Excuse Us For Pumping Up Types Of Accounts Receivable Funding In Canada !

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Intrigued By Factoring Finance In Canada?

Receivable Financing Lessons That Will Pay Off

Are some types of accounts receivable funding and factoring financing better than others? We're often accused of ' pumping’, aka ' promoting' this type of Canadian business financing for firms of all types in Canada. Why is that?

Is receivable financing, on its own or blended in with another financing a ' holy grail ' of business finance? Not really, of course, but it’s an effective solution that's often very misunderstood when it comes to the mechanics of it and the cost. Let's explain.

When times get tough or challenging for small and medium sized firms in Canada business owners and their financial managers can be forgiven for doing everything up to an including panicking .

A variety of situations can exist, sales slow down, or the opposite... major opportunities arise that cannot be taken advantage of. The recession that we supposedly are out of now certainly leveled the playing firm for a lot of firms, who saw their competitors in some cases even, disappear. Inventory and accounts receivable financing solutions are highly sought after.

So, when you consider accounts receivable funding and financing as one of your alternatives what are in fact some of the considerations? In the case of A/R finance it’s a simple one, freeing up assets for working capital and cash flow.

It actually is very possible also for you to consider acquiring a competitor or synergistic opportunity via factoring, as the target firms receivables, and yours could in fact finance the acquisition. Naturally other assets and factors come into play, but it’s certainly possible.

Accounts receivable funding should be viewed as a source of funding that you have already been approved for - especially if you're having some of those challenges we have talked about.

Again, at the risk of ' pumping ‘ / promoting invoice factoring as a business line of credit we maintain its one of the most flexible around . First of all, once your facility is set up you don't have to use it all the time, it’s up to you as to when you draw down and pay for those funds. Think of it as using it like a business credit card, using it when you need funds. You're simply making a borrowing decision that minimizes finance expense.

The amount of funding available is directly related to your sales and receivables. Those amounts of course change everyday as you sell and collect receivables.

As we said, your A/R finance option can be stand alone, or you can combine it with inventory and equipment assets that are all combined into one borrowing facility.

Our recommended solution is a confidential invoice finance solution, one that allows you to go against the grain of other offerings, putting you in a position to bill and collect your own A/R with notice to any clients, suppliers, etc. It's a solid solution when you don't have access to more traditional financing.

When it comes to costs many business owners will find that when they understand the true cost, i.e. the cost of carrying a/r already, as well as opportunity cost... well it simply might make tremendous sense to consider this unrestrictive financing when compared to other... or no.. Solutions.

Speak to a trusted, credible and experienced Canadian business financing advisor for solid advice on this Canadian finance solution.







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

Early Warning Signs You Need A Canadian ABL Asset Based Finance Facility Line Of Credit

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Asset Based Finance Companies Can Help With Business Credit Line Challenges

As a business owner or financial manager you want to be able to ensure that a business line of credit has the ability to assist your firm before, during and after serious financial challenges occur. That's where the ABL asset based finance facility comes in.

In a perfect world (we know it's not) you want to be able to detect financial challenges, understand why they happen, and then implement a solution to avoid them. Understanding the problem (or problems) allows you to make the difficult decisions to continue your business successfully.

So what kind of problems can in fact your business run into. From our experience some are obvious and others not so obvious. And more importantly is there one specific business strategy; in our case today the ABL asset based line of credit that can in fact help you execute the turnaround.

There are probably 5 major early warning signs that your firm might need an alternative financing solution via Asset Based Finance

So what are some of those early warning signals? They are as follows:

1. Too much short term debt

2. You're trapped in a vicious cash flow cycle

3. You've accumulated current assets that have little or no value (example: obsolete inventories, poor receivables)

4. Your investment in fixed assets has put a major strain on your liquidity

5. Your firm is trying to find itself as it struggles to makes sales projections without the proper assets and financing to back up that growth

So whether your company has purposely created some of these challenges or whether external market forces have the good news in fact is there is a solution, and the one we are recommending today is the ABL facility. It's a busines line of credit like no other.

The ABL business line of credit differs from a bank facility in that you have the ability to margin, at very solid levels your current and fixed assets, all in the form of a revolving business line of credit.

Typically the liquidity provided by this facility gives you access to much more cash flow and working capital, and at the same time isn't punishing your firm by forcing you to totally focus on meeting ratios, covenants, and even provide outside collateral.

That is to say the ABL revolver facility allows you to continue to operate, probably with much more liquidity in spit of your capital structure, your historical challenges or financial losses, etc.

