Business Financing Cash Flow On Auto Pilot?

Business cash flow financing for many firms in the SME sector involves the necessity to turn receivables into liquidity for the company, in effect we’re talking about ‘ invoice cash ‘, that is the sort of financing that clients here at 7 Park Avenue Financial are looking for – i.e. cash flow lending That term is synonymous with cash flow challenges that hit many firms all the time. How then does the use of an AR finance company assist in meeting that challenge?Sooner, rather than later is the need for business owners who want cash flow to support their company requirements. In many cases certain industries demand a lot more cash for companies that participate in the sector. That might mean more focus on capital assets or even research into new products and services.What happens though when you can’t get the credit financing you need from traditional banks / business-oriented credit unions, etc? That’s where an AR Finance company comes in.Your ability to quickly and efficiently set up a receivable discounting facility allows you to immediately remove the problem of waiting 30, 60 or even 90 days for receipt of client funds for your goods and services.To receive full funding for your receivables from a Canadian charted bank there is of course an extensive loan and business application, with a lot of emphasis spent on historical cash flow analysis, balance sheet analysis, income statement and operating ratios, etc! Invoice cash services eliminate 90-95% of that type of waiting and negotiation.So why then does ‘ factoring ‘, the more technical name for invoice cash work and in fact showing more popularity every day when it comes to ‘ cash lending ‘ solutions. The answer is simple, an immediate flow of funds based on your sales revenues. That becomes most of the solution to what the pros call your ‘ working capital cycle ‘. That cycle, simply speaking, is the amount of time it takes a dollar to journey through your company and makes it back onto the balance sheet as cash.When you finance through an invoice cashing – also called invoice discounting facility, you are not borrowing funds on a long term basis. Your balance sheet does not accumulate debt; you are simply liquidating current assets in a more efficient manner.Is there one type of facility in the area of ‘ invoice cash ‘ that works better than others? We’re glad you asked! We constantly recommend Confidential Receivable Financing, it’s the ‘non-notification’ part of this solution, allowing you to bill and collect your own accounts, bank your own funds, and choose how much financing you need on an ongoing basis. It’s classic ‘ pay for what you use ‘ financing when you’re working with the right partner.
What Is A Cash Flow Loan? What Are My Firm’s Options Financing Cash Flow?A/R Finance is not always the ‘ only ‘ way to fund cash flow needs. Other strategies might include:Working capital short term loansSale-leaseback strategiesInventory financeTax credit finance ( sr&ed refunds are financeable)Mezzanine Financing – (Unsecured cash flow loans)Longer term solutions of course involve scenarios such as new equity.To receive full funding for your receivables from a Canadian charted bank there is of course an extensive loan and business application, with a lot of emphasis spent on historical cash flow analysis, balance sheet analysis, income statement and operating ratios, etc! Invoice cash services eliminate 90-95% of that type of waiting and negotiation.Long term financing activities of course might involve scenarios such as new equity by owners.So let’s recap: Your business requires additional cash flow. You either have facilities in place and they aren’t working, or you are self-financing and need cash flow to pay suppliers, employees, etc. Seek out and speak to a trusted, credible and experienced Canadian business financing expert who can deliver on invoice cash for your firms need.

Posted in Uncategorized | Tagged , , | Comments Off

Business Loans In Canada: Financing Solutions Via Alternative Finance & Traditional Funding

Business loans and finance for a business just may have gotten good again? The pursuit of credit and funding of cash flow solutions for your business often seems like an eternal challenge, even in the best of times, let alone any industry or economic crisis. Let’s dig in.Since the 2008 financial crisis there’s been a lot of change in finance options from lenders for corporate loans. Canadian business owners and financial managers have excess from everything from peer-to-peer company loans, varied alternative finance solutions, as well of course as the traditional financing offered by Canadian chartered banks.Those online business loans referenced above are popular and arose out of the merchant cash advance programs in the United States. Loans are based on a percentage of your annual sales, typically in the 15-20% range. The loans are certainly expensive but are viewed as easy to obtain by many small businesses, including retailers who sell on a cash or credit card basis.Depending on your firm’s circumstances and your ability to truly understand the different choices available to firms searching for SME COMMERCIAL FINANCE options. Those small to medium sized companies ( the definition of ‘ small business ‘ certainly varies as to what is small – often defined as businesses with less than 500 employees! )How then do we create our road map for external financing techniques and solutions? A simpler way to look at it is to categorize these different financing options under:Debt / LoansAsset Based FinancingAlternative Hybrid type solutionsMany top experts maintain that the alternative financing solutions currently available to your firm, in fact are on par with Canadian chartered bank financing when it comes to a full spectrum of funding. The alternative lender is typically a private commercial finance company with a niche in one of the various asset finance areasIf there is one significant trend that’s ‘ sticking ‘it’s Asset Based Finance. The ability of firms to obtain funding via assets such as accounts receivable, inventory and fixed assets with no major emphasis on balance sheet structure and profits and cash flow ( those three elements drive bank financing approval in no small measure ) is the key to success in ABL ( Asset Based Lending ).Factoring, aka ‘ Receivable Finance ‘ is the other huge driver in trade finance in Canada. In some cases, it’s the only way for firms to be able to sell and finance clients in other geographies/countries.The rise of ‘ online finance ‘ also can’t be diminished. Whether it’s accessing ‘ crowdfunding’ or sourcing working capital term loans, the technological pace continues at what seems a feverish pace. One only has to read a business daily such as the Globe & Mail or Financial Post to understand the challenge of small business accessing business capital.Business owners/financial mgrs often find their company at a ‘ turning point ‘ in their history – that time when financing is needed or opportunities and risks can’t be taken. While putting or getting new equity in the business is often impossible, the reality is that the majority of businesses with SME commercial finance needs aren’t, shall we say, ‘ suited’ to this type of funding and capital raising. Business loan interest rates vary with non-traditional financing but offer more flexibility and ease of access to capital.We’re also the first to remind clients that they should not forget govt solutions in business capital. Two of the best programs are the GovernmentSmall Business Loan Canada (maximum availability = $ 1,000,000.00) as well as the SR&ED program which allows business owners to recapture R&D capital costs. Sred credits can also be financed once they are filed.Those latter two finance alternatives are often very well suited to business start up loans. We should not forget that asset finance, often called ‘ ABL ‘ by those Bay Street guys, can even be used as a loan to buy a business.If you’re looking to get the right balance of liquidity and risk coupled with the flexibility to grow your business seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success who can assist you with your funding needs.

Posted in Uncategorized | Tagged , , | Comments Off