factor funding receivable finance cash flow

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Cash Flow Is ‘ Tight ‘Is One Saying We’re Committed To Eliminating Via Receivable Finance And Confidential Factor Funding
Some Good Reasons  Combating True Weakness In Cash Flow Is Easier Than You Thought








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Financing & Cash flow are the  biggest issues facing business today


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7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com



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.


Numerous types of financing can combat 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. 


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, 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.


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.


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


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.


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.


Payroll financing is one other aspect of A/R financing. For some reason we have never quite figured out employees and contractors want pay cherubs and they want them on time.  Factor funding allows you to pay employees before clients pay you.


If you want to understand how confidential factor funding works ( you bill and collect your own receivables , 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.


factor funding receivable finance cash flow

' Canadian Business Financing With The Intelligent Use Of Experience '