Factoring and Invoice Cash Can Boost Your Business

 

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Unlocking the Benefits of Factoring and Invoice Cash: A Comprehensive Guide

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        Financing & Cash flow are the biggest issues facing businesses today

                              ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?

CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

EMAIL - sprokop@7parkavenuefinancial.com

 

SOLVING THE CHALLENGES OF BUSINESS CASH FLOW

 

 

INTRODUCTION 

 

Businesses often face  numerous challenges when it comes to managing their cash flows and the ability to maintaining a steady cash flow is vital for any business to stay afloat.  With often limited resources, many businesses may struggle to secure loans or lines of credit from traditional financial institutions.

That is when invoice financing / factoring comes in as a viable solution - allowing a business to cash flow their receivables / unpaid invoices , thereby improving cash flow without the need to take on any balance sheet debt .

 

  

WHAT IS  INVOICE FACTORING AND HOW DOES IT WORK?  

 

Invoice cash - can a factoring or working capital facility actually reduce your financial expenses and allow your business to grow at any rate profitably?  Invoice factoring involves 3 parties - the company , the customer, and the factoring company.

Factoring is a business financing solution that allows business to finance accounts receivable in exchange for immediate cash . Under traditional ( we can call them old school ) invoice factoring companies can also assume responsibility for payments to the company -  At 7 Park Avenue Financial our recommended solution for factoring finance is Confidential Receivable Financing, allowing a company to bill and collect  its own invoices, with no notification to clients.

Businesses that have good quality receivables can receive approx 90% of the invoice value as invoices are generated - ie the factoring company pays same day! The balance of 10% is returned to the company when the client pays, less financing factoring cost.

 

 

 

TRADITIONAL FINANCING OPTIONS FOR BUSINESS  

 

Traditional financing options for businesses / small business owners in Canada  include term  loans, lines of credit, business credit cards, etc.However, these options may not be suitable for all  businesses and  bank loans require collateral and a strong business  credit history as well as a good personal credit history from owners . Some traditional finance options take on additional debt to the balance sheet which can add an additional layer of risk for the business.

 

 

 FACTORING / FINANCING ACCOUNTS RECEIVABLE A GREAT SOLUTION  FOR BUSINESS CASH FLOW?

 

When is comes to  understanding the challenges of business cash flow it often becomes an issue of being unable to predict  sales revenue and cash inflows. 

 

Businesses will experience fluctuations in sales revenue for a variety of factors - Some of those factors include:

 

Seasonality or Cyclical trends in the business and industry

General economic downturns in the economy

Unexpected expenses

Inability to access  working capital loans or business lines of credit from traditional financial institutions due to their limited financial history or lack of collateral.

This can make it difficult for small businesses to access the capital they need to grow and expand their operations.

 

FACTORING FINANCING IS A GROWING TREND IN A BUSINESS FINANCING STRATEGY

 

Canadian business owners and financial managers keep hearing about firms that 'factor' their accounts receivables, their 'invoices. ‘  This is a growing trend in Canada that has caught on to a financing strategy that has been successful in the U.S. for several years. Any company with outstanding invoices and  good receivables can qualify for invoice factoring , aka invoice discounting and can use invoice factoring profitably.

 

WHAT DOES  INVOICE FACTORING  COST?

 

Is there a ' perfect ' financing solution for your firm that provides you with unlimited working capital and is actually cheaper than bank financing when you realize that you are carrying receivables 30, 60, and 90 days on your balance sheet? 

 

While we might agree there is no 'perfect' financing solution for all Canadian firms everywhere, we strongly feel that we can very EASILY demonstrate that invoice cash, known as factoring or receivable discounting, will take your firm to the next level of sales and profits.

 

IS FACTORING A CHEAPER ALTERNATIVE TO BANK FINANCING? YOU DECIDE

 

Let’s get back to our statement of how you can reduce your financial expenses and grow your sales at any growth rate. We will even add that you can 'profit' from this financing strategy.

