Financing Sources In Canada : Tracking The Real Payoff In Cash Flow AR Finance

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Here’s Your Breakdown Of Financing Sources For Cash Flow And A/R Finance

OVERVIEW – Information on financing sources in Canada that augment working capital . Cash flow and AR Finance solutions are at the heart of sound company financing practices

Financing sources for cash flow and a/r financing are at the heart of the sometimes complicated business of cash mgmt and working capital financing . We're breaking down the basics. Let's dig in.

The ultimate effect of poor business financing strategies is of course failure of the company; the ability of the business owner / financial mgr to manage inflows and outflows of capital also has a key effect on profitability. Many businesses in the SME commercial segment of the Canadian economy don't even practice rudimentary cash flow planning - doing that successfully and regularly allows owners/mgrs to get a better handle on their expenses and receivables.

Proper mgmt of your business operations allows business to generate more sales or take on more contracts, and also make any necessary investments in R&D or equipment needed.

Bank lines of credit, which requires typically collateral over all the assets of your company , while providing usually all the credit line you need to run your business also has some limiting factors, not the least of which is the fact that the bank won't allow other senior or junior lenders to access that collateral security .

However, no one denies the fact that bank capital provides the lowest cost of flexible ' interest only ' financing when it comes to revolving lines of credit. Key factors that allow you to be approved for bank credit lines are of course clean financials that exhibit profit and a healthy balance of debt and owner equity. And did we forget to mention personal guarantees of the owners?

Short term financing sources also are internally manageable. We're talking about your ability to manage trade creditors and suppliers. After your business establishes itself with suppliers, large and small, payables mgmt allows you to extend cash flow needs by delaying payables via extended terms.

Don't forget also that managing your own receivables and cash flow leads to higher profits, lower bad debts, and less reliance on outside financing.

Many owners/mgrs, particularly in start up or early stage growth augment cash flow by using personal resources such as credit cards, home equity, etc. While thousands of firms compliment cash flow needs with those two resources sooner or later the company must face the fact that financing a large amount of day to day expenses with personal credit probably leads to more troubling questions! That's a domino theory you don't want to explore.

Financing your sales via the sale of your accounts receivable, aka ' factoring’ is a very specialized form of cash flow financing. A/R finance allows you to access cash as soon as you generate a sale and issue an invoice. A properly implement AR Finance strategy (our recommendation is a CONFIDENTIAL RECEIVABLE FINANCE strategy) will finance unlimited growth and sales and does not come with all the requirements of Canadian chartered banks.
Other short term sources of capital include :

Inventory loans
Sale Leasebacks
SR&ED Tax Credit Financing

If you're looking for the payoff in proper financing sources for your business 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 your cash flow finance needs.



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 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/financing-sources-cash-flow-ar-finance.html

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


Fax = 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

Confidential Cash Flow Factoring - Turn Accounts Receivable Into Your Best AR Finance Strategy

Want To Speed Up Cash From From Your Current Mobility Scooter Pace ? Here’s How

We are going to demonstrate how a little known, and in our opinion almost a secret strategy

called






confidential cash flow factoring can turn your accounts receivable into a virtual cash flow machine, turning past AR finance obstacles into cash flow solutions!

Search engine analysis will show you that thousands of Canadian businesses search everyday for what they hopefully believe will be valuable information around the most popular method of business financing today. Those businesses, of all types and sizes by the way (even the largest corporations in Canada) want to know why cash flow factoring offers unlimited unlocking of cash flow based on your sales and receivables.

Initial explanations and overviews to clients sometimes become bogged down in key issues such as the cost of this method of AR finance, and, equally important, is the unwillingness of some clients to accept how invoice discounting (that's another name for this type of financing) works.

Canadian business owners and financial managers want to like a good thing, at the same time they want to know how it works

and how they avoid any pitfalls. Lets discuss the ' how it works ' portion first and then share with you the method we believe eliminates the major pitfall perceptions viewed by many firms considering this type of financing.


We'll focus on small and mediums sized business - the larger corporations have access to all sorts of financing and external finance strategies - while the small and medium sized businesses in Canada tend to rely on their own cash flow to fund their ongoing growth and working capital. In fact many firms realize they have potential to grow sales and profits, but cant because of that lack of working capital.

Back to the 'how it works'! Cash flow factoring of accounts receivable is the ongoing sale, in whole or in part of your sales invoices as you generate them and deliver products and services to your customer. The invoices are purchased at 1- 3% discount from yourself, and you receive cash, 99% of the time the same day, for those sales. So, in effect all your sales now fuel that cash flow machine you have turned your company into.

