Confidential Invoice Factoring & AR Discounting In Canada

Taking The Controversy Out Of Receivable Financing ?

Information on how confidential invoice factoring and AR Discounting programs work in Canada



Confidential Invoice Factoring & AR Discounting in Canada. The whole issue of receivable finance is always a bit controversial. That is whether it is part of the debate of whether it’s a non- traditional type of financing, or often the issue simple revolves around the cost and day to day dynamics of this method of financing your business.

Let's take a step back for a minute. Every business owner and financial manager recognizes the constant battle between sales growth and their cash flow challenges. It's essentially a constant battle for supremacy almost, don’t you think?

Canadian businesses have been intuitively addressing our Canadian chartered banks as ' the' solution to their financing needs. However experts tell us that a large majority of Canadian business does not have the access they need to ongoing working and or long term capital.

That lack of capital essentially becomes an ' obstacle to growth, often being a larger challenge than growing your revenues, beating your competition and managing your assets


We maintain that using what we term a ' confidential’ receivable finance program is one way to ' diffuse ' the whole issue. How? Simply by providing you with a method of financing your business through the growth in A/R that comes from sales in a manner that lets you be totally in charge of your billing, collecting, client relationships... all the while having total access to cash flow for every sale you make . All the time, or some of the time!

Confidential invoice factoring and discounting is fast becoming a preferred solution for funding Canadian business. While cost is often a factor in the decision to finance your company in this manner the ability to get all the cash you need all of a sudden becomes a very acceptable option.

AR Discounting facilities, on a confidential basis, work the same way as traditional asset factoring. It simply a process in which a charge, similar to the Canadian bank agreements is place against your receivables. The application process is always significantly faster than a bank type financing.

In cases where it makes sense to all parties the Canadian business owner and financial manager might be surprised to know that the Confidential facility can co-exist with your bank arrangement if you have one, if, and its a big if, it makes sense to all parties : your firm, your bank, and your Confidential AR finance provider . That's probably more of a subject for another day.

Part of the attraction of a confidential facility is that there is no relationship interference between your company, your clients, or vendors. A lot of the controversy around traditional factoring and invoice discounting in Canada arises from the concern of client perception, especially if you're dealing with larger companies. That becomes a non issue with your confidential AR facility allowing you to bill and collect your own receivables, all he while generating cash on a regular basis consistent with your sales.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor on this unique method of cash flowing your sales, without the controversy!






Stan Prokop - founder of 7 Park Avenue Financial –

CANADIAN BUSINESS FINANCING

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 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 :

CONFIDENTIAL INVOICE FACTORING AND A/R DISCOUNTING








7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

















Stan Prokop

The ABL Line Of Credit . You Need This Info On The Asset Based Lending Business Facility

A Business Speed Dating Overview! But Wait – There’s More ! What You Need To Know About The ABL Credit Facility In Canada


OVERVIEW – . Information on asset based lending in Canada . What the business owner wants to know about the ABL business line of credit for working capital and cash flow needs




The ABL line of credit in Canada. It's the product of a Canadian business financing tool that is a replacement for what business owners and managers know as the revolving business line of credit. What that is typically offered by ' the bank ' in the case of ABL it's a product offered by commercial finance companies. Unknown to most, it's also available at the bank, but we digress.

Today we're in SPEED DATING mode , from a business perspective !It's that process of sitting down , learning some key information on someone ( in our case ' something ' ) , moving on, learning more, and then .. making a decision. Strap yourself in and hang on! , as a lot of info is going to come at you pretty fast.

