YOUR COMPANY IS LOOKING FOR THE BEST RECEIVABLE FUNDING 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:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Email = sprokop@7parkavenuefinancial.com
Cash is to a business as oxygen is to an individual: never really thought about when you have it, the only thing in mind when you don't." - Warren Buffett
Transform Your Invoices Into Instant Capital - Without Your Customers Knowing
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Confidential Factoring and working capital solutions – Save time and focus on profits and business opportunities
7 Park Avenue Financial: “Canadian Business Financing with the intelligent use of experience”
Confidential Factoring: A/R Financing Solutions
AR Factoring might well rank as one of the oldest professions in Canada. (Probably not the oldest profession you thought we would talk about!)
How, though, do solutions such as confidential receivable financing and factoring invoices remain tried-and-true working capital and cash flow solutions? Let’s dig in.
CASH FLOW CHALLENGES? THE HIDDEN SOLUTION TO BUSINESS CASH NEEDS
All companies recognize the challenge of slow-paying clients. Don't let your delayed payments hinder business growth. Confidential A/R Finance solutions don't compromise client relationships and allow you to focus on running the business.
SOME UNCOMMON TAKES?
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Confidential factoring can strengthen client relationships by enabling faster order fulfillment.
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It provides insight into customer payment patterns as a market research tool.
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It can be strategically used for seasonal business optimization rather than just emergency funding.
DID YOU KNOW?
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88% of businesses wait 30+ days for customer payments
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Factoring industry grows 9% annually in North America
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60% of small businesses face cash flow issues
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Companies using factoring report 24% faster growth
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92% client retention rate in confidential factoring
The ability to generate cash when you make a sale is most welcome to most owners/managers and entrepreneurs!
Naturally, factoring costs must be understood, as they are not priced in the same manner as an ‘ interest rate ‘ and must be fully understood. Companies should have a good gross margin to absorb a reduction in 1-2% profit. This financing type is called ‘ invoice purchasing ‘ but comes in many flavours!
One such flavour is the confidential factoring facility, which provides businesses with a discreet financial arrangement that allows them to sell their accounts receivable to a factoring company without revealing this to their customers.
This facilitates immediate cash flow while preserving client relationships and maintaining confidentiality throughout the financing process.
HISTORY AND THE MEANING OF INVOICE FACTORING
We’re told that a/r financing, i.e. ‘ factoring,’ goes as far back as 1000 years B.C. However, our experience is that owners/mgrs still want the same thing as those early A/R financing practitioners - the ability to sell products and services and obtain cash to keep their business operating cycle rolling.
It’s that liquidity that keeps business rolling. There are several different factoring forms, so uneducated borrowers can sometimes fall into the trap of utilizing the wrong type of facility or working with the wrong firm/lender.
Factoring companies sometimes do a good job of confusing clients around fees, costs, notification issues, etc. Working with an expert will always ease those concerns.
A factoring facility allows businesses to access immediate cash flow through various types of invoice finance.
Most business owners and their financial managers are often reluctant to take on business debt, and solutions such as confidential A/R finance solve that problem nicely.
The thousands of companies that utilize A/R finance today, more often than not ‘ get it. ‘ For other clients, we meet and talk to, education around costs, benefits, and the many tech solutions now delivered through the A/R financing process is required.
WHAT IS CONFIDENTIAL INVOICE FACTORING?
Confidential invoice factoring is a type of invoice finance that allows businesses to access immediate working capital by selling their outstanding invoices to a factoring company without disclosing the arrangement to their customers.
This financial solution gives businesses the necessary funds to improve their cash flow, invest in growth opportunities, and manage operational expenses without waiting for invoice payments.
Definition and Benefits of Confidential Invoice Factoring
Confidential invoice factoring is a financial arrangement where a business sells its accounts receivable to a factoring company without disclosing this to its customers. This type of invoice factoring provides immediate cash flow while maintaining client relationships. The benefits of confidential invoice factoring include:
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Improved Cash Flow: By accessing funds tied up in outstanding invoices, businesses can improve their cash flow and support growth initiatives.
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Confidentiality: The factoring arrangement remains private, ensuring that customer relationships are not affected.
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Flexibility: Confidential invoice factoring facilities are often more flexible than traditional lending options, as the amount of funding available to the business increases with its sales volume.
How it Differs from Traditional Invoice Factoring
Unlike traditional invoice factoring, where the factoring company deals directly with the business’s customers, confidential invoice factoring keeps the financing arrangement private.
The factoring company does not disclose its involvement to its customers, preserving its reputation and relationships.
HOW DO YOU FACTOR AND WHAT'S THE BEST FACTORING PROGRAM
The key benefit of ‘Confidential non-notification’ AR financing is your firm’s ability to bill and collect its receivables while receiving as much cash as it needs or wants.
