Thursday, June 11, 2015
New Ways To Achieve Accounts Receivable And Inventory Financing - The W C Finance Loan Facility
Successful business owners and financial managers are always looking for a new... no wait,customize bobblehead, ' better ' way business financing success. No where that is more obvious than in the quest for accounts receivable and inventory financing, the actual monetization,custom bobblehead,Learn The 3 Different Ways To How To Swim Faster, if you will, of your balance sheet current asset accounts.So we have dubbed the solution as W/C solution if you will . What's W/C - Why working capital of course,customized bobbleheads, and a variety of ' flavours of this type of financing loan facility are available to your company. It's just that they are not well known - Until now!Is it unique, or novel to be looking for way to raise cash flow and working capital out of your receivable and inventory investments? Absolutely not, its just that its become a lot more difficult in the past several years - and we're talking from the start up right up to major corporations - No one has been exempt from the pain challenge of raising working capital, that works!So what sort of ' cash flow products ' if you will, are available? Many clients are skeptical that it is difficult,custom bobblehead,Starting Off With Football, or impossible to generate a stand along inventory finance facility. There is some truth in their belief,personalized bobblehead, in that the collateralization of your inventory is in many cases tied to the overall collateral that your company offers up, usually in the form of a blanket General Security Agreement given to your lender, in some cases Canadian chartered banks.However the hard reality,customize bobblehead, even harsher since the 2008-2009 recession,custom bobbleheads, is that inventory financing in Canada has been difficult to achieve.So let's cover off your options in this regard,,, one of them might well be the option you are looking for. At the top of our order is of course straightforward bank financing that is margined against your collateral,personalized bobbleheads, typically the A/R and inventory we mentioned. That's probably optimal, but the requirements that come with that facility are significant, they are good financials,Join The Front Line Of Point Of Sale Technology, owner guarantees, strong operating performance... well you know the drill.However, did you know that there are independent finance firms that offer a working capital facility along the same lines as that chartered banking arrangement we mentioned. The most valuable facility is the asset based loan, a financing arrangement that in many ways is similar to a bank deal,custom bobbleheads, but significantly margins your inventory financing needs simply because real value and appraisals are made on your inventory. There are numerous situations where clients have been able to double, and even triple their overall working capital loan facility with this type of transaction.A number of what we call ' second tier ' firms step in for many small and medium size transactions, for facilities that generally range from 250k - to 3 Million dollars. These facilities are more expensive, but again give you very solid borrowing power.And back to our main theme,., is it possible to achieve a pure inventory and contract financing in Canada. This solution is more expensive,custom bobbleheads, but non bank in nature,Different Ways To Shoot With Target Rage Broad Heads, and provides a method in which you suppliers are paid directly , with your rights in inventory and contracts being assigned to the lender an independent finance firm, somewhat boutique in nature . You are simply leverage the actual inventory prior to it being sold and generated into a true receivable, which of course itself can then be monetized.So,custom bobble head, whats our take away here? Pretty basic, yet giving you hope. Various forms of direct inventory,personalized bobble heads, non bank financing,personalized bobble heads, and contract and purchase order financing do exist in Canada. They are becoming more mainstream everyday. Intrigued? Got questions? Have a unique situation? Speak to a trusted, credible and experienced Canadian business financing advisor real world solutions to an inventory financing loan facility in Canada.
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