Working Capital Factoring : Connecting The Dots In Solutions Via

Receivable Factor Companies

Receivable Financing Is The Equivalent In oing From !omeless
To Rich In "usiness Cash Flo#
$VERVIEW % In&ormation on #orking capital &actoring in Cana'a ( Wh) 'oes the
Receivable &actor solution 'eliver on cash &lo# in a number o& 'i&&erent situations
that the Cana'ian business o#ner &in's themselves in
Can #orking capital &actoring solutions be our business version of ' homeless ' to ' rich
'?
It's an interesting analogy if only for the fact that the receivable factor firm solution,
properly done creates capital you never had. Let's try and 'connect the dots' in those
solutions so the business owner / financial manager sees a clear path to business cash
flow freedom. Let's dig in.
There are of course options in #orking capital &inance they include ta!ing on debt
under a wor!ing capital term loan or me""anine unsecured cash flow loan# or the
traditional route of Canadian chartered bank &inancing theoretically available to all but
unfortunately not always to those that need it most.
$o why does financing your sales via %/& factor financing a logical step to business
capital freedom? 'or a starter that low cost ban! line of credit may not be available to
your firm for many different reasons. If for any number of reasons your firm does not
(ualify for ban! credit you're bac! to s(uare one... our version of business homeless)
*any firms have the most incredible problem imaginable they are too successful and
growing too (uic!ly. That ' rush ' from getting a large new contract or purchase order or
seeing sudden surges in sales brings wor!ing capital nightmares, as more and more funds
are tied up in materials, inventory, and finally accounts receivable
In certain situations your wor!ing capital is re(uired for e+pansion needed for lease/loan
payments on new assets, or mar!eting and headcount growth. *any clients we meet do
great business only at certain times of the year that seasonality causes cash flow needs
to rise and fall dramatically at certain times, sometimes une+pected.
,ne final situation is the whole issue of payment terms and collections. -ven large
corporations are often typically the ones that pay the slowest, and then there.s... the
government)
/hile certain situations immediately dis(ualify you for ban! financing 0negative net
worth, fluctuating profits and cash flows, huge 1umps in sales revenues2 it.s these e+act
situations which ma!e your firm a solid choice to be financed by a receivable &actor(
3y the way, in many cases a wor!ing capital factoring solution can be a component of a '
total ' asset based lending deal, whereby your %/&, inventory and unliened e(uipment are
combined into on solid business line of credit. It's typically called an ' %3L ' line by the
pros.
Is there one type of receivable factor solution that wor!s best? In our opinion it's non
notification C$*FIDE*TI+, RECEIV+",E FI*+*CI* , allowing you to bill and
collect your own receivables, draw cash against sales when you need it, and only pay for
what you are using .
If you want some help in connecting the dots in %/& financing solutions see! out and
spea! to a truste'- cre'ible an' e.perience' Cana'ian business Financing +'visor
#ith a track recor' o& success who can assist you with in that ' homeless' to ' rich'
transition in business capital)
Stan /rokop 0 /ark +venue Financial :
http:11###(0parkavenue&inancial(com
3usiness financing for Canadian 'irms , speciali"ing in wor!ing capital, cash flow, asset
based financing , -(uipment Leasing , franchise finance and Cdn. Ta+ Credit 'inance .
'ounded 4556 Completed in e+cess of 75 *illion 8 of financing for Canadian
corporations . Info /Contact 9
0 /+R2 +VE*3E FI*+*CI+, 4 C+*+DI+* F+CT$RI* +*D
C$*FIDE*TI+, RECEIV+",E FI*+*CI* E5/ERTISE
$tan :ro!op