Website design By BotEap.comBusiness cash flow financing for many companies in the SME sector implies the need to convert accounts receivable into liquidity for the company, in fact, we are talking about ‘invoice cash’, which is the type of financing that clients here at 7 Park Avenue Financial are. seeking, that is, cash flow loans. That term is synonymous with cash flow challenges that plague many businesses all the time. So how does using an AR finance company help you meet that challenge?

Website design By BotEap.comSooner rather than later is the need for business owners wanting cash flow to support their business requirements. In many cases, certain industries demand much more cash for the companies that participate in the sector. That could mean a greater focus on capital assets or even research for new products and services.

Website design By BotEap.comHowever, what happens 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.

Website design By BotEap.comYour ability to quickly and efficiently set up an accounts receivable discount service allows you to immediately eliminate the problem of waiting 30, 60, or even 90 days to receive customer funds for your goods and services.

Website design By BotEap.comTo receive full funds for your accounts receivable from a bank registered in Canada, there is of course an extensive loan and business application, with a lot of emphasis on historical cash flow analysis, balance sheet analysis, income statement and ratios. operational, etc. Cash billing services eliminate 90-95% of that kind of waiting and negotiation.

Website design By BotEap.comSo why then is ‘factoring’, the more technical name for invoice cash work, and indeed becoming more popular every day when it comes to ‘cash loan’ solutions? The answer is simple, an immediate cash flow based on your sales income. That becomes the bulk of the solution to what professionals call your “working capital cycle.” That cycle, simply speaking, is the amount of time it takes for a dollar to cycle through your business and return to the balance sheet as cash.

Website design By BotEap.comWhen you finance through a bill collection, also called a bill discount service, you are not borrowing funds long-term. Your balance sheet does not accumulate debt; you are simply liquidating current assets in a more efficient way.

Website design By BotEap.comIs there one type of facility in the ‘cash bills’ area that works better than others? We’re glad you asked! We constantly recommend Confidential Accounts Receivable Financing, it is the ‘no notification’ part of this solution, allowing you to bill and collect your own accounts, deposit your own funds and choose the amount of 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 business options for financing cash flow?

Website design By BotEap.comAccounts receivable financing is not always the “only” way to finance cash flow needs. Other strategies may include:

Website design By BotEap.comShort-term working capital loans

Website design By BotEap.comSale-and-leaseback strategies

Website design By BotEap.comInventory financing

Website design By BotEap.comTax credit financing (sr & ed refunds are bankable)

Website design By BotEap.comMezzanine Financing – (Unsecured Cash Flow Loans)

Website design By BotEap.comLonger-term solutions, of course, involve scenarios like new actions.

Website design By BotEap.comTo receive full funds for your accounts receivable from a bank registered in Canada, there is of course an extensive loan and business application, with a lot of emphasis on historical cash flow analysis, balance sheet analysis, income statement and ratios. operational, etc. Cash billing services eliminate 90-95% of that kind of waiting and negotiation.

Website design By BotEap.comLong-term financing activities, of course, can involve scenarios such as new equity from owners.

Website design By BotEap.comSo let’s recap: your business requires additional cash flow. Either you have facilities installed and they are not working, or you are self-financing and you need cash flow to pay suppliers, employees, etc. Find and speak with a trusted, credible and experienced Canadian business finance expert who can deliver cash invoices for your business needs.

Leave a Reply

Your email address will not be published. Required fields are marked *