 

HOW FACTORING CAN REDUCE FINANCE EXPENSES AND GROW SALES REVENUE AT ANY RATE PROFITABLY

 

We have to get a little technical here, but bear with us! --

 

AN EXAMPLE OF A FACTORING  TRANSACTION

 

Let’s say your firm has sales of 1 Million dollars, you have 40% gross margins, and you have operating costs of 38%, leaving you a 2% net income on your sales. Included in those costs are your bank financing costs from, for example, a Canadian chartered bank. We would point out that your bank credit line has a limit, and at a certain point, your customers are paying you in 30, 60, and 90 days. You are fully utilizing your line of credit.  Are you able to take new orders and contracts without new external financing - we don’t think so!

 

DOUBLED SALES / NO EXTERNAL FINANCING / INCREASED PROFITS

 

So what's the solution?! We have one for Canadian business owners or their financial managers. Let us set up a working capital factoring facility for you. The kind that we prefer is 100% non-intrusive - that is to say, you will continue to bill and collect your own accounts receivable.

 

We call it non-notification. Ask any other firm if they like how their factoring facility works. If they don’t have a non-notification facility, they will tell you they don’t necessarily like it for several reasons, mainly customer intrusion, etc.

 

So we have our facility set up. You take on new orders and contracts and double your sales to 2 Million dollars.

 

 Your competitors start talking about you!

 

Using the factoring or invoice cash facility, you get paid the same day that you invoice clients.. At the end of the year, your sales are 2 million, they have doubled! Your net profit would be 130k, not 20k; you would have paid 70k in factoring and financing costs and still have made a lot more profit - in our example 110k more profit.

 

  

THE CASH CONVERSION CYCLE - FACTORING AND ASSET TURNOVER IMPROVE RETURN ON ASSET / RETURN ON EQUITY AND NET PROFIT !

 

  

Again, we realize we're getting a little technical and accounting oriented in our example and explanation - so what is the layperson's bottom-line explanation of what just happened - It is as follows -

 

You doubled your sales, you had no concerns about external financing or taking on new debt, and your profits went up a lot!

 

Technically what happened is what KPMG calls on their website the ' Cash conversion cycle ' - you have turned over assets much quicker. Therefore you have a greatly improved return on assets, return on equity, and net profit.

  

BENEFITS OF FACTORING FOR  A BUSINESS FINANCE SOLUTION  

 

Benefits of factoring for business include

 

Improved working capital  - companies can meet short term obligations and avoid temporary cash flow shortages

No additional debt or financial obligations - Factor Finance does not add debt to the balance sheet

Access to capital - companies unable to access traditional financing can secure business capital to grow and expand

Reduced administrative burden -  Businesses who utilize notification type factoring  can transfer credit and collection responsibility to the factoring finance company

 

 

 CONCLUSION - 

 

Factoring offers several benefits -  including improved business  cash flow, access to capital, and reduced administrative expenses around the credit and collection cycle . Factoring is not a loan per se , so small businesses do not take on additional debt or financial obligations. Choosing the right factoring company is essential for small businesses to maximize the benefits of factoring. Factoring can be a viable solution for small businesses that are experiencing working capital shortages or need access to capital to grow their operations.

 

In summary, invoice cash, factoring, receivable discounting, or whatever you want to call it (at our firm, we call it a working capital facility) works. It can work for you.

 

Call  7 Park Avenue Financial,  a trusted, credible, and expert business financing advisor, and run the numbers. You will find you just got off the cash flow merry-go-round, and that’s a good thing.

 

 

FAQ:FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION 

 

 What are Common misconceptions about factoring 

There are several common misconceptions about factoring - so it is important to understand how to use this financial tool -

Factoring  business receivables is expensive -

Factoring fees can vary depending on the size of the accounts receivable and the creditworthiness of the customers as well as the size of the credit facility However, factoring fees are typically lower than the interest rates charged by traditional financing options such as long term loans - In some cases factoring can be less expensive than bank financing

Factoring will damage customer relationships -

Factoring companies are experienced in handling customer relationships and will work to maintain positive relationships with the customers. Additionally many companies have the option of considering non-notification factoring financing solutions - allow them to bill and collect their own invoices -  factoring can allow a  business to offer more flexible payment terms to their customers, which can improve customer satisfaction and increase sales Slow paying customers can also be financed, as long as the  unpaid invoice is less than 90 days old.

