Business cash flow financing for many companies in the SME sector involves the need to convert accounts receivable into liquidity for the business. In fact, we’re talking about “cash bill,” that’s the type of financing that customers here at 7 Park Avenue Financial receive. Looking for ie Cash Flow Loan That term is synonymous with cash flow challenges that plague many businesses all the time. So how does using an AR finance company help meet that challenge?
Sooner rather than later is the need for business owners who want cash flow to support their business requirements. In many cases, certain industries require much more cash for companies participating in the sector. That could mean a greater focus on capital assets or even research into new products and services.
However, 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.
Your ability to quickly and efficiently set up an accounts receivable discount service allows you to immediately eliminate the hassle of waiting 30, 60 or even 90 days to receive customer funds for your goods and services.
To receive full financing for your accounts receivable from a Canadian chartered bank, there is of course an extensive business and loan application, with much emphasis on historical cash flow analysis, balance sheet analysis, income statement and operating indices, etc.! Bill collection services eliminate 90-95% of that type of waiting and negotiating.
So why does ‘factoring’ work, the more technical name for cash invoicing 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 revenue. That becomes the biggest part 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 travel through your company and return to the balance sheet as cash.
When you finance through a bill collection, also called a bill discounting service, you’re not borrowing funds for the long term. Your balance does not accumulate debt; you are simply liquidating current assets in a more efficient manner.
Is there any type of facility in the ‘cash bill’ area that works better than others? We’re glad you asked! We consistently recommend Confidential Accounts Receivable Financing, it’s 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 as you go” financing when you work with the right partner.
What is a cash flow loan? What are my company’s financing cash flow options?
A/R Finance is not always the ‘only’ way to finance cash flow needs. Other strategies may include:
short term loans for working capital
Sale-lease strategies
inventory financing
Tax credit financing (sr&ed rebates are financeable)
Mezzanine Financing – (Cash Flow Unsecured Loans)
Longer-term solutions, of course, involve scenarios like new actions.
To receive full financing for your accounts receivable from a Canadian chartered bank, there is of course an extensive business and loan application, with much emphasis on historical cash flow analysis, balance sheet analysis, income statement and operating indices, etc.! Bill collection services eliminate 90-95% of that type of waiting and negotiating.
Long-term financing activities, of course, may involve scenarios such as further action by owners.
So let’s recap: your business requires additional cash flow. Either it has facilities and they don’t work, or it is self-financing and needs cash flow to pay suppliers, employees, etc. Find and speak with a trusted, credible and experienced Canadian trade finance expert who can meet cash invoices for your business needs.