How To Win At Receivable Financing : How The Best Factoring Financing Works ! Spoiler Alert – It’s ‘ Confidential ‘ !

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Your Mission Should You Choose To Accept : Find The Best A/R Financing

OVERVIEW – Information on factoring receivables in Canada and why CONFIDENTIAL A/R FINANCE factoring is the best method for your financing receivable strategy . How it works and how to investigate this popular Canadian business financing tool .

Receivable financing in Canada - It's your mission to find the best solution available in factoring financing - And we'll give you a hint - It's called Confidential A/R Finance! Let's dig in!

Our key buzzwords - cost efficient, and allows you to mind your own business - what a combo!

Factoring receivables continues to gain daily momentum in Canada - If you feel either confused, misinformed, or just generally out of sync with how this type of financing works and what it costs let’s get you up to speed.

It's actually not as complicated as you thing - on a daily, week, or monthly basis, (it's your call) you provide your invoices and proof of delivery and shipment . Then what happens? You receive cash, the same day, for those funds.

Actually, to clarify, the amount of the advance on your invoices is actually 90% - you receive the rest of the funds, i.e. the ten per cent, when your customer pays - less the financing charge.

Trust us that we know from experience that clients want to always know and talk about that financing charge, so let's clarify that point right away. First of all did you know that some of the largest corporations in Canada utilize this method of financing receivable portfolios? Their cost is often either the same as traditional bank financing, and in some cases less.

However the majority of business in Canada that seeks out factoring receivables actually pay anywhere from 1 - 2% per month for the cost of factoring. But let's be clear here, receiving those funds when you invoice allows you to maintain a totally positive cash flow, and at the same time continue to grow sales and profits.

Another benefit? We point out to clients that they are now in the enviable position of taking 2% discounts on all their qualified purchases with their suppliers, and, if they are really smart, can negotiate better terms and pricing from their suppliers on product.

We referenced the term CONFIDENTIAL A/R FINANCE. So what is that exactly? It's a unique form of factoring, that by the way, costs the same as other types of factoring receivables financing. However, unlike traditional A/R financing it allows you to bill and collect your own receivables on a confidential basis.

Key benefit? Your suppliers, clients, etc are simply not aware of how you are financing your company, and we think that's important. So again, to clarify, you are financing your business on a confidential basis - your competitors who use this type of financing are not. That's your key advantage, and we think it's significant.

Selecting a receivables financing partner can be a challenge - simply because there's hundreds of small and larger firms out there with difference criteria. You have to be able to distinguish between recourse and non recourse factoring, and if the firm even offers (or has heard about!) this method of cash flow finance.

Other factors (pardon the pun) to consider are the size of your portfolio, misc fees that add up quite frankly, and must be understood or negotiated. And pricing is reflected to a certain degree by the size of your monthly receivable financing. A/R portfolios of 250k per month generally receive better pricing and structures. The maximum financed? There isn't one!

Interested? Confused? Hopefully not the latter, but if you are seek out a trusted, credible and experienced Canadian business financing advisor who will steer you through the financing receivable maze - we're sure you'll come out the other side well informed and with a factor facility that works best.

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 .


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.

Stan Prokop

Business Debt Financing : What’s Going On With Your Company Cash Flow Needs?

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Time To Outsource Your Thinking On Business Debt Financing And Company Cash Flow Needs

OVERVIEW – Information on business debt financing in Canada. Company cash flow finance solutions come from various sources and have various positive and negative implications

Business debt financing sometimes requires a fresh look by owners/financial mgrs. In effect we’re asking if you're ready to ' outsource' your thinking when it comes to company cash flow finance, especially when your current strategy isn't working. Let's dig in.

If financing a business isn't one of the largest challenges entrepreneurs/owners face it's certainly right up there in priority.

When it comes to taking on additional debt in the there are some key words to live by. Those words:

Ensure you have matched the term of any loans to the timing of your needs

Be cognizant of the interest rate options and costs

Ensure you understand who offers solutions for your business finance needs - It might be time to ... outsource your thinking in this area!

Stay on top of your financial performance


All 'debt ' doesn’t necessarily add obligations to the ' liability' section of your balance sheet. Take receivable financing/factoring for example. It simply collateralizes your receivables and provides an ongoing amount of cash flow. It's a business credit line with no ceiling provided your sales are growing and your collections are turning over. It's all about those days sales outstanding.

Why does asset monetization in the form of A/R financing and inventory finance continue to grow as an alternative to the bank solution in Canada. The key reason is that it provides a fast and efficient solution to ongoing cash requirements. Another reason is the ability for new or smaller growing companies to access cash flow for sales in Canada, as well as taking on larger contracts or orders in the U.S. or even overseas. (Outside North America will often require some form of credit insurance on your sales/receivables)

A/R Finance isn't always the ' holy grail '

for owners/finance mgrs. The reason for that specifically is that this form of finance requires solid decent gross margins that can handle the additional finance costs. One way to alleviate that substantially is to continually focus on good receivable collection performance.

