A Smart Way To Grow Sales & Raise Capital - Canadian Factor Receivable Loans Financing Via Confidential Factoring

Confidential Receivable Financing the Canadian Way!



Information on receivable loans financing in Canada . How a confidential factoring facility is an alternative to traditional factor finance with even more benefits!




Is there actually a way to grow sales and raise capital at the same time? Seems like a bit of a contradiction, don't you think? But thousands of Canadian firms have turned to receivables loans financing, a specialized sub set of asset based lending.

By factoring or selling their receivables as they generate revenue this factor strategy achieves out two stated goals, generating working capital every time you make a sale. And smarter business owners utilize confidential cash flow financing as a better method than their competitors to make that business financing strategy work even better.

If your firm just quite doesn’t have the track record to achieve all the bank or traditional financing you need then consider such a strategy with the added twist we've suggested, implementing a confidential invoice finance strategy .

Receivable loans financing, as we have said, is a sub set of asset based lending in Canada. It finances what is more often than not the largest asset on the left side of your balance sheet, your A/R!

What makes this financing so different then? A lot of our clients say ' the cost!’, and we'll get to that shortly, because it is a more expensive type financing. But the true difference is the fact it doesn’t discriminate. What do we mean by that? Simply that if you firm is growing too fast, having challenges, etc your receivables are essentially the only qualifier to getting approved.

Utilizing confidential invoice factoring allows you to not have to focus on debt to worth rations, or cash flow coverage, or putting up substantial personal assets under a guarantee - it simply takes for face value the underlying assets , that the a/r!.. and finances them, all day, every day.

And could this financing work any more simply? We don’t think so. Every month, or more often if you wish you create a simple borrowing base certificate on your assets, such as you similarly would have done for your bank. Funds are advances against those receivables, and as you collect them the balance of course reduces, similar to a bank revolving facility.

And now for the difference, i.e. what actually differentiates our confidential invoice financing facility from day to day factoring that your competitors might be using. It’s actually the ' confidential ' aspect we have spoken of. If your competitors are using this Canadian business financing strategy we can most assuredly guarantee you that their customers and clients are being contacted by the factoring firm, and when payments do come in they are being segregated by your finance firm or even remitted to the finance firm directly.

That’s where confidential invoice factor facilities differ. The simple bottom line - you bill and collect your own receivables. You maintain control, and in Canada we tend to view that as a good thing. Most business owners and financial managers are not aware that that type of flexibility as an example is not available in the U.S. at all. And back to that cost issue. Confidential invoice factor facilities don’t cost anymore than regular invoice financing!

So, confused? We hope not. Interested? We hope so! Speak to a trusted, credible and experienced Canadian business financing advisor on the benefits of a confidential receivables loan financing strategy. Satisfy those critical needs your company has, growth and cash flow.


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/receivable_loans_financing_factor_factoring.html

Would Your Firm Pay 20$ to Get $1,000? Why An Accounts Receivable Credit Financing Factor Strategy Makes Sense In Canada

Are Your Financing Costs Too Low? Yes, We Said low!


Information on the cost and benefits of accounts receivable credit financing in Canada and why a Cash Flow Factor Strategy Works .



It's an intriguing proposition and our segue today into a logical (we think) financial decision involving accounts receivable credit financing facilities, commonly known as factor finance in Canada. And who wouldn’t pay 20 to get 1000, but more about that a bit later.

Accounts receivable financing facilities are the sale of one, all, or part of your receivables on a one time or ongoing basis. The industry itself in Canada and the U.S. views the pricing around this sale somewhat differently than our clients. How? Simply because the industry thinks of the sale we have just referenced as a discounted price on the object of the transaction, your receivables.

Customers view it the other way of course, symbolized by the 3 most popular words in finance globally ' whats my rate'! The Canadian accounts receivable credit factor industry has evolved over time as a direct offshoot of the U.S. and European industry. It's clearly evolved a lot more slowly here, but in recent years gained significant traction due to pullbacks in traditional lending by Canadian chartered banks and other institutions.

So how does an accounts receivable factor line of credit differ from bank facilities which margin your receivables? In 2 ways really. First the general focus of any financing of this type revolves around the size, quality and geographical nature of your receivable investment you are looking to finance. Unlike banks that bore down into your financials a factor firm 99% of the time focuses only on the general quality and credit worthiness of your A/R base.

And what about that other 1%. That brings us to our recommended manner of accounts receivable finance in Canada, confidential invoice finance. In that type of facility you are allowed to bill and collect your own receivables without any notice or notification to your customer base. So it’s like bank financing from a facility point of view, except the mechanics are a bit different. Main point - your firm is in control, billing and collecting your A/R.

The second reason A/R finance from an independent non bank finance firm is different from bank business lines of credit bring us to our subject headline today. In Canada the general rate on financing your receivables is in the 2% range. (Sometimes higher, sometimes lower, but it’s a good average). Remember also we spoke of accounts receivable factor finance as a sale of your A/R. So if we take out headline example, a 1000.00 dollar receivable costs you 20.00$. (This assumes your customer pays in 30 days).

So the challenge for Canadian business owners and financial mangers then simply becomes as follows: If you had that 980.00 dollars immediately after you generated a sale and invoice (no waiting) what would you do with the funds?

If you are growing quickly it becomes a very easy decision, pay suppliers, buy more products, negotiate better pricing with new found cash, invest in sales and marketing efforts, etc. We think you get the point.

