YOUR COMPANY IS LOOKING FOR BUSINESS CASH FLOW SOLUTIONS!
YOUR RECEIVABLES FINANCE SOLUTION JUST ARRIVED
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 Financing Services are among the most popular working capital and cash flow alternatives today for Canadian businesses. Receivables company solutions are a solid alternative to the Canadian chartered bank offering - the 'business line of credit. ' Let's dig in.
DOES ACCESS TO BANK FINANCING PROVIDE YOU WITH THE FUNDING YOU NEED TO RUN AND GROW YOUR BUSINESS
It's not hard to see why business owners/financial managers are mesmerized by the lure of bank facilities - they are low cost, have some solid flexibility. The problem? Getting approved! Essentially it's all about the credit standards set by our banks.
ACCOUNT RECEIVABLE FINANCING FILLS THE CASH FLOW GAP
A true ' Receivables Company alternatively serves receivable financing services. ' They might be the ' buried treasure ' owners/managers are looking for. These commercial firms fill the ' need gap, ‘albeit at a higher cost. It should be no secret then that the key collateral is simply the business assets of the company, specifically A/R.
Receivable Finance, aka ' factor financing ' - it's not ' equity ' or 'debt' financing; it's simply monetizing your sales for the business lifeblood - cash flow.
HOW CAN YOUR COMPANY OFFSET FACTORING COSTS?
Financing costs for accounts receivables financing vary widely and are typically in the 1.25 - 2% per month on outstanding invoices that you choose to finance off your balance sheet. You have just changed your company's balance sheet into a cash flow machine.
These costs, though, can truly be significantly offset in several ways -
- Your business can negotiate better pricing on product and services because of newfound cash availability from the factoring company
- The business can now afford to take valuable supplier discounts for prompt payment, which themselves are often 2%!
- Less sophisticated owners do not always consider the actual cost they incur to ' carry a/r.’
- Larger commercial or govt contracts can be taken on with the knowledge sales can be financed, thereby generating additional profit for your business - receivable financing accounting is easy to implement
In our own experience meeting and talking to clients, the actual 'needs' of the business become blurred - as the business owner/manager often co-mingles other needs such as equipment, property, inventory.
The best way to view A/R solutions is along the lines of short-term operating needs and a solution for your receivables' early payment.
ADVANTAGES OF A/R FINANCING
There are some distinct advantages to a commercial financing company invoice factoring facility. One of them is simply borrowing power, as typical advances are 90% of outstanding A/R, significantly better than the bank 75% ratio. The best use of a facility is to have an ongoing facility based on the ebb and flow of sales and A/R collections.
There are some other solutions out there that might be worth investigating - they include Revenue-based finance, which allocates a portion of all sales as your borrowing base. In the smaller end of the market, i.e. small businesses and retailers/restaurants, ' Merchant Advance ' solutions are popular. They monetize future sales - today and act as lines of credit in a way - some business owners refer to it as a receivables loan.
Top experts will tell you that the best use of non-bank commercial financing is for business growth - in the majority of cases, they are the ' bridge ' back to traditional financing, and common timeframes for utilizing this type of service is a year or two.
OUR RECOMMENDED BEST RECEIVABLE FINANCING / FACTORING SOLUTION
One of the best A/R factoring solutions is ' CONFIDENTIAL RECEIVABLE FINANCE, ‘allowing you to bill and collect your own invoices without notification to others - least of all your competitors.
CONCLUSION
If you believe account receivable factoring companies are the solution, then financing accounts receivables is your cash flow solution - it allows companies to fund day to day operations and is easily accessible - If you're looking to explore the potential ' cash flow power ' of a Receivables company, seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with your working capital needs.
Click here for the business finance track record of 7 Park Avenue Financial.
Stan Prokop
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