Financing Receivables & Sales Is Best Achieved With These Various Factoring Solutions

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The Rise..And Continuing Rise Of A/R Finance Solutions In Canada

OVERVIEW – Information on business factoring in Canada. Financing receivables is an accepted way of ensuring your company can satisfy critical cash flow needs . Understanding how a/r finance works, what it costs , and how it can benefit your business is important

Factoring, known as the receivable financing solution continues to gain momentum as a financing alternative of choice for Canadian business owners and financial managers. We know why. Let's dig in.

The main reason? It's a case of a common sense approach to improving cash flow and working capital without taking on any debt and at the same time allowing your firm to grow without traditional type financing that might be difficult, or in some cases, impossible to achieve.

A lot has changed in the part of alternative financing, including rates / costs that have improved a great deal!


Clients ask us what risk or cost is involved in locking into a one year contract - the reality is that most firms considering factoring (also known as receivable financing, receivables discounting) actually do stay with this type of facility for at least a year. Firms that factor their accounts receivable usually have two options at the end of a one year fixed term - either move to a competitive factor facility, or in some cases migrate back to or achieve traditional Canadian chartered bank line of credit financing.

Never any doubt that traditional bank financing always has the lower rate, the reality is that it in many cases does not provide you with the amount of working capital you need if you are in high growth mode. Alternatively you may also have trouble meeting some of the bank ratio and covenant guidelines that come with those very respectable bank facilities.

We point out always to customers that the largest corporations in Canada and the U.S. in some cases also use A/R financing type facilities - it simply gives your firm, as well as the large firms, maximum leverage on working capital without taking on debt.
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The amount of your factoring facility and the rate it commands is dependent on three issues -

1 The general overall risk profile of your firm - re growth, profitability, type of industry etc

2. The size of your total receivables

3. The overall customer quality or credit worthiness of your customer base

If you are having financial or growth challenges it is generally not recommended by finance people that you take on more debt - factoring solves this problem nicely - you are simply liquidating your receivables faster without borrowing .

Our most recommended solution for our clients? Confidential A/R financing!.. Allowing you to bill and collect your own receivables while retaining all the benefits of factoring.

Seek out a trusted, experienced and credible advisor in this niche area of Canadian business financing and assess your factoring options relative to type of facility that meets your growth needs. A factor facility with rates, terms and structures that suit your business model and provide you with all the working capital and cash flow you need is a competitive advantage.



7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

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 100 Million $ of financing for Canadian corporations .







7 Park Avenue Financial

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

' 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