Accounts Receivable Finance Solutions In Canada : Break Free With This Receivables Purchase Strategy That Works - Confidentially

Use Accounts Receivable Financing To Fund Your Company Just Like The Big Guys

OVERVIEW – Information on accounts receivable finance solutions in Canada . Why a Confidential receivable purchase finance strategy works when it comes to cash flow

Accounts receivable finance solutions are both used and needed by any size of company, all the way from start up to the largest corporations in the world. But there's a difference in how companies finance their current assets such as A/R, but it's still possible for companies in the SME sector to achieve the same benefits. Let's dig in.

The methods that Canadian business employs, what they are called and how they work is ' the nut ' of the matter. For instance some of the large mega corporations in Canada (and the U.S.) use a process called ' Securitization' that is the essence of what we're talking about - a receivables purchase strategy.

How does that process work, and can it be used in some manner by the smaller firm who is looking to cash flow their current assets, primarily the receivables generated from commercial sales .

It's important to always understand that A/R financing is never really a ' loan’. Typically it's just a ' systematic' method of cash flowing your sales as soon as you generate a sale - if your choose!

By the way, the essence of good accounts receivable management never changes , whether you' re using securitization or a comparable alternative such as what we'll discuss - CONFIDENTIAL A/R FINANCING . At the heart of anyone selling on credit is prudent risk management, good collections, prompt invoicing, allowing for bad debt, etc.

Whether your firm is securitizing receivables or financing them via a confidential receivable finance solution it’s always about the ' aging ' of the receivable. Typically the benchmark for uncollectibility and financeability is 90 days - after that timeframe the A/R lender, bank, or commercial finance company etc assumes that those accounts are uncollectible, and unfinanceable.

What then is the essence of Confidential A/R finance that can be used by any company that wishes to finance sales growth? It could not be simpler. Your firm bills and collects its own receivables - cash for those sales is sent directly to your bank - allowing you to finance operations and most importantly growth. The solution is optimal for those firms that cannot achieve any or all of the bank financing they needed vis a vis a proper business credit line.

If you're looking for ' big guy ' solutions for your business and want to ' break free' from the lack of commercial financing 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 a receivables purchase strategy that works.



Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN CONFIDENTIAL A/R FINANCING EXPERTISE




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Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '



























Stan Prokop

Unclear On Accounts Receivable Finance ? A/R Financing Companies Will Turn Your Business Around.

Looking For A Canadian cash flow solution?



Information on financing companies in Canada offering accounts receivable finance .Does a factoring / invoice discounting program work for you ?


The proverbial ' turnaround '. Typically we think of if as a reversal in fortune, whether in sports, life, or in our case today, ' Business'! More and more Canadian business owners that are looking for a turnaround in their cash flow and working capital are considering accounts receivable finance from financing companies in Canada to effect that turnaround.

But is that a sensible solution? It certainly is with the right circumstances and the right information. Otherwise consider it somewhat of a deadly minefield of misinformation and dealing with the wrong parties. And at a time when the Canadian business financing environment is at (or close to!) it's tightest it makes sense to have the right information at hand.

So it starts at the river, where the cash flows (or isn’t flowing!) That's lack of flow is absolutely the right time to contemplate an A/R receivable finance strategy. Simply speaking it's a tool that can be used by business of all size, from start up to major corporation. Financing companies in Canada sometimes do not do a great job of even explaining things properly, or even advertising them in a manner that makes it clear what the solution involves. So don't get confused when you hear terms like invoice discounting, confidential A/R financing, factoring, etc. Essentially they are all the same, simple as that.

Cash flow tends to slow down when your business or the economy, or both slow down. So it’s at that time when you're probably most creatively challenged to come up with working capital solutions.

Is bank financing for the start up or existing SME (small medium enterprise) extinct? We won't weigh into that debate, but safe to say that that if your firm is not a very solid citizen in good standing with the bank... well let's just leave it at that!

As we have intimated half the battle in accounts receivable finance is just understanding the solution, and knowing how to choose the right financing companies to implement that solution. First of all it comes down to understanding the benefits, and the mechanics of the A/R finance strategy.