Factoring is only for businesses with poor credit -

Factoring is used by companies of all size, including large corporations - Factor finance is based on the creditworthiness of the accounts receivable base , so any company with good customers can benefit from receivable finance.

 

 How do business owners  choose the right factoring company for a business?

Choosing the right factoring company is essential for small businesses to maximize the benefits of factoring. When choosing a factoring company, small businesses should consider the following:

 Fees - financing costs  vary, so small a company considering a/r finance  should compare fees from different lenders  to ensure they are getting a competitive rate.

Customer service  - Businesses should choose a factoring company that offers excellent customer service, including prompt  same day payment and efficient collection of accounts receivable.

Industry experience

Some factoring companies specialize in certain niche industries, for example trucking and staffing agencies - Businesses should choose an invoice  factoring company that has experience working with businesses in their industry and is properly geographically located

Companies should carefully review the contract terms offered by the factoring company, including the length of the contract, the termination clause, advance rates,  and any miscellaneous  fees that occur when comparing invoice factoring vs other types of working capital financing or bank loan financing.

 

Click here for the business finance track record of 7 Park Avenue Financial

Invoice Cash – Immediate Cash For Accounts Receivable And Inventory

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Cash Flow From Your Sales - Figured Out - Finally !

Information on invoice cash financing strategy . The ability to generate immediate AR Cash from your sales revenues increases the probability of business financing & financial success

Invoice cash – What is the problem and what is the solution? The problem or challenge is a classic one for Canadian business owners and financial managers. It is that sales are growing fast, but, guess what? The receivables associated with those fast growing sales and converting into cash. In fact they are tying up your working capital for 30, 60, and sometimes 90 days. How can you tell if this is happening? Well we are sure it’s fairly intuitive to most customers, but you can actually do a very basic calculation on this to verify. We also tell our clients there is one easy way to fix the problem,


We advise our clients to track something as simple as the ‘ Turnover of Working Capital ‘ – Take your sales for the time period, example, month, or year , and divide by you working capital which is calculated by current assets minus current liabilities . If your ratio is trending higher you will find that you are having more working capital challenges.


Our clients often ask for solutions though, not a financial ratio as we have presented above! Invoice cash, also known as factoring or receivable discounting is one solution to the above working capital challenge. This solution also assumes you have been unable to get any, or enough, bank financing to fund your business.


How does this solution work – it’s a simple process of generating your invoice as you sell your product, and then on a daily, weekly, or monthly basis (it’s your choice) sending these invoices to the factoring or invoice discounting firm. They will on a same day basis send you approx 90% of those funds immediately. You have just generated IMMEDIATE cash flow for your business. The other 10% of the invoice is paid to yourself when your customer pays, minus a ‘ discounting fee ‘ , which is a carrying or financing charge for the factoring firm .


Canadian business owners need to ensure they have the right facility. We encourage clients to get the type of facility where they continue to bill and collect their own receivables during the factoring process. Also, the Canadian business landscape relative to invoice cash/ factoring firms is much different than in the United States.


As a Canadian business owner or financial manager contemplating a factoring facility you should consider the following key points:


-What fees are you paying – ensure your fee is clearly understood and has no miscellaneous costs


Ensure you can bill and collect your own receivables – many factor firms will want to take over to some degree your invoicing and collection function


Ensure you are dealing with a firm that understands the Canadian landscape – many firm are simply branches of U.S. organizations


You should ensure that your capital requirements can be met and that the firm can fund companies in your facility size range. More cash flow means more growth, more profits, and more competitive success for your Canadian company.


That is a good thing!




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



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 .

