May 23, 2022

Jluedu.tech

The Branch of knowledge dealing with engineering or applied sciences

Auto Pilot – Business Financing Cash Flow

Many SME firms need business cash flow financing. This means that receivables must be turned into cash for the company. 7 Park Avenue Financial clients are looking for this type of financing – i.e. Cash flow lending This term refers to cash flow problems that many companies face every day. What then is the role of an AR finance company in helping to meet that challenge?

Business owners who need cash flow to help their business needs will find it increasingly important that they act quickly. Many industries require more cash than others. This could mean more investment in capital assets, or research into new products and/or services.

What happens if you are unable to get the credit financing that you need from traditional banks or business-oriented credit cooperatives? AR Finance is the answer.

You can quickly and efficiently establish a receivable discounts facility to eliminate the need to wait 30, 60, or even 90 days before receiving client funds for goods and services.

A Canadian charted bank will provide full funding for receivables. This requires a loan application and a business application. There is a lot of focus on historical cash flow analysis and balance sheet analysis. Invoice cash services remove 90-95% of the waiting and negotiation.

Factoring, also known as invoice cash work, is becoming more popular in today’s cash lending market. Factoring is a way to get immediate funds, based on sales revenue. This is what professionals call your “working capital cycle”. Simply put, the time it takes for a dollar to travel through your company before it makes its way back onto the balance sheet and becomes cash.

You are not borrowing money long-term when you finance with invoice cashing, also known as invoice discounting. You are not adding debt to your balance sheet; instead, you are merely liquidating existing assets more efficiently.

Is there a better type of facility for invoice cash than the others? We are glad that you asked. We recommend Confidential Receiveable Financing. It’s the non-notification part of this solution. This allows you to bill and collect from your own accounts and bank your own funds. You can also choose how much financing you require on an ongoing basis. When you work with the right partner, it’s a classic financing option that allows you to pay only for what you use.
What is a Cash Flow Loan? What are my options for financing cash flow?

A/R Finance may not be the only way to finance cash flow. You might also consider:

Short term working capital loans

Strategies for sale-leaseback

Finance inventory

Financeable options include tax credit finance (sr&ed returns)

Mezzanine Financing (Unsecured Cash Flow Loans)

New equity is a long-term solution.

A Canadian charted bank will provide full funding for receivables. This requires a loan application and a business application. There is a lot of focus on historical cash flow analysis and balance sheet analysis. Invoice cash services remove 90-95% of the waiting and negotiation.

The possibility of long-term financing activities could include new equity from owners.

Let’s summarize: Your business needs additional cash flow. Either you have existing facilities but they aren’t working or your business is self-financing, and require cash flow to pay employees and suppliers. Talk to an experienced, trusted and credible Canadian business finance expert to get the invoice cash your company needs.