OVERVIEW – Information on the benefits of confidential receivable financing in Canada. AR Factoring is one of the oldest and proven solutions for business capital in Canada . Here’s why A/R Finance works!
AR Factoring might well rank as one of the oldest professions in Canada. (Probably not the oldest profession you thought we were going to talk about!) How though do such solutions as confidential receivable financing remain such tried and true working capital and cash flow solutions? Let’s dig in.
The world of business financing must surely seem more complex than ever in today’s hi-tech world, a world of VC capital, private equity, etc. But even though business owners and financial mgrs can utilize technology to identify capital solutions the rubber hits the road when real capital can be accessed through solutions such as factoring. The ability to generate cash at the same time you make a sale is most welcome to most owners/mgr’s and entrepreneurs!
We’re told that a/r financing, i.e. ‘ factoring’ goes as far back as 1000 years B.C., but our experience is that owners/mgrs still want the same thing as those early A/R financing practitioners – the ability to sell products and services and obtain cash to keep their business operating cycle rolling. It’s that liquidity that keeps business rolling.
Most business owners and their financial managers are often reluctant to take on business debt, and solutions such as confidential A/R finance solve that problem nicely.
The thousands of companies that utilize A/R finance today more often than not ‘ get it ‘. For other clients that we meet and talk to a certain amount of education is required around costs, benefits, and the many tech solutions that are now delivered through the A/R financing process.
The key benefit around ‘ Confidential non notification ‘ AR financing is your firms ability to bill and collect its own receivables while at the same time receiving as much cash as you need or want . You’re minding your own business.
Cash flow and working capital financing is all about ‘ current asset financing ‘, namely the finance of your inventories and receivables. Factoring / AR finance are actually ‘ subsets’ of asset based lending, which can also include turning your fixed assets into a part of your business credit line.
What drives owners/mgrs to consider financing receivables and other current assets? It simply the realization that profits and sales almost never equal ‘ Cash ‘! , and the inability of your company to bridge that gap will often determine the true success of your firm and its business financing needs.
Working capital and cash flow solutions include:
Confidential Receivable Finance
SR&ED Tax credit finance bridge
Asset based non bank lines of credit (combining A/R, inventory and fixed assets into one borrowing facility)
Unsecured cash flow loans
If you’re focused on separating myth vs. reality around true current asset financing strategies seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success .
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
‘ Canadian Business Financing with the intelligent use of experience ‘
ABOUT THE AUTHOR
Stan 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