Reliable Information On Accounts Receivable Finance Factoring Financing Solutions

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RECEIVABLES FINANCING IN CANADA

Want to feel initiated? Privileged? That's kind of what a secret is about, and we're sharing a great one today, a strategy known as Confidential Invoice Factoring / Accounts Receivable Finance - it's our version of the best factoring financing in Canadian business today for small businesses, and for that matter businesses of all sizes when it comes to money owed to your business!

SOLVING CASH FLOW ISSUES

Why are you considering receivables finance and invoice factoring, and even more to the point, why are thousands of other firms, your competitors included(!), already there in that business when it comes to achieving early payment on sales generated for your goods or services - i.e. receiving cash immediately given the way many payment terms are ignored by clients!

NON BANK AR FINANCING

Actually, there are only two answers to that question... maybe three. First of all, it’s because this type of working capital and cash flow financing is relatively easy to work with, and secondly, the more you analyze it, well it seems to make sense.

Our third reason - in many cases clients we meet are almost forced to consider this type of business financing because factoring financing becomes their only method of ensuring their business has the working capital and cash flow to succeed when a bank credit line may not be available.

FINANCING THE BALANCE SHEET

In talking to clients we always try and dispel the perception, and trust us it’s just that, that this is the 'poor man's (or woman’s!) solution to business financing. Hardly, some of the largest, most well-known names in Canadian business, even public companies, by the way, utilize account receivable finance. It’s just disguised a bit more cleverly by those finance folks as securitization, etc.

HOW DOES CONFIDENTIAL FACTORING WORK?

Anyway, back to our key point today, which is simply is there a way to get all the benefits and financial leverage of accounts receivable finance and cash flow generation in a manner that allows you to control your own destiny?

99% of factoring financing in Canada is done in a very... let's call it 'pure' manner. You sell your invoices, the buyer, i.e. the 'factor' notifies your clients that they have purchased the receivable, and you get your cash flow - the same day. In effect, you've just turned your company into an automatic ATM machine with yourself having the key to the back of the unit!

But wait... perhaps like hundreds of other businesses that we meet you don't want to let the world know how you are financing your business, including your competitors by the way! Is there a solution for that collection process

THE BEST A/R FINANCING SOLUTION?

There is. It’s what we've termed 'CONFIDENTIAL RECEIVABLE FINANCING ’; our terminology for confidential invoice discounting or factoring financing. It allows you to bill and collect your own a/r, while at the same time get all the benefits of that same-day cash flow everyone else is getting. Unless we're missing something, it’s the ultimate win-win? if your company is unable to achieve traditional bank financing!

An now you have opened up a window of financing that has created for your company all the benefits of this type of Canadian business financing - without taking on business debt, because business accounts receivable financing is simply monetizing or cash flowing your unpaid invoices - typically the 2nd most liquid current asset - your a/r. And turning that into your first most liquid asset - cash flow!

CONCLUSION - ACCOUNTS RECEIVABLE LOANS / ACCOUNTS RECEIVABLE FINANCING

FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION

What is accounts receivable financing?

Accounts receivable financing is a popular way for companies to receive payment on outstanding invoices on the company's balance sheet - Via a sale of receivables, the company makes an agreement with a commercial finance firm known as a factoring company. The financing company provides capital relative to accounts receivable balances. Small businesses and medium-sized businesses are the most common users of this method of financing.

The cost of a/r financing is typically higher than traditional lender solutions and in some cases, firms with poor credit or companies that are growing quickly are good candidates for this method of cash flow financing. Utilizing factoring companies that provide a cash advance for sales generated is a valid financial strategy that provides fast access to cash and solves short-term funding needs with accounts receivable providing the primary collateral.

' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop is the founder of 7 Park Avenue Financial and a recognized expert on Canadian Business Financing. Since 2004 Stan has helped hundreds of small, medium and large organizations achieve the financing they need to survive and grow. He has decades of credit and lending experience working for firms such as Hewlett Packard / Cable & Wireless / Ashland Oil

Accounts Receivable Finance Factoring Financing | 7 Park Avenue Financial