' 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

Invoice Cash – Factoring Invoices in Canada : Right Place Right Time!

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Factoring Receivables In Canada – Behind The Hype

OVERVIEW – Information on factoring finance . The ability to monetize your sales as quickly as possible through strong collection practices or external financing of receivables is key to long term success

Invoice cash is probably best known as factoring or accounts receivable financing here in Canada. Although the business of factoring is hundreds of years old and works widely all over the world it has been a bit slower to catch on here in Canada. Lets examine some of the reasons why that has been the case, and we will also focus on why it is a timely solution for many small and medium sized companies here in Canada. Let'ts dig in .

And by the way, many of Canada's larger and largest corporations use this form of financing also!

Factoring is the selling, or in some cases 'assigning 'your accounts receivable for immediate cash. Immediate is the key word, since you get your funds the same day often, as opposed to waiting 30, 60, or sometimes 90 days for accounts receivable.

How can you possible make money with factoring when it is in effect a financing cost?!! Well, consider this - if you recognize that you have a cost to carry your accounts receivable, let's look at what it costs you, and then determine what things might look like if you were collecting your money the same day that you invoiced your customer for goods or services.

Back to our example - and let's point out that we are talking only about the cost to carry the receivable, not the risk of bad debt, etc. Our example is from one of the leading credit organizations in them U.S. (NACM), but it is of course 100% applicable to Canada.

Interest:
What does it cost to carry past-due accounts? If a 5 percent net profit is realized on sales, for every $100 accepted in credit, $95 is paid for product, expenses, taxes, and so on. Interest alone can erase the $5 profit in a short period of time:
Interest Costs at 12% Per Year:
First month: 12% x $100 = $12.00 divided by 12 months = $1.00)

Consider an example using a yearly sales figure of $12,000,000 or $33,000 per day. If the accounts receivable investment improved and the number of DSO decreased, the following amounts could be released or added to cash flow: by three days - $100,000; by six days - $200,000; by thirty days - $1,000,000. The funds could be used for keeping up with competition (for example, expansion or new product development) or internal improvements (such as salary and overhead increases). Source - NACM

So it is now hopefully abundantly clear that if you can get cash for your receivables on day on, re invest those funds in additional products and services for your customers, and repeat that process all over again you will of course be in effect taking the lead from our title - You are making money with factoring!!

So now your firm is making money with financing - that's a solid concept! How do you get started on this whole process?

When we meet with customers we advise them that in our opinion the Canadian factoring market is very fragmented, and it is very important to work with a trusted and credible and experienced working capital expert to ensure you have the right facility set up.

Have You Heard About Confidential Receivable Financing ?
A book could of course be written on the 'right facility 'for your firm. For the purposes of our information shared here lets simply say that we recommend a very Non - U.S. way of setting up your facility, and that's the favorite one we utilize for our customers. It is called non - notification. The bottom line is that you are in charge of billing, collecting, and factoring your receivables.

Unlike many other factor facilities which are very intrusive your business (the factor company bills and collects your receivables) our method of non notification allows you to seamlessly continue your business on a day to day basis, determine which funds you wish to factor or finance, and most importantly in that whole process the word invoice takes on a whole new meaning: Invoices = Cash!

Speak to an expert and get your non notification facility in place, watch your sales and profits grow!

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

Cash Flow AR Financing In Canada - Is Invoice Cash The Working Capital Miracle ? You Decide

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Does Financing Your Sales & Cash Flow Needs Seem Like A Constant Duel To The Finish?

Here's One Solution

Information on how invoice cash, also known as factoring or invoice discounting can assist Canadian firms with working capital turnover and cash flow solutions for greater growth and profits . Our recommended strategy : Confidential A/R Financing

As a Canadian business owner you in fact feel that pressure every day - one business owner I know who has had his business for over 30 years says you aren’t an entrepreneur until you have ' sweated a payroll ' - which of course meets rising to the challenge of meeting that key payroll requirement for your employees .


