Business Cash Flow Challenges : The Case For An AR Factor

Information on business cash flow solutions in Canada . How does the role of the AR factor contribute to a positive cash flow and working capital financing balance
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  Tuesday, May 20, 2014 Business Cash Flow Challenges : The Case For An AR Factor Always Business Cash Flow Challenged? ere!s hy And #ne $olution#%&R%'& ( 'n)or*ation on +usiness cash )low solutions in Canada  ow does the role o) the AR )actor contri+ute to a -ositi.e cash )low and wor/ing ca-ital )inancing +alance Business cash )low  pretty well always comes with challenges. The AR )actor has emerged as a solid solution that has stayed constant through turbulent and normal times. What then are the benefits of such solutions, which type is best, and just how do things work? Let's dig in.In business it's all about performance and the ability to generate cash flow and working capital from AR )inancing  can be a solid contributor to that performance.Why does a business ownermanager choose an ' ! #!$T% & more traditional $anadian chartered bank financing? The process seems simple enough once we eplain it to clients ( it&s the ability of your company to generate immediate cash against your sales. This can happen, at your choice, periodically, i.e. weekly, monthly, etc, or constantly... ie all the time)  It should be no secret that the primary ' collateral' of this method of $anadian business financing is your actual accounts recei*able. +ank lending, in contrast, relies on that same collateral, but places a *ery large amount of emphasis on historical and present  profits, clean balance sheets, and business and personal collateral. uffice to say that that latter combination pro*ides a strong safety net for our $anadian banks.-tiliing an ! factor in $anada is almost always a short term or intermediate solution to a growing company, or one has faced and is fiing some challenges. -sing /urope as eample top eperts tell us that anywhere from 01(234 of all businesses in the $M& sector  5small to medium enterprise6 ha*e used ! financing solutions as offered by commercial finance firms. Those same eperts also draw a *ery clear conclusion that financing ! outside of the bank plays a large role in economic de*elopment. $ash flow that is generated from an ! factor solution is used for a *ariety of reasons ( it&s ' asset monetiation' and is not term debt of any sort. #or that reason the business ownermanager has the fleibility to use funds for immediate needs primarily related to growth and operations. Think of it as a ' buffer ' to ongoing working capital re7uirements.o why don't more business access business cash flow *ia AR )inancing . tudies tell us that one major reason is $anadian business simply doesn't know about this solution. They also tell us that there are key misconceptions around what type of company is using these methods. It might surprise many business ownersmanagers that the largest and most well known of corporation&s access this same financing *ehicle... in certain cases the +ay street gang just gi*es it a fancier name ( such as $ecuritiation $ost also plays a factor in the adoption of the use of an ! #actor. It's critical to understand also that this method of financing works best in a normal or high growth en*ironment. $ompanies that are in a downward sales spiral would not benefit from the solution.till others feel its comple to administer on a daily basis. While that might be true our recommended client solutions, C#F'3&T'A R&C&'%AB& F'AC'5  allows for the business to bill, collect and cash flow their sales in a completely confidential manner.o bottom line, the ! factor solutions is 8%T a loan, it&s not a bank o*erdraft facility, it&s simply a method to cash flow sales on an ongoing basis in an unlimited manner. eek out and speak to a trusted, credi+le and e6-erienced Canadian +usiness Financing Ad.isor with a trac/ record o) success who can assist you with your ! financing and growth needs.  $tan 7ro/o- ( 8 7ar/ A.enue Financial : htt-:www8-ar/a.enue)inancialco* +usiness financing for $anadian #irms , specialiing in working capital, cash flow, asset  based financing , /7uipment Leasing , franchise finance and $dn. Ta $redit #inance . #ounded 933: ( $ompleted in ecess of ;3 <illion = of financing for $anadian corporations . 'n)o Contact : 8 7AR9 A%&& F'AC'A ; CAA3'A AR FACT#R F'AC'5 &<7&RT'$& a.e A =uestion Co**ent #n #ur Blog #r Canadian Business Financing ? C#TACT: > ark !*enue #inancialouth heridan /ecuti*e $entre9;03 outh heridan Wayuite 230%ak*ille, %ntarioL@A >AB  3irect ine  C :0@ 20; 1>@; #))ice C ;31 B9; 9@12 &*ail ;  sprokopD>parka* > Canadian Business Financing with the intelligent use o) e6-erience >
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