YOUR COMPANY IS LOOKING FOR THE RIGHT A/R FINANCING SOLUTIONS!
INVOICE FACTORING VIA FACTORING COMPANIES IN CANADA
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
Unlock the hidden cash in your invoices – Accounts Receivable Lending turns your waiting game into working capital.
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer the Receivable Financing 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”
Accounts Receivable Financing Options in Canada
Receivables lending in Canada hardly suggests commentary by ‘The Bard ' - aka Will Shakespeare.
But when we discovered that some classic commentary of his might well relate to Canadian business financing alternatives, we couldn't resist.
Could Shakespeare have been talking about Receivable factoring companies in Canada? We're not sure, so let's dig in!
HOW IMPORTANT IS CONFIDENTIALITY IN YOUR BUSINESS FINANCING?
"Mum's the word" - Henry VI, Part II- Alternative financing solutions such as CONFIDENTIAL RECEIVABLE FINANCE are still relatively unknown to thousands of firms that require working capital and cash flow financing.
FINANCING THE BALANCE SHEET TO ADDRESS CASH FLOW CHALLENGES
Canada's business owners and financial managers recognize that financing current assets, such as accounts receivable and inventory, is critical to overall success.
But getting it right is always a challenge. While a solid cash flow plan or forecast is all about ensuring you have contingencies in place, Murphy’s law often sets in and creates ‘ bulges’ in your cash flow needs.
Payment terms for clients can sometimes stretch to 90 days in these current times - Pandemics included! That’s when factoring companies can provide you with a solution that works.
By leveraging the company's accounts receivable, these outstanding invoices are recorded as assets on the company's balance sheet, contributing to liquidity and impacting financial agreements with lenders.
WHAT ARE SOME KEY WARNING SIGNS IN BUSINESS PERFORMANCE?
"A wild goose chase" - Romeo and Juliet - Business owners/ managers are often too close to the action and miss some warning signs in their business. Some of those include the constant need to juggle payments to lenders or suppliers, declining profit margins, mounting CRA obligations, etc.
CAN YOUR BUSINESS ACHIEVE ALL THE BANK FINANCING IT REQUIRES?
We’re sure that most Canadian business thinks of our Canadian chartered banks as the solution to the help they require business funding.
If your firm doesn’t meet all the requirements needed to qualify for bank financing, alternative financing, such as asset-based lending, is the key to its survival and growth.
Working with a reputable company can streamline the financing process and enhance business cash flow. Note that an asset monetization strategy such as receivables lending from factor companies does not bring debt onto your balance sheet.
Your accounts become, in effect, self-liquidating as they turn into constant cash via finance companies and their factoring company solutions.
THE BUSINESS LINE OF CREDIT ALTERNATIVE - HOW DOES ACCOUNTS RECEIVABLE FINANCING WORK?
The A/R financing solutions are simply commercial finance solutions to a revolving line of credit. They allow you to monetize sales based on the invoice value to ensure maximum cash flow availability as you need it.
Receivable financing accounts provide a financial arrangement where a company secures capital based on its outstanding accounts receivable. Of course, you only pay for what you use, which is key in understanding the costs of this finance method in Canada.
ADDRESSING THE COST OF A/R FINANCE
The way to look at the cost of Accounts receivable AR financing in Canada, including receivable financing rates, is simply a cost of doing business offset by your ability to grow sales and profits while not being ‘ the bank’ to your clients, who we are pretty sure have similar problems!
“Too much of a good thing” - As You Like It - A proper receivable finance solution allows you to manage your business's inflows and outflows better.
It’s that ‘ timing ‘ issue that is the key to an A/R solution, as you can monetize sales directly into cash flow. A proper receivable financing solution will also help you if your business is revenue or project-based, allowing you to finance milestones in your work as they are performed.
ACHIEVING BUSINESS FINANCING SUCCESS VIA FACTORING SERVICES FOR SMALL BUSINESS
”All’s well that ends well.” - All’s Well That Ends Well - The perfect ending for any business related to financing is the owner/manager’s ability to be proactive in cash flow needs planning through receivable loans.
Your ability to take discounts with suppliers and vendors and take on large orders and contracts allows you to have a fresh outlook on your business prospects while receiving immediate cash as you generate revenues from your products and services.
Two uncommon takes on Accounts Receivable Lending:
- It can serve as a strategic marketing tool to offer extended payment terms to customers.
- It may improve credit scores by reducing reliance on credit cards or personal loans.
KEY TAKEAWAYS
-
Leveraging outstanding invoices as collateral provides immediate working capital.
-
Businesses can improve cash flow without incurring traditional debt obligations.
-
Risk assessment focuses on customers’ creditworthiness rather than the borrowing company’s financials.
-
Flexibility in financing allows for scaling with business growth and seasonal fluctuations.
-
Outsourced collections management often comes bundled with the lending service.
CONCLUSION
Accounts Receivable Lending revolutionizes how businesses access capital, turning unpaid invoices into immediate funds.
Can 7 Park Avenue Finacial's invoice factoring company solution help your firm? Invoice factoring services assist thousands of companies every day in Canada.
Non-recourse financing is also available if that suits your needs.
If you want to understand the various factoring/receivable financing options available to your firm, call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with solutions provided by factoring companies in Canada for accounts receivables.
FAQ
How does Accounts Receivable factoring improve my business's cash flow?
Accounts receivable financing offers the ability to Convert unpaid invoices into immediate cash and bridges the gap between billing and payment, ensuring consistent cash flow for operations and growth.
Can an accounts receivable loan facility help my business take on larger projects?
Yes, it provides the working capital needed to fund more significant projects or orders without waiting before when customers pay for previous invoices to be paid, enabling business expansion.
Are accounts receivable loans more flexible than traditional bank loans?
Indeed, it scales with your sales, offering more flexibility as your financing needs change with business growth or seasonal fluctuations.
Will Accounts Receivable Lending help reduce my financial stress?
By providing predictable cash flow and often including collection services, the AR financing company alleviates the burden of chasing payments and worrying about working capital to cover operational expenses.
How quickly can I access funds through Accounts Receivable Lending?
Typically, you can receive funds within 24-48 hours of invoice approval, significantly faster than traditional lending options.
What types of businesses are best suited for Accounts Receivable Lending?
B2B companies with recurring customers and longer payment terms often benefit most, including manufacturers, wholesalers, and service providers.
Are there any tax implications regarding accounts receivable lending I should be aware of?
While the financing itself isn't taxable, consulting with a tax professional is essential as it may affect your balance sheet and financial statements.
How does Accounts Receivable Lending differ from invoice factoring?
Receivable financing companies often offer more flexibility and can include a broader range of receivables, while factoring typically involves selling specific invoices at a discount.
Can accounts receivable financing companies help if I have international customers?
Many lenders offer international Accounts Receivable Lending, which can be particularly beneficial for managing currency risks and longer payment terms in global trade.
What happens if my customer doesn't pay their invoice?
Policies vary by lender, but many offer non-recourse lending where they assume the risk of non-payment, protecting your business from customer defaults.
What criteria do lenders use to approve Accounts Receivable Lending?
Lenders primarily assess the creditworthiness of your customers, the quality and age of your receivables, and your business's invoicing and collection processes.
How does the cost of Accounts Receivable Lending compare to traditional loans?
While often more expensive than conventional bank loans, it can be more cost-effective when considering the benefits of improved cash flow, reduced collection costs, and potential for increased sales.
Can Accounts Receivable Lending coexist with other forms of business financing?
Yes, it can complement other financing methods, often working alongside business lines of credit or equipment loans to provide comprehensive financial support.
