Financing

Is Financing Inventory And Financing Purchase Orders Actually Possible In Canada ? Yes You Can!

It’s not a myth or urban legend. Financing inventory and financing purchase orders in Canada is actually possible and in most circumstances the cost of this financing is significantly offset by your firms ability to increase sales, generate additional profits, and lower competitive pressure .The bottom line is of course more larger orders and contracts, in some cases from clients you were not able to satisfy in the past based on our financial strength or other challenges.

Let’s step back a bit and define some of our key metrics. In its simple form the financing of inventory is simply your ability to finance, or rather, ‘ margin’ inventory on an ongoing basis. The inventory is of course simply the collateral. Clients talking to us about seeking specialized inventory financing are often in the position of having inventory form a large part of their current assets, in conjunction with accounts receivable of course.

So in a perfect world you go to your Canadian chartered bank and ask they to finance you inventory and free up cash flow. It’s that simple right? We can hear you already in the background, and we’ll be the first to admit it’s not a perfect world. Even seasoned Canadian business owners and financial managers realize the inventory is not high on the list of bank financing in Canada, especially if you are a small or medium sized firm that does not have the bench strength to satisfy typical bank criteria which focus around everything EXCEPT inventory, i.e. ratios, covenants, external collateral, personal guarantees, etc.

For inventory financing to make sense you should realize that your inventory has to be marketable, it can’t be old, stale and slow moving. You also have to be in a position to demonstrate that your inventory turns regularly, and that you have sufficient gross margin to carry the financing costs associated with financing inventory and financing purchase orders. P.o. Financing is of course the ‘ kid sister ‘ to inventory finance, and such a facility contemplates direct payment to your suppliers by the p.o. financier , allowing you to of course satisfy supplier payment amounts and terms, while at the same time fulfilling client orders and contracts .

So if the bank is not your best bet how actually are these two asset categories financed? The reality is they are financed by specialized firms, and in the case of inventory pure play financing we encourage clients to bundle their inventory financing with a full asset based lending line of credit via a non bank private finance firm. This type of facility margins both inventory and A/R to maximum leverage, giving you in essence unlimited working capital to grow.

To qualify for financing inventory and financing purchase orders you should generally have solid management and industry experience, good accounting and reporting around your inventory, as well as the aforementioned marketable product that can be resold by the financier if a problem arises.

Speak to a trusted credible and experienced Canadian business financing advisor on ensuring your understand the benefits and qualifications for this valuable financing tool and strategy.

Stan Prokop is founder 7 Park Avenue Financial ; Originating financing for Canadian companies,specializing: working capital, cash flow, and asset based financing , the 6 year old firm has completed in excess of 45 Million $ of financing for companies . For info / free consultation on Canadian business financing / contact details see:
http://www.7parkavenuefinancial.com/Financing_inventory_financing_purchase_orders.html

Debt-Free Business Financing With No Loss of Ownership Or Control

There is a form of business financing that is debt-free, with no loss of ownership or control.  It is very quick and still readily available.  It is the only form of finance that grows as fast as invoices.  There is no minimum time in business or collateral requirement.  The client’s personal or company credit is usually not important.  Prior liens are usually not a problem, so long as they’re disclosed up front.  (Factors don’t like surprises.  A deal that could have worked will probably die if the factor’s due diligence turns up undisclosed liens.)

This form of finance is called factoring.  Say your company (the client) provides a product or service to a customer, then issues an invoice for those goods or services.  The customer frequently takes 30-90 days to pay the invoice.  Rather than wait, the client can sell the invoice to a third party, called a factor.  The factor will verify that the invoice is valid and that the customer has the willingness and the ability to pay.

The factor will pay for the invoice in two parts.  Initially, he will pay the client an advance of typically 70-80% of the face value of the invoice.  This usually takes less than 48 hours.  When the customer pays, the factor will deduct a fee, and refund the balance to the client.  This fee is mostly affected by the time the invoice is outstanding.

There are numerous advantages to factoring for a client company.  The most obvious one is that cash flow improves immediately.   Factors also provide other benefits as part of their normal business, such as handling collections and tracking accounts receivable.  A factor can provide quality assurance when they verify that the customer received the product.  Another benefit is that a factor will verify a customers’ credit before advancing funds.  If you’re looking to do business with a new customer, but the factor won’t fund their invoices, you will want to be very careful about the terms you offer them.