In Canada ABL facilities are typically provided by non regulated commercial finance firms. The ultimate irony we've observed over the years is that the Canada's chartered banks themselves, recognizing limitations of traditional facilities, have themselves even ventured into this ' non- bank ' financing idea. Now that's business irony.

If you want a solid insight into some of the early warning signs that your current financing strategies arent working speak to a
trusted, credible and experienced Canadian business financing advisor about the possible solution to those upcoming or existing challenges.


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

Why Your Technology Financing Strategy is Missing the Mark (And How You Can Fix It)

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INFORMATION ON FINANCING BUSINESS TECHNOLOGY NEEDS : BEST WAYS TO SOLVE BUSINESS TECHNOLOGY FINANCE NEEDS

Looking for a huge amount of risk, financial risk, and extra cost for your Canadian business? We aren’t’ and you shouldn't be either!

Haven’t you got enough risk in your business life to have to also consider the downside of making the wrong decisions in areas of technology financing services? Surely it’s a fact that computer leasing of pc hardware, servers, and software, aka '
technology finance solutions ', provide both the greatest benefits to your firm, as well as the greatest risk if you structure things improperly.

It's always been clear to us that there are just a huge amount of benefits to your business when your technology infrastructure is throwing your firm off the benefits you had hoped for... (and were promised?)

Another aspect of getting the right tech financing in place is simply the amount of time you and or your key staff in this area can spend on weighing options and considerations .When your finance folks, accounting folks, and those techies aren’t in mutual agreement or in the know about whats going you are leading your firm into potential mistakes and costs you could have avoided.

When we sit down with clients and layout some key issues for them to consider for computer and software leasing one of the key areas we focus on is ' end of term '. It's a simple phrase that has all sorts of ramifications you didn’t think of. And unfortunately most clients focus on starting a lease, and not ending in, which should have the same consideration when it comes to computer and tech financing.

So why is the end of the lease so important in technology financing ?

Simply because that’s when a lot of your risk mitigation kicks in , and , depending on which type of and lease company you are dealing with that’s when their real profit on your transaction often starts . It’s not always about the interest rate, which many clients seem to always focus on a being the most important part of a computer leasing success story.
So whats one example of how you can lose big time in technology financing and end of term .Quite frankly you wont believe how simple, and costly this is! We're talking about 'notification '.

Most Canadian companies don’t either know or understand their notification rights when it comes to end of term. Your lessor may have promised to call you when your lease term is up... if they do, or even better, notify you in writing, that’s great. However when they don't you are in many cases obligated to keep paying for the lease.

Ever paid for something twice by mistake? (We hate it when that happens!) You wouldn’t want to do that in your personal life, and surely with the cost of pc’s, servers, and software you would regret paying for that twice also. That's a bit of an understatement, don't you think?

So discuss end of term options, ensure you understand your rights and obligations, and also diarize when that lease term is up. Never had a calendar been so important!! And by the way, by spending some time on a ' Master Lease ' allows those notifications, rights and obligations to be addressed one time, up front, in writing! That’s smart business.

In summary, we often preach to clients that one of the largest obstacles to technological innovation to your firm is the cost of pc hardware, servers, software, telecom equipt, etc. Consider eliminating that 'obstacle to innovation' by speaking to a trusted, credible and experienced Canadian financing business advisor who can ensure you have computer leasing that makes sense , in place, today!







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

Don’t Make Mistakes In Sources Of Business Capital And Financing For A Canadian Business Loan. Debt Or Equity? What’s Best?

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You're looking for sources of capital for business and financing solutions. A Loan? An equity arrangement? A monetization of assets ? What works best is of course the nagging question that continuously faces Canadian business owners and financial managers.

Many Canadian businesses who contemplate equity type arrangements simply aren’t ready, and it’s also the most expensive form of financing when you consider the ownership dilution that comes with that strategy.

There is usually never an easy or obvious method to get rid of financial challenges. In fact if you're looking at bank financing, which is of course ' debt ' you may well find that the bank feels that more equity from yourself is in fact required in order to obtain that debt. That's a bit ironic sometimes!

Are there any tools available to help the Canadian business owner understand both the cost of debt and equity? There are, of course.

Whenever any Canadian firm looks for financing outside the business there is a cost to the owners. Naturally if you borrow in terms of term debt the additional interest financing costs reduce profits. Selling equity of course reduces no profit, but, and it’s a big one, ownership is proportionately reduced.

We are always preaching to clients that many forms of business financing outside of equity in act do not reduce earnings if in fact you're monetizing assets and have a healthy turnover in key areas such as receivables, inventory and fixed assets relative to overall sales. That’s why we're big proponents of strategies such as A/R financing, supply chain financing, asset based lines of credit, etc.