So far, so good, right?

Where complications arise, especially in Canada, is the fact that this type of financing requires your client to be notified of the process, directly, or indirectly, and payments are required to be forwarded to your factoring finance firm. Canadian business, in our eyes, has a reluctance to involve their customers in their internal financing policies, and challenges. As a result, many firms are skeptical of entering into AR finance of this manner.


Is there a solution? We told you there was - it's a breakthrough called confidential invoice discounting. This type of financing comes at the same cost, allows you to bill and collect your own receivables, and gains all the benefits of that cash flow factoring machine we turned your company into.

Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can put you into a proper AR finance facility, allowing you to reap the benefits of cash flow invoice financing, while at the same time allowing competitors, customers, and vendors to remain exactly where you want them to be, outside your financing strategies and challenges! Let's let your competitors try and figure our how you're doing so well in both growth and profits.



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 100 Million $ of financing for Canadian corporations . Info /Contact :

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/6072401

AR Finance In Canada : Avoiding Rough Waters In Receivable Services Purchase Financing

Take A Swipe Against One Of The Two Negative Issues In A/R Financing in Canada

OVERVIEW – Information on receivable services in Canada . When it comes to purchase financing and AR Finance certain negative perceptions around this method of financing can be easily corrected . Here is how

Receivable services as they relate to purchase financing are often a major point of discussion when it comes to two areas of consideration - how they work on a day to day basis, and of course... pricing.

Some might say there are some ' rough waters '

as it relates to this aspect of Canadian business financing. We've got some thoughts on pricing, but our real focus on AR finance today is really how a facility works. Let's dig in.

Many clients we talk to are simply not aware of the growing popularity of receivable finance - and it's a world wide movement by the way - if anything Canada was a bit late to the game. Confusion often exists in the mind of the business owner/financial manager as it relates to the differences in financing your A/R via the bank or a third party commercial finance firm.

We can say somewhat ' tongue in cheek ' that one of those differences is approval by they way!. But putting aside getting approved the real difference is how these facilities work.

The words ' purchase ' and ' collateral ' are key in understanding the financing differences. In the case of a Canadian chartered bank it takes your AR as collateral under a borrowing agreement. The paperwork around receivable financing in effect states you sell your A/R as opposed to collateralizing it. That's the key difference.

One benefit of receivable services is that you can utilize it on an ongoing basis for all your accounts, all the time, or, if you choose you can selectively only utilize what you need at any given time. In fairness that of course also exists at the bank under their facility - in both cases you are only paying for what you use.

For 99% of all purchase financing of receivables there is a requirement that your client be 'notified ' of the financing arrangement. This creates those ' rough waters ' for many business owners as they don't necessarily like to have the world see how they are financing their business, much less their competitors.

So can the owner/manager seeking cash flow financing avoid that whole issue of notification? The answer is a resounding ' YES YOU CAN ' - and that is achieved via Confidential Receivable Financing.

How does that work then? It's pretty basic - your firm and your firm alone are responsible for billing and collecting your own invoices. Naturally the better you are at extending credit and managing asset turnover in receivables lowers the overall cost of this method of financing. (These costs can be reduced big time in other ways - including your new found ability to take discounts with suppliers as well as the opportunity to negotiate better pricing with suppliers based on payment terms and ability)

The qualifications for Confidential A/R financing are still the same - your customers must be inside North America, you must have the ability to produce regular financials and your business must be in a steady or upward spiral as opposed to ' downward '!

AR Finance purchase financing of receivables makes total sense when you are unable to achieve the cash flow and working capital needs via a bank or owner equity. To re view how things work , costs, and benefits consider seeking out and speaking to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in navigating rough waters in financing considerations for your company .



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 A/R FINANCING EXPERTISE







Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
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 '

Stan Prokop

AR Finance : We’re Opening Up On What The Dickens Receivables Financing Factoring Rates Are About

Everything You Wanted To Know ( But were afraid to ask ) About A/R finance

OVERVIEW – Information on the cost and mechanics of AR finance in Canada . Receivables financing factoring rates explained relative to cost, structure, ways to minimize cost and maximize working capital financing




AR Finance considerations often force the business owner or financial manager to consider the costs of Receivables Financing Factoring Rates as compared to traditional banking, or the worst alternative, no working capital financing at all. So, everything you wanted to know, but perhaps were afraid to ask? Let's dig in.

