10 ( Count ‘em ) Ways That A/R Debtor Finance Works a/r finance

OVERVIEW – Information on A/R Financing funding in Canada. How does a receivables purchase facility work and how does the business owner/mgr compare it to a bank solution when assessing financing needs.

AR Finance funding in Canada just might make sense for your company. A simple reason why? A receivables purchase facility works! We’re examining 11 reasons why. Let’s dig in.

First let’s ensure we all understand the basics. When it seems like everyone, your customers and your bank included, is hanging on to their money difficult challenges arise for cash flow and working capital needs. While large corporations and public companies can tap capital in numerous ways SME COMMERCIAL FINANCE options are somewhat more limited.

A receivables purchase facility is the simple ‘ monetizing ‘ of your 2nd most liquid asset on the balance sheet – your A/R. It’s the ultimate in short term financing, allowing your firm to cover daily operations, and, as importantly, grow the business.

A/R Finance funding is a form of asset based finance. Numerous other names for this method of Canadian business financing exist for the owner/mgr to digest – factoring, invoice discounting, etc.

While bank financing is almost always less expensive that AR finance via a commercial finance firm. A key point here is that A/R finance funding is a fee, versus the ‘ interest rate’ charged by the bank. When properly understood and calculated this makes this working capital solution much more attractive. Unfortunately many firms rarely take the time to understand the costs and mechanics.

Rarely does a Canadian business utilize a receivables purchase factoring facility for its needs forever. It’s best viewed as a transition option during high growth or challenging times. The attractiveness of the facility has companies in every industry in Canada looking to this solution for cash flow needs – and by the way start ups are welcome.

1. A/R Finance does not add any debt to your balance sheet

2. It’s a logical alternative to bank borrowing when Canadian chartered bank financing can’t be achieved

3. The application process is simple and straightforward

4. Overall financial quality of your firm is not the key requisite – it’s all about the A/R

5. Typically outside collateral is not required

6. Cash flow needs for daily operations are always covered by your growing sales

7. Typically concentration issues are not an issue and can be dealt with – Some firms have a large portion of their business with only a small number of clients.

8. Owners personal credit history plays typically only a small part in final credit decisions

9. Profits can be enhanced and costs lowered via the effective taking of supplier discounts – your firm now has the cash to do so

10. Companies who choose CONFIDENTIAL A/R FINANCING can bill and collect their own receivables. This choice allows you to avoid any of the ‘notification’ that is required in traditional receivable factoring offered by 99% of the industry players.

If your firm is focused on staying ahead of the curve and growing investigate A/R non bank solutions. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your capital needs.

Stan Prokop

7 Park Avenue Financial : http://www.7parkavenuefinancial.com
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 100 Million $ of financing for Canadian corporations . Info /Contact :




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

Office = 905 829 2653


‘ Canadian Business Financing With The Intelligent Use Of Experience ‘

ABOUT THE AUTHORStan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.

7 Park Avenue Financial

Canadian Business Financing