Accounts Receivable Financing In Canada : Inside The Factoring Cash Flow Solution

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Business Cash Flow Pain ? Here’s Some Solutions

OVERVIEW – Information on accounts receivable financing in Canada. Factoring and other cash flow solutions can enhance your chances of business success when traditional financing is not unlimited!

Accounts receivable financing just might be one of the fastest growing ways to generate cash flow and working capital for your business. Thousands of firms in Canada utilize this strategy as a primary method of funding their business. Why? Simply because when traditional bank financing can't or won't get you there cash flow factoring solutions deliver. Here's why and how - so let's dig in.

Let’s examine why this business financing strategy works and how you can best assess if a factoring receivable solution is the best choice for your firm.

We also point out to clients that the Canadian landscape for this type of financing is somewhat different from the U.S. models of this type of financing, and one of the most important decisions you can make after choosing to enter into such a strategy is simply picking the best partner for your particular needs .

Almost every business study or report you read this days has business owners and financial mgr's bemoaning the lack of business financing and funding for their business .


Business prospects have clearly improved, but business access to capital has been very slow to catch up. Most Canadian business owners and financial managers turn to those banks when they need financing; However if your firm doesn’t have very decent financials, or isn't generating profits and operating cash flow your chances of getting the funding you need to run and grow the business is low .


So we come full circle to how does factoring work and why are it a potential solution for your firm. It works in a very simply manner - you sell you invoices, either one at a time, all at once, or regular periodically at your choice . The key word is selling. When you sell something you get cash, and factoring receivables is your method of obtaining immediate cash.

The complexity of factoring, if we can call it that, is simply how it works on a day to day basis within your own business model, and more importantly, how it affects your customer base. Using traditional factoring as our explanation your firm issues an invoice, you are advanced immediately approx. 90% of the funds, i.e. almost the same day!, and when your customer pays you get the rest of our funds immediately, less a financing charge .

That aforementioned financing charge becomes the most important point of focus for many of our clients given that factoring rates in Canada on a monthly basis range from 1-3% per month.

When clients address that issue of cost we point out to them that if they have solid gross margins, can turn over receivables, and have the ability to purchase more effectively with the new cash that the cost of factoring inevitably becomes somewhat of a non event, based on the fact that this facility provides you ‘unlimited’ working capital on a long term basis.

KEY POINT - We strongly recommend Confidential Receivable Financing/Factoring for firms that want to bill and collect their own receivables and manage their cash flow needs.

In Canada the challenge becomes finding the firm that works best for you with respect to the receivable strategy we have outlined. Many of the small nuances around how factoring is marketed, explained, and works on a daily basis becomes the bone of contention for our customers.

Other short term cash flow and working capital solutions are also available inside the world of asset based financing, where ' factoring' resides. These include:

Merchant advances for retailers

SR&ED Tax Credit Loans

Non bank asset based credit lines which combine borrowing power around your total A/R, inventory and equipment


Seek out a trusted, credible, and experienced business financing advisor who can guide you through the factoring maze relative to price, size of facility, and most importantly, how the facility works on a daily basis to augment your cash flow and working capital.

Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 13 years - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com

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

' 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

Factoring and Accounts Receivable Financing Expert Tips

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Information, tips and advice on factoring and accounts receivable financing and factoring in Canada. Information focus on the importance of choosing the right firm and understanding the intricacies of this financing alternative and what pitfalls to avoid

There probably isn't a day when Canadian business owners and financial managers don't hear about factoring and accounts receivable financing as a method of financing their business in Canada. Despite its growing popularity and, we can say, relative importance in the Canadian business financing marketplace this financing mechanism is still somewhat understood.

What information do business owners need to know in order to assess if factoring, also known as invoice discounting, is a viable transaction? Also, are there mistakes and pitfalls to be avoided when considering this financing strategy?

Let's examine the answers to some of those questions. You can be forgiven for trying to figure out why factoring has increased in prominence from a time when no one had almost ever heard of it! The answer to that popularity is more simply and obvious than you might think, and its simply that Canadian chartered banks are finding it increasingly more difficult to fund accounts receivable (and inventory of course) to the extent that their customers need this financing.

When you have a situation where the actual need for financing is acute, and the benefits and flexibility seems significant it is not hard to see the rise in popularity of such a financing mechanism.

First of all, 99% of the time, factoring provides your firm with a greater level of borrowing based on your accounts receivable levels. Quite of 90-100% of you're A/R under 90 days can be financed.

So is it all good news? Not necessarily, as we are always meeting with clients that have chosen the wrong type of funding or factoring, and, even worse, find them locked into contracts they cannot get out of. That is uncomfortable for any size firm as you can imagine.