Earnings and cash flow analysis is a solid way of evaluating debt and equity alternatives. They can also point to the sources of working capital you need for your business.

What then are the key areas you should always focus on when it comes to debt vs. equity analysis? Some solid ones are overall risk with respect to your ability to make payments under any debt scenario.

And whether its debt or equity consider what flexibility you have with respect to any covenants the lender or equity partner might insist on. Always watch your leverage, there is only so much debt your firm can manage and handle.

The irony in either borrowing or looking for some equity is that you're usually in one of two positions, success, or failure! That one never escapes us, as we meet clients who are successful and have a need to finance new growth or expansion, of alternatively, they are currently losing money and have some real deficiencies in their company that need to be fixed.

When you are looking for debt you can be sure the lender will focus on working capital coverage, leverage, and operating efficiencies. Equity lenders will focus on management, growth potential, and why your business is unique.

If you want to properly understand available sources of capital when it comes to business financing, a loan, or an equity arrangement consider speaking to a trusted, credible and experienced Canadian business financing advisor .





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

Receivable Financing Is The Equivalent In Going From Poor To Rich In Business Cash Flow

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Information on the Best Type of Receivable Financing In Canada

Can working capital factoring solutions be our business version of ' poor ' to ' rich '? It's an interesting analogy if only for the fact that the receivable factor firm solution, properly done creates capital you never had. Let's try and 'connect the dots' in those solutions so the business owner / financial manager sees a clear path to business cash flow freedom. Let's dig in.

There are of course options in working capital finance - they include taking on debt under a working capital term loan or mezzanine unsecured cash flow loan; or the traditional route of Canadian chartered bank financing - theoretically available to all but unfortunately not always to those that need it most.

So why does financing your sales via A/R factor financing a logical step to business capital freedom? For a starter that low cost bank line of credit may not be available to your firm for many different reasons. If for any number of reasons your firm does not qualify for bank credit you're back to square one... our version of business homeless!

Many firms have the most incredible problem imaginable - they are too successful and growing too quickly. That ' rush ' from getting a large new contract or purchase order or seeing sudden surges in sales brings working capital nightmares, as more and more funds are tied up in materials, inventory, and finally accounts receivable

In certain situations your working capital is required for expansion needed for lease/loan payments on new assets, or marketing and headcount growth. Many clients we meet do great business only at certain times of the year - that seasonality causes cash flow needs to rise and fall dramatically at certain times, sometimes unexpected.

One final situation is the whole issue of payment terms and collections. Even large corporations are often typically the ones that pay the slowest, and then there’s... the government!

While certain situations immediately disqualify you for bank financing (negative net worth, fluctuating profits and cash flows, huge jumps in sales revenues) it’s these exact situations which make your firm a solid choice to be financed by a receivable factor.

By the way, in many cases a working capital factoring solution can be a component of a ' total ' asset based lending deal, whereby your A/R, inventory and un-liened equipment are combined into on solid business line of credit. It's typically called an ' ABL ' line by the pros.

Is there one type of receivable factor solution that works best? In our opinion it's non -notification CONFIDENTIAL RECEIVABLE FINANCING , allowing you to bill and collect your own receivables, draw cash against sales when you need it, and only pay for what you are using .

If you want some help in connecting the dots in A/R financing solutions seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with in that ' homeless' to ' rich' transition in business capital!






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

Caution - Danger Ahead ! Information Technology Finance And Computer Leasing : I T Technology Financing Tips

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INFORMATION TECHNOLOGY FINANCING & COMPUTER FINANCE SOLUTIONS - SOLVING THE I T CONUNDRUM OF.. COST!

It's probably just us, but we think there’s no aspect of equipment financing in Canada where one small piece of info could cost you, or make you thousands of dollars. Let's cover off some
I T Financing (IT = Information technology) basics. All of a sudden that cautionary road sign up ahead wont be as much of a concern.

Although the actual benefits and economics of any lease should always be considered it just seems more of a need when we are talking about IT finance for your infrastructure, computer, and even telecom needs. The challenge is actually pretty basic, matching a financial solution to those fast paced (and expensive) technology needs.

So know what you will face, what decisions you need to make now, and during and at the end of your lease financing is, well, critical!

The reality of tech financing is you have to be pretty sharp and well informed in several key areas - just knowing those areas is important. They include documentation, structure, as well as your rights and obligations in certain lease arrangements.

Hardware makes up probably the majority of dollars in computer leasing transactions. Whether it be telecom, server, pc, laptop, notebook, tablets, or even ' cloud ' type solutions that’s where the buck seem to be. Canadian business owners can finance hardware separately through 1 of the 2 lease vehicles available, or your transaction can be combined with soft costs such as application software, installation, etc.