Factoring rates tend to be higher than bank rates, but when considering costs it’s important to consider the benefits as well.  Having cash on hand to bid more work or take advantage of supplier discounts can make a huge difference. The objective is to make more money by factoring than you would if you didn’t factor.

Factoring has changed a great deal over the last ten years.  There are 5-10 times as many funding sources now as there were then, so rates and terms are much more competitive.  There are factors for invoice volumes of $ 500/month to over $ 10 million/month.  There are factors of all sizes who specialize in the construction and medical industries.

Because there are so many funding sources, your best bet is to use an independent broker. Most brokers don’t charge any client fees.  They are paid referral fees by the funding sources because the funding sources are wonderful people (many of them are very nice, actually)  and because it’s less expensive for them than advertising.  There is very little difference in referral fee rates between different funding sources, so finding the best match between the needs of the client and the funding source is the primary concern.

Mike Curtin
Owner
MSC Funding

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Starting and Growing Business With CNC Milling Machine Financing and Leasing

CNC milling machines are available from a number of places on the Internet. The machines come in a number of different varieties and their prices too are varied.

Every CNC machine will have the following components:

• Control Panel – It is that part, which has the small, or large computer keyboard. This is where the G-Codes are programmed into the machine.
• Coolant supply tubes – These are pipes through which coolant is pumped. It keeps the metal cool and lubricates the cutting tool.
• Table – It is the surface on which the work piece is kept or attached with the help of a clamp. The work piece sits here while it is milled.
• Axis – Every machine has one and the size and function are determined by the number of axis which can vary from one to six
• Column – It is the name of the part that runs along the axis and it holds the milling or cutting part.
• Cutting Tool – This is attached the column and it is what makes the actual cut on the surface according to the way it is operated.
• Spindle – It is what holds the cutting tool in place
• There is a large variety of milling machines to be found. Here are a few examples: –
• The vertical CNC mills are equipped with vertical spindle axis. A vertical spindle axis means that the cutting tool that does the milling is held vertically in the spindle and it spins on the spindle’s axis. This allows you to drill or make plunge cuts while extending the table. Bed mills and Turret mills are part of this type of mills.
• The horizontal CNC mills are equipped with the same kind of table as the vertical variant. But in this case the cutters are attached to a spindle that runs horizontally across the table.
• Those who use these machines for a hobby will find the box mill the most useful. This is simply mounted on a bench and goes up and down.
• There is also the Knee mill that has an x-y table and moves up and down the column. Something called the vertically adjustable knee is used is used to adjust these mills.
• The larger industries mostly use the C-Frame mill because it is the best one for large-scale works. It only moves up and down and has a fixed spindle head for allowing it to move like that.

The prices of these machines depend on their size and complexity. Large establishments will needs large and expensive machines, but you can also make do with small ones if your needs are small and occasional. Some people go for CNC milling machine financing when buying large machines.

There is also the option of buying old ones. But you do not have to worry too much about that now that you can get CNC milling machine financing. Just look for a good company that has experience in the field and you can avoid emptying out your pockets all at once.

For those who do not want to get hit by the high costs, there is CNC Milling machine financing available from various companies in the market. The upfront payment of such a machine would be quite large.

Visit Chris Fletcher’s site at: http://www.crestcapital.com/Catalog for all types of equipment financing info including CNC Milling Machine Financing details – free instant quote & web calculator!

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Starting and Growing Business With CNC Roll Forming Machine Financing and Leasing

The discovery of metal has been one the most decisive changes in the human history. Since that time, man has had the power to create powerful tools, structures and machines that would forever change the face of the earth. The tools for forming and manipulating metal have also advanced over the ages.

The modern society now depends on metal for everyday life, be it in the form of automobiles or the kitchen knife, metal is everywhere. This has made metal so important that the work of metal forming is also becoming quite popular.

Of the various types of metal forming, Roll forming is one very useful method. Do note here that the single word ‘rollform’ has the same meaning as the two separate words ‘roll form’. So these two words are used interchangeably. Here’s some more info:

• Roll forming is a common and useful method for forming objects from sheet metal.

