YOUR COMPANY IS LOOKING FOR BUSINESS RECEIVABLE FINANCE
SOLUTIONS THAT WORK!
LOOKING FOR A GREAT ACCOUNTS RECEIVABLE FACTORING COMPANY?
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@parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Factoring receivable company solutions provide some of the most numerous and accessible cash flow financing methods in Canada. One of these solutions (we think) is better than all the rest but not necessarily known to Canadian business owners and their financial managers. Why does this specific type of financing deliver, and why is it different and better? Let's dig in.
WHAT IS YOUR CASH FLOW GOAL?
Whether it’s a start-up and SME commercial or large corporation, any company's goal is to maximize cash flow for operations and growth. Hopefully, along the way, prudent mgmt will also call for low or acceptable bad debt losses!
IS THERE A BANK ALTERNATIVE TO FINANCING ACCOUNTS RECEIVABLE
When companies of any size and type can't access traditional bank finance for business lines of credit, they look for an alternative; in recent years, that alternative has become ' factoring ' or receivables finance. Enter the factoring company!
It's safe to say business owners are reluctant to take on debt in the balance sheet via a business loan, so the ability to monetize and cash flow assets they already have, i.e. your A/R, is a positive!
LET 7 PARK AVENUE FINANCIAL HELP YOU UNDERSTAND THE TERMINOLOGY
We're quite sure it's not intentional. Still, the industry does an interesting job of sometimes confusing business owners/managers seeking factoring around cost, how things work, documentation, being locked into a contract, etc. So when it comes to cash flow/working capital financing, it's prudent to know who you're dealing with and what works best for your business/industry.
This is short-term financing at its best, and financing accounts at a fee per month makes total sense to many business people. The factoring fee that companies charge is a 'charge' versus an interest rate, a point often not clearly clarified - there we go again, coming back to the importance of understanding terminology. Accessing immediate cash the same day or within 24 hours of generating a sale makes your firm an automatic cash flow machine. Understanding those factoring fees and how factoring works to your benefit is worth spending some time on.
WHAT IS YOUR FIRMS INVESTMENT IN ACCOUNTS RECEIVABLE
Any firm that sells on credit and has business or govt clients can access an accounts receivable finance solution. Different industries have different needs and client profiles when it comes to accounts receivable. Verticals such as staffing companies, trucking firms, wholesale distributors to ' big box ‘stores, etc., have different clients that have different payment terms, of they take different payment terms! Let the 7 Park Avenue Financial team show you how a good factoring company will understand your industry and business model.
4 USES OF A/R FACTORING
Probably the most common use of invoice factoring & A/R financing solutions is simply day-to-day operations and growth. But did you realize that a solid account receivable finance solution via factoring companies also can be a key component in several different categories of need:
Introduction of new products/services to Canadian or U.S. clients - larger orders/contracts
Seasonal bulges in sales/financing needs
Start-up financing
Buyout/acquisition strategies
ALL RECEIVABLES CAN BE FINANCED
We referenced a Canadian/U.S. customer base - some of our clients sell outside North America, and in that case, receivables can be financed but are sometimes required to be insured - in fact, almost always if that’s the case!
WHAT IS THE BEST FACTORING TYPE SOLUTION FOR FACTORING OR ACCOUNTS RECEIVABLE?
So what, in fact, is our recommended solution? It's CONFIDENTIAL RECEIVABLE FINANCING NON NOTIFICATION FACTORING. Under this solution, your firm bills and collects its own receivables, have access to immediate cash from all the sales you make, and if you have the right facility in place, your rates are competitive, and you are not locked into contracts. '
HOW DOES CONFIDENTIAL FACTORING WORK?
Day-to-day operations of a CONFIDENTIAL A/R FACILITY is a straightforward process. As sales are generated (if you choose), you can access immediate financing for 90% of the sales invoice amounts. The balance is credited to your bank account when your client pays, less a financing charge that is competitive with any factoring service.
Business owners can choose between recourse factoring and non-recourse factoring - depending on their view of their credit risk in their client base. Eliminating slow-paying accounts, taking acceptable credit risk and not having to wait 30 days, much less 60 or 90 days, to receive immediate cash for your sales is an option worth considering.
CONCLUSION
If you are looking to solve cash flow challenges around unpaid invoices in those accounts receivables as well as accelerating business growth, maintaining supplier relationships, and taking on no new debt, a factoring receivable company solution, done right, will give the right amt. of capital when you need it. It's your version of the ultimate business credit line.
Small businesses will always have a business capital challenge - To access an A/R finance factoring receivables solution that makes sense for your business needs, seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with your needs. Let's get started on financing options that will deliver.
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Stan Prokop
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