- The ABL facility is a revolving business line of credit that uses all your business assets to secure the line of credit ' loan ' - it’s actually not a loan, but a monetization of your assets

- Assets financed in you line of credit are typically receivables and inventory and equipment, but can also include real state, your ' rolling stock ' etc

- Asset based business line of credit are getting more popular everyday they are the bank alternative

- Who uses ABL facilities? Glad you asked -! Start ups, some of the largest corporations in Canada, high growth companies, public firms, private companies, and companies in SPECIAL LOANS at their bank, companies in turnaround mode. Bottom line - we can’t think of a firm that isn’t eligible in some manner

- Key advantages of the ABL business credit line include ability to borrow much more - we often see 100% increases in borrowing power. It works if you have business assets and don’t want to, or can’t add long term equity capital or debt

- Reporting on your business credit facility is more stringent - so you need to be able to prepare ongoing reports on your receivables, payables, inventories, and monthly financial stats, etc. If you can't do that already we suggest you have some other problems

- Asset based lending typically monetizes receivables at 90%, inventory between 25-75%, and current values of your equipment and other assets - Expect an appraisal when it comes to other assets

That's our business ' speed dating' recap on the ABL business line of credit. It's up to you, the business owner or financial manager to now ' pick your partner ' when it comes to choosing the right type of business line of credit for your firm.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor, who can assist you with your business credit needs,





Stan Prokop - founder of 7 Park Avenue Financial –

CANADIAN BUSINESS FINANCING

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 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 :

CANADIAN ASSET BASED BUSINESS CREDIT LINES





7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com



















Stan Prokop

Business Cash Flow Management And Working Capital Solutions and Tools

Cash Flow 911 ! Avoid Business Financing Challenges



Information on business cash flow management in Canada . Resource monitoring tools and working capital solutions can provide the Canadian business owner with a ‘ win ‘ when it comes to financing your company




Business cash flow management .When it gets to the stage where you're ready to call 911 Working Capital things are usually getting pretty tough. Let's examine some key tools, and, more importantly, solutions around what experts tell us is a constant challenge for the Canadian business owner and financial manager. Let's dig in.

Even understanding some of the real basics will always help your firm out, and when you know where to go and what Canadian business financing solutions are available you're certainly in a position to maximize the finances you need to run / grow your business. When you understand liquidity issues that's often a first step in avoiding the proverbial cash crunch.


As one of our favorite business finance pundits put it , its the balance sheet that shows where the bodies are buried ' and I guess we are saying that when you solve the puzzle of how your assets are operating within your balance sheet you're in a strong position to put ' the fix' , or ' the fixes ' in place.

We often meet clients who somehow are a bit more surprised than we think they should be when that cash flow crunch occurs. It's as if it just happened. While we suppose there are some events that can very quickly precipitate a working capital shortage (perhaps the quick loss of a very large client, etc) the reality is that these sort of issues are probably a bit more in what we could call ' creep mode ‘.

So what are those issues? They include slow moving or inventory that’s obsolescent , accounts receivable that are being collected to slowly ( or not at all ?) , and prepaid accounts and fixed asset balances that are bulking up your balance sheet but doing nothing for cash flow . When you can successfully talk to and address the balance sheet asset accounts that will or can convert into operating capital you're in a position to survive, grow, and even get big fast!

Don't forget also that the whole concept of cash flow (it’s actually a complex concept and a simple one!) revolves around tying your income statement into the balance sheet when you're looking at your overall financial position. It goes without say that and term or asset monetization lender is going to be looking at how you manage the dynamics of those cash flows.

What are then some sources of cash flow financing? They include:

Chartered bank operating lines of credit

Receivables financing/discounting

Working capital term loans

Non bank asset based lines of credit

Sale leaseback of owned fixed assets

Tax credit monetization

Purchase order/supply chain finance

One of the best ways to analyze and manage business cash flow is to constantly monitor the changes in your sales as they relate to your operating expenses , and , as important , or more so the increases in your accounts receivable and inventory levels . Keeping it simple - we're saying that if your sales are growing at 25% make sure inventory and A/R levels arent growing at 40%!

If you run your company incredible efficiently when it comes to asset turnover and management, and arent in high growth mode you will actually need little cash flow finance. However, if you’re growing, investing in fixed assets and have significant increases in A/R and inventory you're approaching CASH FLOW 911 modes!

If you want to win the cash flow battle consider some of the monitoring solutions we've provided here seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your finance needs via solutions that work... for your company .





