Want Some Business Financing Privacy ? Canadian Confidential Receivables Financing Is An Alternative To Commercial Finance Factoring Funding

Grow Your Business and Cash Flow With This Unique Innovative cash flow solution !


Information on a Canadian business financing strategy known as confidential receivables financing and why this alternative to commercial finance factoring is a welcome surprise to businesses seeking growth funding.




We hear a lot these days about ' privacy’ and confidentiality in business these days. Well, here's a twist on that.

How would you like to be the firm that has a confidential receivables financing facility in place when all your competitors and other firms are using traditional commercial finance factoring funding for their cash flow/working capital? Sounds interesting, right?

The hard reality these days it that financing receivables has emerged as an ' in fashion' alternative to traditional financing that is often unavailable to thousands of medium and smaller businesses in Canada . (Oh and by the way, larger corporations use a subset of this financing also!)

We're often amazed at how long some firms continue to use commercial finance factoring. There are all sorts of reasons why. One not so obvious one is that Canadian banks will often calculate interest on your firm’s entire line of approved credit, even if you are only using part of it. Seem a bit unfair don’t you think? Receivables financing strategy is the ultimate in ' paying for what you only use '.

We admit that’s one smaller point in why factoring agreements are in place by thousands of firms in Canada. The reality is that the total flexibility of this business financing solution is in fact what most businesses are interested in .If we had to be pinned down and identify one main reason why firms factor receivables it might just well be that you credit facility grows as you sales grow . So, bottom line, no more annual reviews or bulge crises when things don’t work out on a temporary basis. It’s the end of ' fighting fires' in cash flow and working capital.

Financing receivables is a subset of asset based lending in Canada. Your firm sells its A/R either on a one time or ongoing basis. A hefty advance, usually 90% range, is made against that most valuable of current assets, your customer accounts. You have just generated instant cash flow. Once your client pays that ' holdback' of 10% or so is refunded, less financing costs, to you, the client.

Those financing costs in Canada average anywhere from 1-3% a month, and quite frankly that middle range, i.e. 2% is a typical fee for each invoice based on a standard industry credit term of 30 days. Factors that affect your rate are size of your portfolio, your general overall financial condition, and the quality and size of your A/R and client base.

So, that privacy issue. What's that all about ask clients. Well, our preference is for you to consider a confidential receivables financing alternative. Under this type of facility you bill and collect your own receivables, the bottom line your financing arrangements are known only to you and your receivable finance partner.

What an advantage! Simply because thousands of other firms, including your competitors who utilize commercial finance factoring have to go through a somewhat intrusive process of have traditional factor firms notify clients and are involved in collecting your accounts.

So, bottom line? If you don’t mind the whole world knowing about how you finance your firms business then consider a traditional commercial finance factoring strategy.

If on the alternative you want all the benefits, the same cost by the way, and want to run your own business from a cash flow and working capital standpoint... well, you know what to do! Speak to a trusted credible and experienced Canadian business financing advisor on how confidential financing of receivables can work for you!




Stan Prokop - founder of 7 Park Avenue Financial -


http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :



http://www.7parkavenuefinancial.com/financing_receivables_commercial_finance_factoring.html

Can A Financing Receivables Strategy Save Your Company ! A Perfect Solution Via Business Finance Companies ?

Why Confidential Invoice Discounting Works Best


Information on financing receivables in Canada via business finance companies . Let a Confidential factoring solution save and grow your business!




Survival. Growth. Are they different concepts? Business financing in Canada addresses of course both those basics. And one type of financing, the financing receivables offered by business finance companies seems to address both those issues very well thank you, in the SME sector. Let's examine how that works, what are some of the key benefits, and if in fact one optimal solution exists with this type of financing.

Clients we talk to are often frustrated in their attempts to achieve cash flow and working capital financing in an efficient, simple matter. They are looking for both flexibility, and speed in closing a solution - unfortunately they don’t always find it.

Receivables financing fits somewhat perfectly into solving the desires of Canadian business owners and financial managers. However the array of types of business finance companies that offer that solution, and how that solution is delivered can sometimes be confusing to clients.

So, the basics... a receivable finance (aka invoice discounting/factoring) facility is the sale, on a one of, or ongoing basis of your billed receivables. That sale allows you to receive cash, in advance of course, of the collection of that receivable. We've been watching the age of Canadian business receivables get older and older of the years and while the norm ' in the old days' used to be 30 the new norm is of 60-90 days... unfortuantely!

