bill and collect your receivables under you own name- accessing all the capital you need in relation to your sales growth . So, in our words, success and still being ' practically invisible '!
If you're interested in exploring what top experts deem to be the most innovate part of factoring seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can help you make that ' inside secret ' into cash flow success.
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 & FACTORING 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
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.