Canada's Newest Biz Financing '" Receivable Financing Companies and Providers of A/R Loan Plans
Canadian A/R Financing - Your Way
Clients always tend to ask us simply why they should be looking at receivable financing .That's one of the easier questions we get these days.
There are some very strong fundamental reasons why you should be looking at this type of financing for your business, not the lease of which is acceleration of cash flow. Receivable finance allows your company to receive cash flow and working capital the day you generate an invoice. Practically speaking you could draw on your invoices every day, but reality shows that most firms borrow on a weekly or monthly basis. Bottom line, it's your call.
Another key reason that provides of a receivable loan plan work is simply that they have become the de fact alternative to bank financing in Canada. That's predominantly for small and medium sized business, but you'd be surprised to know that many of Canada's largest corporations use a flavor of this type of financing also.
In today's competitive environment your ability to be cash flow positive allows you to enhance your relationship with customers and your valued suppliers. It's simply a case of what you could call ' professional visibility '˜... and that's a good thing!
If you are in fact utilizing receivable financing companies for your A/R finance you also are able to leverage at the same time other aspects of Canadian business financing, this includes equipment financing, tax credit financing, term loans, etc. The bottom line is that the providers of an A/R loan are solely interested in collateralizing your receivables, not all your other assets.
Is there one final reason perhaps to consider a provider of A/R loan plan financing? We'll give you a great one, there is essentially no funding limit, in that as your A/R grows so can your facility. Is it just us or have you turned your firm into an ATM machine. That's cash flow 101 for sure.
The attraction to invoice financing, aka factoring, is just simply that it's a solution to the ongoing struggle of businesses requiring working capital. And as biz financing tightened up in the last few years Canadian business owners and financial managers looked for alternatives.
That alternative quickly emerged as accounts receivable financing. It's the selling of your receivables at a discount, as you generate them. The challenge in Canada is picking the right type of facility - our recommended solution to clients is called C I D , confidential invoice discounting, allowing you to bill and collect your own a/r without the notification that is required by your clients for other types of facilities that predominate the marketplace.
So, bottom line? If you are looking for either business survival, or business growth take advantage of the service offered by receivable financing companies. If other sources are limited, and you require capital for expanding your business the solution lies right in front of you, and is being embraced by thousands of other Canadian business owners.
Speak to a trusted, credible and experienced Canadian business financing advisor on why receivable financing companies and providers of A/R loans can help your firm, today.
Published by Stan Prokop
Stan Prokop is the founder of 7 Park Avenue Financial. See www.7parkavenuefinancial.com The company originates Canadian business financing for companies and is a specialist in working capital and asset b... View profile
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