|
Revolutionize Your Business Cash Flow: The Accounts Receivable Financing Breakthrough
Accelerate Business Success: The Power of Accounts Receivable Financing Revealed
YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE SOLUTIONS!
Say Goodbye to Cash Flow Problems: Accounts Receivables Financing Solutions
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?
CONTACT US - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
Struggling to secure financing for your business? Accounts receivable financing could be the game-changer you need.
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Accounts Receivable Financing solutions that solve the issue of business cash flow – Save time, and focus on profits and business opportunities
Introduction: Understanding Receivable Financing in Canada
Receivable financing in Canada—It's your mission to find the best solution available in factoring financing. And we'll give you a hint—it's called Confidential A/R Finance! Let's dig in!
Key Buzzwords: Cost-Efficiency and Business Focus
Our key buzzwords - are cost-efficient and allow you to mind your business - what a combo!
Understanding the Trend: Factoring Receivables Gain Momentum
Factoring receivables continues to gain daily momentum in Canada - If you feel either confused, misinformed or just generally out of sync with how this type of financing works and what it costs, let's get you up to speed.
Demystifying the Process: How Receivable Financing Works
It's not as complicated as you think. You provide your invoices and proof of delivery and shipment on a daily, weekly, or monthly basis (it's your call). Then what happens? You receive cash the same day for those funds.
Clarifying Advances: Understanding Cash Advances
To clarify, the advance on your invoices is 90%. You receive the rest of the funds, i.e., the 10% when your customer pays, less the financing charge.
Revealing Costs: Debunking the Myth of Financing Charges
Trust us—from experience; clients always want to know and talk about that financing charge, so let's clarify that point immediately. First of all, did you know that some of the largest corporations in Canada utilize this method of financing receivable portfolios? Their cost is often the same as traditional bank financing and sometimes less.
Examining Expenses: Understanding Monthly Factoring Charges
However, most businesses in Canada that seek factoring receivables pay anywhere from 1 - 1.5% per month for the cost of factoring. But let's be clear here: Receiving those funds when you invoice allows you to maintain a positive cash flow and continue to grow sales and profits.
Maximizing Benefits: Leveraging Positive Cash Flow
Another benefit? We point out to clients that they are now in the enviable position of taking 2% discounts on all their qualified purchases with their suppliers and, if they are, smart can negotiate better terms and pricing on products from their suppliers.
Exploring Confidential A/R Finance: A Unique Factoring Solution
We referenced the term CONFIDENTIAL A/R FINANCE. So what is that exactly? It's a unique form of factoring that, by the way, costs the same as other types of factoring receivables financing. However, unlike traditional A/R financing, you can bill and collect your receivables confidentially.
Highlighting Advantages: The Power of Confidentiality
Key benefit? Your suppliers, clients, etc. are unaware of how you finance your company, which we think is essential. So again, to clarify, you are funding your business on a confidential basis - your competitors who use this type of financing are not. That's your key advantage, and we think it's significant.
Navigating Options: Selecting the Right Financing Partner
Selecting a receivables financing partner can be challenging because hundreds of small and larger firms have different criteria. You have to distinguish between recourse and non recourse factoring when it comes to accounts receivable ar financing, and if the firm even offers (or has heard about!) this method of cash flow finance.
Considering Factors: Size, Fees, and Pricing Structures
Other factors (pardon the pun) to consider are the size of your portfolio and miscellaneous fees that add up quite frankly and must be understood or negotiated. Pricing is reflected to a certain degree by the size of your monthly receivable financing. A/R portfolios of 250k per month generally receive better pricing and structures from a factoring company. The maximum financed? There isn't one!
Key Takeaways
- Invoice Factoring: Understanding how to leverage outstanding invoices for immediate cash flow from unpaid invoices
- Cash Flow Management: Effectively managing incoming funds to sustain business operations and growth.
- Recourse vs. Non-Recourse: Distinguishing between the two types of factoring agreements and their implications.
- Confidential Invoice Financing: Maintaining privacy in financing arrangements to preserve competitive advantages.
- Supplier Discounts: Capitalizing on improved payment terms with suppliers to enhance profitability.
Conclusion - Accounts Receivable Financing Advantages
Interested? Confused? Hopefully, not the latter!
Call 7 Park Avenue Financial, a trusted, credible, and experienced Canadian business financing advisor who will guide you through the financing receivable maze. We're sure you'll emerge well-informed and with a factoring facility that works best.
FAQ: FREQUENTLY ASKED QUESTIONS PEOPLE ALSO ASK MORE INFORMATION
How does accounts receivable financing work?
Accounts receivable financing involves using outstanding invoices as collateral to secure immediate cash flow, helping businesses meet their financial needs.
What are the benefits of accounts receivable financing?
AR Financing provides quick access to funds, improves cash flow, allows for better expense management, and helps negotiate favorable terms with suppliers.
Is accounts receivable financing suitable for small businesses?
Yes, solutions from accounts receivable financing companies are suitable for businesses of all sizes, providing flexible funding tailored to their specific needs.
Can I maintain confidentiality with accounts receivable factoring?
Yes, with confidential invoice financing, businesses can maintain privacy in their financing arrangements, ensuring that clients and competitors are unaware of their financial agreements.
How do I choose the right accounts receivable financing partner?
It's essential to select a reputable and experienced financing partner who offers competitive rates, transparent terms, and personalized services to effectively meet your business requirements.
What is the difference between factoring and invoice discounting?
Factoring involves selling outstanding invoices to a third party, while invoice discounting allows businesses to borrow money against their invoices without transferring ownership.
How does cash flow affect business operations?
Cash flow significantly impacts business operations as it determines the company's ability to meet its financial obligations, invest in growth opportunities, and sustain day-to-day activities.
Insufficient cash flow can lead to liquidity issues, hindering the organization's capacity to pay suppliers, employees, and other expenses on time. This can result in disrupted operations, damaged stakeholder relationships, and potential business failure. Conversely, healthy cash flow enables businesses to seize expansion opportunities, invest in innovation, and navigate economic challenges more effectively. By maintaining positive cash flow, organizations can ensure the smooth functioning of their operations, supporting long-term growth and success.
Can businesses negotiate better terms with suppliers through invoice financing?
Yes, by accessing immediate cash flow through invoice financing, businesses can negotiate favorable payment terms with suppliers, including discounts for early payments.
What is supply chain finance?
Supply chain finance, also known as supplier finance or reverse factoring, is a financial solution that optimizes cash flow by providing businesses with the means to extend payment terms to their suppliers while ensuring that suppliers receive early payment.
In supply chain finance, a financial institution facilitates the process by offering financing to suppliers based on the creditworthiness of the buyer. This arrangement allows suppliers to receive funds earlier than they would typically expect, improving their cash flow and liquidity. Meanwhile, the buyer can benefit from extended payment terms, better managing their working capital and strengthening relationships with suppliers. Supply chain finance is an effective tool for enhancing efficiency and resilience within the supply chain, benefiting both buyers and suppliers.
' Canadian Business Financing With The Intelligent Use Of Experience '
STAN PROKOP
7 Park Avenue Financial/Copyright/2024
Stan Prokop is the founder of 7 Park Avenue Financial and a recognized expert on Canadian Business Financing. Since 2004 Stan has helped hundreds of small, medium and large organizations achieve the financing they need to survive and grow. He has decades of credit and lending experience working for firms such as Hewlett Packard / Cable & Wireless / Ashland Oil
|