As with any newer type of financing the playing field is complex. You can be forgiven for not knowing how many factor firms are out there, how they run, what their own limitations are, and, even to a certain extent, do they in fact themselves have the funding to survive, let along finance your firm. For that reason we cannot over emphasize the need to work with a credible, experienced and trusted professional in this area.

Lets talk about some of the nuances, we can call them potential 'pitfalls 'also, of picking the wrong factoring partner. For a starter if you choose a firm who itself is not well capitalized, as we said, you might find that the financing commitments made to you cannot be honored. Canadian business has never had to think that the Canadian chartered banks could be 'out of money 'but the Canadian landscape is somewhat littered with small and medium sized factor firms that do not have the financial wherewithal to support their funding commitments in all places. That just re - enforces our idea that a trusted industry expert will guide you to the best partner for your firm.

Other issues, again, we can call them pitfalls, to look for include:

- being locked into a contract

- having the total factoring cost, or pricing, not reflected properly in your term sheet

- advance rates which don't make sense relative to the price you are paying for discounting invoices

- excessive notification and intrusion with your customers, which is very prevalent in the U.S. model of factoring (Many Canadian factor firms are branches of U.S. firms)

So let's recap. It's simply that factoring is growing in popularity. It works because it is providing funding where banks often cannot. If you don't understand who you are dealing with and the various nuances of this type of financing it becomes a burden, not a solution. Investigate this great financing mechanism, but ensure you know what you are getting into. Talking to an expert always helps - that's just common sense




Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for  Canadian companies , specializing in working capital, cash flow,   asset based financing . In business 10   years - Completed in excess of 100 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 & Contact Details :   
http://www.7parkavenuefinancial.com


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

' 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














Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

Article Source: http://EzineArticles.com/4451465

Cash Flow Challenges ? Consider These Different Not What You Think Types Of Accounts Receivable Factoring Solutions

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Looking To Escape From Business Cash Flow Challenges – Here’s How!

OVERVIEW – Information on accounts receivable financing in Canada . Factoring and other asset based lending solutions provide the cash flow you need to run and grow your business and profits

Cash flow solutions , thankfully, are a lot more available and well used in today's often challenging business financing environment. Factoring, and other versions of the accounts receivable financing strategy could well be the ultimate solution to working capital needs. Let's dig in.

Almost all business owners / financial mgrs looking for SME Commercial Finance solutions are feeling the pain of slow payments from customers, including of course those large well known and powerful corporations that can wield accounts payable deferral power! Payments norms seem to be 60-120 days in many cases!


The irony is of course that many customers still post 30 day terms on their invoices and purchase order acknowledgements from their client base. No secret that slow payables = better cash flow.

We should not fail to mention of course that there is one very obvious 'non - financial 'solution for your company, and it does not even involve additional financing effort. It is simply to enforce collections more strongly and reduce what is known as your 'days sales outstanding 'to a more manageable level. Any major dent you can put in your 'D S O 'will improve working capital and cash flow.


So we have discussed why you want to factor receivables and to some extent what your non - financial solutions are. But let's just make sure we understand what we are talking about. When you are working under a bank facility your receivables are collateralized or pledged as a security for an overdraft

. That's the best simple way we have of explaining to clients what factoring is not! What it is, though, is the sale of your invoices, on a daily, weekly, or monthly basis (the flexibility is your choice), thereby increasing your advance rates on those receivables to the 80-90% range depending on the type of facility you have structured.
More cash flow and more immediate cash flow is the most obvious solution to factoring and accounts receivable financing.


We spoke of the price you have to pay in factoring receivables. When we sit down with clients we advise them there is a real price, i.e. the financing or invoice discounting cost, but, more apparently, the major change in the way day to day business changes from a paper flow and customer interaction basis.

If you negotiate the wrong type of facility you might find yourself in the same situation that many of our clients have found when they come to us with financing woes, which is simply that they feel that in spite of the significant cash improvement they in fact feel that their factor firm partner is running their business.


Many business owners who know little about factoring seem to know one thing, that it can be viewed as intrusive by their customers. You can eliminate that 'intrusiveness 'by ensuring you have the right type of facility, one that is priced right, has straightforward terms, and works on a day to day basis for you and your customers.

Have you investigated non bank asset based lines of credit and Confidential Receivable Financing? The best factor funding facility in fact, we feel, is the one that allows you to bill and collect your own receivables, while at the same time reaping all the benefits of accounts receivable discounting as factoring funding is also known.

So what's our bottom line in our cash flow information interchange - it simply:

Determine if you can achieve self financing status via the more prompt collection of receivables

Plan B?! If financing is in fact needed consider factoring financing as a working capital strategy.

If you're committed to ' escaping ' from cash flow challenge hell seek out and speak to a trusted, credible and experienced Canadian Business Financing Advisor who can assist you with your cash flow needs.


