Information on factoring and receivable financing in Canada. Only when certain elements of AR Financing and cost are understood does this funding strategy make sense for your company

1. Receivable Finance Canada: Finally Your Clear Explanation Of
Factoring & AR Financing
Eliminating The Hail Mary Pass on Canadian Receivable Financing Techniques

2. OVERVIEW – Information on factoring and receivable financing in
Canada. Only when certain elements of AR Financing and cost
are understood does this funding strategy make sense for your
company
Receivable Finance generates somewhat of a ' fear of the unknown' when we talk to
clients who are business owners / financial mgrs looking at AR Financing, commonly
known as ' factoring'.
The problem though is that with so much diversity out in the market the solutions they
are offered are ' reheated' / misunderstood. Not knowing the different nuances often have
your company feeling like it needs a ' HAIL MARY PASS' for their Canadian Receivable
Financing needs. The solution? Understanding the offering and how it works and benefits
your firm. Let's dig in.
A ' Hail Mary Pass’? That's the legendary term coined by NFL great Roger Staubach. He
actually borrowed it from two 1930's players at Notre Dame who coined the term when
they needed a last chance ' low probability' pass that needed divine intervention!
No divine intervention needed here, just common sense. Owners/finance mgrs just need
to think of A/R financing as a business line of credit against receivables. Simple enough.
But not so fast. Because the paperwork of ' factoring' shows that you don't have '
ownership ' of the A/R certain terms must clearly be understood. Let's cover off key
basics.
Your borrowing ability on your factoring line of credit will always be based on specific
collateral, i.e. the amount of your outstanding invoices, typically less than 90 days old.
(Older invoices are deemed uncollectible).

3. How much can we get? is a typical client question. The answer -more often than not your
advances will be 90% of your outstanding A/R.
Cost? Financing costs are higher in factoring. However you can lower your costs by up to
50% or more if you focus on strong collections to clients. Simply speaking - the length of
time your clients take to pay determines your financing costs.
Miscellaneous fees abound for many offerings which can increase your cost. These
include closing fees, ' facility fees’, aka standby fees, termination costs, monitoring costs,
and up front deposits. Our answer to all of the above - with the right lender pretty well
none of the above should apply to your finance offering.
Receivable finance works best when your sales are constant or growing... We caution our
clients who might be in high distress of have flagging sales that entering into the wrong
financing arrangement at this time causes negative cash flow due the fact that borrowings
will mostly go to reducing the credit line.
Have we forgotten anything? Just that our recommended facility for almost all our clients
is CONFIDENTIAL RECEIVABLE FINANCING, allowing you to bill and collect your
own invoices without the required notification to your clients that 99% of the industry
requires. It’s much better than the ‘reheated’ versions of old school factoring offered by
most Cdn firms.
Our bottom line? Work with a trusted, credible and experienced Canadian business
Financing Advisor with a track record of success
who can assist you in determining the total cost, as well as benefits of ' factoring' ,
including comparing the facility to a bank line of credit. Common sense Canadian
business financing - no Hail Mary Pass needed!
Stan Prokop - founder of 7 Park Avenue Financial –
http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working
capital, cash flow, asset based financing . In business 10 years - Completed in excess
of 100 Million $$ of financing for Canadian corporations . Core competancies
include receivables financing, asset based lending, working capital, equipment
finance, franchise finance and tax credit financing.
Info & Contact Details :
http://www.7parkavenuefinancial.com/ar-financing-factoring-receivables-

4. finance.html
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing with the intelligent use of experience '
ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most
successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25

5. years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT
CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND
HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business
Financing.
Stan has over 40 years of business and finance executive experience. He has been
recognized as a credit/financial executive for three of the largest technology
companies in the world; Hewlett-Packard, Digital Equipment and Cable &
Wireless. Stan has had in depth, hands on experience in assessing and evaluating
thousands of companies that are seeking financing and expansion. He has been
instrumental in helping many companies progress through every phase of financing,
mergers & acquisitions, sales and marketing and human resources. Stan has worked
with startups and public corporations and has many times established the financial
wherewithal of organizations before approving millions of dollars of financing
facilities and instruments on behalf of his employers.
Stan Prokop

6. years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT
CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND
HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business
Financing.
Stan has over 40 years of business and finance executive experience. He has been
recognized as a credit/financial executive for three of the largest technology
companies in the world; Hewlett-Packard, Digital Equipment and Cable &
Wireless. Stan has had in depth, hands on experience in assessing and evaluating
thousands of companies that are seeking financing and expansion. He has been
instrumental in helping many companies progress through every phase of financing,
mergers & acquisitions, sales and marketing and human resources. Stan has worked
with startups and public corporations and has many times established the financial
wherewithal of organizations before approving millions of dollars of financing
facilities and instruments on behalf of his employers.
Stan Prokop