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Considering Receivable Financing in Canada? If you are your thoughts and answers on two questions should help you out quite a bi t. One of our favorite business writers recently focused on cash flow management and asked the following 2 questions -
Does your firm need cash right now?
Do you know what your cash balance needs will be a half year from now? The fact that you are even considering invoice factoring in Canada suggest your business might be facing cash flow challenges, or perhaps that you're smart enough to address a future problem now! A/R finance allows you to address whets going on with your firm's working capital in an immediate manner. And by the way, it puts you in control, which you might not be feeling now when it comes to your firms overall cash/ business cycle. When we meet and talk to clients quite often it's clear they don't necessarily feel in control of their finances. When you are able to exert control over you cash with a receivable financing strategy all of a sudden the uses of cash seem a lot clearer. You're now able to make or take on new lease payments, or perhaps reduce debt in other areas such as account payable. Keeping those suppliers and preferred vendors on side is important, pretty well all the time! Let's cover off some basics when it comes to invoice factoring in Canada, also known as invoice discounting. First of all, it's a business to business financial strategy, so it doesnt really work in a Business to Consumer environment. (By the way, if you are selling into a retail environment then a merchant cash strategy which finances future retail sales just might work for your firm, but we digress ...!) The costs of receivable financing in Canada vary greatly, and it's probably our largest discussion point when we [re explaining to clients the benefits and cost of an A/R finance strategy. What is important here is that you understand that the cost factor around receivable finance in fact is costs you are bearing now, except that now you're now winning, and use of this financial solution allows you to win. What do we mean by that? asks the Canadian business owner. Well the cost of receivable financing has to be benchmarked against two or three critical points you might not be considering. One is that you are already in the banking business, whether you like it or not, because you are carrying your customers 30, 50, or 90 days already. Congratulations on doing a great job in growing your clients cash flow - although that's probably not your goal right? Secondly you are potentially missing the opportunity grow your business because of the cash flow constraint that invoice factoring in Canada solves. If you want to learn more about receivable finance , how it works, what it costs, and what is the best facility out there when it comes to being ' in control ' then seek and speak to a trusted credible and experienced Canadian business financing advisor today . You'll then be able to see clear answers to those two nagging questions: Do you have enough cash today and will you be able to address you cash needs a half year from now. Stan Prokop - founder of 7 Park Avenue Financial – http://www.7parkavenuefinancial.com Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info re: Canadian business financing & contact details: http://www.7parkavenuefinancial.com/invoice_factoring_in_canada_receivable_financing.html
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invoice factoring in canada, receivable financing,
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