Canadian Business Financing - 7 Park Avenue Financial: receivable loans

WELCOME !

Thanks for dropping in for some hopefully great business info and on occasion some hopefully not too sarcastic comments on the state of Business Financing in Canada and what we are doing about it !

In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.

Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.

Wednesday, February 4, 2015

Receivables Loans Provide AR Cash Flow Advantages

The Design Genius & Advantages Of Non – Bank Confidential A/R Receivables Based Financing

OVERVIEW – Information on AR cash flow solutions in Canada . Receivable Loans ( it’s not a loan per se!) via Confidential A/R Financing just might be the solution to beat your working capital finance challenges

AR cash flow can be achieved in a number of manners. Receivable loans (they are not actually loans by the way!) for many business owners and financial managers immediately conjures up bank financing. But that's not always the case as we'll see. And you just might find the 'design genius ' of some of these offerings quite interesting, and more importantly... achievable. Let's dig in.

The concept of financing A/R revolves around the need for short term day to day operations. That challenge is accentuated when it comes to ' growing ' your revenues and profits. Businesses requiring SME COMMERCIAL FINANCE needs should not feel alone in this area - some of the largest companies in Canada constantly have to address cash flow needs.

So what then is ' Confidential ' A/R based finance? At it's simplest it's securing financing via your client receivable base on a typically ongoing basis. When you're dealing with a bank your accounts are ' pledged’, but a commercial finance firm utilizes paperwork to reflect an ongoing 'sale ' of your accounts as they turnover. That's the essential difference.

It's not secret that bank rates for any business financing is typically the lowest cost of borrowing. While Confidential ' non notification' loans are more expensive, their benefits mirror a traditional bank facility. This is achieved via your ability to bill and collect your own invoices, while still reaping the cash flow benefits of same day financing for all your sales.

Many firms that utilize commercial A/R cash flow loans are in a transitory phase. They are either leaving the bank (having been asked to!) or seeking commercial financing for their sales as they repair any financial issues in their business allowing them to migrate back to... you guessed it... the bank!

There is no business that does not have the ability to finance their accounts receivable. The only requirement - Sales and commercial A/R.

While we have painted a picture of many businesses having no access to bank funding there are numerous firms who have access to some bank credit, but not all that meets their needs.

From an approval perspective Confidential A/R funding takes a holistic look at your whole business - that encompasses your current financial position, its challenges, your industry, as well as your overall client portfolio. Issues that can slow down, but not hinder your AR financing might be CRA issues or having some clients or a client represent a large part of your whole business - i.e. the concept of ' concentration'.

What then are some key ' drivers' that you would consider in receivable loans? They include:

Positive : the ability to achieve continual financing day to day, facilities revolve, growth becomes virtually unlimited , greater flexibility in negotiating terms with key / new /large clients

Less than Positive

- higher cost, occasional higher reporting needs

If you're interested in the 'design genius ' of AR cash flow financing that mirrors a bank 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 in your finance 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 A/R FINANCING EXPERTISE

Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial