Business Cash Flow A Problem? Here’s 6 Working Capital Financing Methods

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How To Manage / Increase  Business Cash Flow

Business cash flow! In times of economic or industry turmoil most business owners and their financial mgrs would probably be happy with  1 solid working capital financing solution for  cash flow business needs. We'll beat that and give you 6 ways to improve your business finances going forward . All of these solutions are accessible immediately if you have the right help . How is that for alternative solutions to your working capital and cash flow needs? Let's get started.


The funding of working capital continues to be a large challenge for Canadian businesses of all size - The business owner/financial mgr wants to be able to comfortably run the company on a daily basis, as well as growing the company.

That requires funding of potentially different types,  and along the way those suppliers and employees want to be paid on time also!  That's called running a business.

What's Your 2nd Most Valuable Liquid Asset In The Business ?

The most liquid asset any business always has, (next to cash) is your receivables. Working capital financing is best generated by the collection, or financing of your receivables. This can be done by:


1. Faster collections - Many companies should consider offering a discount for prompt payment - a typical offer might be 1-2 % for payment on delivery or withing 10 days for example


2.Financing / selling your receivables as you generate sales revenues


This type of financing is called receivable discounting or factoring, and is becoming increasing popular every day. If your company qualified  for bank credit, i.e. traditional bank financing, then setting up a business line of credit is optimal . When this type of facility revolves up and down based on your selling products and services and getting paid the facility is operating well


3.You've spent your valuable business capital - would you like to get it back ? Clients of 7 Park Avenue Financial  

always ask what we mean by that.  Any equipment you have already paid for can often be refinanced, the technical term is

Sale Leaseback

That strategy, or a short term bridge loan with the equipment as security is exactly what our clients need to bridge the cash flow gap.


4. We spoke above about receivable financing - one of the best facilities for Canadian business is a combo working capital facility that finances, or ' margins ' both your A/R and your inventory. Since many firms previously couldn't finance their inventory either elsewhere, or via banks, the combined liquidity of borrowing against your A/R and inventory is a true power punch! Typical this type of financing is known as an:

Asset Based Lending Facility

This makes most sense when the facility is at least in the 250k range, and business owners/mgrs will be please to know there is virtually no upper limit in this type of business credit . The facility will grow as your sales and assets grow . Unlike bank lines of credit these are more flexible when it comes to growth business owners will probably recognize the most bank lines of credit are reviewed annually and place a heavy emphasis on issues such as personal guarantees, covenants, financial ratios, and outside collateral . Those issues are NOT the underpinnings of asset based business lines of credit.



5. Many clients are totally unaware the Purchase Order Financing is available in Canada. This is a strong potential cash flow saver, and generator, since your suppliers are paid for product when you order it, once you have received the P O. and entered into a P O finance facility agreement .  The Purchase Order financier  takes the inventory and receivable as security, but in effect finances your whole sale.  While it is an expensive form of financing - typically 2-3 %  per month companies that have good gross margins and could otherwise not facilitate the sale of large new orders and contracts it is a most welcome solution for large contracts, orders, etc.

 Short Term Working Capital Loans - Where Did All These Loans Come From?

6. Canadian business owners are somewhat bombarded by potential short term loans that appear via online firms as well as some ' bricks and mortar ' companies.

Where did this type of loan come from ? The answer is ' from the United States . It originated via a "new" type credit card borrowing in 1995, which has morphed into what is know known as a working capital loan, aka a ' Merchant Advance '.

These loans were for mostly  small businesses  who could not get bank credit or had no personal ability to borrow money for purchasing assets, supplies, etc.

The loans were based on advances against future sales, and were originally focused on the credit card sales of the business .  The industry grew and now services small and medium size companies , including having become very popular in Canada . A typical loan is paid back in 1 year in fixed installments, and the most common requirement is for loans to be approx 10-15% of your firms annual sales. This was a novel new way of lending and has become popular with many businesses.

SUMMARY/BOTTOM LINE :

Ensure you are aware of your Canadian business financing options. Working capital and cash flow are available if you have assets and orders. We have demonstrated that clearly to you via 6 separate solutions. Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success  to to determine what works for your firm.



7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

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

What Is A Cash Flow Loan ? Invoice To Cash Financing Alternatives

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Cash Flow Loans For Business - Here Are Your Alternatives

Invoice To Cash Financing should always be a top priority for Canadian business owners and their financial mgrs. Whether it is a cash flow loan, factoring your receivables, or utilizing a combination of asset based lending solutions available to your firm it's always about ensuring you have the best strategy to convert sales revenues into much needed working capital and cash flow .

No secret that even the largest corporations in Canada place a significant emphasis on ensuring the right strategies and people are in place to monetize sales revenues. Accounts receivable financing solutions such as factoring ( those Bay St boys have a fancier name - ' Securitization ' but it's pretty well the same ) are gaining tremendous popularity with Canadian business.

So business wants to know more - what those solutions are, why they work and how to ensure your company has the best strategy in place . These solutions are particularly applicable to those looking for SME COMMERCIAL FINANCE solutions - that small and medium sized sector of Canada that powers a huge portion of the economy . Interestingly definitions of SME always vary, depending on who you are talking to - with governments usually using under 100 employees as the benchmark ! We wish !

For those that buy into the concept of looking at 'alternative financing solutions' it should be a priority and focus to ensure they are entering into the right facility - it's all about avoiding financial pitfalls .


The Canadian alternative financing marketplace is significantly different from the U.S. and European markets where these forms of financing such as factoring and asset based lending and working capital loans originated. It is therefore important for Canadian business to consider which type of receivable financing , sales financing and inventory finance solutions come with what options and benefits and how they work on a daily and long term basis.

NOTE - Many non traditional financing services often simply act as a bridge to bring the client back to solutions offered by banks, etc.

That is because Canadian non bank business financing companies - we can group them together as ' Asset Based Lenders ' , fill the gap when a firm cannot obtain satisfactory receivable financing from their Canadian chartered bank. That also will often include the challenges of inventory finance, purchase order finance, and equipment financing and leasebacks .

Many clients of 7 Park Avenue Financial tell us they do have some for of bank financing in place, but it essentially does not meet their needs re growth and facility size. In many cases clients had a challenging 2008-2009 , or have been impacted by ' COVID ' and have no financing facilities in place , resorting to self financing or looking at our alternate solutions we have mentioned.

Many firms are start up, early stage revenue, and virtually have no ability to qualify for standard Canadian operating facilities that are enjoyed by more larger and established firms, via Canadian chartered banks and insurance companies.


As an example ,factoring works for your firm when you have decent receivables but there are issues on your balance sheet and income statement that prohibit you from obtaining the amount of financing you need on an ongoing basis . This working challenge is further exacerbated when you have large new contracts or volatile growth spurts based on the uniqueness of your industry. At 7 Park Avenue Financial we will often focus on a combination of a/r financing and purchase order financing to ensure our client can successfully monetize sales, enter into new contracts, explore new markets, etc.

BUYER BEWARE ?

We have spoken about the importance of ensuring you enter into the 'right' finance strategy . Example : There are two types of factoring in Canada, ‘notification factoring ‘, and non- notification factoring. Both work well if you understand how they are structured and priced, however we favor non notification factoring in our recommendations since we feel it more closely suites the Canadian way of doing business. At 7 Park Avenue Financial we are a huge fan of Confidential Receivable Financing .

HOW DOES A/R FINANCING WORK

In ' old school ' notification type factoring the process is very simple and mechanical:


Your firm invoices your customer

You generate an invoice

You receive a large, almost same day cash advance against that invoice (typically 90%)

Your factor firm verifies the invoice with the customer prior to disbursing funds

The factor firm more often than not collects the invoice, an remits to your firm the remaining balance due yourself, less their financing fee - typically 1-2%

WHY CONFIDENTIAL RECEIVABLE FINANCE ?