Stan Prokop - founder of 7 Park Avenue Financial

http://www.7parkavenuefinancial.com

CANADIAN BUSINESS FINANCING

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 :


BUSINESS CASH FLOW MANAGEMENT & WORKING CAPITAL





7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com













Stan Prokop

Equipment Financing Companies In Canada . Asset Leasing Works When You‘re Plugged In To The Right Info!

Debunking 7 Misconceptions On Financing Assets In Canada . Myth Vs. Reality



OVERVIEW – Information on equipment financing companies in Canada . Demystifying asset leasing in Canada with information the Canadian business owner and manager needs to know when assessing solutions for acquisition of assets




Asset Leasing In Canada. Equipment Finance Companies have, for whatever reason some myths and plain old bad information associated with who they are, what they do, and what benefits the Canadian business owner and financial manager derive from the use of equipt. financing. Let's dig in.

Myth # 1 - Everyone's doing it! Actually that one is close to 80% correct because experts tell us that over 80% of businesses in North America (hey that's us also!) utilize business leasing to achieve asset acquisition. We can't speak for the other 20% - hopefully they are your mis-informed competitors.

Myth # 2 - A lease is kind of like a loan right? Not really, although bridge loans, term loans, conditional sales agreements, etc are asset finance transactions a lease is not a loan. Accounting, tax and other issues make lease finance a uniquely special proposition when you're acquiring assets.

Myth # 3 - Only certain assets can be financed. That’s definitely not the case, as almost any asset, tangible or intangible (software is a good example) can be financed. The flexibility and creativity that goes into non standard asset financing is significant.

Myth # 4- There is only one type of business lease. That one is definitely not true, as in Canada the business owner/financial manager has the option to utilize a ' capital' lease to own strategy, or alternately, an 'operating ' lease to use finance choice. It really depends on the type of asset you are financing, its long term use to your firm, and its value. Oh and by the way, within those two basic lease option structures your company has the ability to structure payments that make the transaction more beneficial to your firm.

Myth # 5 - A lease company is a lease company, right. Not so fast! There are all types of lease companies in Canada - while they are segregated generally into small, medium and large ticket lessors they in fact range in size and geographical focus. The industry is made up of independent commercial lease companies, bank entities, and insurance companies. And ownership can be Canadian or U.S. based. Just knowing what leasing company to deal with for the assets your are financing is worth its weight in gold when you factor in time spent, interest rates, structures offered, and credit approval criteria .

Myth # 6 - The main benefit to asset financing via a lease is the 100% financing and fixed monthly payment. While that is of course true, there are numerous other benefits to asset financing under a lease structure - they include hedges against asset obsolescence, the ability to upgrade assets, tax and accounting benefits, cash flow management, etc .

Myth # 7- There are no risks in leasing. We wish we could say that is true, but in reality any aspect of business always has risk and some of the potential risks in lease finance include loss of asset values, repossession for non payment /default , risk of asset loss, insurance obligations,etc. The good news is that a properly structured lease, with the right partner firm or advisor can mitigate significantly, or entirely all those risks.

There you have it. Our debunking is complete. Seek out and speak to trusted, credible and experienced Canadian business financing advisor who assist you in setting the record straight on equipment finance companies and asset leasing in Canada.



7 PARK AVENUE FINANCIAL
CANADIAN ASSET FINANCE EXPERTISE


Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 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 :


Canadian Business Financing







7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com
















Stan Prokop

Receivables Discounting Solutions In Canada . Getting A Handle On Debtor Factoring Solutions That Make Sense

There’s A Big Problem When You Don’t Understand Factoring and A/R Finance




OVERVIEW – Information on receivables discounting solutions in Canada . How does debtor factoring differ from standard bank credit lines , how does the process work, and why is it a viable option for owners and managers seeking a cash flow solution to business finance challenges





Receivables discounting solutions in Canada. Not understanding something in business can often be simply confusing - sometimes it's downright dangerous. So let's take a basic look at debtor factoring solutions; how do they work, what do they cost, and why in the heck you would consider such a Canadian business financing solution. Let's dig in.

First of all, it’s nothing new, that’s for sure. It's a method of financing that’s been around for only hundreds of years. We’ve heard it originated when the Dead Sea was simply ill!