Clients are always asking when the correct time to consider such a facility is. Some key factors that will help them achieve both survival and growth are as follows - double digit growth in sales, requests from customers for extended terms, pressure from suppliers for accelerated payments from your firm, etc. Any or all of those points can come together in a final decision to include a receivables financing strategy into your survival equation.

So if in fact you made that decision can you expect to receive benefits that are tangible and offset the cost of this financing, which is very typically higher than bank finance rates? The answer is ' yes '!

Key benefits include the ability to achieve higher revenues due to the working capital infusion you have just arranged. Your cash flow now becomes very predictable given that you receive funds as you generate sales - a lot of the seasonality and bulges around your business ups and downs disappears. And, contrary to what some clients believe, you're not borrowing funds and incurring debt, you are simply monetizing the left side of your balance sheet. Your A/R account simple reads ' cash on hand'! and that’s a good thing.

So what about the cost of this financing? In Canada it’s typically between 2-3% per month. That cost can be offset in a number of manners. The challenge we see clients face is in the way in which financing receivables in Canada is in fact presented by business finance companies. Rarely is the fee represented in a one time clear explanation - its masked with various miscellaneous issues.

Is there one type of facility that we recommend as optimal to clients? There is. It’s a confidential working capital/factoring financing that allows you to bill and collect your own receivables. You maintain the benefits of this type of financing, while being in control of your own destiny, and that growth and survival we spoke of!

Speak to a trusted, credible and experienced Canadian business financing advisor who can help you steer your way through the myriad of offerings in the Canadian business space.





Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/financing_receivables_business_finance_companies.html

Study : Can Financing Receivables Via A Confidential Receivable Factoring & Funding Solution Save Your Company?

Do The Benefits of A/R Finance Solve Your Working Capital Challenges ?


Information on financing receivables in Canada . What is a receivable factoring solution and how does funding a/r solve the gap in your firms cash flow and working capital needs.




We're pretty sure, based on talking to clients, that thousands of Canadian business owners and financials managers start every Monday worrying about business financing and cash flow. A lot is being said these days about financing receivables as a subset of asset based lending in Canada.

But can a receivable factoring and funding strategy really save your company? And another thing, what's a confidential invoice funding strategy and how does it work. A lot of questions! Let’s get some answers.

It is somewhat ironic that the growth your firm faces, which is clearly a good thing is offset by the need for more and more cash flow and working capital as you build receivables, and yes, inventories also. It's a very simple gap - simply the time between being paid for your customers and the need to pay suppliers and your operating costs. In a perfect world (it’s not apparently) your suppliers would be willing to wait an unlimited amount of time. They don't.

Therefore financing your receivables as you generate them provides you with cash flow needed - you are simply closing the proverbial gap in waiting for your clients funds.

In Canada you should expect, via a receivable finance strategy to receive in the area of 90% for your receivable funding as you submit invoices. What about that other 10%? It’s simply held back as a holdback or reserve to leave a buffer for financing costs and any short payments for your clients.

Financing costs. That’s the real discussion point these days on receivable factoring in Canada. Those costs range from 1- 5%. That’s a big range, so what defines that range. Typically the 4-5% range is defined by firms having very small receivable balances and who themselves are relatively small firms. A more typical range in Canada is 2%. While many clients view that as and interest rate on a 30 day basis it’s actually the discount your finance partner bases the purchase of your receivables on. So, utilizing a $100,000 dollar invoice as an example you should be expected to ultimately receive $ 98,000 for the invoice. That’s at settlement time when your client pays and you also receive the rest of the holdback we referred to.

So is that financing fee too much for your firm ?History tells us its not, in that your ability to generate more sales with the cash flow you receive daily usually significantly outweighs lost sales revenue , or , even worse, your ability not to meet your obligations to supplies or other creditors . The majority of clients we speak to are looking to grow their business and use a receivable factoring strategy as a tool to do that.

If you are looking at the traditional type of receivable finance facility in Canada that is offered there is one aspect that doesn’t appeal to many business owners, in that 99% of the firms in Canada who offer A/R finance require a notice to your client around this financing. That’s where a confidential invoice funding strategy works best, you bill and collect your own receivables, and your method of financing your firm is just that, yours, and no one else’s business.

So, can financing receivables save your company? We thing if it isn’t a matter of saving it’s a least a mechanism for growing, and that’s not a bad thing. To be honest though many firms that face financial challenges are often saved by an interim funding strategy such as ours when they cant obtain traditional bank type finance .

More info? Questions ? Speak to a trusted, credible and experienced Canadian business financing advisor on the benefits of a confidential invoice finance strategy.




Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/financing_receivables_receivable_factoring_funding.html