Non notification factoring is dramatically different - with this type of facility more due diligence is spent on your firm and its way of doing business, invoicing, creating proper financial records, etc. Your company bills and collects all its invoices, and you receive funds immediately after you ship and provide proof of delivery.


Factoring pricing in Canada has dramatic price swings. Factoring rates range from 10% per annum and for some firms 1-2 % per month.

WHAT FACTORS CONTRIBUTE TO HOW A/R FINANCING IS PRICED ?

Factors that determine your price are the over all facility size, your usage of the facility, the overall quality of your customer based, and ,unbeknownst to your firm, how the factor firm itself is funded, usually either privately or institutionally .


In summary , alternative financing does work, and is working in Canada. Choosing the right facility shouldn't be a leap of faith of having to guess at how these concepts work . Take a hard look at solutions such as a/r financing, sale leasebacks, purchase order finance, short term working capital loans, and larger non bank business lines of credit - They work, and are working every in Canada.


Speak to a trusted, credible and experienced Canadian business financing with a track record of business financing success . Ensure you understand the benefits of this valuable and popular method of Canadian business financing.



7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

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

How Does A/R Factoring Work ? Here's The Best Solution

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A/R Factoring Companies In Canada

A/R factoring in Canada is a proven method of business financing in Canada. There probably isn't a time these days when business owners and their financial mgrs have not heard of ' alternative finance ', and many firms are considering business financing in every manner available. One of those is ' Confidential Receivable Financing ' and not all businesses understand the power , value, and real availability of this method of financing your valuable current asset on the balance sheet - A/R!

What information does your company need to know in order to asset if an a/r finance solution is viable for your business. More importantly, are there mistakes and pitfalls you can make when considering this type of working capital solution? Spoiler Alert - there are !

While you may not have heard of the different types of ' factoring ' in Canada we at 7 Park Avenue Financial forgive new clients who are trying to figure out why this method of Canadian Business Financing has become so prominent for thousands of businesses.

The answer is more simple than you might think - simply that Canadian chartered banks are finding it increasing more difficult to funds a/r , and of course inventory for many companies in the SME COMMERCIAL FINANCE sector. Many firms cannot meet the regulated criteria that banks mandate for financial stability, external collateral, personal guarantees, and covenants .

Accounts Receivable Securitization VS. Factoring

As as aside companies in the small and medium sized sector of Canada will be interested to not that even some of the largest and well known companies in Canada consider this type of financing - in effect they use ' securitizing' as a financing strategy similar to factoring . So you're in good company! So whether your firm is large or small,when you have a situation where the actual need for financing is acute, and the benefits and flexibility seems significant it is not hard to see the rise in popularity of such a financing mechanisms.

Factoring A/R

In our experience here at 7 Park Avenue Financial almost 99% of the time factoring can provide your firm with a greater level of borrowing based on your accounts receivable levels. Typically 90% of your a/r under 90 days old can be financed.

So is it all good news? Not necessarily, as we are always meeting with clients that have chosen the wrong type of funding or factoring, and, even worse, find them locked into contracts they cannot get out of. That is uncomfortable for any size firm as you can imagine.

As with any newer type of financing the playing field is complex. You can be forgiven for not knowing how many factor firms are out there, how they run, what their own limitations are, and , even to a certain extent, do they in fact themselves have the funding to survive, let along finance your firm .

For that reason we cannot over emphasize the need to work with a credible, experienced and trusted professional in this area, ensuring you have the best a/r and sales financing solution available.

Danger of Entering Into The Wrong Type Of Factoring

Lets talk about some of the nuances, we can call them potential ‘pitfalls ‘ also, of picking the wrong factoring partner. For a starter if you choose a firm who itself is not well capitalized, as we said, you might find that the financing commitments made to you cannot be honored. Canadian business has never had to think that the Canadian chartered banks could be ‘out of money ‘but the Canadian landscape is somewhat littered with small and medium sized factor firms that do not have the financial wherewithal to support their funding commitments in all places. That just re – enforces our idea that a trusted industry expert will guide you to the best partner for your firm.