Invoice cash - How can Canadian companies address the problem of growth and lack of working capital. The majority of any firm’s liquid assets are tied up in accounts receivable. Over the years customer that paid in 30 days now take 60 or 90 days to pay your firm. This then places tremendous pressure on working capital. Thats the problem - is there a solution.

How can a Canadian business owner of financial manager determine when working capital is tightening? They are some very basic calcs you can perform. There are a number of great indicators you can monitor - here is one - it’s the ' Collection Period ‘. Simply take your accounts receivable and divide you your average daily credit sales the longer your Collection period number is the greater attention you need to pay to working capital. Receivables are a huge component of working capital. So what if you had a solution to obtain all the working capital you needed based on current and projected sales growth?

That solution is invoice cash, or the immediate factoring or discounting of your accounts receivable. If you have no bank line with a Canadian chartered bank, by sacrificing a couple of percentage points in your gross margin, you can immediately monetize your accounts receivable.

The ' challenge ' - if we can call it that, in the Canadian marketplace is simply setting up the right invoice cash facility. We advise our clients on focusing on a ' non notification ' facility. Factoring , or invoice cash, or accounts receivable discounting, came to Canada via the U.S. and Europe , where the process has been in practice hundreds of years . Canadian business owners are less willing to turn over their accounts receivable function to a third party finance firm.

We therefore focus on non- notification solutions for clients - a financing facility where you can bill and collect your own receivables, and still get daily, weekly, or monthly advances ( It's your choice ) on your accounts receivable .

An ever better option is to marry an invoice cash facility with an inventory financing facility - you'll be able to finance your inventory also. That means only one more thing - additional cash flow and working capital.

Speak to an experienced, trusted business financing advisor on your options for Invoice Cash, also known as factoring, in Canada. Putting together the right type of facility will allow you to generate needed working capital and cash flow to run ( and grow!) your business .


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

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

' Canadian Business Financing With The Intelligent Use Of Experience '

Business Financing Via Invoice Cash Solutions : Looking For The Best A/R Finance Company

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Looking To Put Cash Flow From Sales On Autopilot ? Here's How !

OVERVIEW – Information on business financing solutions in Canada. Invoice cash funding is all about choosing the right solution via an AR Finance Company

Business financing for many firms in the SME sector involves the necessity to turn receivables into liquidity for the company, in effect we're talking about ' invoice cash '. That term is synonymous with cash flow challenges that hit many firms all the time. How then does the use of an AR finance company assist in meeting that challenge?

Sooner, rather than later is the need for business owners who want cash flow to support their company requirements. In many cases certain industries demand a lot more cash for companies that participate in the sector. That might mean more focus on capital assets, or even research into new products and services.

What happens though when you can't get the financing you need from traditional banks / business oriented credit unions, etc? That's where an AR Finance company comes in.
Your ability to quickly and efficiently set up a receivable discounting facility allows you to immediate remove the problem of waiting 30, 60 or even 90 days for receipt of client funds for your goods and services.

To receive full funding for your receivables from a Canadian charted bank there is of course an extensive loan and business application, with a lot of emphasis spent on historical cash flow analysis, balance sheet analysis, income statement and operating ratios, etc! Invoice cash services eliminate 90-95% of that type of waiting and negotiation.

So why then does ' factoring ‘, the more technical name for invoice cash work and in fact showing more popularity every day. The answer is simple, an immediate flow of funds based on your sales revenues. That becomes most of the solution to what the pros call your ' working capital cycle '. That cycle, simply speaking, is the amount of time it takes a dollar to journey through your company and makes it back onto the balance sheet as cash.

When you finance through an invoice cashing - also called invoice discounting facility, you are not borrowing funds on a long term basis. Your balance sheet does not accumulate debt; you are simply liquidating current assets in a more efficient manner.

Is there any one type of facility in the area of ' invoice cash ' that works better than others? We're glad you asked!

We constantly recommend Confidential Receivable Financing, it's the ' non notification ' part of this solution, allowing you to bill and collect your own accounts, bank your own funds, and choose how much financing you need on an ongoing basis. It's classic ' pay for what you use ' financing when you're working with the right partner.