So, bottom line, 20 will get you 980. Does that make sense for every firm in Canada? The reality is that some of the largest corporations in Canada use this financing mechanism. (Their rate is a bit better as you can imagine!) But if your firm is growing, has challenges, or simply cant access bank credit then this financing concept should be very appealing.

Speak to a trusted, credible, and experienced Canadian business financing advisor who can assist you in evaluating costs and benefits in factor financing in Canada.



AUTHOR: Stan Prokop - www.7parkavenuefinancial



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

AR ( a/r) Financing Is Your Logical Plan B – How Factor Finance Becomes Your Solid Canadian Non- Bank Funding Source

Are Accounts Receivable Financing Companies A Logical Solution to Canadian business financing ?


Information on ar financing in Canada and how factor finance firms are a solid and logical solution to funding your firm in a non-bank setting .



How do firms that can't qualify for bank financing (or all the bank financing they need) solve the working capital dilemma? A solid ' Plan B' solution is (A/R) ar financing of your accounts receivables. Factor or discounting finance has become a significant contributor to funding of Canadian businesses - of all sizes.

Your ability to turn current assets such as receivables (and of course inventory) makes you quite simply a better credit risk for your lenders and suppliers. Most Canadian business owners and financial managers realize very quickly that profits do not automatically generate cash flow for your business. In the long run of course they do equal cash flow... however you will notice your suppliers and other lenders rarely want to wait for the ' long run’!

Naturally if you don’t need to borrow and can generate cash by waiting and collecting your receivables your cash flow stays ' internal ' To stay in business for the long haul you of course need 3 key underpinnings to your business - profit , cash, and solvency . As we have said profits don’t equal solvency in the short term and that’s where ar financing comes into play.

So why do thousands of Canadian firms (yes thousands) turn to factor finance. Simply speaking it’s an alternative way to funding growth, turnaround and restructuring. If utilized properly you are now in a position to take and negotiate vendor discounts with your key suppliers, enhancing your relationship over the long term.

So, the logical question we get from clients is of coruse ' why not the bank?’ Although bank financing of receivables is by far a cheaper method of financing your working capital that solid pricing comes with stringent credit requirements. The bottom line is that ar financing and funding has quite often much more flexibility when it comes to your firms particular current financial situation.

Factor financing is often viewed as ' the gap ‘... it’s the bridge between your current situation and traditional funding. There are a number of different ar financing solutions in Canada - many Canadian business owners and financial managers are confused by a lot of the terminology... recourse...notification... discount rate. Reserve holdback. Etc.

Our recommended solution to clients is what we term a ' confidential factoring ' facility. This facility allows you to bill and collect all your own invoices... unlike the majority of this type of financing in Canada no contact or notification is made to your clients. You simply must be in a position to maintain proper monthly financials and reporting around your A/R.

A key benefit of factor funding in Canada is that facilities grow pretty well automatically as your firm grows - there is not constant re-applying. Many clients miss the key fact that this type of financing is not debt - it’s a monetization of your assets. Over the long term you will increase profits and sales turnover.

Speak to a trusted, credible and experienced Canadian business financing advisor on how the funding and finance of your receivables can help you grow sales and profit.




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/ar_financing_funding_factor_finance.html

How The Right Factoring Firms in Canada Can Provide Financing Factor Facilities Confidentially

You've heard about it - You suspect your competitors use it, you think it might work for you; it’s just that you don’t fully understand what it is! We're talking about factoring firms in Canada, and why financing factoring in the Canadian factor marketplace gains traction daily among small and medium sizes businesses all across Canada.

Let’s help you examine what this type of financing is, why it is grossly misunderstood by many business owners and financial managers, what it costs, and how it works. That’s a mouthful of information!

Financing factoring is an option you have to financing your business - it’s as simple as that. Clients are usually concerned about two things, how it works, and what does it cost?

Those are typical questions, in addition to wanting to understand the benefits of this type of Canadian business financing.
At its basic core the factor firm is a buyer of your receivables. The good news is that when you sell them you get immediate cash - we are talking same day cash. That brings to bear one of the largest misconceptions about this type of business financing, because the use of factoring firms in Canada you have eliminated the need to wait for the collection of your receivables. Typically these days clients are waiting anywhere from 30 ( you wish !) to 90 days, sometimes longer to collect their cash and generate cash flow and working capital back into their firm .

The cost of financing factoring in Canada generally is in the 1-3% per month range - while that initial information is often perceived as high to many clients the reality is they are spending that much, and more by carrying those receivables 90 days, and being further unable to utilize that cash to sell more and generate more profits.

So you can quickly see that with the right type of factor facility in Canada you have the ability to generate huge amounts of working capital and then in turn sell more, maintain relationships with suppliers on a better basis, and, as we said, create more profits, hopefully So that is what factoring is and why it can work for you.

But here's the biggest secret we can share - by working with the right factor firm or Canadian business financing expert and advisor you can actually create a facility that one ups your competition . That is because the factoring they are utilizing invoices the factor firm verifying billing and collecting with their clients. What you should actually be striving for is a confidential invoice financing facility that allows you to collect and bill your own receivables, with you in control, not the other factoring firms in Canada.

So, in summary, if you are carrying receivables, short on cash flow and working capital, financing factoring is clearly an option and solution. The optimal facility is the C I D - Confidential invoice discounting. Speak to a experienced, trusted, and credible Canadian business financing advisor who can assist you in putting together a facility that works.

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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 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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