Is A/R Financing A World Of Pain? Not Anymore!
OVERVIEW – Information on accounts receivable financing in Canada. Does a receivables loan make sense for your firm . A/R Finance via a factoring or a Confidential AR funding solution
Tweet
Accounts receivable financing needs often can bring a ' world of pain ' into the life of your business. How does the owner/financial mgr overcome that challenge of receivables loan funding? We think we've got it down pat.
Part of the challenge in this critical area of business is knowing who in fact carries the solution to your business financing, working capital and cash flow needs. The reality? It's one of three possible finance providers in this area of Canadian business financing.
The players? They are:
Canadian chartered banks
Commercial finance companies
Insurance companies (Larger deals - often labeled ' securitization’
In many instances ' size matters' and the actual size of your facility will dictate a more probable solution,
One of those three entities has the solution for your needs, at a cost and structure that make sense given the financial health of your business. The concept? It could not be simpler - a continuous advance against a per cent age of your A/R.
Want to feel relaxed? That relaxing feeling, when it comes to A/R finance revolves around the owner/mgrs wish to bill and collect their own receivables. Banks and insurance firms will of course let you do that, but many commercial finance companies will insist on some sort of lock box or notification to your clients of their financing process.
The solution? Confidential receivable financing, allowing you to bill and collect your own accounts while funding your sales on an ongoing basis.
Naturally the overall financial strength of your firm will dictate which solution is most attainable
Companies with stable or growing sales and reasonable A/R quality are the best candidates for business credit lines and factoring solutions.
What issues should the business owner/financial mgr be prepared to investigate, address and discuss when contemplating a financial solution. They include:
What formula will be used to calculate monthly borrowing capability?
Interest rate or financing cost
Miscellaneous fees
Collateral
Ratios or covenants
There's no question that if your sales revenues are growing your need for a business credit line via accounts receivable financing will strongly emerge. The positive cash flow generated from these funding solutions will help you grow future sales and hopefully profits.
Looking to win at the receivables loan game? Choose to eliminate that world of pain we talked about and 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 your A/R finance 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 - Completed in excess of 100 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 & Contact Details :
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
' Canadian Business Financing with the intelligent use of experience '
ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.
Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.
Stan Prokop
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.