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Best Method For Trade Receivables Finance ? It's ' Confidential ' !
Accounts receivable AR Finance isn't as much a ' secret strategy ' as opposed to a method to turn your company sales into a virtual cash flow machine ; in effect past obstacles of cash flow have now become a working capital/cash solution.
You only have to look at some ' search engine ' stats to find that thousands of Canadian businesses search everyday for what they hope is valuable real world assistance around their business financing needs. From early stage companies to mature medium size and even larger corporations .. it's always about unlocking cash flow in their sales and receivables.
When clients of 7 Park Avenue Financial talk to us about their financing challenges we've found it is easy , and clients can be forgiven, for getting bogged down in such issues as the cost of this financing, how it works, and even more importantly , dispelling what they may have heard about ' factoring ' and ' invoice discounting '.
Business owners and their financial mgrs are of course all for a ' good thing ' ; and they want to know how receivable financing works, as well as wanting to avoid the pitfalls and negative perceptions that come with this method of cash flow finance.
We're focusing in our discussion here on smaller and medium sized firms ; safe to say that larger corporations have access to a lot more financing possibilities in the realm of traditional bank financing . Some firms who are public companies can utilize working capital strategies and business funding that SME ( small to medium size ) companies just can't access.
These smaller firms , who of course make up a huge part of the Canadian business landscape have to rely on their own internal cash flow mgmt as well as utilizing any external finance they can access to fund ongoing operations, growth, and working capital.
The worst irony in business finance may well be the fact that many companies have to give up growth prospects simply because they can't access external business capital . That might mean new clients, new markets, foreign expansion, new product lines, etc.
What is Confidential Cash Flow Factoring / How Does It Work
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 1-2% % discount from company , 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 we spoke about previously .
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 accounts receivable finance of this manner.
The Best Solution In Financing Sales
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 as ' old school ' factoring, and allows you to bill and collect your own receivables!
Your company gains all the benefits of that cash flow factoring machine we've turned your company into. This type of facility can easily be a part of a non bank business line of credit known as an 'ABL ' - that's an asset based line of credit that allows your company to have a credit line that functions like bank credit lines.
Let those competitors, customers , and vendors to remain exactly where you want them to be, outside your financing strategies and challenges ! Let your competitors try and figure our how you're doing so well in both growth and profits.
Speak to a trusted, credible, and experienced Canadian business financing advisor with a track record of business finance success , putting your firm into a proper Receivable finance facility, allowing you to reap the benefits of cash flow invoice financing.
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
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