Confidential invoice finance allows businesses to borrow against unpaid invoices without notifying their customers, helping to discreetly improve cash flow and maintain customer relationships. You mind your own business.
Cash flow and working capital financing are all about ‘current asset financing,’ namely financing your inventories and receivables. Factoring / AR finance are actually ‘subsets’ of asset-based lending, which can also include turning your fixed assets into a part of your business credit line.
What drives owners/mgrs to consider financing receivables and other current assets?
It is simply the realization that profits and sales seldom equal ‘Cash’! and that your company's inability to bridge that gap will often determine its true success and its business financing needs.
WORKING CAPITAL AND CASH FLOW SOLUTIONS
Confidential Receivable Finance - Solutions from factoring companies around accounts receivable financing
Invoice finance facilities help businesses access funds tied up in outstanding invoices, improving cash flow and managing working capital.
Inventory financing
SR&ED Tax credit finance bridge loans
Asset-based non-bank lines of credit (combining A/R, inventory and fixed assets into one borrowing facility)
Unsecured cash flow loans
How Invoice Factoring Can Unlock Working Capital
Invoice factoring can unlock working capital by providing businesses with immediate access to funds in outstanding invoices. This financial solution allows businesses to:
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Improve Cash Flow: Businesses can improve their cash flow and support growth initiatives by accessing funds tied up in outstanding invoices.
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Invest in Growth Opportunities: With improved cash flow, businesses can invest in new projects, expand their operations, and seize new opportunities.
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Manage Operational Expenses: Confidential invoice factoring provides businesses with the necessary funds to manage operational expenses, such as paying suppliers and employees.
Benefits of Using Invoice Factoring for Business Growth
Invoice factoring can be a valuable tool for business growth, providing businesses with the necessary funds to invest in new opportunities and expand their operations. The benefits of using invoice factoring for business growth include:
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Improved Cash Flow: By accessing funds tied up in outstanding invoices, businesses can improve their cash flow and support growth initiatives.
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Increased Flexibility: Confidential invoice factoring facilities are often more flexible than traditional lending options, as the amount of funding available to the business increases with its sales volume.
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Enhanced Customer Relationships: Businesses can preserve their customer relationships and reputations by controlling credit management and collections.
KEY TAKEAWAYS FROM WORKING WITH A FACTORING COMPANY
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Non-notification features protect valuable client relationships while providing immediate funding.
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Advance rates typically range from 70-90% of invoice value with same-day funding availability.
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Credit checks focus on your customers’ payment ability rather than your business credit
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A simple qualification process requires valid invoices and clean accounts receivable.
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Integration with existing accounting systems maintains operational efficiency.
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Credit control is crucial for maintaining oversight over credit management and collections and ensuring strong relationships with clients.
CONCLUSION - Turn Receivables Into Revenue - Confidentially and Quickly
Confidential factoring empowers Canadian businesses to unlock working capital without alerting customers to third-party financing arrangements. This discreet funding solution allows companies to maintain control of their client relationships while accessing immediate cash flow from unpaid invoices, providing a strategic advantage in managing growth and operational expenses.
If you're focused on separating myth from reality regarding true, current asset financing strategies, Call 7 Park Avenue Financial, a trusted, credible, and experienced Canadian business financing advisor.
FAQ
How does confidential factoring protect my client relationships?
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Maintains complete privacy regarding funding arrangements
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Preserves direct communication with customers
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Keeps banking relationships unchanged
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Professional handling of all transactions
What makes confidential factoring different from traditional loans?
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No debt has been added to the balance sheet
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Funding is based on invoice quality, not company credit
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Scales with your business growth
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Faster approval process
How quickly can I access funding through confidential factoring?
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Same-day funding available
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Initial setup within 3-5 business days
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Ongoing funding in as little as 24 hours
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Real-time online portal access
What percentage of invoice value can I receive upfront?
Which industries benefit most from confidential factoring?
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Manufacturing
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Distribution
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Service providers
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Construction
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Technology companies
What documentation will I need to get started with confidential factoring?
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Articles of incorporation
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Recent financial statements
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Accounts receivable aging report
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Customer list
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Sample invoices
Is there a minimum volume requirement for confidential factoring?
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Typical monthly minimums vary by provider
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Often starting at $50,000 monthly
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Volume discounts available
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Flexible scaling options
How are fees calculated in confidential factoring?
What happens if my customer doesn't pay?
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Thorough credit checks minimize risk.
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Clear collection procedures
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Communication protocols established
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Recourse vs non-recourse options explained
Can I choose which invoices to factor?
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Selective factoring available
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Customer concentration limits
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Industry-specific considerations
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Spot factoring options
How does confidential factoring impact my business's credit profile?
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Improved cash flow metrics
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Strengthened vendor relationships
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Enhanced growth potential
What distinguishes top-tier factoring companies?
