YOUR COMPANY IS LOOKING FOR RECEIVABLE FINANCE!
FACTORING RECEIVABLES VIA INVOICE FINANCING IN CANADA
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Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
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EMAIL - sprokop@7parkavenuefinancial.com
Can some forms of business financing in Canada really work when a company finds itself, unfortunately, in the ' disaster zone '. And do those solutions have to be either alternative or can they be ‘main street '? Business Financing for Cash Flow Via Receivable Finance is the answer your company may well be looking for - here's why! We are monetizing the balance sheet!
WHAT IS FACTORING FINANCE?
Top experts in the field of business financing will often point to the type of financing solution known as A/R finance, also known as ' factoring ' to solve cash flow problems. While this finance method has been in place hundreds of years it was actually pretty late in getting to Canada, and years ago, when it did, it was considered ' alternative '.
HOW DOES THIS METHOD OF BUSINESS FINANCING WORK?
At the end of the day, it’s really quite simple, it’s a contractual arrangement that allows you to ' sell ' or ' fund' your receivables as soon as you generate a sale, allowing for virtually unlimited growth. Naturally, it’s at your option; certainly, you can do this on an ongoing basis a little, or a lot! A/R Factoring solutions tend to be a road back to long term more traditional bank financing. Approval for these facilities is very quick compared to other types of financing and typical due diligence is done in a timely manner.
My how things change though and thousands of Canadian firms now use accounts receivable financing as a method of fixing business challenges. They might be mild challenges, aka ' cash flow is tight ' or severe challenges, as in ' the bank has called our loan ... we need help!
So, given those statements, what is this method of receivables financing/working capital finance, and how does it differ in Canada as it relates to the factoring company solution? Because almost have of respondents in Canadian business, certainly in the SME sector advise that ‘ inadequate capital or financing ‘ is the main source of their daily struggles.
The majority of accounts receivable financing in Canada is done under a much-regimented process, parts of which are sometimes not really preferred by the business owner or financing manager when it comes to financing solutions they are looking for. We're talking about the notification of the process to your client.
While the majority of offerings in Canada revolve around this method of working on a day to day basis we quickly point out to clients that if you're knowledgeable and working with the right party the best type of facility available is one that allows you to bill and collect your own receivables... i.e. you're minding your own business. At 7 Park Avenue Financial, we call that financing program ' Confidential Receivable Financing.
WHY IS RECEIVABLE FINANCING THE FIX TO YOUR CASH FLOW AND WORKING CAPITAL CHALLENGE
So why is this fix for challenged firms, and even more so, growing firms? Simply because it’s a way to accelerate cash flow. And when you have that cash all you are doing is accelerating your business cycle, allowing you to ship or bill more, all over again. We remind our clients that even service companies can use receivable finance; you don't need to be selling a product.
So is A/R finance for your firm? You might find that it gives you a much higher level of confidence in growing sales knowing you have the ability to fund that growth. In general, we have observed that because of the higher financing cost associated with factoring most business owners run a tighter ship from a cash flow management/borrowing perspective. And that’s a good thing.
CONCLUSION
We've shown how receivable financing can assist you in the funding of your business. Funding day to day operations and allowing your company to grow at the same time is key to long term business success. Your ability to facilitate a quick and easy financing solution that has flexibility and bring no debt to the balance sheet is key to understanding A/R finance availability in Canada. Pretty well every industry in Canada can access this type of financing, if you save sales, and business receivables.. you are approved. Turning sales into immediate cash is key to your firm's success and growth potential.
The bottom line - let your cash flow grow as your company grows!
So, whether you are in disaster recovery need when it comes to working capital solutions, or if you've been accused ( of growing too fast !) speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with a solid utilization of Canada's 'newest' main street cash flow solution - receivable financing. It's an immediate short term fix your company can access today.
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Stan Prokop
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