So ' what the dickens ' is Receivable financing all about for a starter and why do top experts tell us that it's one of the fastest growing parts of the cash flow financing industry. (We’re the first to love a great expression, and not everyone knows that it was Shakespeare

that coined such terms as ' WHAT THE DICKENS, DEAD AS A DOORNAIL, in such plays as Merry Wives of Windsor and Henry V1 respectively)










A/R finance, simply speaking, is simply a method in which Canadian business owners and financial managers, predominately in the SME commercial finance needs sector can translate receivables into cash flow. The other alternative is of course the traditional bank line of credit which many firms, depending on their stage and financial status, cannot access.

We meet many clients, by the way, that actually can access bank financing, but just not enough! More often that not that's because of hyper growth which almost always wrestle with. (It throws ratios out of whack).

AR financing is a subset of asset based lending in Canada. It can be combined with a full working capital non bank revolving facility, or it can be used as a ' stand alone ' method of financing your firm. As an example service companies such as personnel agencies or software technology companies often carry no inventory, and their entire cash flow model revolves around financing customer accounts.

So what about those receivables financing factoring rates in Canada? The bottom line is that they vary, and can be anywhere from 1.25% per month all to facilities that cost 3 times as much. In all cases they are higher than bank financing, but they deliver on all the cash flow and working capital you need for your business.

While some may consider this method of cash flow financing expensive the alternative is limited or no financing which can be hazardous to (business) health. When you are unable to finance daily operations or to meet any of your term debt obligations unlocking receivables via AR Finance is a true life saver for thousands of businesses in Canada.

Remember also that you are in effect ' trading off' the cost of financing receivables and those receivables financing factoring rates versus your ability to grow your business and generate profits and solid return on investment. Remember also that you could well be eligible to consider 7 Park Avenue Financial = CANADIAN CONFIDENTIAL RECEIVABLE FINANCING Expertise allowing your company to bill and collect its own receivables, no notice required to your clients, which is often the case with old school factoring.



So if you choose not to be ' the bank' for your customers 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 your AR finance needs. It’s your probable solution to everything you wanted to know but were afraid ….!



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 :


http://www.7parkavenuefinancial.com/receivables-finance-factoring-rates-ar-finance.html





Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:

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 '































Stan Prokop

AR Finance Via A Receivable Financing Company : You Thought You Knew And Then You Read This

Looking For Real Words Of Wisdom In Receivable Cash Flow Financing?

OVERVIEW – Information on AR finance strategies in Canada. What does the Receivable Financing Company Offer That You Need?




AR Finance in Canada seems straightforward to most Canadian business owners and financial managers for the most part. However if you are not dealing with the right receivable financing company under conditions that reflect how you do business... well let's just say... Confusion has the ability to set in.

So let's share some of those pearls of wisdom around the cash flow financing mechanism that works great... when you understand whats happening.

Rather than taking on debt to finance your firms ongoing working capital needs many companies choose instead to monetize their 2nd most liquid asset - A/R. ( Cash on hand is of course your most liquid asset - it's just not as plentiful as you want it to be!)

If you firm meets bank criteria for cash flow / working capital needs you're in effect using that A/R as collateral for what most call a business line of credit. That's not really how Account Receivable financing works - under the ' paperwork ' involved in you are , at your discretion, constantly selling your accounts for a discounted amount .

The amount you receive, typically 97 - 98% becomes immediate cash on the balance sheet - pretty well the same day you generate a sales invoice. In effect you're simply shortening the total operating cycle of your business - and you can trust us that the costs associated with carrying your accounts receivable, risking bad debt, and missing out on opportunities to move your business forward because of a lack of cash is very nicely offset by your costs in the invoice to cash conversion via a Receivable financing company..

Canadian business owners have two choices when it comes to financing sales cash flow under the financing mechanism we've been talking about:

1. They can let an AR Finance firm run, manage, administer and finance all their accounts

2. They can choose to bill and collect in their own name, letting the finance firm remain quietly in the background. This method is we call CONFIDENTIAL A/R FINANCE

When we talk to clients that have used, or are thinking of using such an invoice discounting process we stress that it's all about the quality of the firm you are dealing with. Ultimately you want a firm that understands your business model, prices competitively, and has the capital to grow with your business.

By the way, some of the largest and most successful corporations in Canada figured this same type of financing out a long time ago. They call what we've been describing ' SECURITIZATION ‘. Like your firm should be doing, they focus on keeping inventory low and A/R turning into cash on had as quickly as possible.