A/R Finance is not always the ' only ' way to fund cash flow needs. Other strategies might include:

Working capital short term/ long term loans

Sale leaseback strategies

Inventory finance

Tax credit finance ( sr&ed refunds are financeable)

Longer term solutions of course involve scenarios such as new equity.

So let's recap: Your business requires additional cash flow. You either have facilities in place and they aren't working, or you are self financing and need cash flow to pay suppliers, employees, etc. Seek out and speak to a trusted, credible and experienced Canadian business financing expert who can deliver on invoice cash for your firms need.


Stan Prokop - founder of 7 Park Avenue Financial –
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 :
http://www.7parkavenuefinancial.com

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

Receivable Financing Powers Invoice Cash In Canada . Why You Should ( And Perhaps Shouldn’t) Use Factoring For Cash Flow

The Power of Cash Flow Finance Solutions

OVERVIEW – Information on receivable financing as a cash flow solution in Canada . How does invoice cash via factoring suit the need of the growing Canadian business and what do business owners need to know about the importance of working capital management and solutions .





Could you be underestimating the power of a receivable financing arrangement, one that generates invoice cash based on your sales and revenue growth?

Whatever they may wish to call it, ' factoring ', ' invoice discounting ', and ‘a/r finance’ etc the situation just might be that you have underestimated this powerful financing tool. Alternatively you might have been focusing on other solutions that either aren't available for your firm or don’t bring you the liquidity you need. Let's explain.

While a huge portion of Canadian business owners and financial manager’s focus on growth, assets, profits etc they are often forgetting the requirement of cash flow to power their company.

In many ways a solutions such as receivable finance gives you the strongest measure of current and future liquidity. Your creditors, lenders, etc are always watching you, whether you know it or not, in an effort to evaluate the risk of doing business with your firm.

When it comes to invoice cash facility it’s all about short term financing. You are simply monetizing assets, i.e. receivables! to create a cash resource for your firm. Your ability to immediately produce cash from revenue (that’s what factoring does by the way) allows you to avoid potential problems when it comes to lack of working capital and liquidity.

In the old days (unfortunately we remember them!)

companies regularly, even without the legal requirement to prepare a cash flow statement, calculated what was known as a ' source and use ' of funds. It would give the business a solid opinion on whether you were going to be in trouble based upon where all the cash was going.

Today all sorts of financing solutions are available to finance a firm. Some are short term and some are longer term in nature. A/R financing (factoring) is a short term solution to generate cash flow.

While accountants, commercial lenders, even banks will often use rations such as ' current ratio ', and other to determine your liquidity they don’t accurately measure your current challenges in cash flow finance. Factoring delivers on the only thing your business needs to survive and grow - Cash!

We've used a great example over the years of a department store in the U.S. that was called W.T. Grant. Right up to the end things looked great - a huge asset laden balance sheet, profits (on paper) and sales growth. The problem? Assets such as receivables and inventories were growing and weren’t being financed properly. In the end its demise and implosion surprised everyone, however history tells us that if we had focused on cash flow and asset monetization things would have been a lot different. That's a U.S. company example of course, but the Canadian business battlefield is laden with many firms that run out of cash flow. We love reading about those sort of things.

If you want to generate enough cash to immediately solve your working capital needs consider an A/R finance/factoring solution.

Are there times when an Invoice cash facility doesn't work ? We advise clients that have low gross margins or declining sales that receivable finance is not really the best solution as opposed to a concentrated turnaround strategy .
Our recommended facility is a confidential invoice cash facility, one in which you can bill and collect your own receivables.

If cash is critical to your business (hello??!!) seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with a receivable finance solution that makes sense for your firm.

7 PARK AVENUE FINANCIAL
CANADIAN CASH FLOW FINANCING EXPERTISE


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 - 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/receivables-financing-invoice-cash-factoring.html



7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com





















Stan Prokop