Business Cash Flow Secret Weapon: Here’s The Best Invoice Discounting & Confidential Factoring Solution

Automate Your Business cash flow – Here’s How !

OVERVIEW – Information on the business cash flow solution known as Confidential A/R financing . Companies using this method of factoring/discounting their invoices create automatic cash flow and working capital

Business cash flow automated? Your ability to monetize your sales revenues as quickly as possible is in fact the automatic cash flow engine for your business. Collecting A/R as quickly as possible or financing via the bank or invoice discounting factoring is the alternate method. In effect it's your secret weapon! Let's dig in

Non bank A/R financing works when you can't obtain traditional bank financing, and when strong or erratic sales growth becomes an impediment to bank finance solutions. In many cases seasonal or bulge cash flow needs can't be addressed by a bank.
We remind clients that your cash flow, when you think of it really can become a competitive advantage. For those can can't access all (or any?) of the bank financing they need Confidential A/R Factoring is an ultra solid alternative. Bank credit is more difficult to achieve, and, to make matters worse in many circumstances we see the amount of credit you can get from a commercial bank in Canada is simply not enough for your needs.

Reasons why some business folks don't like what they hear about ' factoring ' is twofold -


1. They feel it's too expensive (rates are more competitive than ever)

2. They don't like how it works on a day to day basis - (We’ve got your answer to that one)

We think we can dispel both of those issues when it comes to providing a better alternative to address both concerns and misconceptions that our clients have.

So, ' regular ‘ factoring for cash flow for business works as follows - you generate an invoice, you sell the invoice and receive cash, usually the same day. Sounds great so far right?

However, now what happens is that your customer is contacted by the factor firm and they verify the invoice and receipt of goods and services. They also are in collection mode directly with your clients, according to whatever your terms are. The cost of this type of financing in Canada ranges anywhere from 7-8% per annum to 1-3% per month.

Factors determining prices are your firm's general financial profile, the size of the facility you need, and the types of customers and industries you sell into.

THE BETTER SOLUTION: ==>

Here's where confidential factoring discounting comes in. Here's the kicker. You bill and collect your own invoices! You have now regained total control of your factoring facility, are achieving all the benefits, and it is you who decides what amount you wish to finance on a daily, weekly or monthly basis.

Seek out and speak to a trusted credible and experienced Canadian business finance advisor who can assist you with cash flow & working capital 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
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 '

Riddle Me This. Why Is The Cost And Mechanics Of An Accounts Receivable Financing Loan And Receivables Discounting So Misunderstood?

A Campfire Discussion on Invoice Discounting and Financing In Canada !


Information on the accounts receivable financing loan and why invoice discounting in Canada is often misunderstood and confusing to Canadian business owners .



An accounts receivable financing loan? We think we have just answered our own question on the strategy known as invoice discounting or invoice finance... namely, the part about ' misunderstanding'. Why is that? Simply because technically it's not even a loan... so no debt, no interest paid, etc. Let's explain.

Thousands of Canadian businesses sell to other businesses on credit - hopefully they are creditworthy clients. That's the essence of the accounts receivable discounting solution - you no longer have to wait to get paid, thereby solving the problem of working capital and cash flow shortages for your business.

It couldn’t be any simpler, so why is there so much misinformation about this method of Canadian business financing. We think it boils down to some of the terminology, and the fact that the many firms that offer this type of finance each come at it from a different focus, direction, and daily mechanics .

Under the traditional way of accounts receivable financing you submit your invoice, or invoices to your finance firm partner. Hopefully you have chosen the right partner... more about that later. After you have submitted that invoice you get immediate funding - typically in terms of a wire transfer into your bank account. The neat news here is that you can do this daily, weekly, monthly, basically whenever you like. And by the way, you are no obligated to do this all the time; it’s your call to implement only the financing you need, when you need it.

The fee. Here's where misinformation abounds! The concept of ' financing' that A/R is in fact a sale of the receivable, not a collateralization. What do we mean by that ?Well, typically if you had a bank facility in place for your receivables they take a security agreement that covers off the collateralization of your assets, including of course a/r. So the bank is actually ‘‘lending “against that a/r, and charging you an interest rate on a per annum basis. Those bank interest rates are very attractive... if you of course qualify, which is a discussion for another day!

When an accounts receivable financing firm implements the same strategy their documentation states they are ' buying’ your invoice sales, not collateralizing them. They buy those at a discount, hence the term ' a/r discounting.

So whets the price on that sale. In Canada it's generally 2% if you are selling on a 30 day term. In effect it’s a reduction of 2% of your business margins. Where misinformation comes in is that fact that most Canadian business owners and financial managers don't understand the fact that they are already absorbing similar costs by in effect being the bank for their own clients. It's an expensive cost of capital. If you have the cash flow out of that sale you could... well... start the process all over, ie make another sale, buy more product... and generate additional profits. Instead of waiting 2-3 months for clients to pay, which seems to be happening a lot these days?

If you are financing your receivables via a bank they of course wish you the best of luck in collecting them - as little due diligence is done on who you are selling to and on what terms . In accounts receivable financing its incumbent on you and your finance partner firm to focus on a solid turnover of that A/R - it reduces the cost and generates cash flow more quickly.

Other key advantages or differences of accounts receivable discounting include the fact that facilities are generally unlimited - if you are generating sales you have constant, daily access to cash flow.

Picking the right partner is critical in A/R finance. Simple documentation and no hidden fees or terms are critical to your success when you use this financing. Our recommended facility is in fact confidential invoice financing, allowing you to bill and collect your own receivables.

Speak to a trusted, credible and experienced Canadian financing advisor. Clear up the misinformation on this unique method of business financing.








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/accounts_receivable_financing_loan_discounting.html