WELCOME !

Thanks for dropping in for some hopefully great business info and on occasion some hopefully not too sarcastic comments on the state of Business Financing in Canada and what we are doing about it !

In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.

Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.



Showing posts with label ar receivables. Show all posts
Showing posts with label ar receivables. Show all posts

Thursday, April 9, 2015

Factoring Finance Companies : A Smarter Way To Evaluate AR Receivables Financing Solutions





7 Key Considerations For The Right A/R Financing Solution






OVERVIEW – Information on A/R Receivables credit solutions in Canada . Factoring finance companies offer different ‘ flavors’ of AR Financing . What does the business owner /financial manager have to consider in picking the proper solution?







AR receivables credit solutions

come in a variety of manners and offered by a multitude of new and established ' factoring ' finance companies and other commercial finance companies in Canada. There are 7 key considerations in picking the optimal solution for your firm - utilizing these solutions is a smarter way to ensure you have properly evaluated financing that is right for your firm. Let's dig in.

A/R financing is all about financing you need for your daily cash needs. As opposed to a bank ' interest rate ' on your borrowing a fee is charged. Using a 10,000.00 invoice as an example a typical fee would be in the 150$ - 200$ range. (Assumes you sell on 30 day terms and are collecting from your clients).

While a factoring finance fee will almost always compute to a higher cost of borrowing vis a vis a bank ( it's not a real apples to apples comparison ) A/R commercial factoring facilities have a more generous borrowing power ( typically 90% ), plus you are achieving the key benefit of receiving cash as soon as you make a sale.

The truth is that pricing from Canadian factoring companies differs greatly, notwithstanding that some of the key fundamentals remain the same - i.e. size of your monthly sales/ client credit quality, age and collectability of your client invoices, as well as any ' special ' services provided with the financing. Some firms actually require you to finance all you A/R, which to us seems like an unfair option!?

It's critical to remember that this is not a loan per se, and it's certainly not equity financing. Bottom line its cash flow financing based on your sales. In meeting clients and discussing this finance option we compare it to a retailer who offers credit card payment options - the retailer is paid immediately by the credit card firm.

Let's circle back to our 7 Key Considerations in choosing among factoring finance companies:

1. Responsibility for Bad Debts - Care needs to be given around whether your firm is still responsible for uncollected accounts - this issue also is a component of your overall pricing

2. Client profiles
- Issues for discussion typically should include type of clients, geographical location

3.Number of Invoices issued per month and overall Days Sales Outstanding Profile - smaller invoices typically cost more to administer in an A/R finance solution , Also your ability to prove you collect accounts effectively will absolutely lower financing costs

4.Annual financing volume - As in any industry some firms only prefer financing receivables when annual volume is at least several million dollars in revenue ; a normal monthly entry point is typically in the 250K range from a monthly A/R total balance


5. Specialized Knowledge
- While Commercial factoring companies offer financing to any firm that sells on business credit a handful of firms are focused on specialized verticals, giving them a higher level of expertise in understanding your business.


6. Systems/software/ online solutions
- There is substantial ' back office ' work in processing your daily / weekly or monthly funding needs. Ensure your chosen partner has the systems and people expertise

7. Collections
-
In our humble opinion this could clearly be one of your main considerations. While for decades 99% of all factoring in Canada involves notification to your clients many business owners/finance mgrs don't realize an alternate solution exists. That solution? Confidential Receivable Finance! It allows you to bill and collect your own accounts with no notification of any kind to clients.

If you're looking to assess a proper AR Receivables solution for your cash flow needs and don't have the time or expertise to walk the minefield of factoring finance companies in Canada seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in evaluating and implementing a proper finance facility for your cash flow needs.




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 = CANADIAN A/R FINANCING & FACTORING EXPERTISE




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.



























Monday, April 28, 2014

Factoring Finance Companies : Cure Finance Inequality In Canada Via AR Receivables Financing












William Shakespeare weighs in on A/R Receivable Financing in Canada



OVERVIEW – Information on AR Receivables financing solutions in Canada . Reading between the lines in business financing offered by factoring finance companies for companies in search of cash flow and working capital








Factoring financing companies
in Canada can help cure the ' inequality ' that Canadian business owners and financial managers face when it comes to arranging working capital and cash flow financing, specifically AR Receivables finance. Let's dig in.

Is it possible that even Will Shakespeare weighed in our subject?! We went back and found some famous sayings he made and it clearly seems to us that some of his most famous lines potentially referred to business financing and cash flow finance.


‘MUM’S THE WORD ' (From Henry V1) = the reality is that thousands of business owners and financial managers don't really know enough about alternative financial solutions such as receivable finance. The truth? Simply that it is a strong alternative to traditional bank financing when your business can't access bank financing, or enough of it. A huge part of the Canadian business sector now considers this method of cash flow financing as a quick and accessible popular choice.

'RANT' - (From Hamlet) it’s easy for many business people to ' rant' against the banks. Why is that when our banks have one of the strongest reputations in the world? Simply because many business either don't have the track record and financial strength that is mandated by the banks when borrowing for business credit. Banks in Canada are mandated by government and shareholder requirements to maintain a conservative lending policy.

And while rapid growth from the entrepreneur is desired, even dreamed about, banks typical stance is to prefer slow and steady, keeping those ratios and covenants intact. Growth drives the need for continual working capital as receivables constantly increase, along with inventories.

And if your firm doesnt have a pristine balance sheet, or has an operating loss, or perhaps the owners have some personal financial issues... well the bottom line is that those become new issues to struggle with when attempting bank financing.

“KNOCK KNOCK - WHO'S THERE' (From Macbeth) - The who's there refers to the choices you have when seeking out a financing partner for A/R RECEIVABLES finance. That includes regional firms, small boutique financiers that specialize in specific business segments and industries, as well as Canadian and U.S. owned firms of all size. Our specific recommendation here is to learn about and access CONFIDENTIAL RECEIVABLE FINANCING, allowing the business to bill and collect their own receivables without any intrusion.

If you want to maximize the availability of working capital from your asset base seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with you asset based financing needs.



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 RECEIVABLE 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 '