YOUR COMPANY IS LOOKING FOR A/R FINANCE SOLUTIONS!
ACCOUNTS RECEIVABLE AR FUNDING
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
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
AR Finance in Canada seems straightforward to most Canadian business owners and financial managers for the most part. However, if you are not dealing with the right receivable financing company under conditions that reflect how you do business... well let's just say... Confusion has the ability to set in.
YOUR CASH FLOW FINANCING SOLUTION
So let's share some of those pearls of wisdom around the cash flow financing mechanism ( known as factoring ) that works great... when you understand what's happening via solutions from ' factoring companies' for your outstanding invoices.
A/R FINANCING DELIVERS NO DEBT TO THE BALANCE SHEET
Rather than taking on debt to finance your firms, ongoing working capital needs many small businesses choose instead to monetize their 2nd most liquid asset - A/R. ( Cash on hand is of course your most liquid asset - it's just not as plentiful as you want it to be!)
RECEIVABLE FINANCING BECOMES YOUR BUSINESS CREDIT LINE
If you firm meets bank criteria for cash flow/working capital needs you're in effect using that A/R as collateral for what most call a business line of credit. That's not really how Account Receivable financing works - under the ' paperwork ' involved in you are, at your discretion, constantly selling your accounts for a discounted amount.
HOW MUCH FINANCING CAN YOU OBTAIN
The amount you receive, typically 97 - 98% becomes immediate cash on the balance sheet - pretty well the same day you generate a sales invoice. In effect you're simply shortening the total operating cycle of your business - and you can trust us that the costs associated with carrying your accounts receivable, risking bad debt, and missing out on opportunities to move your business forward because of a lack of cash is very nicely offset by your costs in the invoice to cash conversion via a Receivable financing company..
THERE ARE 2 CHOICES IN RECEIVABLE FINANCE
Canadian business owners have two choices when it comes to financing sales cash flow under the financing mechanism we've been talking about:
1. They can let an AR Financing firm run, manage, administer and finance all their accounts
2. They can choose to bill and collect in their own name, letting the finance firm remain quietly in the background. This method is we call CONFIDENTIAL A/R FINANCE
When we talk to clients that have used or are thinking of using such an invoice discounting process we stress that it's all about the quality of the financing companies you are dealing with. Ultimately you want a firm that understands your business model, prices competitively, and has the capital to grow with your business.
By the way, some of the largest and most successful corporations in Canada figured this same type of financing out a long time ago. They call what we've been describing ' SECURITIZATION ‘. Like your firm should be doing, they focus on keeping inventory low and accounts receivables turning into cash on hand as quickly as possible.
WHY ACCOUNTS RECEIVABLE FINANCING MAKES SENSE
The ' PERFECT STORM ' in AR finance happens when your firm is:
1.GROWING
2. HAS GOOD GROSS MARGINS ALLOWING YOU TO ABSORB THE FINANCING COST
3. FOCUSING ON GOOD ASSET TURNOVER AND MEASURING THAT TURNOVER
4. UTILIZING A RECEIVABLE FINANCING COMPANY TO FACILITATE GROWTH, NOT HIDE MISMANAGEMENT OF ASSETS
CONCLUSION
If you think this method of small business financing could work for your firm seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with the ' words of wisdom' that will allow your company to maximize the challenges of business financing and growth. Short term invoice factoring is a bridge back to traditional Canadian business financing and business lines of credit and solves your current liquidity challenges and business needs.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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