YOUR COMPANY IS LOOKING FOR BUSINESS CASH FLOW FINANCING
ACCOUNTS RECEIVABLE FACTORING IN CANADA
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
Can working capital factoring solutionsbe our business version of ' homeless ' to ' rich '? It's an interesting analogy if only because the receivable factor firm solution, properly done, creates capital you never had. Let's try and connect the dots' in those solutions so the business owner / financial manager sees a clear path to business cash flow freedom. Let's dig in.
WHAT ARE YOUR WORKING CAPITAL FINANCE OPTIONS
There are, of course, options in working capital finance - they include taking on debt under a working capital term loan or mezzanine unsecured cash flow loan, or the traditional route of Canadian chartered bank financing - theoretically available unfortunately not always to those that need it most.
WHY CONSIDER ACCOUNTS RECEIVABLE FINANCING / INVOICE FACTORING VIA AN A/R FACTOR?
Why does financing your sales via an accounts receivables factor, factoring in companies financing, are a logical step to business capital freedom? For a starter, that low-cost bank line of credit may not be available to your firm for many reasons. If your firm does not qualify for bank credit for any number of reasons, you're back to square one... our version of business homeless! In financing your receivables in this manner, you receive your funds the same day or within 24 hours. Waiting 30 days, 60 days or longer is not an option in today's competitive environment.
GROWING TOO FAST - THAT BECOMES A CASH FLOW PROBLEM!
Many firms have the most incredible problem imaginable - they are too successful and growing too quickly. That ' rush ' from getting a large new contract or purchase order or seeing sudden surges in sales brings working capital nightmares, as more and more funds are tied up in materials, inventory, and finally, accounts receivable.
Your business can choose between non-recourse factoring and recourse factoring based on your decisions to carry credit risk in the manner you do now or if you wish to offload credit risk to the factoring company.
OTHER BUSINESS FUNDING NEEDS
Your working capital is required for expansion needed for lease/loan payments on new assets or marketing and headcount growth in certain situations. Many clients we meet do great business only at certain times of the year - that seasonality causes cash flow needs to rise and fall dramatically at certain times, sometimes unexpected.
One final situation is the whole issue of payment terms and collections. Even large corporations are often typically the ones that pay the slowest, and then there’s... the government!
CAN YOU MEET BANK LOAN REQUIREMENTS?
While certain situations immediately disqualify you for bank financing (negative net worth, fluctuating profits and cash flows, huge jumps in sales revenues), it’s these exact situations that make your firm a solid choice to be financed by a receivable factor.
ASSET BASED LENDING IS THE ULTIMATE CASH FLOW SOLUTION FOR FIRMS WITH SALES AND ASSETS
By the way, in many cases, a working capital factoring solution can be a component of a ' total ' asset-based lending deal, whereby your A/R, inventory and unencumbered with liens equipment are combined into one solid business line of credit. It's typically called an ' ABL ' line by the pros.
WHAT IS THE BEST AND MOST POPULAR FORM OF FACTORING FOR YOUR OUTSTANDING INVOICES?
Is there one type of receivable factor solution that works best? In our opinion, it's non -notification CONFIDENTIAL RECEIVABLE FINANCING, allowing you to bill and collect your own receivables, draw cash against sales when you need it, and only pay for what you are using.
CONCLUSION
Receivables factoring delivers short-term day-to-day cash needs you require to run and grow your business. If you want some help in connecting the dots in A/R financing solutions and funding your company's customers based on your investment in receivables, seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you within that ' homeless' to ' rich' transition in business capital! Factoring allows you to grow your revenues around your goods or services. If you're a small business or medium-sized company, talk to the team at 7 Park Avenue Financial to see how easy it is to get started and funded.
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Stan Prokop
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