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Your Mission Should You Choose To Accept : Find The Best A/R Financing
OVERVIEW – Information on factoring receivables in Canada and why CONFIDENTIAL A/R FINANCE factoring is the best method for your financing receivable strategy . How it works and how to investigate this popular Canadian business financing tool .
Our key buzzwords - cost efficient, and allows you to mind your own business - what a combo!
Factoring receivables continues to gain daily momentum in Canada - If you feel either confused, misinformed, or just generally out of sync with how this type of financing works and what it costs let’s get you up to speed.
It's actually not as complicated as you thing - on a daily, week, or monthly basis, (it's your call) you provide your invoices and proof of delivery and shipment . Then what happens? You receive cash, the same day, for those funds.
Actually, to clarify, the amount of the advance on your invoices is actually 90% - you receive the rest of the funds, i.e. the ten per cent, when your customer pays - less the financing charge.
Trust us that we know from experience that clients want to always know and talk about that financing charge, so let's clarify that point right away. First of all did you know that some of the largest corporations in Canada utilize this method of financing receivable portfolios? Their cost is often either the same as traditional bank financing, and in some cases less.
However the majority of business in Canada that seeks out factoring receivables actually pay anywhere from 1 - 2% per month for the cost of factoring. But let's be clear here, receiving those funds when you invoice allows you to maintain a totally positive cash flow, and at the same time continue to grow sales and profits.
Another benefit? We point out to clients that they are now in the enviable position of taking 2% discounts on all their qualified purchases with their suppliers, and, if they are really smart, can negotiate better terms and pricing from their suppliers on product.
We referenced the term CONFIDENTIAL A/R FINANCE. So what is that exactly? It's a unique form of factoring, that by the way, costs the same as other types of factoring receivables financing. However, unlike traditional A/R financing it allows you to bill and collect your own receivables on a confidential basis.
Key benefit? Your suppliers, clients, etc are simply not aware of how you are financing your company, and we think that's important. So again, to clarify, you are financing your business on a confidential basis - your competitors who use this type of financing are not. That's your key advantage, and we think it's significant.
Selecting a receivables financing partner can be a challenge - simply because there's hundreds of small and larger firms out there with difference criteria. You have to be able to distinguish between recourse and non recourse factoring, and if the firm even offers (or has heard about!) this method of cash flow finance.
Other factors (pardon the pun) to consider are the size of your portfolio, misc fees that add up quite frankly, and must be understood or negotiated. And pricing is reflected to a certain degree by the size of your monthly receivable financing. A/R portfolios of 250k per month generally receive better pricing and structures. The maximum financed? There isn't one!
Interested? Confused? Hopefully not the latter, but if you are seek out a trusted, credible and experienced Canadian business financing advisor who will steer you through the financing receivable maze - we're sure you'll come out the other side well informed and with a factor facility that works best.
7 Park Avenue Financial :
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 100 Million $ of financing for Canadian corporations .
7 Park Avenue Financial
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
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
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