OVERVIEW – Information on receivable financing in Canada. One of the best factoring services is Confidential receivables finance – here’s why
Receivable financing in Canada has made some interesting gains in recent times. First of all there is nothing like winning a ‘popularity contest ‘ and thousands of firms have continued to embrace this method of financing cash flow. And even better than that some interesting ‘ changes’ to how this finance works has offered even more appeal to the Canadian business owner/ financial manager. Let’s dig in.
The SME (small to medium enterprise) sector in Canada can be forgiven for feeling under served when it comes to accessing capital that other larger and public companies find easier to achieve. So a sub set of asset based lending, ‘ factoring services’ have stepped in nicely when they find themselves less ‘ credit worthy’ and unable to access all of the working capital they need.
If we step back a bit it’s not hard to discover why receivable financing services have such appeal. Utilizing this method of financing, including our favourite and recommended ” CONFIDENTIAL RECEIVABLE FINANCING ‘ your company can finance all North American A/R , ( international accounts often require some form of credit insurance ) , and depending on the type of financing you need risk of bad debt can even be transferred to your financing partner.
While the traditional form of this financing can be termed somewhat ‘ invasive ‘ as the collection dept of your firm is taken over by the finance firm it still works for thousands of firms who simply wish to access capital , and aren’t really concerned about notifying clients about how they finance their business .
Enter Confidential A/R finance. The appeal here is significant. While the main benefit continues to be the fact that you have daily access ( if you need it ) to working capital this type of ‘ confidential ‘ credit line facility allows you to bill, and collect, all your receivables without any intervention whatsoever with a third party . In our own experience with clients that seems to be the desired route business owners/ financial managers wish to take, perhaps it’s our inherent Canadian conservatism!
So how does this method of financing cash flow work? It’s pretty basic stuff. Standard finance documents that you would sign with any type of financing are put in place at the outset of the arrangement.
All sales you generate can be financed the same day that invoices are generated. 90% margining of accounts is typically available, which by the way even beats the 75% offered by our Canadian chartered banks. Your clients are totally unaware of your financing mechanism, and you’re running a ‘ business as usual ‘ company, with one exception; you have all the cash flow and financing you needed based on your sales growth!
If your firm has good financial records and a track record of growth, as well as future growth potential 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 the best factoring services.
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 :
Author: Stan Prokop – founder of 7 Park Avenue Financial
Originating business financing for Canadian companies, specializing in working capital, cash flow, and asset based financing. In business 10 years – has completed in excess of $90 Million of financing for Canadian corporations. Core competencies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details:
7 Park Avenue Financial
Off. 905 829 2653
Cell 905 302 4171
7 Park Avenue Financial
Canadian Business Financing