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

How Does Receivables Finance Work ?

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Best Method For Trade Receivables Finance ? It's ' Confidential ' !

Accounts receivable AR Finance isn't as much a ' secret strategy ' as opposed to a method to turn your company sales into a virtual cash flow machine ; in effect past obstacles of cash flow have now become a working capital/cash solution.

You only have to look at some ' search engine ' stats to find that thousands of Canadian businesses search everyday for what they hope is valuable real world assistance around their business financing needs. From early stage companies to mature medium size and even larger corporations .. it's always about unlocking cash flow in their sales and receivables.

When clients of 7 Park Avenue Financial talk to us about their financing challenges we've found it is easy , and clients can be forgiven, for getting bogged down in such issues as the cost of this financing, how it works, and even more importantly , dispelling what they may have heard about ' factoring ' and ' invoice discounting '.

Business owners and their financial mgrs are of course all for a ' good thing ' ; and they want to know how receivable financing works, as well as wanting to avoid the pitfalls and negative perceptions that come with this method of cash flow finance.

We're focusing in our discussion here on smaller and medium sized firms ; safe to say that larger corporations have access to a lot more financing possibilities in the realm of traditional bank financing . Some firms who are public companies can utilize working capital strategies and business funding that SME ( small to medium size ) companies just can't access.

These smaller firms , who of course make up a huge part of the Canadian business landscape have to rely on their own internal cash flow mgmt as well as utilizing any external finance they can access to fund ongoing operations, growth, and working capital.

The worst irony in business finance may well be the fact that many companies have to give up growth prospects simply because they can't access external business capital . That might mean new clients, new markets, foreign expansion, new product lines, etc.

What is Confidential Cash Flow Factoring / How Does It Work

Cash flow factoring of accounts receivable is the ongoing sale, in whole or in part of your sales invoices as you generate them and deliver products and services to your customer. The invoices are purchased at 1-2% % discount from company , and you receive cash, 99% of the time the same day, for those sales. So, in effect all your sales now fuel that cash flow machine we spoke about previously .


So far, so good, right? Where complications arise, especially in Canada, is the fact that this type of financing requires your client to be notified of the process, directly, or indirectly, and payments are required to be forwarded to your factoring finance firm. Canadian business, in our eyes, has a reluctance to involve their customers in their internal financing policies, and challenges. As a result, many firms are skeptical of entering into accounts receivable finance of this manner.

The Best Solution In Financing Sales

Is there a solution? We told you there was - it’s a breakthrough called Confidential Invoice Discounting!

This type of financing comes at the same cost as ' old school ' factoring, and allows you to bill and collect your own receivables!

Your company gains all the benefits of that cash flow factoring machine we've turned your company into. This type of facility can easily be a part of a non bank business line of credit known as an 'ABL ' - that's an asset based line of credit that allows your company to have a credit line that functions like bank credit lines.

Let those competitors, customers , and vendors to remain exactly where you want them to be, outside your financing strategies and challenges ! Let your competitors try and figure our how you're doing so well in both growth and profits.

Speak to a trusted, credible, and experienced Canadian business financing advisor with a track record of business finance success , putting your firm into a proper Receivable finance facility, allowing you to reap the benefits of cash flow invoice 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

What Are Sources Of Business Finance In Canada

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Sources Of Finance For Business Growth / Survival/ Expansion

Sources of business finance is all about options and having business owners identify the need and importance of solutions to funding their company in challenging times . Certain times are more challenging than others .

Although it's not necessarily ' easy ' for larger corporations, or public companies to raise capital , SME COMMERCIAL FINANCE solutions  are probably even more challenging.

What Are Cash Flow / Debt / Working Capital Options For Your Company ?

Canadian business financing options come with a combination of benefits an risks.
Part of the challenge is your being able to determine whether your company needs operating capital or long term capital in the context of asset financing or permanent working capital.

When it comes to ' operating capital ' a company might still be in somewhat of a ' start up ' mode, so there are the typical expenses for starting a company - these might include product development, marketing, legal and accounting, leasehold improvements, etc.

Two critical areas in that early stage that we have mentioned have some unique financing solutions available. The Canadian Govt' SRED program ' funds a significant portion of r&d capital . As well these claims can be financed, accelerating the cash flow, via a short term SR&ED FINANCING LOAN that has no payments during the term of the loan.

Your SR&ED claim is most successful when it is prepared by a qualified SRED consultant who can maximize the benefits of the program. We cringe when business owners or financial managers tell us that the program is ' just too much paperwork ' because they are clearly forsaking a true capital injection into their business. Many of those consultants will actually prepare your claim at their own time and expense risk, offering you a contingency agreement on those funds. The bottom line: check out this program.

Leasehold improvements are always difficult to finance and Industry Canada helps finance thousands of businesses under the Canadian Govt Small Business Financing Loan program. The features and the benefits of the program , which include a gov't guarantee to your bank are numerous, and the overall rates, terms and structures it provides have even larger companies envious of the Canadian Small Business Financing Loan . By the way, we call them ' SBL'S ' !

Many clients of 7 PARK AVENUE FINANCIAL advise us they have turned to what is known as ' love money ' or ' friends and family ' loans and investments .

We're not big fans of utilizing so called ' love money ‘, and are even less enamored by clients who are actually prepared to collapse personal registered savings or mortgage their homes to start a business. While its important to have some ' skin in the game' as the expression goes its our recommendation that you incorporate your business and strongly seek out traditional and alternative financing to fund your business .

Your business has 2 types of financing available that not all business owners and their financials mgrs recognize. These two types of financing include supplier financing via extended terms, as well as offering cash discounts to client for prompt payment .

Sources Of Canadian Financing For Small & Medium Sized Companies

Receivable Financing is one of the most popular ' alternative finance ' solutions used in Canada. Also called ' factoring ' or ' invoice discounting ' it turns your sales revenues into an automatic cash flow machine . At 7 Park Avenue Financial we recommend our clients utilize ' Confidential Receivable Financing ', allowing your firm to bill, collect, and automatic cash flow your sales/receivables.

Other forms of both traditional and alternative financing include short term working capital loans, more commonly known in the past as MCA'S or merchant cash advances . These loans provide short term ( typically 12 month ) loans geared to your sales levels, and will often be in the range of 10-20 per cent of your annual sales .

Businesses requiring equipment should always consider utilizing lease financing for their new and used equipment needs. We tell clients at 7 Park Avenue Financial that over 80% of North American business utilizes lease finance.

A relatively newer form of financing known as ' royalty finance ' is a hybrid of debt and equity finance.

In Canada venture capital and private equity is generally very difficult to obtain for most start up ventures - we caution clients to not dwell too long on these options unless you're committed to a long haul in effort!

The overall combination of your company size and credit quality will tend to drive the top picks applicable to your firm re numerous sources of financing available, either traditional or alternative.

Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success for the sources of business financing and options available to your company.




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