The ' PERFECT STORM ' in AR finance happens when your firm is:

GROWING

HAS GOOD GROSS MARGINS ALLOWING YOU TO ABSORB THE FINANCING COST

FOCUSING ON GOOD ASSET TURNOVER AND MEASURING THAT TURNOVER

UTILIZING A RECEIVABLE FINANCING COMPANY TO FACILITATE GROWTH, NOT HIDE MISMANAGEMENT OF ASSETS

If you think this method of financing could work for your firm 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 the ' words of wisdom' that will allow your company to maximize the challenges of business financing and growth.



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 10 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 :



7 PARK AVENUE FINANCIAL = A/R FINANCE EXPERTISE!





Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:

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 '

Stan Prokop

Business Factor Funding . Recycling A Centuries Old Financing Solution Via AR Finance

Looking For A Recent ( 4000 Year Old ) Business Financing Solution?


OVERVIEW – Information on business factor funding in Canada . Solving cash flow challenges via AR is a time honored financing strategy





Business factor funding in Canada. When it comes to cash flow financing strategies we're often quoted as proponents of new and alternative working capital strategies. But truth be told (similar to fashion!) there's one AR Finance strategy that seems new, but apparently is about 4000 years old . Recycling is hotter than ever... so let's dig in!


Are you aware that business factoring - aka ' receivable finance ' is ONLY about 4000 years old, supposedly starting during the reign of King Hammurabi of Mesopotamia. From that it grew even faster in medieval times as it helps growing garment and textile industries in Europe and North America.


So that quick history tour brings us up to today, where thousands of Canadian business owners and financial managers find themselves in what we can only often describe as challenging times in business finance. So cash flowing your invoices via AR finance, previously deemed as ' alternative' in nature is now simply one of the fastest growing business finance methods

We often find ourselves almost ' over explaining '

why and how factoring works. A simple explanation is to simply say that it's not ' borrowing ‘... it's ' selling'. The paper work around the accounts receivable financing solutions is the mechanism that allows you, at your will and choice, to generate immediate cash by invoking the AR finance mechanism ' factoring'.

So while many business owners/managers find themselves thinking of ' borrowing ' for business finance, they might just want to think more of ' Selling'. As they generate those sales they get immediate SAME DAY advance on the revenue they generate. By the way, the right A/R financing solutions allows to you sell invoices when you want, and certainly not all the time - only when you need the cash. Typically business owners tend to utilize the power of Factoring at key cash flow disbursement times approach - that might be payroll, term loan obligations, CRA payments, etc.



It's important to understand the concept of advance rate within this financing mechanism. Typically, more often than not, that advance rate will be 90%. That is to say if you have a 100k sale, which has been in fact ' earned' by shipping your product, or providing your service, you would receive that same invoice day, if you choose, 90k as immediate cash flow funding . The 10% is a holdback and that’s remitted to you as soon as your client pays. That hold back, in the case of our 100,000.00 invoice will typically have a 2k financing charge attached to it if your client honors typical 30 day terms.


If your firm has significant amounts of capital tied up in current asset accounts such as inventory and receivables you will clearly benefit from immediate same day cash flow received from your business factor funding solution. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your working capital solutions.

P.S By the way, 4000 years ago CONFIDENTIAL RECEIVABLE FINANCING did not exist - today it does. That allows you to bill collect and finance your cash flow under total control of your own management. Check it out.




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 10 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 :



7 PARK AVENUE FINANCIAL = CANADIAN A/R FINANCING AND FACTORING EXPERTISE







CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com

























Stan Prokop

An Account Receivable Funding Loan Via AR Finance . Forget That ‘ To Do’ List For Canadian Business Financing Options

Want To Get ‘CHOCIFIED’ ?


OVERVIEW – . Information on the account receivable funding loan strategy for Canadian business . How AR Finance solves the working capital conundrum




AR Finance in Canada . The devil is in the details they say it's a popular saying, and that’s the case with an account receivable funding loan for business financing success.

Fundamentally it's an easy story to explain to our clients. Receivable financing is simply a cash flow tool that allows you to fund your sales as you make them - generating instant cash flow. As you provide your goods and services you typically are advanced 90% of the invoice value, that remainder being temporarily held back and refunding to you ( less finance costs ) as soon as your client remits.

The benefits also could not be more clear. Its access to working capital when you need it, you have maximum flexibility around borrowing only when you need it (and of course only paying for what you use).

Where things get a little ' muddy ' shall we say , is in the type of AR Finance that you choose . Ultimately that depends on the overall size of your business ( all business sizes qualify - some of the largest corporations in Canada use the service - all the way down to start ups ) and the industry and cash cycle your business finds itself in.

