Why a Confidential Factoring Receivable And Invoice Finance Program Will Work For Your Firm

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Are we right or wrong? We have always maintained that knowing something others don't in business gives you an advantage, and we think you'll see that advantage when we tell you about a confidential factoring program that works and why this type of invoice finance puts you head and shoulders above your competition.

You probably have heard that thousands of Canadian firms have moved to invoice discounting as their primary finance vehicle. Unfortunately misinformation about this type of financing is everywhere, and we'll show you how the advantages of receivable financing can be put to work immediately.

The real power of confidential invoice financing is the fact that you have the ability to bill and collect your own receivables. 99.9% of your competition won't be able to do this, and it is that stigma along with their suppliers, employees, etc that your competitors can't overcome.

Invoice financing works because as you grow your company the collection of cash doesn't, unfortunately, match the amount of sales you are generating. Those customers of yours continue to pay you in 30, 60, and 90 days... like it or not.

Naturally we tell our clients they have the option of restricting their customer's credit, holding shipments, and enforcing a strict collection policy - as you can imagine that is not their preferred solution - which is more often than not to extend more credit and be patient with their customers.

If you have an operating line of credit from a bank you could generally fund this working capital at a pretty decent cost - unfortunately small and medium sized business in Canada can't always access this type of credit.

Enter a confidential factoring receivable and invoice finance program! When you utilize this type of financing you are generating all the short term borrowing you need, and, more importantly, you have the ability, unlike those competitors of yours to bill and collect your own receivables. Most receivable financing in Canada is actually done on a full notification basis - it works, but we don't like it, because it involves notifying our clients, employees, etc as to how your firm is being financing. We prefer that to be our clients business, not the entire marketplace!

When you use confidential invoice financing you receive approx 90% of the invoice amount the day you generate the invoice. The balance is simply held back and remitted to you when your customer pays you - less the financing charges.

And hey, what about those financing charges - aren't they high? We have some strong opinions on that, mainly due to misinformation that abounds on the cost of factoring. Confidential invoice factoring costs the same as regular financing in this manner, and we point out to clients that the charge is not dissimilar to carrying those accounts receivable for 60-90 days on your books. And making using of that cash to generate further sales and profits, enhance relationships with suppliers, etc, is a key benefit of this financing.

Speak to a trusted, credible and experienced Canadian business financing advisor and learn how you can take a unique competitive lead via a confidential invoice finance program.


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 13 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







http://www.7parkavenuefinancial.com/confidential_factoring_receivable_invoice_finance.html

Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

Article Source: http://EzineArticles.com/5651146

Invoices To Finance ? Here's The Best Method Of Factoring Financing In Canada For Accounts Receivable

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Information on confidential factoring financing for your firms account receivable investment . How it works and why the ability to turn those invoices into cash will generate cash flow and working capital for your firm

We know why you are here. You've got them; you just don't know what to do with them. We're of course talking about invoices to finance, and what we think is the best method of factoring financing for your accounts receivable.

There isn't a day these days when we don't meet a client like you who isn't challenged by working capital and cash flow challenges.

Let's examine the basics of factoring financing in Canada, with exactly what you need to know, which is simply how does it work and whats the best type of receivable financing arrangement. Oh, and by the way, we'll share some tips on what to look for in that ' perfect' arrangement we are referring to,

So let's weigh in on our subject, which is that you have got accounts receivable, and they are growing , and as everyone is experiencing these days, your clients , as great as they are, are slow to pay. And we won't forget that terrible thing known as the bulge, which is that seasonal or occasional situations when large sales opportunities loom and you need financing to cover those off.

Thousand of Canadian companies can't all be wrong, so there must be something to factoring financing of those invoices, right? We're going one step better and recommending that you investigate confidential invoice financing, which is simply a factor arrangement that has you in control of the show, not the finance firm. And controlling your own destiny is what it is all about.

Accounts receivable financing is simply the sale of your invoices to your finance partner firm - you get the cash immediately. It works best when you have some decent gross margins to absorb the 1-2.5% financing cost that comes along with this type of financing. The cost is what most of our clients are worried about , and they are somewhat more happier when we show them how they have the ability to cut that cost in half using that new found cash flow to execute on strategies such as taking discounts with their suppliers and buying in bulk at better prices .


So here comes that recommended secret we are talking about. We call it C I D, which stands for confidential invoice discounting. Here's where you have the advantage over your competitors. 99% of all factor financing in Canada revolves around your factor firm partner billing and collecting your invoices, with notice to your customer. Our offering eliminates that, you bill and collect your own invoices, when you want, when you need the cash. So you have the same pricing as your competitors, but you are on up on how the facility works.

