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Looking For A Business Credit Line Solution?
Invoice factoring loans are one area of business finance that has slowed the growth of traditional financing via banks in Canada. It's no secret that asset based lending is on the rise , and while not that long ago,for that we can vouch, that alternative financing was pretty well unheard of . Industry stats both in the U.S. as well as Canada indicate more and more companies are turning to asset based lending solutions.
So why have asset based financing solutions become one of the most popular methods of financing your company's working capital and cash flow needs.
Asset based finance solutions such as factoring work for a very simply reason - they monetize one of the most important assets in your business , letting accounts receivable act as security .
New clients here at 7 Park Avenue Financial always want to know how these ' loans' work . First of all, it's not a loan per se. It's simple a method of selling and cash flowing your receivables as your generate revenues. Cash advanced on this type of financing is typically in the 80-90 % range and it's at the business owners option to cash flow some or all of your a/r.
FACTORING LOAN RATES
Confusion exists if only for the terminology commercial lenders and customer use around describing the cost of this financing . That's because this method of finance is costed as a ' fee ' , not an interest rate. The fee's typically are between 1-2 % , so if your firm has good margins and a reasonable turnover in receivables you are an excellent candidate for invoice factoring loans.
Other factors that influence your over-all cost include the size of your facility, the general credit worthiness of your customer base . The amount of time you use the funds for is probably ultimately the largest cost aspect of the financing . While bank business credit lines are the lowest cost in Canada it's not secret that thousands of businesses simply can't access all or part of the business financing they require.
At 7 Park Avenue Financial we strong recommend what we term Confidential Receivable Financing facilities. They allow you to bill and collect your own accounts, generating the cash flow you need to run and grow your business.
A/R financing collateralizes your receivables, allowing you to finance the other parts of your business, such as inventory, equipment, real estate, etc.
For smaller to medium sized firms that have exhausted forms of financing such as business credit cards, friends and family loans, collapsing personal investments asset based lending via a business factoring loan is a logical step to financing operations and growth.
Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a financing track record of success.
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Click Here For 7 PARK AVENUE FINANCIAL website !
7 Park Avenue Financial provides value added financing consultation for small and medium sized businesses in the area of cash flow , working capital , and debt financing .
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.
Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.
Stan Prokop
