SME Commercial Finance : Let Confidential Factoring Be Your Invisible Cash Flow Weapon

SME Commercial Finance Has One Solution For Flawed And Hard To Fix Business Financing : Here It is

OVERVIEW – Information on confidential factoring in Canada . SME Commercial Finance solutions include, but are not limited to , creative solutions including confidential invoice discounting . Here’s how it works






SME Commercial Finance (small to medium enterprise) Options can be found in both new and old business financing solutions. A twist on one of those old options, invoice discounting, is found in CONFIDENTIAL FACTORING. It is one finance solution that helps the business owner/ financial manager fixed ‘flawed’ or non existent financing. Let's dig in.

A/R financing on its own has been around for awhile - hundreds of years to be exact!

Does a finance solution that old still work? Absolutely, which is why tens of thousands of businesses just like yours access this ' cash flow acceleration ' technique.

Unless you're working with an expert you might find the industry itself does a fairly good job, hopefully unintentional, of educating and offering Canadian business with this working capital ' fix'. Part of that is the terminology, which might include references to ' invoice discounting ', ' asset based lending' ' receivable finance ' etc.

So while wading through those terms the business owner/manager in the SME commercial area loses the key meaning of this financing solution. And here it is: Products and services you sell to your business clients generate sales revenue on invoicing.

Utilizing a solution such as (confidential) factoring allows you to receive 90% of your sale as soon as it is invoiced. The remaining 10%, less a finance charge, is banked by yourself as soon as your client pays, which typically these days is in the 30-60 day range. By the way a tight credit and collection policy make solutions such as confidential factoring even more appealing when considering this SME COMMERCIAL FINANCE option.

The whole aspect of ' CONFIDENTIAL ' factoring really revolves around an ' old school ' 'new school '

term we need to clear up. The majority, pretty well close to 99% of business factoring companies ‘notify ' a client, i.e. your customer! When they are financing your receivables. CONFIDENTIAL A/R FINANCE skips this process, allowing you to bill and collect your own receivables. That whole ' verification' and ' notification' process can be a huge turn off for companies that see the true value of this method of Canadian business financing.

So whether it makes simple ' economic sense' not to involve your clients in your own financing, or whether the optics of wondering what clients and vendors might think

about your access and need of capital , the bottom line is that utilizing this finance vehicle has given you full blown cash flow financing and its nobody's business but yours.

And here's another dose of reality - you just might find your competitors will now be wondering about where that new found financing strength came from , as they see your company taking on larger orders and contracts.

If your firm is looking to finance sales at reasonable and competitive costs and you require cash flow to grow that might not be available from traditional bank sources seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success on the merits of CONFIDENTIAL FACTORING in the SME Commercial Finance solutions category .



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/confidential-factoring-sme-commercial-finance.html


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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

Straight Talk On Confidential Factoring In Canada – Why Accounts Receivable Financing & Invoice Services Just Got Better!

Fact & Fiction on Receivable Financing In Canada


Information on Canadian confidential factoring and invoice services in Canada . Why C I D ( Confidential Invoice Discounting ) Just made factoring and accounts receivable finance a whole lot better!



We're the first to agree that when one of Canada's newest forms of business financing just got better that’s clearly a good thing! We're talking about the concept of confidential factoring, invoice services that finance your accounts receivable for working capital and cash flow.

Canadian business owners and financial managers demand flexibility when they look to alternate financing methods. If you choose the right facility, as in our case today, confidential accounts receivable financing you have just converted 90% of your receivable investment into immediate cash flow availability.

That benefit becomes even more dramatic when you consider this type of financing essentially gets larger as your sales increase; your financing ability travels locks step with your sales increases. Your revolving credit facility of confidential factoring becomes your new financing safety cushion.

While the majority of our clients use this type of financing for ongoing operations and growth remember also that you have the ability to use this finance mechanism for a number of other reasons - they might include acquiring a business , restructuring your company without the need for additional equity, etc.

Many clients utilize this type of accounts receivable invoice services in the context of also combining their inventory and purchase order financing needs .You've then created a triple combination of financing power for your firm , outside of traditional Canadian chartered bank financing .

So lets just backtrack a bit and ensure you understand the whole issue of confidentiality around C I D; Confidential invoice discounting. When you set up this type of facility you effectively retain total control over your A/R function - you are billing and collecting your own receivables.

Those familiar with traditional U.S. and U.K. type offerings available in Canada know full well that is not the case with the offering that is used by 99% of your competitors. Those firms in Canada that use receivable financing but without a confidential facility have in effected handed their billing , collection, and all important client contact info over to the factor company . Does that type of traditional factoring work? Absolutely. It’s just that confidential A/R financing puts you in control, not your finance company. You bill and collect your own receivables, without any notification at all to clients, suppliers, etc.

Canadian businesses are of course used to paying for added value. That’s just common sense. So then our clients can of course be forgiven for asking if confidential factoring services costs more. The answer is NO! Your advance rate and financing charges are the same with confidential factoring as they would be in the traditional for of notification model used by your competitors.

We would add however that to take advantage of confidential receivable financing a typical A/R portfolio should be at lease in the 250k range. There is no real upper limit on the size of any facility

Accounts receivable financing has filled on of the biggest voids in Canadian financing. It is often mis understood, in no thanks to some of the firms that offer it. If your company is growing, unable to attract more traditional financing then confidential then invoice services such as we have describe are for you . The optimal situation is when your cash flow is being drained because your sales are growing, requiring to maintain higher levels of A/R and inventories, etc.

If you wish to better understand the nuances and yes, the benefits of factoring invoice services in Canada, and which one works best for your firm speak to a trusted, credible and experienced Canadian business financing advisor 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/confidential_factoring_invoice_services_receivable.html