There are essentially two key offerings in the Canadian marketplace, the traditional one that's been around before the Dead Sea was sick and a newer, and in our belief preferred solution to that same problem. The traditional solution has you receiving anywhere from 70-90% of your a/r via an immediate advance on the invoice, as soon as you generate it, or at anytime thereafter, as long as the invoice is less than 90 days old. When that invoice is collected by the finance companies that offer this traditional solution you get the remaining amount back immediately, less a financing charge which typically is in the 2-3% per month range assuming a collection period of 30 days.

The alternative is a confidential invoice financing solution, allowing you to bill and collect your own receivables, while at the same time receiving the cash advances as you generate sales/invoices. It's the confidentiality of this type of offering, i.e. no notification to any of your clients or other creditors that we feel is appealing to the Canadian business owner or financial manager.

So the benefits of either of the above strategy now become immediately clear - you're in positive cash flow , suppliers can now be paid, payrolls and government remittances can be made, and , oh yes, you can grow your business again.

So depending on which solution you choose the bottom line is that your turnaround is in motion! Speak to a trusted, credible and experienced Canadian business financing advisor who can work with you to implement the solid cash flow solutions you need... today.




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 7 years - has completed in excess of 80 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 re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/financing_companies_accounts_receivable_finance.html

Canadian Accounts Receivable Finance ! Avoid The ‘ Fat Smoker ‘ Crisis Via Confidential Invoice Factoring

Invoice Discounting Fixes Future Cash Flow Challenges – Today!

Information on accounts receivable finance strategies in Canada . Let confidential invoice factoring take you out of crisis mode in cash flow and working capital management.




We’re the first to admit we’re always on the lookout for a solid business analogy. Enter the ‘fat smoker’ crisis as it relates to accounts receivable finance and confidential invoice factoring in Canada.

A U.S. publication entitled ‘Strategy & The Fat Smoker ‘ talks about how either in our personal or business lives we wait until we are in crisis mode before taking action. So why do business people, especially business owners or those in charge of finances wait until that critical time when it comes to addressing cash flow challenges. Can we address the problems of an overweight smoker immediately ? Rarely .

We know we will never really know why, but we can offer some solid pre – emptive strategies around monetizing your A/R into real world cash flow, the moment you generate that sale and invoice.

It’s the build up of accounts receivable and inventories which in fact cause that crisis – it might come from strong sales growth - not the worst problem in the world to have in business , right ?However when a cash flow crisis comes from a slow down in sales, that’s often a different story .

The very quick way to address the build up of A/R as it relates to accounts receivable finance is to do a very simple calculation, that being your days sales outstanding. Let’s use a quick example, and in our example we’ll focus on a quarterly number. (You can use any timeframe you wish). So we’ll take our accounts receivable level in total dollars at the end of a quarter and we’ll multiply that by 90 days, and then we will divide that number by your sales for those 90 days. Voila! You now have your DSO or days sales outstanding.

Now what? You have to benchmark that number on your selling terms, and also measure it against your days payable to suppliers and other lenders. Simply speaking if your terms to clients are 30 days, but your DSO is 88 days, and your terms with suppliers are 30 days… well… we think you see the problem!

Many Canadian business owners and financial managers see the problem, however many in fact combine the challenge of making money and having money. Again, simply speaking, sales don’t pay your suppliers, cash does!

So, if curing the ‘ fat smoker’, or in our cash our cash flow problem is the challenge, how can that be done? Invoice factoring, or its better cousin, confidential accounts receivable finance is in many cases the solution. It is a solid cure for the financial side of your cash flow and financing challenges.

Many clients we meet are forced into A/R financing – either via losing their bank lender or being unable to meet criteria for any other ‘ traditional financing ‘.

Invoice financing monetizes your A/R into instant cash flow. That heavy investment of A/R on the left hand side of your balance sheet now shows ‘ cash on hand ‘. When you qualify for confidential invoice factoring you have raised the success bar even higher, you are in a position to bill, and collect your own invoices outside the regular process of invoice factoring.