Company cash flow finance via A/R factoring is successful when you adhere to the following advice:

Understand your collection cycle, especially if you have slow paying clients

Realize that traditional finance often is unable to handle rapid growth

Understand the A/R Finance price model - what you are paying for - keep an eye on those gross margins which should be at least in the 20% range in general

Realize that alternative finance solutions such as AR Financing are often short and intermediate solutions, typically lasting a year or two

If you're willing to ' outsource ' your thinking on both traditional and alternative finance solutions seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you with your business finance needs.



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 10 years - Completed in excess of 100 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 & Contact Details :


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCE 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

Fax = 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.




Stan Prokop

Account Receivable Financing : The Receivables Factoring Solution Not Everyone Knows About Or Understands

What Happens When You Use The Right Accounts Receivable Financing Solution?

OVERVIEW – Information on account receivable financing in Canada. Factoring receivables is often misunderstood and benefits are significant . Here’s why.. and how to!

Accounts receivable financing solutions often have Canadian business owners/financial mgrs not fully understanding the impact and benefits. Also known as ' factoring receivables' one top expert probably describes it best - Expensive... and Valuable! Let's dig in.

Numerous source of A/R financing are available to your company when you're looking to finance sales. That, whether you like it or not, is part of the confusion around the multitude of ' offerings' that come from asset based lenders and commercial finance companies.

The best way to describe the fundamental receivables finance offering is to think of it as an alternative to a bank line of credit - although numerous key differences have to be fully understood to make the ' Valuable' part of our expensive/valuable equation work!

One positive aspect of factoring is the fact that it provides a significant borrowing leverage - typical advances are in the 90% range. Most business owners are aware that banks only finance AR at 75% as a most common practice.

A proper financing will allow you to draw against the previous month end A/R. With that information the owner/mgr can then calculate ' borrowing power' for the month, allowing for proper cash flow planning.

When you are factoring receivables who your client pays and how they pay is key to getting the best possible facility in place. In the majority of cases payments by your clients are made to a bank ' lockbox/post office box' controlled by the finance company. This works best... for the finance company. The optimal solution sought by most owners is of course to have their clients pay them. They want to maintain the client relationship as well as be perceived as in charge of their own business finances.

The solution to the client payment problem? We call it CONFIDENTIAL A/R / INVOICE FINANCING. The process? Your client pays you!

Pricing on A/R financing in Canada varies, again emphasizing the need to ensure you are working with the right firm or advisor. While small facilities are in fact available and popular the truth of the matter is that facilities typically are in the 250k range and up - with virtually no upper limit - including 'factoring' in your growth prospects.

In future updates we'll discuss the more on the mechanics and cost of factoring receivables and why the perfect solution to financing your sales might just be around the corner. If you're looking to understand ' VALUABLE ' versus ' EXPENSIVE ' in non bank sales finance solutions 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 your funding needs.



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 10 years - Completed in excess of 100 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 & Contact Details :


7 PARK AVENUE FINANCIAL = CANADIAN ACCOUNT RECEIVABLE FINANCING AND 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

Fax = 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.




















Stan Prokop

Account Receivable Credit Can Eliminate Your Bleak Cash Flow Future Via Factoring Receivables Funding

Account Receivable Credit Solutions : Do You Know Them All?

OVERVIEW – Information on account receivable credit solutions in Canada. How does bank financing and factoring receivables differ in benefits, cost, and methodology .One recommendation offered works best

Account receivable credit solutions simply enhance the ability of Canadian business to facilitate business credit sales to customers. Whether its bank financing or commercial factoring receivables solutions these offerings put you in a position to eliminate what must sometimes seem like a ' bleak future '

when it comes to accessing business funding. Let's dig in.





Novice entrepreneurs up to experienced savvy business finance folks are keenly aware of ' the gap '. It's simply the time in between shipment or delivery of your product or service to the time you get paid - with 60 days feeling very much like the norm these days. A further complication? Traditional bank financing for revolving facilities is worth a million, but unfortunately no accessible by all.

Enter various forms of ' factoring receivables ' one of which might just be perfect for your business. We say ' one of ' because there are numerous offerings in the marketplace, making it easily confusing for the owner/financial manager.

The paperwork around various forms of factoring essentially does one thing - it identifies that receivables are being ' sold' as they are financed, unlike the bank which simply takes the A/R as collateral. More often than not business factoring mirrors bank financing in your obligations - that is to say that you are still responsible for any bad debt.

The key benefit of a commercial non bank A/R financing solution often boils down to:

Speed

Amount of capital you can access


While bank credit lines typically have a ' cap ' a solid non bank facility will often have unlimited upside financing capability. Simply speaking - if you have sales and A/R you will have full funding.

