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The 7 Park Avenue Financial Way to Solve Lack Of Business Financing
Receivables factoring . Here is your daily spoiler alert - Factoring accounts receivable has entered in to the modern day financing arena , big time !
For those firms that either can't or don't want to access traditional bank financing the ability to cash flow your receivables on an ongoing basis is a solid way to generate immediate cash flow . Not do overdo our cliche's but in case you haven't heard - Cash is King .
But is this method practical for your firm when in fact there are other options our there in today's large array of business finance mechanisms. In fact there are a number of reasons why factoring accounts receivable is a preferred solution for many Canadian firms.
In today's world of globalization and highly competitive business environments business owners and their financial managers don't want to be constantly struggling for cash flow solutions. While receivables factoring is more expensive than traditional bank based line of credit facilities the vast majority of business owners are willing to give up 1-2 per cent of their gross margins as opposed to losing large or new clients or slowing down sales growth on purpose in order to conserve working capital.
We've referenced ' modern day ' receivable financing - that's because a perception remains that under ' old school ' a/r finance there was a perception that your clients would potentially lose faith in your company as a supplier. That's no longer an obstacle when utilizing such solutions as Confidential Receivable Financing .
Clients of 7 Park Avenue Financial will often ask us why thousands of firms are now utilizing this method of financing . That requires a quick history lesson, in that after the 2008 recession business lending took a dramatic turn, with many firms exiting the marketplace or just disappearing themselves. Enter factoring of trade receivables as an option - given that same option has been utilized in various forms for hundreds of years.
Benefits of commercial a/r financing strategies should be obvious to all parties :
1. Businesses generate immediate cash
2. Your balance sheet remains intact - factoring is not a debt facility - you're simply cash flowing current assets .
By the way , your borrowing facility can be further enhanced by combining inventory, receivables and equipment into one asset based business line of credit . In our experience these facilities almost 99% of the time provide more liquidity than you can ever achieve from a bank, without all that emphasis on personal guarantees, covenants, restricted borrowing, etc!
Although it's fair to say that a/r financing seems to lend itself to smaller firms in the SME COMMERCIAL FINANCE space business owners might be surprised to know that large corporations also utilize this method of financing . Naturally the big boys prefer some fancier names, such as ' securitization ' etc.
If you are looking for invoice financing solutions seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success .
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Click For 7 PARK AVENUE FINANCIAL website !
7 Park Avenue Financial provides value added financing consultation for small and medium sized businesses in the area of cash flow , working capital , and debt financing .
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 .
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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