Be proactive, don’t be thrown into the fixing the ‘ fat smoker’ crisis of cash flow shortages on an emergency basis . It’s tough ! Understand your DSO and speak to a trusted, credible and experienced Canadian business financing advisor on ways to monetize what is quite often the largest asset on your balance sheet.











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 7 years - has completed in excess of 80 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 re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/accounts_receivable_finance_invoice_factoring.html

Supersize Your Canadian Business Accounts Receivable Finance Success via Confidential Invoice Discounting Factoring

Surprised? Clients often are, when we tell them that they have the ability to ' super size ' their level of working capital and cash flow via a little known business accounts receivable finance strategy known as C I D - confidential invoice discounting or factoring .

What do we mean exactly by the reference to supersizing? Simply that it is highly possible that on utilization of this type of financing you will often double, in some cases triple your access to immediate cash flow and working capital. And in some cases where you would have been self financing or had non financing in place whatsoever, well, your firm has it now.

So what’s C I D - how does it work, what can we compare it to, what does it cost, and why is it so innovative. That’s a lot of questions, so let’s get to some basic answers.

C I D, as we stated is our terminology for confidential invoice discounting, more commonly also called factoring. This type of financing is used by firms of all sizes (even major corporations, by the way) but in reality seems to be more common in the S M E (small and medium enterprise sector). It even accommodates start ups if you can believe it, as any type of financing for a start up is often a major challenge for the business owner.

As a Canadian business owner in the business to business market you typically have a large investment in accounts receivable. But how do you finance that investment when traditional capital is not available, or the reality is that you dont qualify?

That's exactly where business accounts receivable invoicing and discounting comes in. Your ability to sell those invoices as you generate them, using the A/R as collateral allows your company to turn into an instant cash flow machine.

So that’s the essence of factoring, or invoice discounting, but where does our key benefit of confidentiality come in. Right about here! Because the key difference of C I D and business factoring is that you are in control of your sales ledger and customer base, not the factor firm. That’s where you immediately gain superiority over other firms who use this type of financing but are forced by their factoring agreement to make their customers aware of how they are financing their firm.

On a daily basis C I D work in the same manner as what we will call ' traditional ‘ accounts receivable finance and invoice discounting. It’s a simple process. You generate invoices for the products and services that your firm provides and you receive immediate same day funds for 90% of the invoice value. The remaining 10% is held back until you client pays, you then receive the 10% less a finance fee of anywhere from 1-2.5% per month.

Clearly the advantages of this type of business financing couldn’t be more pronounced - its quick financing, its easy to administer ( you bill and collect your own a/r) and you use that valuable working capital and cash flow you have just achieved to run your business on an operating basis .

So, does Confidential Invoice Discounting seem like the proper accounts receivable finance strategy for your firm? Ultimately you will decide that - we're simply letting you in on the secret and letting you be the decision maker around super sizing that cash flow. Speak to a trusted, credible and experienced Canadian business financing advisor on how this type of business financing can put you ahead of the pack!



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 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/accounts_receivable_finance_business_invoice.html

The Unknown Secret In Canadian Accounts Receivable Finance - C I D Business Factoring And Financing in Canada

Want to feel initiated? Privileged? That's kind of what a secret is about, and we're sharing a great one today, a strategy known as C I D accounts receivable finance - it's our version of the best factoring financing in Canadian business today.

Let's back step a bit first though. Why are you considering receivable finance, and even more to the point, why are thousands of other firms, your competitors included! already there in that business decision to finance business receivables ?

Actually there are only two answers to that question... maybe three. First of all it’s because this type of working capital and cash flow financing is relatively easy to work with, and secondly, the more you analyze it, well it seems to make sense. Our third reason - in many cases clients we meet are almost forced to consider this type of business financing because factoring financing becomes their only method of ensuring their business has the working capital and cash flow to success.

