YOUR COMPANY IS LOOKING FOR A/R FINANCING!
WHAT ACCOUNTS RECEIVABLE FINANCING SOLUTIONS WORKS FOR YOU?
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
Oakville, Ontario
L6J 7J8
Receivables finance transforms outstanding invoices into immediate working capital, enhancing business liquidity and stability.
"Unlock cash trapped in your invoices today and accelerate your business growth!"
Leveraging Receivables for Immediate Growth
FINANCING RECEIVABLES IN CANADA
Are Receivable Finance Options and Cash Flow Financing in Canada an entitlement? Of course, we're told that the term refers to a business owner's ' feeling or belief' that they ' deserve to be given something such as a 'special privilege’ when it comes to understanding their choices in cash flow financing for business. Let's dig in.
Receivables finance unlocks the potential of a company's sales /accounts receivables by turning them into immediate cash flow, thus providing your company with the liquidity needed to expand and manage day-to-day operations effectively. This form of financing aids companies in maintaining steady cash inflows without the typical delays associated with customer payments on unpaid invoices. Now, you can meet short-term financial obligations and invest in growing your business.
THERE ARE ONLY 2 A/R FINANCING OPTIONS IN CANADA - WHICH ONE IS FOR YOUR COMPANY?
So when clients come to us looking for receivable finance options, they really have one of two choices: The Canadian chartered bank solution or the use of an asset-based non-bank commercial finance firm that provides accounts receivable financing services in a manner that the banks can't and don't.
But which one is for your firm? If you, of course, can access bank financing, it’s about 2 things - low cost, tempered with ability, or inability! to qualify for all the capital you need to operate and grow your business.
Both solutions provide effective financing of the balance sheet regarding A/R.
BENEFIT VERSUS COSTS IN SHORT TERM NON-BANK RECEIVABLE FINANCING
Receivable finance via an invoice factoring/discount solution gives you unlimited access to cash flow financing but has the business owner rationalizing costs and different procedures.
ASSIGNING YOUR RECEIVABLES OR SELLING YOUR RECEIVABLES - THE PAPERWORK DIFFERENCE
The essence of the whole debate revolves really around how the two different methods are documented. In the case of the bank, it takes a general security agreement on your A/R and an assignment of all your present (and future) receivables. You then borrow up to 75% of your outstanding AR that is under 90 days old. The bank's logic is that if your accounts are older than 90 days, that's your problem, not theirs! By the way, we agree that your ability to manage your credit granting to clients is one critical factor in business success. It's the cash flow!
THE COST OF RECEIVABLE FINANCE FACTORING SOLUTIONS
A/R Invoice financing works differently. Under that mechanism, in our ' not a bank ' solution, you have paperwork that allows the finance firm to ' buy' your receivables, typically at a 98 - 98.5% discount, on an ongoing basis. That basically closes the transaction. One way to look at it is that the finance firm takes a commission for allowing you to generate instant, same-day cash flow.
SAME DAY CASH FLOW - YES!
Same-day Service? What do we mean by that? Simply that when you are financing cash flow needs via receivable finance you can access working capital/cash flow from the factoring company at the same time you generate sales. You have turned your company into a cash flow machine. Congratulations on that!
CHOICES FOR BUSINESS OWNERS
Naturally, you don't have to finance every sale you make, the prudent business owner and financial manager access cash as they need it as they sell products and services and grow their company.
One more tip. We strongly recommend 7 Park Avenue Financial CONFIDENTIAL A/R FINANCING, allowing the business owner to bill and collect and finance all their accounts without knowing other parties such as suppliers, clients, etc. It's simply the bank alternative to long-term finance solutions.
KEY TAKEAWAYS
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Types of Receivables Finance: Learn the distinction between factoring and invoice discounting, the primary forms of receivables finance.
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Receivables Finance Process: Understanding the workflow from invoice creation to funding is crucial.
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Benefits of Receivables Financing: Increased liquidity and reduced delay in cash flows are significant advantages.
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Risks Associated with Receivables Finance: Awareness of the potential downsides, such as dependency and customer perceptions, is vital.
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Legal Considerations in Receivables Finance: Familiarity with the legal framework governing agreements ensures compliance and security.
CONCLUSION -RECEIVABLES FINANCE SOLUTIONS
Looking for more info on accounts receivables financing? Call 7 Park Avenue Financial, a trusted, credible, experienced Canadian business financing advisor who can assist you with your receivable finance options and other asset based lending solutions - Don't feel guilty about being unable to access the business financing entitlement you deserve - choices!
FAQ
How does receivables finance benefit my business?
Receivables finance converts your accounts receivable into cash, enhancing liquidity and enabling quicker reinvestment in business growth.
What types of receivables finance are available?
Factoring and invoice discounting are the primary types suitable for different business needs and sizes.
Who can use receivables finance?
It's ideal for businesses with reliable and creditworthy customers but who face long payment terms or cash flow gaps.
How quickly can I access funds through receivables finance?
Funds can typically be accessed within 24 to 48 hours after the approval of the invoices.
What are the risks of using receivables finance?
Risks include potential dependency on financing for operations and the perception it might create among customers.
How does receivables finance differ from a bank loan?
Unlike traditional loans, receivables finance is not debt; it’s an advance against your invoices.
Can receivables finance improve my business credit rating?
Timely access to cash helps you pay debts promptly, potentially improving your credit score.
What information do I need to provide to apply for receivables finance?
Typically, it would help if you had detailed receivables reports, business financial statements, and customer creditworthiness.
Is receivables finance suitable for startups?
Yes, particularly if they have strong sales but face delayed payment terms.
What happens if a customer fails to pay an invoice under receivables finance?
The responsibility typically falls on your business unless you've arranged non-recourse financing.
What is the typical interest rate for receivables finance?
Interest rates vary widely but are generally competitive with other forms of short-term financing.
Does receivables finance require collateral?
Usually, the invoices serve as collateral, with no additional assets required.
How can I choose the best receivables finance provider?
Consider factors such as fees, the speed of fund access, customer service, and any additional services offered.