Where hardware financing gets somewhat tricky and challenging is when it comes down to operating leases, residual values, disposition of equipment at end of term, etc.

The majority of Canadian business has financed larger computer leasing and it finance technology projects via operating leases. However, the next several years major changes in international accounting rules might well render a lot of the benefits of operating leases less effective, so it’s critical to stay on top of this development in accounting.

Although larger more sophisticated Canadian businesses have been utilizing software financing for years many smaller and medium sized businesses sometimes aren’t even aware soft costs such as software can be financed and bundled into your IT finance transactions. A good tip here is to ensure you understand how the cost of software is priced and blended into your entire transaction. It is most often amortized in full and sometimes attracts higher rates.

Medium sized and larger corporations are encouraged to take advantage of a Master Lease arrangement. A one time negotiation of terms, rights and obligations is going to save you time and dollars in the years ahead, along with the ease of simply adding on additional schedules of assets to be financed when you need them.

A common misstep in computer leasing is the failure of Canadian business to separate the financing from the manufacturer of the equipment, especially when it comes to warranties, service, and the right to use. So be careful in addressing issues separate, with the right party.

The largest benefits and the most risk in IT finance come from what happens during at end the end of a technology leasing transaction. Investigate and understand thoroughly your rights to terminate, upgrade, or renew at the end of the term. If you have entered into a capital ' lease to own' type scenario monitor your purchase options at the end of term.

Is there anything more ' mission critical ' than technology, computers, and telecom assets in Canadian business? Debatable, but doubtful don’t you think? Speak to a Canadian business financing advisor for your IT finance needs. All of a sudden that ‘Danger Ahead’ becomes manageable.






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

Don’t Let Your Company Collapse For Lack Of Cash Flow Financing . Canadian AR Finance For Receivables

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INFORMATION ON ACCOUNTS RECEIVABLE FACTORING FINANCE

AR Finance, i.e. cash flow financing has the ability to save your company when it fact your firm is faced with survival challenges. Let's examine when a receivables strategy works, and what you need to do to facilitate a financing that makes sense. In essence, ' how it works' and ' why '.

Canadian business owners and finance managers that face challenges of raising cash for their firm can utilize an A/R finance strategy, which is in effect the sale and monetization of your receivables to generate working capital. Our comments are focused on your firm being potentially in ' survival ' mode, but of course they apply to daily operations and growth, or even 'hyper growth ' which is a double edge sword.

If you do in fact require an A/R cash flow strategy are you in fact eligible? Let's examine some key requirements around getting a proper facility in place. We say ' proper' because in our opinion there are certain receivables finance structures that certainly aren't optimal for your company.

Getting back to those qualifications! As a general rule only commercial, i.e. ' Business to Business' a/r is eligible for financing . (While there are financing mechanisms for consumer A/R in Canada - securitization / merchant advance etc. ) invoice financing in Canada general pertains to commercial business receivables.

And by the way, your clients can be in Canada, in the U.S. or foreign - cash flow A/R financing has the ability to capture and fund all of these!

Naturally your firm also has to be selling on credit, as a cash sale environment just does not work!

Size more or less counts when in comes to your ability to set up a proper receivables facility. Although very small facilities can be set up a good rule of thumb is that monthly A/R in the 100k+ range is a recommended size. And by the way, there is NO upper limit on the size of your facility in Canada, as facilities exist for tens of millions of dollars if that is in fact required.

The issue of ‘concentration’ of comes up. As a rule of thumb it’s preferable to have your A/R base spread over a number of clients, with no one client becoming a huge part of your overall sales. That issue is certainly able to be resolved if in fact that's the case with your firm, but widespread A/R clients is in fact the preferred business model.

While in almost all cases Canadian business financing vehicles work best with established companies we do point out to clients that a start up firm can in fact set up a proper facility and benefit in the same manner.

While very small invoice transactions can be financed typically larger invoice amounts lend themselves best to this method of finance.

So those are some of the points that define your eligibility for a cash flow financing facility. To originate a facility you must be able to produce aged receivable reports, financial statements, and basic info around your business model.

Our recommended facility is confidential AR FINANCE, which allows you to bill and collect your own receivables. Generally this type of facility has a higher level of due diligence involved, but your firms reaps all the benefits of cash flow financing and remains in full control of all aspects of the day to day routine.

Speak to a trusted, credible and experienced Canadian business financing advisor
who can assist you in setting a proper facility that puts you in full survival, and hopefully growth mode for future sales and profits.





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