Looking for a Cash Flow Rescue Solution – Confidential A/R Finance Via Non Notification might just be it Confidential Factoring

OVERVIEW – Information on the benefits of confidential factoring services . Business asset finance via an invoice discounting program is a happy medium between bank A/R financing and alternative finance solutions

 


Business asset finance
comes in a variety of ‘flavors ‘. One of those is Confidential Factoring Services, which is the monetizing of your sales and receivables into immediate cash flow. Let’s dig in.

While any form of Canadian business financing is meant to allow the owner/.manager to grow the business the harsh reality sometimes is that it also ‘ rescue ‘ the company when financial challenges and pressures have made traditional forms of financing unavailable . Think ‘ the bank’.

And by adding the word ‘ confidential ‘ into this method of financing it’s as close to traditional financing as one can get.

In the business cycle of any commercial business, whether that is a product or service sales generate receivables which generate cash. Whether your firm is start up, early revenue, or fast growth its all about your ability to ‘ release’ working capital out of sales revenue.

Canadian chartered banks do that for you by setting up business lines of credit. The receivables (and sometimes inventory) act as the ‘collateral’ for the facility. Confidential factoring services provide the same result; they just do it in a different manner.

That difference is the essence of receivable finance/factoring in general, as the paperwork around the facility ‘ monetizes’ your A/R. The paperwork in effect has you ‘ selling’ your sales for cash as they are generated, and the use of confidential factoring allows this to be done privately between you and the finance firm.

That level of confidentiality is important , because we benchmark that against ‘ old school’ factoring ( still hugely popular ) which makes the whole process fairly public between your clients, yourself etc. In our experience business owners and financial managers in the SME (small to medium enterprise) sector like to keep how they finance their business to themselves.

Let’s make sure we all understand the process of CONFIDENTIAL RECEIVABLE FINANCING. As you generate sales you receive 90% of your sales invoices as immediate cash to your business bank account. In our case immediate pretty well means ‘ same day ‘. Bye bye receivables – hello cash on hand!

So what are the benefits then? Hopefully they are pretty obvious. They include your ability to run and grow your business. As long as you are generating revenue you will always have the respective amount of cash available.

For the majority of many of our clients we see them now being able to take on larger contracts and sales orders. No more worrying that your are reaching your ‘ borrowing limit ‘, as with pre set bank credit lines.

Some clients also use this cash to pay down other debt they have taken on, although it’s important to ensure you are matching short term financing solutions with short term debt obligations.

Let’s summarize the process again quickly –

1. Sell your products and services!
2. Provide your invoices to your finance partner
3. Receive immediate cash (10% is held back and paid to you as soon as your client pays – it’s a ‘ buffer ‘)

Note – the financing costs of Confidential factoring are taken out of that 10% holdback and as an example would be in the 150 -200$ range on a 10,000$ invoice.

If you’re looking for a rescue plan on cash flow challenges seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can ensure that this unique method of financing is carefully explained re costs, benefits, and operations.


Author: 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 90 Million $ of financing for Canadian corporations . Info /Contact :

 

7 PARK AVENUE FINANCIAL = CANADIAN CONFIDENTIAL RECEIVABLE FINANCING EXPERTISE


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