YOUR COMPANY IS LOOKING FOR A/R FINANCING
THAT WORKS!
Invoice Finance / Confidential Invoice Discounting
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
"Invoice financing in Canada provides a vital cash flow solution for businesses awaiting payment from customers."
"Unlock cash flow instantly with invoice financing—your shortcut to financial freedom!"
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer INVOICE FACTORING solutions that solve the issue of cash flow and working capital – Save time and focus on profits and business opportunities
INVOICE FINANCE SOLUTIONS IN CANADA
Confidential Invoice Factoring & AR Discounting in Canada. The whole issue of receivable finance is always a bit controversial. That is whether it is part of the debate of whether invoice factoring is a non-traditional type of financing, or often the issue simply revolves around the cost and day-to-day dynamics of this method of financing your business.
THE SALES GROWTH / CASH FLOW BATTLE
Let's take a step back for a minute. Every business owner and financial manager recognizes the constant battle between sales growth and their cash flow challenges. It's essentially a constant battle for supremacy almost, don’t you think? Those unpaid invoices add to the working capital challenge
ARE CANADIAN BANKS THE ' GO-TO' SOLUTION
Canadian businesses have been intuitively addressing our Canadian chartered banks as ' the' solution to their financing needs. However, experts tell us that a large majority of Canadian businesses do not have the access they need to ongoing working and or long-term capital.
That lack of capital essentially becomes an ' obstacle to growth, often being a larger challenge than growing your revenues, beating your competition and managing your assets
WHAT IS CONFIDENTIAL INVOICE DISCOUNTING?
Confidential a/r financing allows companies to generate cash flow while maintaining control of their sales ledger - allowing them to bill and collect their receivables without the notification required by traditional ' old school ' factoring companies.
CONFIDENTIAL RECEIVABLE FINANCE SOLUTIONS CAN SOLVE THE WORKING CAPITAL FINANCING PROBLEM
We maintain that using what we term a ' confidential’ receivable finance program is one way to ' diffuse ' the whole issue. How? Simply by providing you with a method of financing your business through the growth in A/R that comes from sales in a manner that lets you be totally in charge of your billing, collecting, and client relationships... all the while having total access to cash flow for every sale you make. All the time, or some of the time!
Confidential invoice factoring and discounting is fast becoming a preferred solution for funding Canadian businesses via invoice discounting companies. While cost is often a factor in the decision to finance your company in this manner the ability to get all the cash you need all of a sudden becomes a very acceptable option.
HOW DOES CONFIDENTIAL A/R DISCOUNTING DIFFER
AR Discounting facilities, on a confidential basis, work the same way as traditional asset factoring. It simply a process in which a charge, similar to the Canadian bank agreements is placed against your receivables. The application process is always significantly faster than a bank-type financing.
In cases where it makes sense to all parties the Canadian business owner and financial manager might be surprised to know that the Confidential facility can co-exist with your bank arrangement if you have one, if, and its a big if, it makes sense to all parties: your firm, your bank, and your Confidential AR finance provider. That's probably more of a subject for another day.
NON-NOTIFICATION IS THE KEY!
Part of the attraction of a confidential facility is that there is no relationship interference between your company, your clients, or vendors. A lot of the controversy around traditional factoring and invoice discounting in Canada arises from the concern of client perception, especially if you're dealing with larger companies. That becomes a non-issue when the customer pays, because your confidential AR facility allows you to bill and collect your receivables, all the while generating cash regularly consistent with your sales.
KEY TAKEAWAYS
- Invoice Financing Types: This encompasses the two main types—factoring and discounting. Factoring involves selling your invoices to a third party that manages collections, while discounting lets you borrow against your invoices' value.
- Application Process: Companies must submit relevant financial documents and invoices to apply for financing, a straightforward yet critical step to secure funding.
- Cost Structure: Typically includes fees and interest rates, which vary by provider and risk assessment. Understanding these costs is essential for making informed decisions.
- Regulatory Framework: It governs the operations within invoice financing, ensuring transparency and fairness in the financing agreements.
- Benefits Overview: Immediate cash flow improvement, reduction in waiting periods for payment, and the ability to manage financial operations more effectively.
CONCLUSION
Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor on this unique method of cash-flowing your sales, without the controversy!
FAQ
How does invoice financing improve cash flow for Canadian businesses?
By advancing funds based on unpaid invoices, businesses enjoy immediate cash flow improvements, allowing more flexible financial management.
What are the main benefits of using invoice financing in Canada?
Businesses benefit from reduced cash flow gaps, enhanced ability to manage expenses, and opportunities for growth without incurring debt.
Who can apply for invoice financing in Canada?
Generally, B2B companies with reliable customers and a history of invoices are eligible, though specific criteria can vary between providers.
How quickly can businesses access funds through invoice financing in Canada?
Often, funds are available within 24 to 48 hours after approval, making it an exceptionally fast solution for cash flow needs.
What should businesses consider before choosing an invoice financing provider in Canada?
Consider factors like fees, the percentage of invoice value offered, service terms, and customer service reputation.
What distinguishes invoice factoring from invoice discounting?
Invoice factoring involves selling your invoices to a financier who then collects from your clients, whereas discounting involves borrowing against the value of your invoices.
How does invoice financing compare to traditional loans?
Unlike loans, invoice financing does not create debt but advances money against sales already made, typically with a quicker and less stringent approval process. Invoice factoring cost is typically higher than bank financing solutions.
Is personal credit score important in invoice financing applications to invoice factoring companies?
While less critical than in traditional financing, the creditworthiness of the applicant can still potentially influence terms and availability in invoice financing from invoice factoring companies - However, overall invoice factoring providers focus on the overall a/r quality and creditworthiness.
Can an invoice financing company affect customer relationships?
If not managed correctly, particularly in invoice factoring, where the financier takes over collections, it can potentially impact customer perceptions.
Are there specific industries that benefit more from invoice financing in Canada?
Industries with long invoice payment cycles, like manufacturing and wholesale, often find invoice financing more beneficial due to the immediate cash flow it provides to the business bank account /balance sheet
How do invoice factoring services benefit small businesses in Canada specifically?
Small businesses benefit from accounts receivable financing by bridging the gap between invoice issuance and payment, thus stabilizing cash flow and supporting operational expenses.
What risks should businesses be aware of when considering invoice financing?
Risks include dependency on the financing method, potential customer dissatisfaction due to third-party collections of outstanding invoices, and costs that may accumulate over time.
Can a business use invoice financing for all its invoices?
Typically, businesses can choose which invoices to finance from the invoice factoring company, offering flexibility and control over their financial engagements and costs.