Often confusing with bank lines of credit that are receivable based, it's simply a process where you arrange, on a one time, but usually on an on going basis to sell your A/R for immediate cash as you generate sales. If we were keeping things really simple we would tell you that you generate an invoice for $ 100,000.00 dollars and you receive that cash, right away, as we have said.

Well almost, the actual process has you receiving 90%, 90,000.00 - the balance is a hold back to cover off any short payments or extended pay issues. That 10k balance, ' the hold back ' is remitted back to you, again, immediately, as soon as your client pays. Deducted from the 10k are the receivables discounting fee, which customers tend to refer to as the finance charge for the transaction.

So what don't Canadian business owners and financial managers often understand? The reality is they tend to view of confuse the whole process with bank loans. While the bank registers pretty well the same security against the A/R as the finance firm helping you with factoring, the issue is simply that the bank lends on an ongoing basis against the receivable, and other security they hold as collateral. The challenge in accessing bank credit lines is that your firm must have clean balance sheets, profits, cash flows, personal guarantees, and other qualifiers that ' sometimes' make it challenging to access A/R finance.

Oh and buy the way, if you're a start up or experiencing intense hyper growth that challenge of accessing bank financing is even more daunting. So as we have said, you'll understand receivables discounting a lot better when you separate it from what Canadian chartered banks do with A/R, and how the daily process actually works. Hopefully we've already brought some clarity to the problem of understanding your different working capital and cash flow solutions - they all achieve the same goal, it's just that sometimes they work and cost a little differently.

The issue of cost is always a matter of ' mass confusion' when it comes to debtor factoring. Bank lines of credit are the cheapest and most flexible form of financing in Canada. That’s a safe statement we can make. But when that type of business credit can't be accessed then its alternative financing solutions that make sense. Yes the cost is more, but that cost is offset against all the cash flow your firm now has access to. Quite frankly we can comfortably make the statement that you have unlimited cash flow, with no upper limit, if your firm has the sales and receivables to backstop your facility.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your receivables discounting solutions to enhance cash flow and access to capital.


P.S. Don't forget to ask that advisor about CONFIDENTIAL A/R FINANCE allowing you to bill and collect your own receivables in a manner that suits your firm and your client relationships.



CANADIAN RECEIVABLES DISCOUNTING EXPERTISE




Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 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 :

RECEIVABLES DISCOUNTING SOLUTIONS AND DEBTOR FACTORING







7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com










Stan Prokop

Canada Business Loans . Is There A Secret Society In Canadian Business Financing?

It Doesn’t Have To Be Secrets And Mis-information When It Comes To Business Finance Solutions



OVERVIEW – . Information on access to Canadian business financing solutions . Asset monetization and loans that makes sense for your firm are readily available – if you know where to look – and what you’re looking for!




CANADIAN business financing is a challenge anytime, from the entrepreneur's dream of l start up loans to major corporate needs. We think the Canadian business owner and financial manager can be forgiven for sometimes thinking that there is a SECRET SOCIETY they have to penetrate to get the financing they need.

That of course connotates some sort of organization where the activities and inner functioning are concealed from non – members; i.e. Your Company! Does it have to be that way? We don’t think so and here’s why.

The current business environment makes the above noted challenge even more daunting. Whether a firm is established and doing well, or experiencing financial distress or working capital or growth needs - the challenge remains the same – cash flow and solutions for financial growth.

What is the 'challenge'? Simply speaking it is identifying the proper financing solution , determining whether the solutions is a short term fix or a long term solution , and then, most importantly executing with experience the proper financing solution.
The business owner must be able to properly position the current shortcoming as both an opportunity and risk appropriate.

Proper financing begins with the owners and his advisors ability to identify the current financing challenge. The owner and advisors must provide a compelling reason for the lender to assist in an appropriate financial solution.

Who are these 'advisors'? Typically they are internal financial staff, i.e. CFO/Controller, etc, or alternately third part accountants and experienced financial intermediaries with a track record of success.