Stan Prokop - founder of 7 Park Avenue Financial –

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 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 & Contact Details :

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

' 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

Accounts Receivable Financing and Factoring Facilities Help Canadian Businesses Grow!

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Recent Studies in the U.S., (and we believe the Canadian business landscape is very similar) suggest that one of the most viable ways for businesses to grow and continue growing in the current economic and somewhat difficult credit environment is to consider a factoring working capital facility for their business. This type of financing facility is also known as an accounts receivable financing facility.

When business credit and access to business credit gets difficult Canadian business owners should of course investigate every 'tactic 'to get their company financing properly.

If your company is doing reasonable well, and the general economic and business and credit environment is quite positive naturally more traditional financing is considered - as a Canadian business owner you know the drill - prepare an executive summary or business plan, produce several years of financial statements, and meet with your Canadian chartered bank to discuss receivable or term financing. The reality of today's economic environment is that many businesses aren't in a position to pursue this traditional financing and therefore must consider what the alternatives are.

One of the appeals of factoring / accounts receivable financing is that your business is generating positive cash flow right out of the gate.

One of the other main benefits of such a facility is that business owners and financial managers can focus on running their business, and not spending all their time on cash flow problems and working capital challenges. We would point out that the time save on collections of course refers to the factor that the finance or factor firm is the one collecting your accounts receivable. Many business owners do not like this direct contact with the customer, and that is one of the reasons that the Canadian business environment has, relatively speaking, been ' slow ' to catch on to factoring.

This necessitates a brief discussion around the concept of notification and how factoring has traditionally been done in the U.S. and elsewhere in the world. Factoring started hundreds, some say thousands of years ago in Europe and Asian. Traditionally it involved the total 'sale 'of your receivables, your firm got the cash but you didn't own or collect the receivable at that point. In recent years, due to the creativity of the North American financing markets there are numerous other product offerings related to factoring, one of which is ' non - notification '.

We believe non-notification factoring is the absolute best solution for Canadian business owners who are considering alternative financing. Under non notification type facilities you bill and collect your own receivables, while at the same time receiving cash for them as soon as you generate your invoices. This provides a double whammy, so to speak!

1. You bill and collect your own receivables and get cash ASAP

2. You maintain the relationship with your customer, which is key to most Canadian business owners

As we have noted in the past factoring is more expensive than traditional financing, but that premium that is paid provides you with literally all the cash you need to grow your business. Savvy Canadian business owners are able to use that cash to improve supplier relationships, take prompt payment discounts, and purchase more inventories for sale to their customers. In certain cases, all, yes we repeat, ALL! Of the costs of a factoring facility can be offset by good gross margins and strong operating efficiencies.

Is it any wonder by factoring, accounts receivable financing and non traditional working capital facilities are becoming more popular in Canada? We don't think so!


http://www.7parkavenuefinancial.com

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

' 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





Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

Article Source: http://EzineArticles.com/3847177

Asset Loans & Accounts Receivable Financing : How To Achieve Cash Flow Perfection

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Removing Scarcity In Canadian Business Financing

OVERVIEW – Information on different types of asset loans and accounts receivable financing in Canada . Which type of business funding works best for your firm?

Asset loans and accounts receivable financing are often sought after innovative financing solutions you probably have been hearing about. They are ' subsets ' of asset based lending in Canada, and are helping thousands of firms achieve that ' cash flow positive ' feeling. Let's dig in.

Despite its new found popularity it's been safe to say that alternative financing is still just finding its feet in Canadian business - growing in traction and popularity every day. We're going to clarify some of the myths around this type of funding for your company as well as focusing on key benefits.


One of the main differences of an asset loan is that typically it is financed through a non bank arrangement. You should seek this type of loan if you are unable to generate sufficient working capital to finance your business in a traditional Chartered bank environment in Canada. While Canadian banks by far provide the lowest cost and often most flexible form of capital for your business it's unfortunately not available to all those who apply!

Asset loans that encompass ' operating facilities ‘are structured, around the various asset categories of your business - the two main asset categories are:

Accounts receivable

Inventory

As well fixed assets / equipment balance sheet assets can also qualify for asset based credit lines in conjunction with A/R and inventories.

Leveraging fixed assets/equipt/real estate your company owns simply enhances your overall borrowing power. It's the true underlying current value of your A/R, inventory and equipment that provides you with true borrowing power - much less reliance is placed on balance sheet ratios, loan covenants, outside collateral, etc., those latter three items being the key part of any bank type facility, and is clearly focused on your historical and present cash flow generation.

The irony is , of course that historical cash flow ratios do not work for many companies who are experiencing temporary challenges and who require ' bulges' in working capital to fund their growth and operations.