We're often asked if we have a ' recommended' strategy or solution around this method of financing a business. We do, and we are recommending that you get ' CHOC IFIED '. What's that? Well C H O C simply stands for ' CLIENT HANDLES OWN CREDIT ' - so our preferred method of invoice finance is in fact confidential receivable financing. You maintain total control over your credit function , continuing to handle, as you did before, all your own invoicing and collection in the middle of that whole ' client relationship ' thing!

More traditional methods of account receivable funding work - they are just simply somewhat, shall we say ' intrusive' when it comes to your preference to running your own business - and who wouldn't want to do that if you in fact had a choice. The ability to finance your business and maintain customer control is key in confidential invoice finance.

So back to those details. Many clients we talk have been confused around the terms of invoke finance, the way that costs are explained (or not explained). The main thing to always remember is that this method of finance provides you with the significant advantage of having cash flow available right away. But unlike handing all your invoicing and collection to a traditional ' old line ‘ A/R finance firm remember that you have the option of control over you financial operations if you choose to get ' CHOC IFIED'.

Is the confidential finance solution available to everyone? It is if, and it’s an important if, you firm can demonstrate it has proper financial statements, accounting controls, etc. Simply speaking, you have to have your business act together!

A/R financing solutions don't have to be as complicated as some (you know who you are!) make them out to be. It's flexible, ties cash flow directly to your sales, and is an alternative options to firms who can't or don’t want to seek Canadian chartered bank financing. Seek out and speak to a trusted, credible and experienced expert Canadian business financing advisor on solving your cash flow needs.





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 10 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 :


ACCOUNT RECEIVABLE FUNDING EXPERTISE VIA 7 PARK AVENUE FINANCIAL

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
















Stan Prokop

Business Receivable Factoring – Rethinking AR Finance Solutions

Turning Cash Flow Scarcity Into Working Capital Prosperity Via A/R Financing



OVERVIEW – .Information on business receivable factoring . How does the AR finance solution compliment and improve cash flow and working capital challenges?




Business receivable factoring in Canada . We suppose you can over think anything in business today, but top experts in Canada say that more and more companies are choosing financing with receivables as their stated cash flow and working capital strategy. Let's examine why that might be the case with AR finance.

There are of course a number of ways in which the Canadian business owner and financial manager can finance their cash flow. Next to ' cash on hand' of course receivables are your most liquid asset. Therefore their ability to turn customer commitments, i.e. your receivables, into that 'cash on hand' is an attractive option - if you're doing it for the right reasons, and also ' doing it right!’

When we say doing it right we mean of course that there are a number of different approaches and options available to the business owner/ financial manager. All of those options revolve around the risk your finance partner is willing to take, and how your facility operates on a daily basis.

Chartered banks of course finance receivables - they do this under their ability to provide Canadian business with an operating line of credit. Their approach differs from factoring, aka ' invoice discounting, aka invoice financing. Your firm holds the risk on collecting your accounts while the bank holds the security to your A/R, typically via a GSA, a general security agreement on all your company.

AR finance differs in that the mechanism under which your receivables are financed in a manner where the paperwork has you selling your A/R as you generate those sales. Ultimately under both scenarios, the bank and the finance factor firm, you have the ability to borrow and draw down on your receivables as you generate revenue. Naturally it’s your call as to how much you borrow and when, according to your needs.

We also point out to clients that financing your A/R is essentially a subset of asset based lending and bank borrowing in Canada. Depending on whether you are dealing with a bank or an asset based lender you also have the ability to margin your inventory and equipment assets in to a business line of credit. We don't want to get overly complex today, but there is also a business financing mechanism called ' Securitization' which is a more sophisticated form of moving your receivables from your balance sheet while generate cash . This is used by larger corporations and finance firms, but not today's subject matter - but worth mentioning.

In business receivable factoring you simply pay a fee, called the ' discount fee' every time you finance your a/r, In Canada on a typical $ 10,000.00 invoice that fee would typically be $ 200.00 for a 30 day period.

It's important to spend a lot of time, and get some solid advice around a business receivable factoring facility that you are paying for only what you use. You would be surprised at some of the tricks of the trade when it comes to the fine print from certain finance firms. In fact our own chosen and recommended method of financing is the CONFIDENTIAL RECEIVABLE FINANCE SOLUTION , allowing you to bill and collect your own receivables and only pay for what you use, when you want. Bottom line, you’re in charge.

Don't get caught in the ' illusion ' of thinking you understand all the technical aspects of AR finance. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow financing needs.





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 10 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 :


BUSINESS RECEIVABLE FACTORING AND AR FINANCE


7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com












Stan Prokop