Don’t Read This If You Don’t Want The Real Deal On Receivable Finance in Canada . Business Invoice To Cash Financing

Canadian Receivable Finance Information

Information on receivable finance in Canada . Why and When does business invoice to cash financing work?





Receivable finance in Canada. It's also known as the business invoice to cash strategy. Who wouldn’t want the real deal on what’s happening in A/R financing in Canada... how it works, who to deal with, what to watch out for, etc..

Maybe it’s just us, but there is a certain discomfort we notice with Canadian business owners and financial managers around their ability to feel 100% comfortable with their overall cash flow financing strategy. And when it comes to receivable finance can the average Canadian business owner or financial manager actually say they understand the benefits, costs, and potential disadvantages of a business invoice to cash strategy? Not really in our opinion.

The time to properly consider such a strategy is when your business is still in under control when it comes to the overall working capital strategy. When you don't feel in control you tend to have a total discomfort around acquiring new assets, making on time payments to suppliers and lessors, or worrying about how you will manage growth.

Cost tends to always be the main discussion point when the conversation gets around to A/R financing with clients. The issue is simply that in many cases the business owner is not comparing on an apples to apples basis.

Why is that then? Simply because the business person, makes his or her total decision, incorrectly on the ' discounting fee ' that is implied in the cost of A/R finance.

Oh and by the way, if you are dealing with the wrong company in Canada you can get blind sided by numerous miscellaneous charges that really add up, they include service fees, an admin fee, a renewal fee, a utilization fee, and, believe it or not, many of these firms require that you have to pay them to leave! Talk about the importance of dealing with the right firm!

When considering A/R finance strategy it is good though to compare it to the alternatives when it comes to benefits. Unlike a bank facility, which many firms can’t qualify for anyway the business invoice to cash strategy has virtually an unlimited cap. As most business people know banks in Canada have, of course, pre set limits on bank facilities we can comfortably say that you are only constrained by your ability to make sales when you consider A/R financing, which isn’t the worst problem to have. You have, in effect closed the gap when it comes to cash flow flexibility.

Our recommended facility is the confidential invoice financing one, its here you get to bill and collect your own A/R, while at the same time achieving all the other benefits.

Confused about who do deal with, how it works. One way to achieve the real deal on what’s happening in Canadian business financing is to seek out and speak to a trusted, credible and experienced Canadian business financing advisor... today.







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/receivable_finance_business_invoice_to_cash.html

Receivable Finance & Cash Flow Factoring – 8 Questions 8 Answers On Receivables Finance Solutions In Canada

Your Questions Finally Answered On A/R Finance In Canada

Information on receivable finance and cash flow factoring in Canada . Answers to questions you need to ask before entering into the right receivables finance strategy .


Receivable finance in Canada. Boy do we get a lot of questions around this single method of financing receivables in Canada. Another term for the same subject is of course ' cash flow factoring’

So let’s take some of those often asked questions, 8 in total and... You guessed it, answer them!

Question # 1- Does a Canadian start up or early stage company utilize receivable finance? The answer is a resounding yes. The reality is of course that same business is often ineligible to obtain most other methods of Canadian business financing by the very nature of the start up. Since cash flow factoring focuses on the asset of receivables it makes sense it’s a good solution for a start up firm

Question # 2 - Can you set this type of facility up on your own without the assistance of anyone? Again, it’s a resounding yes. However, due to the fragmented and generally misunderstood issues around the subject it would make often more sense to use a Canadian business financing advisor who is aware of the issues, pitfalls, and pricing around A/R finance. Another point is that this method of financing is clearly not all about price after you get into how it works daily mechanics, etc.

Questions # 3 - another great one. Does all of your A/R investment need to be financed at all times? The answer is no... This is clearly one method of financing your business that is essentially ‘pay for only what you use '. Although some facilities might require a minimum usage essentially it’s your call as to what A/R and when to finance.

Question # 4 - Are there contacts involved with respect to committing to such a facility. The answer is that certain facilities require no contract how most cash flow factoring firms do often require a commitment from your firm. That can often be negotiated and allow you to have some flexibility built into it. The reality here though is that you typically will use this type of finance for a year anyway as you move towards a more traditional bank borrowing.

Question # 5 - Does a firm have to have good financials to qualify. In general the answer is no. Unless your firm is in a death spiral past financial challenges your firm faces do not preclude you from obtaining receivable finance. As a rule if your sales are stable or growing you're an excellent candidate for cash flow factoring.

Question # 6 - Who exactly provides cash flow finance in Canada. For a starter it’s not the banks when it comes to invoice financing. There are firms that are very small in nature, some are subsidiaries of U.S. firms, and some are substantial on their own, and Canadian owned. Pricing, qualification, deal size, etc all vary so here again it makes sense to work with someone who is knowledgeable about industry players, their offering, and reputation. Again, beware of the ' low price ' carrot - it’s often, if not always, what it seems.

Question # 7- Pricing. Ah, we though you would never ask. As a general rule factoring in Canada is sin the 2% range, sometimes more, sometimes less. The industry views this monthly rate as a discount, i.e. it buys your A/R at a 2% discount to its value. You can offset this cost by purchasing smarter, taking discounts from suppliers, and selling and collecting more, thereby increasing your profits. And don’t forget, you're simply not carrying receivables for 60 or 90 days anymore, but it makes total sense still to stay on top of your collections to reduce costs to finance.

Last question, Question # 8 - what is the actual difference between A/R finance and a bank facility. As a joke we could say ' the ability to get one ‘! But the reality is that we've partially answered that one already. Receivables finance is the purchase of your sales and receivables as you make that sale and invoice. Banking is simply offering financing that takes your receivables as a back up collateral. That's a simplistic answer, but it’s a basic one.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your receivable finance and cash flow factoring 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 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/receivable_finance_cash_flow_factoring_receivables.html