Other issues, again, we can call them pitfalls, to look for include:

- Being Locked Into A Contract

- Poorly explained costs/fees

- Funding rates and credit line limits that don't reflect your business needs being locked into a contract

If we had in our experience to name one pitfall of a/r financing that many firms encounter it's the excessive notification and intrusion with your customers - which is very prevalent in the U.S. model of factoring .


Key Point - Many Canadian A/R Financing firms are branches of U.S. firms )

What Is The Best Type Of A/R Factoring In Canada?

In our opinion it's what we at 7 Park Avenue Financial call ' Confidential Receivable Financing '. This solution allows you to bill and collect your own receivables , without any intrusion or notification to your clients, suppliers, etc. Also this type of facility can easily be bundled into a non bank business line of credit - which is a subset of the broadly used term - Asset Based Lending.

So let’s recap. It’s simply that receivable financing and a/r factoring is growing in popularity. It works because it is providing funding where banks often cannot. If you don’t understand who you are dealing with and the various nuances of this type of financing it becomes a burden, not a solution.

Investigate this great financing mechanism, but ensure you know what you are getting into. Talking to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success always helps – that’s just common sense.


7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

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

What Are Real Working Capital Solutions For Canadian Companies

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Solutions To Working Capital & Cash Flow Challenges

Solutions to working capital problems for Canadian entrepreneurs work best when they come from the real world .. we can call it ' main street financing ' we suppose. Yes , you're right - this isn't the time for ' crowd funding ' !... what a concept that is .. having a million people send you 1$ . We wish we had thought that one up.

What then does the Canadian business owner and financial manager going to do regarding cash flow problems and working capital solutions when cash it at it's tightest. Even well operated companies require cash flow solutions for their profit and growth objectives ; client of 7 Park Avenue Financial tell us they just want to know how to get there.

Cash flow is of course ' fuel ' that will drive the combinations of growth and more profits, and allow you to run day to day operations with greater ease.

2 Ways To Achieve Optimal Working Capital Balance

Business owners can focus on two areas :

Sales .. and Asset Turnover !

Asset turnover is sometimes a bit of a surprise to business people that aren't necessarily grounded in finance, but the issue of turning over your assets in fact opens up a wide variety of potential solutions, most notably

Monetizing and Cash flowing Your Business Assets

By financing your assets and at the same time focusing on better turnover your overall profit/growth situation improves, almost immediately. It’s all about :


Turning Inventories

Collecting Receivables Faster

Financing Long Term Assets Profitably

Solutions To Working Capital & Cash Flow Needs

Working Capital Facilities

Short Term 12 Month Working Capital Loans Paid From Future Sales

Receivable Financing / Factoring / Confidential Receivable Finance

Asset Based Lending / Non Bank Asset Based Business Lines Of Credit

Chartered Bank Solutions

Leasing/Sale Leaseback

Tax Credit Monetization

P O Financing / Supply Chain Financing

All these key solutions can be structured from both traditional and alternative finance firms . Even better, certain solutions, structured properly can be cobbled together to increase your firm's total access to credit. It's all about monetizing the balance sheet , and your sales !


So how does the business owner/financial mgr actually figure out how much to borrow, and when? And don't forget the over riding question which is knowing how to balance the eternal questions of more debt or adding equity if in fact that is possible. Remember that many of the cash flow solutions here monetize assets and sales and don't require ANY dilution of equity ! That's a good thing from the business owners point of view.


For companies that have inventory its all starts at some sort of production cycle... but even service industries in technology or other areas have their own flavor of a working capital cycle .


A very simple rule to address working capital problems is that whenever your receivables and inventory grow you are going to have to address more working capital solutions.. it's as simple as that .


Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success . Discover how you can address cash flow challenges... the right way. That’s of course if your crowd funding strategy doesn't work... and you can pretty well count on that one!






7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

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

The New Shape of Business Financing and Commercial Lending Options in Canada

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Current Commercial Lending Options

Business financing and commercial lending needs often can come in a time of industry or economic turmoil. In the language of the people this simply means ' tougher times! If there is any good news it is that a number of new and alternative financing solutions are offered through alternative lenders.

Turmoil in economic times presents all sorts of challenges for Canadian business owners and financial managers. As challenging as business financing has become so called ' tougher times' a new group of financing services and players in Canadian business financing offer new and different types of financing for business needs.

These options are available for every business, from retailer to industrial and of course technology. Additionally your firm can be established, start up, or pre-revenue.

One way to consider the types of financing available on the landscape is to think of either ' traditional ' finance or the new kid on the block - ' Alternative '.


The alternative financing players in the marketplace are often unregulated, simply meaning they are not bound to government restrictions as to types of lending, risk levels, etc.

A good way to thing of business financing in Canada is simply by thinking of the offering as either from a regulated player, or a non-regulated player. Banks are a good example of regulated players, while firms such as equipment finance companies or asset based lenders tend to be unregulated.

Years ago may types of financing easily available today -

Examples :

Purchase Order Financing


Tax Credit Financing


Royalty Financing

... that might have been unimaginable in older times are now viewed as new and extraordinarily relevant to Canadian business financing needs.

The bottom line is that commercial lending and financing is no longer of course just offered by Canadian chartered banks. In Canada for example it is some major insurance companies and pension funds are the ones funding the Canadian equipment financing industry.

Alternative financing for firms is all about niches - the good news for commercial borrowers in Canada is that competition has become fierce and it’s quite often a challenge for the companies seeking Canadian business financing to differentiate from who is offering what. By the way that is where an experienced Canadian business financing advisor with a track record of business finance success can be an invaluable part of your financing search.

Alternative Financing vs. Business Banking Via Chartered Banks

We're the first ones to forgive new clients who think that the only ' go to ' for appropriate business financing solutions are Canadian charter banks. Numerous other lenders have taken up the slack, and are often complementary to client banking scenarios.

Captive finance companies also provide a significant amount of financing in Canada. They play a significant role in many transactions that otherwise might not be able to meet more stringent bank criteria.

Alternative finance solutions can include "

Inventory Financing

Purchase Order/ Supply Chain Finance

Asset Based Business Credit Lines

Equipment Leasing/ Sale Leasebacks


When Canadian business owners and their financial mgrs have a strong knowledge of both the finance offering and the competition for that offering that leads to :

Best rates

Flexible Terms and Structures

By the way, for all the competition that Canadian banks have, and given they are viewed as the strongest and best run in pretty well the whole world , they haven’t necessarily stood around watching their business financing and commercial lending decline . They have expanded into the U.S., purchased independent commercial lease financing and auto financing firms, and rebranded these firms into their own offering.

Many smaller companies in Canada, those ranging under 5 Million dollars in revenue utilize independent commercial receivable financing firms, known as ' factors' to finance their working capital needs. The need for this and other types of creative financing is huge because of the general strict credit criteria of the Canadian chartered banking system.

At 7 Park Avenue Financial our recommended ' Receivable Finance ' solution is Confidential Receivable Financing , allowing your firm to automate your sales into constant cash flow, with your firm doing your own billing and collecting .

Non bank financing firms have different levels of pricing, and those rates are commensurate with the risk level , transaction size, and type of financing provided. Alternative finance companies have proved themselves to be very successful and strong competitors of the Canadian banks.

Canadian non bank finance firms have a number of finance offerings that allow premium pricing, and servicing the SME (small to medium enterprise) sector provides strong growth opportunities .

