Corporate Finance Cash Flow on Autopilot?

Corporate cash flow financing for many companies in the SMB sector involves the need to convert accounts receivable into cash for the business, basically we speak of “invoice cash” which is the type of financing that clients here at 7 Park Avenue Financial are looking for – i.e. cash flow lending This term is synonymous with cash flow challenges that many businesses encounter all the time. How, then, does using an AR finance company help address this challenge?

Sooner rather than later, the need exists for business owners who want cash flow to meet the needs of their business. In many cases, certain industries charge a lot more money for companies operating in that sector. This may mean a greater focus on capital investments or even research into new products and services.

However, what happens when you cannot get the loan financing you need from traditional banks/business-oriented credit unions, etc.? That’s where an AR Finance company comes in.

Your ability to set up an accounts receivable discounting function quickly and efficiently allows you to instantly eliminate the problem of having to wait 30, 60 or even 90 days to receive customer funds for your goods and services.

Of course, to get full financing of your receivables from a Canadian bank, there is an extensive loan and business application that puts a lot of emphasis on historical cash flow analysis, balance sheet analysis, income statements and operating ratios, etc! Bill payment services eliminate 90-95% of this type of waiting and negotiation.

So why does factoring, the more technical term for bill cash, actually work and is growing in popularity every day when it comes to “cash” solutions. The answer is simple, instant cash flow based on your sales revenue. This becomes the biggest part of the solution to what the pros call your “working capital cycle.” Put simply, this cycle is the time it takes for a dollar to travel through your business and return to the balance sheet as cash.

When you fund through bill cashing — also known as bill discounting — you’re not borrowing long-term funds. Your balance sheet does not accumulate debt; You simply liquidate current assets more efficiently.

Is there one type of bill cash setup that works better than others? We’re glad you asked! We constantly recommend Confidential Receivables Funding, this is the “no notification” part of this solution that allows you to charge and collect your own accounts, transfer your own funds and choose how much funding you need on an ongoing basis. It’s classic “pay for what you use” financing when you work with the right partner.

What is a cash flow loan? What are my company’s options for financing cash flow?

A/R funding isn’t always the “only” way to fund cash flow needs. Other strategies could be:

Short term working capital loans

Sale-Leaseback Strategies

inventory financing

Tax Credit Funding (Sr&ed refunds are fundable)

Mezzanine Financing – (Cash Flow Unsecured Loans)

Of course, longer-term solutions include scenarios such as new equity.

Of course, to get full financing of your receivables from a Canadian bank, there is an extensive loan and business application that puts a lot of emphasis on historical cash flow analysis, balance sheet analysis, income statements and operating ratios, etc! Bill payment services eliminate 90-95% of this type of waiting and negotiation.

Of course, long-term financing activities can include scenarios such as new equity from owners.

So to recap, your business needs extra cash flow. Either you have facilities that aren’t working, or you’re self-financing and need cash flow to pay suppliers, employees, etc. Find and speak to a trusted, credible and experienced Canadian business finance professional who can provide you with invoice cash for your business needs.