• Roll forming is a very precise process and a special type of machine is used to roll form metal.

• These roll forming machines have several rolls that are placed one after another and they are divided into sets called ‘stands’.

• Each stand bends the metal only a little. So the metal can be passed multiple stands to reach the desired curvature.

• Roll forming is ideal for making parts, which are very long.

• Roll forming machines bend the metal into predetermined shapes. The shape would be a desired cross-section profile, meaning it will look like it was cut out from a complete shape like a cylinder for example. The cross-section profile is simply what the required end result of the bending is.

• Every shape needs its own unique set of rollers. That means that one roll forming machine can only make one shape.

Even though it might sound like it is not a very useful machine, you have to keep in mind that these machines are meant for industrial use. And factories need to make the same thing over and over again, in huge numbers. Like an automobile factory or aluminum can making facility.

So these places would not need to change the type of bend once the machine is installed. Each roller is carefully crafted for helping to form a specific shape and industries get their rollers customized before the machine is installed.

The CNC Roll forming machine has the advantage of automating the entire process, giving you a smooth bending process without breaking the metal.

Avoiding breakage is a major concern for many factories and the CNC roll forming machine delivers stellar results in this regard. So it is a necessary piece of equipment but it often costs quite high. But life can be made easier by availing CNC roll forming machine financing. It is for those businesses, which require the machine urgently but are unable to make such a large investment in one go. Of course, it is easy to understand because most start ups would be running short of capital.

You can avoid the hefty down payments and take some time to pay the full amount. Contact a company that is experienced in manufacturing equipment leasing for CNC roll forming machine financing.

Chris Fletcher’s page features more about new and used CNC Roll Forming Machine financing and other finance topics. Visit him at: http://www.crestcapital.com/Catalog – free instant quote & web calculator!

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Starting and Growing Business With CNC Turning Center Financing and Leasing

The CNC turning machine is just the machine you need if you are into work that involves heavy machinery and requires a lot of precision. This is a special kind of machine which enables you to spin blocks of material and bring them to a desired shape and size. Although the turning and spinning bit can be achieved manually, it takes up an immense amount of resources and time. Instead, you should go for computerized CNC turning machines which will enable you get great results.

The turning process basically requires you to place the material on the lathe and then employing the cutting tool. The cutting tool has to be kept at work until you get the depth and dimension that you wanted. One among the many benefits of the turner is that it enables you to cut the material both from the inside and the outside. All you will have to do is to provide the computer with the basic instructions and numbers and then you will see great results. You can have entire control of the machine by using the computer that operates it. This tool has numerous utilities and is a great investment. However, it is quite an expensive machine and most business owners do not begin with a capital big enough to invest in CNC machines. If this is the problem, then you should go for financing.

The turning process is capable of cutting metal into different kinds of shapes. From plain surface to taper ends to contours, it can do it all. So what are the uses of metals cut into various shapes by the CNC turner? They are used to make shafts, hubs, brushes, pulleys, rods and numerous other things. Another great use of the CNC process is that it can be used to cut metals with a circular cross section. Its advanced software tool helps to cut these machines perfectly for industry use. Software tools go a long way in cost cutting but they do have another disadvantage. It puts a limit to the number of designs that you can get otherwise.

The primary reason why these turning machines are so popular is that they enable you to get perfect end product at really cost effective prices. This is why the industry places its trust in this machine.

The CNC turning centers are very useful for cutting, shaping and creating machine parts. However, this kind of a perfect tool comes at a certain cost. It is quite expensive. So if you are starting your business and really need this machine, you should go for turning center financing. There are many financing companies that are ready to provide the money for buying these machines.

The CNC turning centers are controlled by a very advanced computer that gives you the accurate result that you desire. They work very well with any kind of job that you do. But since they are quite costly, you should go for CNC turning center financing. Numerous businesses have earned a lot of profit by investing in a CNC turning center or by getting hold of it through financing. So if you are starting off your business where you will require a high performance turner, you should go for the CNC turning center.

Chris Fletcher’s page features more about new and used CNC Turning Center Financing and other finance topics. Visit him at: http://www.crestcapital.com/Catalog – – free instant quote & web calculator!

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