Business Credit Alternative : Solid Info On Canadian Accounts Receivable Loans & Financing

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Why You Should Consider A/R Financing in Canada

Information on accounts receivable loans to increase working capital financing via a business credit alternative strategy that maximizes cash flow and creates growth financing

Nothing is more important to a Canadian business owner or financial manager than being well informed - in business living in the past generally leads to failure in today’s competitive environment

So when it comes to business financing and credit knowing the advantages and costs of accounts receivables loans becomes valuable.

Many Canadian businesses still feel they are somewhat of a captive prisoner in the difficult business credit environment. While interests are low in Canada and the stock markets seem to be doing fairly ok its clear that access to business credit and financing is still very difficult.

It’s kind of like a slow thawing out, with the freezer of course being Canadian chartered banks. Many surveys suggest that a good percentage of Canadian business that applies for working capital and cash flow facilities do not get all of the financing they need, if in fact they are approved at all.

This forces you, the business owner or manager, to take a second look at what is available out there to keep your operating capital adequate. We're definitely not putting blame on the banks (we love Canadian banks) but could there be a better way for small and medium sized businesses to access credit...well we think so .

Isn’t the saying that ' necessity is the mother of invention '? In our case independent finance firms, both U.S. owned and Canadian have stepped up to the bar, providing accounts receivable loans for your financing needs. We hasten to point out that the word ' loan ' is a misnomer here... our clients use the term also but we caution them that the good news is that these facilities arent loans, they are just the moneitzation of your largest current asset - your a/r.

Accounts receivables loans in Canada go by many different terms, some you have heard of, some you may not have. They include invoice discounting, factoring, receivable financing, and our favorite, confidential invoice discounting or factoring. In effect you are maximizing your cash flow from operations by monetizing your assets, i.e. the receivables.

Accounts receivable loans are your answer to being stuck in the middle - at one end of the spectrum is your investment in accounts receivables and providing terms to your own clients, while at the other end it’s a questions of not being able to access traditional business credit to finance that same investment.

So, do you know a good solution when you see one? Receivable financing would appear to be that solution. Turning your company into a cash flow machine via receivable finance is a solid strategy being adopted by thousands of Canadian firms.

The process is simple, as you generate sales invoices are immediately sold, i.e. converted into cash, at a discount. In Canada the rates of business factoring range widely - anywhere from 9% per annum to 1-3% per month.

Business owners accept this pricing when they realize they have decent gross margins to absorb this cost, while at the same time using the new found cash to take discounts with suppliers and sell more and generate more profits. In some cases 50-100%of the financing cost can be offset in the manner in which you use your new found cash flow.

Canadian business owners would prefer that their clients and suppliers didn’t know they were financing their A/R via accounts receivable loans. That’s whey they investigate C I D, confidential invoice discounting, allowing them to bill and collect their own receivables as they wish. (Traditional factoring via the U.S. and U.K. model requires your clients be notified.

In summary, thousands of firms in Canada are moving to this type of financing. Speak to a trusted, credible and experienced Canadian business financing advisor who can review costs, procedures and benefits, allowing you to win the cash flow and working capital battle!

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



Click here for 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 100 Million $ of financing for Canadian corporations .

' 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