YOUR COMPANY IS LOOKING FOR AN A/R FINANCE
SOLUTION TO COMBAT TIGHT CASH FLOW!
ACCOUNTS RECEIVABLE FACTORING SOLUTIONS
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
Receivable Finance...aka ' Factor Funding' In Canada. Quite frankly we couldn't count the number of times that a client has opened up to us with the line ' cash flow is tight '. That challenge, that appears sometimes, or in the case of some clients... all the time. Is there a way to combat that problem? Let's dig in.
A/R FINANCING IS ONE TYPE OF WORKING CAPITAL SOLUTION
Numerous types of financing can combat small business cash flow and working capital issues your company faces. We're focusing on some solid external solutions, but we'd be remiss to remind business owners and managers that a lot of cash flow challenges can be addressed internally through faster asset turnover, and simply hard focus on quality, reporting, of current assets and liabilities such as inventories, payables, and of course our focus today, A/R.
How does a business owner know when external financing solutions such as A/R Financing are needed? We suppose we are talking about those ' symptoms' of cash flow being tight.
WILL THE BANK FINANCE ALL YOUR RECEIVABLES
When most business owners/managers think of external financing in Canada they think of ' the bank’. They go to ' the bank'. Traditional lending is great because it's low cost and plentiful if your firm qualifies. But more often than you think issues of financials, collateral, credit history of owners, etc prohibits many firms from accessing that plentiful ' low cost' bank financing.
We also meet many clients who in fact have low-cost flexible Canadian chartered bank financing, but it’s a case of ' not enough '. Not enough is due to some of the issues we will now address that are often solved by a factoring company.
HIGH GROWTH REQUIRES HIGHER INVESTMENTS IN YOUR WORKING CAPITAL ACCOUNTS
At night business owners dream. Those dreams often include the concept of high growth. While the future financials might look bright when it comes to profits and sales revenues quite often the investment that you need to make in people, materials, and inventory and receivables is improperly overlooked. So Receivable Financing is simply one way to get the profit and growth into your financials.
THESE BUSINESS CHALLENGES OFTEN REQUIRE ADDITIONAL FINANCING
Many clients we meet are embarking on -
The big project
The new product line
Entry into U.S. and foreign markets
Major R&D projects
Major fixed asset upgrades
ACCOUNTS RECEIVABLE IS A SUBSET OF ASSET BASED LENDING SOLUTIONS IN CANADA
While equipment financing and SR&ED tax credits can help finance some or almost all of that expansion it still takes funding out of business credit lines. Factor funding is in fact a business credit line - it's a subset we can say of asset-based lending in Canada. Cash flow derived from this method of financing helps fund your expansion, simple as that.
TEMPORARY CASH CRUNCHES CAN HAPPEN!
Cash flow may not be tight today, it often is ' tomorrow ‘. In financing that is known as ' the bulge '. So while a traditional bank business line is a fixed credit limit Receivable financing via confidential factor funding allows you to address ' the bulge '. That bulge is a lot easier than the one we're trying to eliminate at the gym! The bulge is when you get the big order, have a temporary buildup in receivables, or require products and services that necessitate major cash outflows.
FUNDING PAYROLL CHALLENGES
Payroll financing is one other aspect of A/R financing. For some reason, we have never quite figured out employees and contractors want their paycheques and they want them on time! A 7 Park Avenue Financial Factor financing allows you to pay employees before clients pay you. Factoring companies provide different types of AR financing - our recommended solution is Confidential Receivable financing, allowing you to bill and collect your own receivable without any notification to clients and suppliers.
Accounts receivables can be financed on a non recourse or recourse basis - As this is a short term method of funding daily operations factoring companies charge a fee, which is often confused as being an interest rate - which it is not. Receivables factoring allows your company to fund sales within 24 hours and can be done selectively as you need to draw down funds.
If you want to understand how confidential factor funding works (you bill and collect your own accounts receivable while getting funded daily) seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your needs.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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