In talking to clients we always try and dispel the perception, and trust us it’s just that, that this is the ' poor mans ‘(or woman’s!) solution to business financing. Hardly, some of the largest, most well known names in Canadian business, even public companies by the way, utilize accounts receivable finance. It’s just disguised a bit more cleverly by those finance folks as securitization, etc.

Anyway, back to our key point today, which is simply is there a way to get all the benefits and financial leverage of accounts receivable finance and cash flow generation in a manner that allows you to control your own destiny . 99% of factoring financing in Canada is done in a very... lets call it ' pure ' manner .You sell your invoices, the buyer, i.e the ' factor' notifies your clients that they have purchased the receivable, and you get your cash flow - the same day . In effect you've just turned your company into an automatic ATM machine with yourself having the key to the back of the unit!

But wait... perhaps like hundreds of other businesses that we meet you dont want to let the world know how you are financing your business, including your competitors by the way! Is there a solution for that?

There is. It’s what we've termed ' C I D’; our terminology for confidential invoice discounting or factoring financing. It allows you to bill and collect your own ar, while at the same time getting all the benefits of that same day cash flow everyone else is getting. Unless we're missing something, it’s the ultimate win/win?!

An now you have opening up a window of financing that has created for your company all the benefits of this type of Canadian business financing - without taking on business debt, because C I D accounts receivable financing is simply monetizing or cash flowing your 2nd most liquid current asset - your a/r . And turning that into your first most liquid asset - cash flow!

Intrigued? Interested? Hopefully not confused? Speak to a trusted, credible and experienced Canadian business financing advisor on the benefits of factoring financing in Canada, including C I D!

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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 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/accounts_receivable_finance_factoring_financing.html

The Only Disadvantage Of Factoring Receivables And Why Confidential Accounts Receivable Finance Works!

Looking for a creative, ‘outside the box’ Canadian business financing solution? You may have investigated factoring receivables already but either didn’t understand how accounts receivable financing works, or, probably more to the point weren’t comfortable with how it works for your firm on a daily basis.

We've got the perfect solution for those worries, and its called confidential receivable financing, in Europe its more commonly known as C I D, confidential invoice discounting .

Let's examine why this type of business financing works in general, and then let's focus in on why our solution makes a solid solution even better.

In general terms when you 'factor ' your receivables you essentially sell them to the factoring firm. That can be done on a one of basis, on a periodic basis, or all the time. That’s one of the key advantages of this type of financing, you only use what you need, and... More importantly, you only pay for what you use!

Paying for what you use in accounts receivable financing is key because factoring, in general terms can be a more expensive type of financing. We say ' can be ' because quite frankly if you use it properly it actually could be a cheaper method of financing than your bank. That's a point our clients are always amazed at when we discuss this type of Canadian business financing.

The cost of factoring receivables can be significantly offset, or in some cases removed completely by your firm using these funds to take supplier discounts and purchase more efficiently and at better prices .

And... Think about this carefully, if you can finance your receivable the days you issue the invoice (that’s what factoring does) then you are in a position to generate funds to sell more products and services to your customers, generating additional margins and profits. Or, of course, you could take the non factoring approach and wait for your customers to pay you in 30, 60, or... dare we say it, 90 days. And that hasn’t worked for you in the past, which is why you are looking for a better solution.

So lets examine how factoring works, and lets get you over the hump, so to speak, on why our preferred type of accounts receivable financing is confidential invoice discounting .

When you generate an invoice under a factoring receivables agreement you receive 90% of the invoice in the form of immediate funds the same day. The other 10% is a holdback, and is remitted back to you promptly when you customer pays, less the financing charges, which are typically 1.5 - 2% for a 30 day period.

In 99% of traditional factoring arrangements the factor company verifies your invoice with your customer and actually collects it. Under confidential invoice discounting you bill and collect your own receivables, and are in a position to finance your firm without your customers and suppliers having anything to do with how you finance your business.

Speak to a trusted, credible and experienced Canadian business financing advisor on why confidential accounts receivable financing will work for your firm, allowing you to supercharge that cash flow and those profits!

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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 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :


http://www.parkavenuefinancial.com/factoring_receivables_accounts_receivable_finance.html