So how does the ever changing Canadian business financing landscape affect you, the potential borrower? The bottom line is that a variety of finance offerings allow you to maintain an open door to get the maximum amount of financing your firm needs. Smaller firms have the ability to use lease asset financing, receivable financing, tax credit financing, purchase order financing from a variety of competitors.

Take hands-on approach to your finance needs, by speaking to a business finance specialist who can help you manage the relationships you need to have in place to access business financing options that make sense for your firm.



7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

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

How Do Factoring Companies Work In Canada

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The Best Factoring Company Will Offer Confidential Receivable Financing - Here's Why

An effective accounts receivable finance solution has the ability to ' supersize' your overall working capital and cash flow. This can be even more enhanced with a business accounts receivable finance strategy known as C I D - Confidential Invoice Discounting; that is a type of ' factoring ' that has worked very well for our clients at 7 Park Avenue Financial.

How can this business finance solution be ' supersized' then? Simply that it is highly possible that on the utilization of this type of financing you will often double, and in some cases triple your access to immediate cash flow and working capital. Business owners and their financial mgrs will be surprised to know that in most cases even traditional bank financing won't provide the same cash flow access as this little known solution.


And safe to say that in some cases where you would have been self financing or had non-financing in place whatsoever, well, your firm has it now!

How Much Does A Factoring Company Charge ?

So what in fact is the cost of this unique and innovative AR Finance solution, how does it work, and what can your company compare it to when assessing your specific cash flow needs.

C I D is our terminology for Confidential Invoice Discounting. ' Factoring ' solutions are used by firms of all sizes (even major corporations, by the way) but in reality seems to be more common in the S M E (small and medium enterprise sector). It even accommodates start ups if you can believe it, as any type of financing for a start up is often a major challenge for the business owner. By the way, the big boys have a more fancier name for their AR financing solutions - Securitization .

Companies that sell on credit in Canada will always have an investment in their accounts receivable, often representing, along with inventories, a huge part of their overall business assets.

So how is that asset financed ? That becomes an even more challenging question when traditional bank financing is not available. In a large majority of client we talk to they don't qualify for some, or all, of the business capital they need via a bank.


That's exactly where business accounts receivable invoicing and discounting comes in. Your ability to ' sell ' those invoices as you generate them, using the A/R as collateral allows your company to turn into an instant cash flow machine. It's all done by a fairly seamless process when you are working with the right type of facility and the best firm/financing partner.


So that’s the essence of factoring, or invoice discounting, but where does our key benefit of confidentiality come in? Right about here!

The key difference of Confidential Receivable Finance facilities and business factoring is that you are in control of your sales ledger and customer base, not the factor finance firm. That gives you superiority over other firms who use this type of financing but are forced by their factoring agreement to make their customers aware of how they are financing their firm. In talking to clients here at 7 Park Avenue Financial that benefit is huge in their minds when it comes to how their competitors and suppliers might view them.

How Does AR Finance Work?

On a daily basis a/r financing works in the same manner as what we will call ' traditional ‘ accounts receivable finance and invoice discounting. It’s a simple process. You generate invoices for the products and services that your firm provides and you receive immediate same-day funds for 90% of the invoice value. ( That remaining 10% is held back until you client pays, you then receive the 10% less a finance fee of anywhere from 1-2% per month.

The way our clients look at it is that the 1-2% per month reduction in gross margin is more than offset by all the cash flow their sales generate - allowing them to run and grow the company on an ongoing basis.

Advantages Of Confidential Invoice Discounting

Clearly the advantages of this type of business financing couldn’t be more pronounced

- Financing is approved quickly

- Easy to administer

- Your company bills and collects it's own a/r !

- Cash flow generated is used to run and grow the business


So, does a solid AR Finance strategy seem like the proper cash flow solution for your firm? Ultimately you will decide that - we're simply letting you in on the secret and letting you be the decision maker around supersizing that cash flow.

Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success . Get your company ahead of the pack and competitors.






7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

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