Asset loans, and asset based lines of credit focus on the collateral. Many clients we deal with have the collateral in A/R, inventory, purchase orders and new contracts, equipment, etc but can’t satisfy traditional cash flow lending requirements. They then are the true prime candidates for an asset loan, an asset based line of credit, or at its simplest and most basic form, a receivable financing that fully margins their accounts receivable with no set limit on future growth.

So now we understand what the facility is. How does it work on a day to day basis you might ask? The answer is simply that it’s a facility that goes up and down, frankly every day, with your borrowing needs. As your receivables and inventory fluctuate you draw down against their current value. This optimizes the amount of cash flow and working capital available for sales growth and profit generation.

The security mechanisms around these facilities are very similar to any type of bank financing. Additionally approval is often much faster as a simple first charge lien is placed on the assets being financed.

Advances rates on accounts receivable and inventory are established and as cash is advanced and then repaid by your customers the cash is turned over to pay down your revolving balance. It’s as simple as that. The true beauty of the facility is that as you grow your facility grows with you.

These working capital facilities, predominately A/R an inventory based are becoming more traditional in nature ever day. If you're a business owner or financial mgr looking to eliminate the term ' scarcity ' in your business financing and growth needs seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can get your firm back on the road to cash flow perfection .


Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com


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


' 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

Accounts Receivable Financing In Canada : Cash Flow Factoring Wins The Speed Test For Your Funding Needs

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Betting Your Company’s Future On The Right Cash Flow Financing Solutions

OVERVIEW – Information on accounts receivable financing in Canada. Here’s why thousands of businesses are looking to factoring cash flow solutions for their operating funding needs for growth and more financial stability

Accounts receivable financing alternatives were virtually close to unheard of some years back. How did ' cash flow factoring' become so popular and fast growing for business owners and financial mgrs who need to access working capital funding for their businesses. Let's dig in.


If your firm does not have traditional financing in place with a Canadian chartered bank, or, more importantly, can't negotiate that financing, then you are forced to explore alternative working capital solutions.

How long does it take to put an A/R financing solution in place in Canada? If you are well researched or use the services of a trusted and credible experienced advisor our experience is that you access that type of facility within a couple of weeks. This is significantly less time than it might take you to negotiate traditional bank type financing or a working capital term loan with banking / credit union or other traditional sources of capital.

So why then are owners/mgrs looking at this type of solution for their growth and operating needs. While historically some industries have used the financing more than others, we can quite safely say that almost every industry in Canada is currently utilizing this financing solution.

The most typical firm will often be one that has expansion capital needs or is simply growing too quickly. It is somewhat of an irony that banks and more traditional lenders in fact frown on hyper growth because of the imbalance it creates in changing in working capital accounts.

The bottom line - you're simply forced to carry more A/R and inventories. That issue though is the simply reason that working capital funders like your business growth - more assets to finance

In some cases factoring can be a temporary ' stop gap ' solid in financial distress or restructuring - generally firms in this category use factoring for a period of time and then gravitate back to a more traditional type of financing .

Many clients we meet and speak to always want to discuss their perceptions that factoring is a ' costly ' method of financing. Congratulations! You are 100% correct and 100% incorrect!

While the face value cost of financing your receivables in a factoring solution might seem much higher than bank rates let’s make sure to cover off a few key points. First of all it is costing you to carry your accounts receivable. Customer we meet with who sell on thirty day terms are constantly telling us they are waiting 60 and 90 days to collect their receivables.

Remember that savvy business owners comprehend the cost to carry those receivables. All of a sudden factoring seems a bit less expensive. Also, consider this scenario, do you want to sell your product or service once, and wait 60 days to 90 days to collect your funds. Or ... would you rather sell your product or service, get paid the same day for those goods (that’s what factoring does) and then re invest those funds into more goods, allowing you to bill your customer, and generate more revenue and profit?

Firms that have respectable gross and net profit margins can fairly easily absorb the additional costs of A/R finance via a non bank commercial lender. If you have those decent margins you can quickly see that a strong case could be made that factoring is the cheapest method of financing! And remember it’s cheaper and easier than accessing more equity or taking on term debt on your balance sheet. The bottom line of factoring: It cash flows your sales instantly.

We strongly suggest you analyze your own ' costs to carry ' in the context of being able to sell your products and services and replicate that process 2-3 times in a 60-90 day period .

Don’t forget to also check out CONFIDENTIAL RECEIVABLE FINANCING , allowing your company to bill and collect it’s own A/R without any notification to clients, suppliers, other lenders, etc . It’s our recommended cash flow solution as a subset of factoring A/R in Canada.

Perceptions? Reality? Consider utilizing the services of a trusted, credible and experienced Canadian business financing advisor who can help you demonstrate the ' speed test '

success that comes with cash flow factoring.











Stan Prokop - founder of 7 Park Avenue Financial –

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 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 & Contact Details :

http://www.7parkavenuefinancial.com


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


' 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