YOUR COMPANY IS LOOKING FOR A/R FINANCING!
WHAT ACCOUNTS RECEIVABLE FINANCING SOLUTIONS WORKS FOR YOU?
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
Are Receivable Finance Options and cash flow financing in Canada an entitlement? We're told of course that that term is a ' feeling or belief' by the business owner that they ' deserve to be given something such as a 'special privilege’ when it comes to understanding what their choices are in cash flow financing for business. Let's dig in.
THERE REALLY ARE ONLY 2 A/R FINANCING OPTIONS IN CANADA - WHICH ONE IS FOR YOUR COMPANY?
So when clients come to us looking for receivable finance options is all about really one of two choices - The Canadian chartered bank solution or the use of an asset based non-bank commercial finance firm that provides accounts receivable financing services in a manner that the banks can't and don't.
But which one is for your firm. If you of course can access bank financing it’s about 2 things - low cost, tempered with ability, or inability! to qualify for all the capital you need to operate and grow your business.
Both solutions provide effect financing of the balance sheet when it comes to A/R.
BENEFIT VERSUS COSTS IN SHORT TERM NON-BANK RECEIVABLE FINANCING
Receivable finance via an invoice factoring/discount solution gives you unlimited access to cash flow financing but has the business owner rationalizing costs and different procedures.
ASSIGNING YOUR RECEIVABLES OR SELLING YOUR RECEIVABLES - THE PAPERWORK DIFFERENCE
The essence of the whole debate revolves really around how the two different methods are documented. In the case of the bank, it takes a general security agreement on your A/R and takes an assignment of all your present (and future) receivables. You then borrow up to 75% of your outstanding AR that is under 90 days old. The bank's logic is that if your accounts are older than 90 days that's your problem, not theirs! By the way, we agree, as your ability to manage your credit granting to clients is one critical factor in business success. It's the cash flow!
THE COST OF RECEIVABLE FINANCE FACTORING SOLUTIONS
A/R Invoice financing works differently. Under that mechanism, in our ' not a bank ' solution you have paperwork that allows the finance firm to, on an ongoing basis, ' buy' your receivables, typically at a 98 - 98.5% discount. That basically closes the transaction off. One way to look at it is that the finance firm takes a commission for allowing you to generate instant, same day cash flow.
SAME DAY CASH FLOW - YES!
Same day Service? What do we mean by that? Simply that when you are financing cash flow needs via receivable finance you have the ability to access working capital/cash flow from the factoring company at the same time you generate sales. You have turned your company into a cash flow machine. Congratulations on that!
CHOICES FOR BUSINESS OWNERS
Naturally, you don't have to finance every sale you make, the prudent business owner and financial manager simply access cash as they need it as they sell products and services and grow their company.
One more tip. We strongly recommend 7 Park Avenue Financial CONFIDENTIAL A/R FINANCING, allowing the business owner to bill and collect all their accounts, finance them, without any knowledge of other parties such as suppliers, clients, etc. It's simply the bank alternative to long term finance solutions.
CONCLUSION
Looking for more info on accounts receivables financing? Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your receivable finance options. Don't please guilty about being unable to access the business financing entitlement you deserve - choices!
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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