Business Financing is complex - However at the end of the day the financing solutions are actually very well defined - They are as follows:

Leases and Term Loans

Working Capital Loans

Asset Based Lines of Credit

Bank credit lines

Non bank credit lines

Receivables purchasing

Inventory Lines of Credit
Leasing and Sale Leaseback / Bridge Loan Strategies

Purchase Order /Contract / Supply Chain Financing

Commercial mortgages

Tax Credit financing


The business owner, and their advisor, should have a very clear focus - That focus is as follows:

What is the best financing solution on either a short term or an intermediate/long term basis for the business?

Does the business owner or executive clearly understand all the financial options available - what are the criteria for these different options - what are the rates/terms and structures for each option.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with business loans and asset monetization 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 10 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 :

CANADIAN BUSINESS FINANCING LOANS



7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com















Stan Prokop

Cash Flow Finance . Why You Should Be Seriously Concerned About Business Financing Availability!

Have We Got A Story For You ! Ready for the Honor System in Business?!


OVERVIEW – Information on the importance of cash flow finance for the Canadian business owner and tools and solutions to aid in working capital business financing.



Business financing and cash flow finance in Canada. We've got a story for you on this one - even we couldn't believe it. It was an article in the English press that... are you ready for this... called for an honor system of sorts for companies to pay each other promptly!

Yes, you heard it right... the honor system in business! It had evolved into something called the ' PROMPT PAYMENT CODE ' which had firms signing up to commit they would pay promptly. While we in Canada can only aspire to such a trend... (or legislation)! it's simply tough for us to imagine businesses being nice to each other and actually paying promptly.

Well, putting the PROMPT PAYMENT CODE aside the article also pointed out that 25% of all firms experience cash flow problems and challenges that hurt their performance. A lot of that, it was pointed out, revolves around the ability of a company to seriously assess their payment terms and client relationships in the context of cash flow

There are a lot of solutions to cash flow financing for the Canadian business owner and financial manager. One of the immediate ones is clearly simply putting a finance solution in place that solves the ' slow payment ' problem with your clients, hampering your ability to run, much less grow your business.

Invoice finance, aka ' factoring', aka ' receivable discounting ' is one solution to that problem. That as well as other finance vehicles such as asset based non bank non bank lending facilities, as well as of course Canadian commercial bank business credit lines can do the job very well.

Those solutions, as noted above, simply take business assets such as receivables and ' cash flow' them into operating working capital. Naturally day to day cash flow financing can also be utilized to even finance a company purchase, which is usually finance by a combination of term debt and operating debt.

Many Canadian business owners and managers are also not aware that their long term receivables and contracts can also be ' cash flowed' into a business financing solution. Naturally every business has its own somewhat unique cash flow need - that might be an acquisition or, say in the case of a staffing company, the need to meet payroll! Employees love to get paid.

So why business owners should be seriously concerned about their ability to both assess and solve some of the challenge we've spoken of here? The answer is that having a handle on your overall business liquidity helps you measure the difference between cash flow and profits (they’re different!), which is key to any of your short term or senior lenders also. You're also in a position to evaluate investing in assets to run/grow your company.

Taking a good look at your cash flow statement (its page 3 of your financials - right after balance sheet and income statement!) allows you to assess how you are operating and turning assets, what you have spent or received on asset purchases or sales, and what you have borrowed or paid out. Having a good handle on all those gets your closer to cash flow nirvana!

Availability of cash flow solutions for your business allows you to be less concerned about cash flow survival. Immediate solutions include:

Receivable financing
Bank and non –bank business credit lines
Sale leasebacks
Tax Credit Financing
Unsecured cash flow loans
Contract/PO finance


Do we ever seen Canadian businesses signing up for our version of a PROMPT PAYMENT CODE OF HONOR? Well , we’re going to dream, but in the meantime seek out and speak to a trusted, credible and experienced Canadian business financing advisor>who can get you ‘ less concerned’ about business financing and cash flow and working capital solutions in Canada.







7 PARK AVENUE FINANCIAL
CANADIAN CASH FLOW FINANCE AND BUSINESS FINANCING EXPERTISE













Stan Prokop