YOUR COMPANY IS LOOKING FOR A/R FINANCE 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?
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
A/R Finance considerations often force the business owner or financial manager to consider the costs of Receivables Financing Factoring Rates compared to traditional banking, or the worst alternative, no working capital financing at all. So, everything you wanted to know, but perhaps were afraid to ask? Let's dig in.
WHY IS A/R FINANCING SO POPULAR AND GROWING?
So ' what the dickens ' is Accounts Receivable financing all about for a starter, and why do top experts tell us that it's one of the fastest-growing parts of the cash flow financing industry. (We’re the first to love a great expression, and not everyone knows that it was Shakespeare that coined such terms as ' WHAT THE DICKENS, DEAD AS A DOORNAIL, in such plays as Merry Wives of Windsor and Henry V1 respectively)
WHAT IS A/R FINANCING?
A/R finance, simply speaking, is simply a method in which Canadian business owners and financial managers, predominately in the SME commercial finance needs sector, can translate receivables into cash flow. The other alternative is, of course, the traditional bank line of credit, which many firms, depending on their stage and financial status, cannot access.
WHEN THE BANK SAYS NO
We meet many clients, by the way, that actually can access bank financing, but just not enough! More often than not, that's because of hyper-growth, which almost always wrestle with. (It throws ratios out of whack).
ASSET BASED LENDING SOLUTIONS DELIVER!
Accounts Receivable Factoring is a subset of asset-based lending in Canada. It can be combined with a full working capital non-bank revolving facility, or it can be used as a ' stand-alone ' method of financing your firm. For example, service companies such as personnel agencies or software technology companies often carry no inventory, and their entire cash flow model revolves around financing customer accounts.
WHAT DOES FACTORING COST?
So what about those receivables financing factoring rates in Canada? The bottom line is that they vary from the factoring company and can be anywhere from 1.25% per month to 2%. In all cases, they are higher than bank financing, but they deliver on all the cash flow and working capital you need for your business.
While some may consider this method of cash flow financing from factoring companies expensive, the alternative is limited or no financing, which can be hazardous to (business) health. When you cannot finance daily operations or meet any of your term debt obligations, unlocking receivables via accounts receivable finance is a true lifesaver for thousands of businesses in Canada.
WHAT IS THE BEST TYPE OF FACTORING?
Remember also that you are in effect ' trading off' the cost of financing receivables and those receivables financing factoring rates versus your ability to grow your business and generate profits and solid return on investment. Remember also that you could well be eligible to consider CONFIDENTIAL RECEIVABLE FINANCING, allow your company to bill and collect its own receivables, no notice required to your clients, which is often the case with old school factoring.
CONCLUSION
Invoice factoring for small businesses is one of the most popular methods of alternative financing in Canada and it is an effective way for small businesses to finance the balance sheet.
So if you choose not to be ' the bank' for your customers and if you would like more information seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your AR finance needs. It’s your probable solution to everything you wanted to know but were afraid of….!
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Stan Prokop
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