Things we look out for when we originate these financings are areas such as the total all in rate of your new financing facility. Other somewhat technical issues are the advance rate, of what is advanced against the full amount of your invoices. Some other key issues to look for are the miscellaneous admin fees, the exact calculation your new financing partner uses for their rate, and your ability to terminate the arrangement at no cost.



Some of these latter issues we mentioned can save you thousands and tens of thousands of dollars of a year, so we recommend you use the service of a trusted, credible and experienced Canadian business Financing Advisor with a track record of success to ensure you have the best method of factoring financing for your firm.




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 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

Let Financing Receivables Stop That Feeling Of Borrowed Time . “ Lien “ on Canadian Invoice Finance And Factoring For The Solution.

A Canadian Financing Strategy .. that works!


Information on financing receivables in Canada . How the invoice finance and factoring solution helps Canadian business stay cash flow positive!





Financing receivables in Canada. It's no secret that invoice finance, aka ' factoring ' is part of the ' new normal ' when it comes to Canadian business financing.

There are probably thousands of Canadian businesses who constantly feel they are living on borrowed time. That is why invoice financing, collateralized by a ' lien ' on your receivables has become a solution of either choice or necessity for the business owner or financial manager.

Oh and by the way some of the biggest corporations in the world also utilize this method of financing their growth and largest asset, the A/R.

A lot of the activity around financing receivables is, unfortunately, being driven by... yes; you guessed it, your clients. Why is that? Simply because they either by policy, or practice, have chosen to slow down their payments to yourself. We're aware of one case wherein one of the largest companies in the world advised their printers they would pay all invoices on 120 day terms. Talk about a painful hit to cash flow!

While we certainly realize that the typical payments from your clients are probably closer to 60 days these days, (that kind of seems to be the new norm) it allows a financing receivables strategy to ensure you take much less of a hit on your cash flow and working capital.


The triple whammy. That's our own term for what else is happening out there in the Canadian business financing marketplace. Your suppliers slow down, bank financing becomes harder to achieve, and you still want and have the ability to grow your company. Talk about a perfect storm that comes together to challenge your firm in every manner!

One of the reasons that invoice finance is so popular these days is simple that is a ' stable ' source of funding for your firm. What business owner or manager doesnt want a reliable source of funding and working capital .in the current economic environment? That is a basic premise of invoice financing or factoring - the fact that your facility can be reviewed anytime, within pretty well a days time, to be increased based on your needs.

Cost is often a factor that turns off many clients who look at financing receivables. While the cost is higher than traditional bank finance that has to be balance off against access to capital. In trying to present a balanced outlook on invoice finance we also note that you typically have to report more regularly on your business progress - that typically includes monthly reporting on aged receivables, payables, and a balance sheet and income statement snapshot. We don’t think that necessarily is a bad thing though, as many clients tell us that process allows them to understand and run their companies better.

So, if you want to stop that feeling of ' borrowed time ' let a invoice finance firm ' lien ' on your receivables . That immediate uptick in cash flow and working capital should allow for better business performance... with less stress! Speak to a trusted, credible and experienced Canadian business financing advisor today on how invoice finance works, for you.

7 PARK AVENUE FINANCIAL

CANADIAN RECEIVABLES 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 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/financing_receivables_invoice_finance_factoring.html

Put An End To Business Funding Challenges - Why Accounts Receivable Financing Via A Confidential Invoice Finance Strategy Works

Don’t Let Your Business Experience Financing Downtime!


Information on accounts receivable financing in Canada . What is the best type of invoice finance strategy and how does this type of business financing work?




When Canadian business owners and financial mangers want to put an end to business financing challenges they are prepared to consider all alternatives. One of the most popular these days is accounts receivable financing via a confidential invoice finance facility. It only does one things for your company - it accelerates cash flow!

One of the other reasons that this type of financing gains in popularity every day is that allows you to increase your cash flow and working capital without having to consider additional equity arrangements into your company. Even more important is the fact that many business people miss the fact that an A/R finance strategy is not ' debt ' - you are simply monetizing your current assets, i.e. the accounts receivable, into immediate cash.

The concept is exceptionally simple, where it gets complicated we find is that clients don’t really understand some of the terminology, costs, and benefits of this type of financing. As we said, it couldn’t be simpler - you generate sales, and, via your receivables, sell those invoices, gaining immediate cash flow. Clients tell us it certainly is not unusual these days to have their A/R run anywhere from 30-90 days from a viewpoint of when they can expect payment from their customer.

So imagine how your firm would do if you have really unlimited capital based on the sales you generate. You're back to where you want to be, growing your company, not wondering how you will finance that growth!

Some of the day to day nuances of factoring need to be clarified to Canadian businesses who are considering invoice finance for the first time. One is the holdback. When you finance one or a number of invoices (and by the way, it’s your choice) you receive typically 80-90% of the invoice value the same day. The remaining balance is held as a holdback or reserve and remitted to you when your client pays.