Spoiler alert! Factoring receivables will always be more expensive than bank financing with a typical fee on each receivable being in the 1.5 - 2% range. Simply speaking, on a 10k sale to a client you will receive same day funding and can expect to pay 150-200$. Clients we have worked with have been able to significantly reduce that cost by taking similar discounts with their new found cash, or in some cases negotiating better pricing with their vendors. Clients also forget that it costs money to carry A/R.

Many clients we speak to have heard of, or wish to avoid the involvement of a Commercial factoring company in their business model and client relationship. Can that be achieved? It can, via the use of CONFIDENTIAL A/R RECEIVABLES factoring, allowing you to bill and collect all your accounts with no notice or involvement to your clients or suppliers.

If you're not sure you understand all the benefits and mechanics of good and bad A/R financing offerings 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 turning that ' bleak' cash flow future into a positive financial growth opportunity for your business.



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 RECEIVABLES FINANCING SOLUTIONS





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 '

Stan Prokop

Factoring Receivables : Full Speed Canadian Receivable Finance Strategies

Financing Cash Flow Needs : The Factoring Way

OVERVIEW – Information on the Canadian receivable finance strategies known as factoring . Receivables represent a major source of liquidity and knowing how they can be financed is key to business success

Receivable finance in Canada is a function of managing the investment your company has in A/R. The cash flow needs that arise are directly related to your policy of granting commercial credit to your clients - and the severity of that need is commensurate with the level of slowness your clients take in paying you.

Factoring receivables is one way to manage that challenge, and done properly, its ' full speed ahead '

with a business financing solution that makes sense .Let's dig in.

‘Quick ' is the word we hear most often when it comes to invoice financing. The real challenge though is the ability of the owner/ financial manager to ensure he or she has the right facility in terms of size, rate, and being able to live with the way this method of credit facility is handled. Our most common and recommended solution is CONFIDENTIAL RECEIVABLE FINANCE, allowing the owner/manager to mirror the same type of borrowing that could be achieved through a bank scenario.

That begs of course the question why the owner simply wouldn’t utilize Canadian chartered banks as a solution to the cash flow/working capital challenge. For further clarity in that manner it’s also important to understand that factoring receivables is not a ' loan ‘, and it certainly does not add any debt to the balance sheet.

Firms that choose to go the bank route for a revolving credit facility must be able to demonstrate consistent profitability, in addition to a balance sheet that reflects required ratios around debt to equity. Any imbalance in your ' current ratio ' of liquid assets to payable and other debt you have also can bring a screeching stop to bank approval. Many firms actually do qualify for bank financing, but not enough to meet their needs. A typical example is when large orders or contracts need to be filled in a timely manner.

The common advantages of factoring receivables are:

Fast approval

Unlimited credit relative to the amount of sales and A/R you are achieving

Unrestricted use of funds for general commercial purposes

It is a common misconception that you have to finance all your a/r all the time - that is certainly NOT the case, and prudent owners/managers will simply draw down what they need , paying only for what they are using in the facility at any given time . That alleviates a lot of the cost of the facility, which typically in Canada, using $ 10,000.00 as an example, costs 200$ for a 30 day period. Naturally the benefits of receiving those funds immediately include being able to satisfy all your operating obligations, as well as being able to better manage price and discounts with key suppliers.

As we consistently meet Canadian business owners who are not even familiar with this method of financing its quite a consolation to them to know that factoring has been around a few hundred years - with even major FINANCIAL POST top 500 firms utilizing this or similar ( securitization) methods of cash flow financing.

Certain industries such as transportation, staffing, are perfect candidates for factoring, but the reality is that any business with commercial receivables qualifies.

The type of facility you set up (traditional vs. non notification), the cost, who you are dealing with, and the actual agreement is what makes or breaks success in non bank A/R financing. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your working capital 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 FINANCE 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 '

Stan Prokop

Factoring Receivables This Way Makes Your Firm Untouchable When It Comes To Cash Flow And Account Receivable Finance

And Now For My Next Trick .. Turning Receivables Into Instant Cash

OVERVIEW – Information on factoring receivables in Canada . Using specialized offerings in Receivable Finance provides cash flow and working capital supremacy for your business . Account Receivable Finance tricks of the trade







Factoring receivables in Canada is a method in which your sales are turned into automatic cash. The good news is that no magician is required. And one or two little known tricks of the trade will allow you to maximize the benefits of A/R finance. Let's dig in.

By the way, we're the first to admit, and educate clients on the fact there is no replacement for ongoing proper management and due diligence on the receivables you generate from sales. We're never more amazed when even clients with great customers of high quality neglect the ongoing importance of turning that AR investment into cash for operations and growth

And yes, there are other additional ways to generate cash - i.e. working capital term loans, refinancing of assets , bridge loans , monetizing any SR&ED tax credits etc ; but on an ongoing basis your investment in A/R is the next closest asset to cash on the balance sheet - enough said .

