What If We Just Got Rid Of The Most Annoying Part Of A/R Financing In Canada?

OVERVIEW – Information on account receivable loans in Canada. Confidential receivable financing is one method of factoring lending in Canada that allows business owners to meet the challenge of cash flow


Account Receivable loans
in Canada are, rightfully so, positioned as providing a ‘ big bounce ‘ to business cash flow challenges. But what if we could turn that ‘ bounce’ into a ‘ big bang ‘ – Here’s our theory – no pun intended, so let’s dig in.

There is no bigger constraint to a business than feeling the cash flow and working capital squeeze. While the business owner and financial manager often hears otherwise , access to capital and credit in the SME Commercial sector still feels like quite a challenge.

That then forces owners and management to look at new ways to address the Canadian financing challenge, and one of them is known as ‘ factoring lending ‘. It’s one of those solutions that fills the gap, allowing companies to allow cash flow to move ‘ lock step ‘ with sales.

More often than not its the solution for companies that can’t access bank credit and allows them to be on an equal footing with their competitors who for some reason ‘ seem ‘ to have all the financing they need ( more often than not they don’t – it just seems that way )

It’s that gap in the SME sector that is constantly looking for new source of finance. The difference, other than financing cost, between bank and A/R financing is not as big as most people think. When sales are financed by the bank the A/R is taken as collateral and assessed in the overall credit worthiness of your business. Factoring lending is secured differently, as the paperwork around the facility has the receivable being constantly sold to the lender and cash flowed, typically on the same day. In fact, as a surprise to some, A/R financing from a commercial finance firm actually advances more on your receivables than a bank would. Usually 15% more!

While, generally speaking a bank prefers slow steady growth factoring lending typically works optimally when a company is growing sales. In fact when sales are in a decline it’s not recommended that the owner /manager consider a commercial a/r financing facility , as things tend to backfire somewhat.

So what about that ‘ annoying ‘ part of factoring financing in Canada. What we’re referred to is the fact that for traditional factor financing done in this manner your clients receive a notification around the process and payment under this type of facility. Our recommended solution? It’s having your facility run on a ‘ CONFIDENTIAL ‘ basis allowing you to bill and collect your own receivables without notification to any other party. It’s kind of like banking but without the bank.

If you aren’t aware of the key benefits of financing sales growth through factoring they include:

Short term bulge cash flow solutions

Increased flexibility

Fast approval – typically a week or two

Reasons business owners don’t use this method of financing include the cost, or simply that they weren’t aware that financing of this type was available. Those living in the past (that’s a dangerous thing to do in business by the way) even think there’s some sort of negative connotation to using alternative financing. They are wrong by the way, as some of the largest most successful firms in Canada utilize A/R financing and securitizing receivables of some sort.

So, if you want to accelerate the ‘ bounce ‘ in A/R financing into a ‘ bang ‘ consider Confidential Receivable finance as one solution to the finance challenge. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with accounts receivable loans and facilities that make sense.

Author: Stan Prokop 7 Park Avenue Financial :


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 – Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :


Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?


7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 905 302 4171

= 905 829 2653

Email = greg@7parkavenuefinancial.com

‘ Canadian Business Financing With The Intelligent Use Of Experience ‘


7 Park Avenue Financial
Canadian Business Financing