If one issue typically concerns the Canadian business borrower who is considering and accounts receivable financing strategy it’s the cost of the financing. In Canada that cost, on an average, is typically in the 2% range. We hasten to add that sometimes it’s less, and sometimes it’s more. Factors that decide your final pricing are the general health of your business, the size of your monthly A/R, and the overall quality of the customer base.

Firms considering invoice finance are typically those that are growing too quickly and are unable to achieve traditional bank financing. Alternatively they may be working their way through some business challenges, such as an off year for financial results, etc,

One reason this method of business financing is growing so quickly in Canada is the fact that facilities can be set up very quickly, with less focus than the bank on issues such as rations, shareholder equity, personal guarantees, etc.

Is any one facility of this type better than the other? We sure think so, that’s why we constantly are recommending a confidential accounts receivable financing strategy.

This allows you to bill and collect your own receivables, finance which ones you want when you want, and has no involvement or notification to your clients. Unfortunately the majority of facilities offered in Canada don’t offer this type of financing
So consider speaking to a trusted, credible and experienced Canadian business financing advisor who can work with you to get you the optimal facility that works for you from a viewpoint of benefits and day to day ease of management.



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_invoice_finance.html

Canadian AR (A/R) Finance Exposed – How Receivables Factoring Companies Invoice Finance

Laid open to view. That's a solid definition for ' exposed '. It almost sounds like a steamy spy novel..! Well... perhaps not as exciting as that... but lets take the covers off A/R finance in Canada. How does receivables factoring and invoice finance work and another thing... didn't we hear it was expensive..?????

It's our observations that usually after Canadian business owners and financial managers understand how ar ( a/r ) finance works that they immediately focus in on trying to understand how they can achieve the benefits of receivables factoring , while at the same time reducing the cost . In years gone by the perception of factoring was that it was akin to the same negative perception we give to unscrupulous car dealers.

Bottom line? Things have changed, and invoice financing is powering, yes we say powering! thousands of companies all across Canada.

So, back to pricing - we're going to expose some of the key fundamentals around this type of business financing. In the case of how you are charged its actually more simply than you think, the pricing of your transactions revolves around the total time it takes to collect your invoices, the actual size of your approved facility, and thirdly, an d in our opinion as important, who you choose as an invoice finance partner !

So what actually is the best pricing you can achieve in Canada from an ar finance strategy point of view? Well, let’s just say the spectrum is broad, with costs ranging from 5-6% per annum to 1-3% per month. Wow! Let's repeat that wow! That is clearly a huge range. So clients tend to ask where they fit into the pricing of their receivables factoring equation.

In Canada there are 2-3 tiers of firms which dominate invoice finance. They are a select group of U.S. and Canadian banks, some major independently owned Canadian and U.S. firms, and finally, hundreds of what ca be only termed as small ' mom and pop ' shops, providing facilities that might range in the 15-25k/month range .

Where does your firm fit. The truth around pricing is that once your firm has a volume of approx 250k per month you can start to achieve some significant invoice finance savings. Want to know another secret of the industry. It's simply that if lock into a facility for a year then you can actually achieve a price reduction, while open facilities tend to charge a bit more.

Our favorite and recommended type of facility is called C I D - It stands for confidential invoice discounting. What is it? It's simply a receivables factoring facility that allows you to bill and collect your own receivables. Your competitors might be using invoice finance but they are under the stringent control of their factor partner, who is intensely involved in the invoicing and notification to your customers of the financing you have arranged.

And, guess what, C I D financing, contrary to popular Rumour, is the same or less expensive that traditional U.S. and U.K. type factoring which have dominated the Canadian landscape for years,

AR Finance is at the end of the day a business financing facility that involves yourself and your partner firm. We recommend you deal with Canadian firms who understand the business landscape here and who ensure you have a facility that makes sense from a cost point of view. The right partner will also not ' nickel and dime ' you with respect to hidden fees, surcharges, etc. There isn’t a day when we don’t meet a client who ' thinks' he knows what they are paying for invoice financing, until, unfortunately, we expose the true pricing around his or her facility.

Want the real straight talk and goods on receivables factoring in Canada. Perhaps, just perhaps you might want to talk to an unbiased expert. Seek a trusted, credible and experienced Canadian business financing advisor, and get on the inside of the true benefits of receivables finance!





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 .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/ar_finance_receivables_factoring_invoice_finance.html

Is Business Receivable Invoice Finance your Guaranteed Cash Flow solution ? What Factoring Costs

The ups and downs of business often relate directly to those same ups and downs in business financing - let's examine why invoice finance , i.e. the financing of your business receivable is a guaranteed solution to solve some of those ups and downs.