Why then is factoring receivables so popular. Part of the lure of this method of Canadian business financing lies in the fact that it's a simple process. Once your initial agreement is in place (with the ‘right’ commercial lender) you have the ability to raise capital in any amount commensurate with your sales growth. At the right cost, and using what we feel is the best way to utilize factoring (we’re talking about CONFIDENTIAL ACCOUNT RECEIVABLE FINANCE) you have just turned your company into a cash flow machine.

What then are the advantages of Confidential AR Financing? The largest benefit should be self explanatory - it's in the ' MIND YOUR OWN BUSINESS ' category, allowing you to finance your cash flow needs without your suppliers, clients etc knowing your financial strategy. 99% of receivable factoring in Canada requires that your clients be notified in this whole process. That is not the optimal strategy sought by the Canadian business owner and financial manager.

Utilizing Confidential Receivable financing is your method of a sales line of credit really; comparable to a bank facility but at a high cost. The trade off is that you have all the capital you need when you can't access it through traditional sources
Here's a good example of how the cost of this method of business financing works.

Let's use a $ 10,000 invoice as an example. When you are in a position to invoice your customer for services rendered or product delivered you would pay approx 200.00$ for a 30 day ' loan ' on that balance. If your customer pays in 60 days (unfortunately many do!) the finance charge becomes $400.00. Remember though that cash in your bank is now used to generate more sales, grow profits , and you can even reduce your financing costs by using part or all of those funds to take discounts with your own suppliers - who now suspect you're ' cash rich '!


If you’re looking to maximize the benefits of the ‘ right ‘ A/R finance solution seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your working capital 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 '

Stan Prokop

Account Receivable Finance In Canada: Properly Exploring The Hidden Value Of Factoring Receivables

7 Key Issues To Consider In A/R Financing In Canada

OVERVIEW – Information on factoring receivables in Canada. Utilizing Account Receivable Finance requires specialized information on seeking the right type of a/r financing that works for your business





Account receivable finance is actively sought by thousands of Canadian business owners and financial managers. The A/R component, next to cash on hand itself, is the most liquid asset you have on your balance sheet.
What issues are key to understanding the true value of ‘factoring receivables’? There are several, so let’s dig in.

Prior to addressing so those issues its prudent to make sure we are also singing from the same hymn book as to what exactly A/R financing is . Essentially it's a direct competitor to bank financing, which also of course offers business lines of credit secured by receivables.

Banks collateralize your A/R and allow you to borrow against it, commercial finance companies offering 'factoring' solutions create paperwork that allows you to transfer ownership of receivables as you generate sales. The benefit to your firm is instant cash at all times.

Why then is account receivable finance a common choice for business owners? Simply because it's an ongoing source of funds without many of the constraints and approval criteria imposed by our Canadian chartered banks.

One of the best analogies in understanding why a business employs factoring receivables is to analogize it to a retail who offers credit card payment. Instead of waiting 30 days or more for payment and instead of limiting how much he can sell the credit card firm pays the retailer the same day.

Pricing of factoring services in Canada is considered more expensive than bank financing but the trade off is the cash flow that is no longer limited to waiting for large clients or government accounts , etc to pay your firm.

So let’s cover off 7 key issues that you must weigh, consider and discuss when selecting the right A/R Finance solution.

First of all owners need to understand that you are still responsible for any bad debt, as you would be in a bank financing scenario. But you should no also that non recourse financing and credit insurance can be implemented to offset the bad debt issue.

Issue # 2- your overall customer base will be a key factor in the pricing and risk attributed to your factoring transaction. 99.99% of the time all North American receivables can be financed. On occasion the issue of ' concentration ' i.e. having just a couple of major clients might become a discussion issue.

Issue 3 - Your historical ability to collect your A/R and the invoice size are always considered. Typically the best pricing for factoring A/R is for facilities in excess of 250k, but bottom line any size of A/R portfolio can be considered for financing

Issue 5 - there are numerous A/R financing firms in Canada, all of them have different focuses as to size of transaction, types of industries they prefer to finance, and even where they themselves are located as to where your business is located.

Issue 6 - Numerous specialty areas are often the most fertile ground for A/R finance firms - they include transportation, trucking, personnel firms, etc. But the bottom line is that any commercial receivable can in fact be financed.

Our final point, issue # 7 is our recommendation to consider CONFIDENTIAL RECEIVABLE FINANCING. Unlike most receivable finance services it allows you to bill and collect your own A/R without notice to any other client, supplier, etc. It's as close to bank financing as you'll get.

If you're interested in ensuring you have covered off all the issues in considering Receivable Finance seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
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 Account 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

Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '



























Stan Prokop