YOUR COMPANY IS LOOKING FOR BUSINESS CASH FLOW SOLUTIONS THAT WORK!
FINANCING ACCOUNTS RECEIVABLE / ACCOUNTS RECEIVABLE FACTORING
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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
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
Accounts receivable finance solutions, also known as ' factoring ' / ' ar finance,' are both used and needed by any company size, all the way from start-up to the largest corporations in the world. But there's a difference in how companies finance their current assets, such as accounts receivables, but it's still possible for companies in the SME sector to achieve the same benefits. Let's dig in.
LARGE COMPANIES ALSO USE DIFFERENT METHODS OF A/R FINANCING
The methods that Canadian business employs, what they are called and how they work is ' the nut ' of the matter. For instance, some of the large mega-corporations in Canada (and the U.S.) use a process called ' Securitization' that is the essence of what we're talking about - a receivables purchase strategy. So whatever you call it, it's a method by which a company sells its accounts of outstanding invoices.
HOW DOES RECEIVABLE FACTORING WORK? WHAT DOES IT MEAN TO FINANCE RECEIVABLES?
How does that process work, and can it be used in some manner by the smaller firm looking to cash flow their current assets, primarily the receivables generated from commercial sales?
FINANCING YOUR RECEIVABLES IS NOT A LOAN AND DOES NOT BRING DEBT TO YOUR BALANCE SHEET
It's important always to understand that short term A/R financing via a factoring company is never really a ' loan.’ Typically it's just a ' systematic' method of cash flowing working capital accounts and your sales as soon as you generate a sale - if you choose! It is very similar to a pledge of accounts receivable to a bank but uses different pricing and paperwork.
WHAT IS THE BEST A/R FINANCING AS RECOMMENDED BY 7 PARK AVENUE FINANCIAL
By the way, the essence of good accounts receivable management never changes, whether you're using securitization or a comparable alternative such as what we'll discuss - CONFIDENTIAL A/R FINANCING. At the heart of anyone selling on credit is prudent risk management, good collections, prompt invoicing, allowing for bad debt, etc.
WHAT RECEIVABLES CAN BE FINANCED?
Whether your firm is securitizing receivables or financing them via a confidential receivable finance solution, it’s always about the receivable 'ageing.' Typically, the benchmark for collectibility and financeability is 90 days - after that timeframe, accounts receivable factoring companies, bank, or any commercial finance company assumes that those accounts are uncollectible and unfinanceable.
HOW DOES CONFIDENTIAL NON NOTIFICATION RECEIVABLE FINANCE WORK?
What then is the essence of Confidential A/R finance that can be used by any company that wishes to finance sales growth? It could not be simpler. Your firm bills and collects its own receivables - cash for those sales are sent directly to your bank - allowing you to finance operations and, most importantly, growth. The solution is optimal for those firms that cannot achieve any or all of the bank financing they needed vis a vis a proper business credit line. That's why accounts receivable finance companies deliver!
CONCLUSION
If you're looking for big guy ' solutions and a ' receivables loan ' for your business and want to break free from the lack of commercial financing, look into factoring accounts receivable and seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with a receivables purchase strategy that works while ensuring you've covered the pros and cons of accounts receivable financing.
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Stan Prokop