We're the first to admit that any Canadian business owner or financial manager can be skeptical about the word guaranteed - so we'll offer up the basic facts and let you determine the validity of that ' guarantee '.

Business receivable finance, commonly called factoring is the immediate hard core alternative to monetize your business cycle. Your firm typically is finding cash flow and working capital finance harder to manage, and most probably you have discovered you can access the business financing you need.

To feel better about that ' guarantee ' we mentioned clients want to know what the cost of this type of financing is, and is it easy or cumbersome to use on a day to day basis.

The cost of invoice finance in Canada is widely mis understood. Let's look at a few facts around this issue, which tends to be often the most worrisome part of any clients decision to enter into this type of business receivable financing. First of all the cost of invoice financing is always viewed by customers as an interest rate - the actual lender, who is not financing your receivable (like the bank) is buying your receivable. It's purchased at a discount to yourself, and that discount in Canada can be anywhere from 1-3%. So in determining your interest in factor financing make sure you are singing from the same hymn book as the factoring firm,

Want an easy way to look at the cost of invoice finance? Think of it this way - if you were able to increase your prices by 1-3% , or take the cash you achieve from this type of financing and utilize it for supplier discounts from your vendors you have pretty well just broken even on your business financing . That’s powerful! You have turned your company into an automatic cash flow machine with unlimited credit, without the banks help and all that comes with bank financing.

Let's turn again to our ' guarantee ‘. We can categorically say that if your business is new or a start up, or if you are experiencing high growth, or is unable to access bank financing because of financial challenges you've faced or are facing then business receivable factoring is the guaranteed solution to those challenges . We repeat, none of these 4 issues affects your ability to turn your company into the cash flow machine we describe - that’s the guarantee.

So why aren’t hundreds or thousands of Canadian businesses taking us up on our ' guaranteed financing ' concept? Guess what, they are - everyday hundreds of firms turn to or start exploring this valuable type of business financing.

In summary, determine if your firm fits into the challenged businesses we spoke of. Make sure you understand the real true cost of this financing, which can in many cases increase your access to credit by 100% or more. Speak to a trusted, credible and experienced Canadian business financing advisor and turn that ' guarantee ' we spoke of into successful business receivable 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 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/invoice_finance_business_receivable_factoring.html

Why a Confidential Factoring Receivable And Invoice Finance Program Will Work For Your Firm

Are we right or wrong? We have always maintained that knowing something others don't in business gives you an advantage, and we think you’ll see that advantage when we tell you about a confidential factoring program that works and why this type of invoice finance puts you head and shoulders above your competition.

You probably have heard that thousands of Canadian firms have moved to invoice discounting as their primary finance vehicle. Unfortunately mis information about this type of financing is everywhere, and we'll show you how the advantages of receivable financing can be put to work immediately.

The real power of confidential invoice financing is the fact that you have the ability to bill and collect your own receivables. 99.9% of your competition won’t be able to do this, and it is that stigma along with their suppliers, employees, etc that your competitors cant overcome.

Invoice financing works because as you grow your company the collection of cash doesn’t, unfortunately, match the amount of sales you are generating. Those customers of yours continue to pay you in 30, 60, and 90 days... like it or not.

Naturally we tell our clients they have the option of restricting their customer’s credit, holding shipments, and enforcing a strict collection policy - as you can imagine that is not their preferred solution - which is more often than not to extend more credit and be patient with their customers.

If you have an operating line of credit from a bank you could generally fund this working capital at a pretty decent cost - unfortunately small and medium sized business in Canada can't always access this type of credit.

Enter a confidential factoring receivable and invoice finance program! When you utilize this type of financing you are generating all the short term borrowing you need, and, more importantly, you have the ability, unlike those competitors of yours to bill and collect your own receivables. Most receivable financing in Canada is actually done on a full notification basis - it works, but we don’t like it, because it involves notifying our clients, employees, etc as to how your firm is being financing. We prefer that to be our clients business, not the entire marketplace!

When you use confidential invoice financing you receive approx 90% of the invoice amount the day you generate the invoice. The balance is simply held back and remitted to you when your customer pays you - less the financing charges.

And hey, what about those financing charges - aren’t they high? We have some strong opinions on that, mainly due to mis information that abounds on the cost of factoring. Confidential invoice factoring costs the same as regular financing in this manner, and we point out to clients that the charge is not dissimilar to carrying those accounts receivable for 60-90 days on your books. And making using of that cash to generate further sales and profits, enhance relationships with suppliers, etc, is a key benefit of this financing.

Speak to a trusted, credible and experienced Canadian business financing advisor and learn how you can take a unique competitive lead via a confidential invoice finance program.
--

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 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/confidential_factoring_receivable_invoice_finance.html