Financing company accounts receivable may be the ‘new and better’ solution for the challenges of your business cash flow. Factoring companies provide solutions in many cases Bank Chartered Canada cannot provide based on their more severe credit requirements for borrowers.
Why do so should the business owner of the Financial Manager see accountsome financing facilities? It was a typical question posted by business owners who sit with our company to discuss their financial challenges.
Simple reason is a fairly basic business cash flow – acceleration. Since you generate invoices and make your company sales qualify for direct cash. And the good news is that you can finance all your sales and invoices, or just partially draw based on your needs. Most companies have their own cash flow cycles, including seasonal industries they have.
We have mentioned that regardless of the level of accounts receivable (they are higher than bank financing) this type of financial solution this company has become an alternative de facto for traditional business credit pathways. More for small and medium businesses in Canada, also known as the ‘SME’ sector. But don’t be shocked when we tell you than many larger companies using this sense of financial method too.
Why is the ‘positive cash flow’ so important in the current Biz world? Just because competition is harder than before and your ability to improve your reputation with suppliers and customers is very important. This gives your ‘professional visibility’.
Actually there are other forms of short-term cash flow financing including sales rental, SR & Ed tax credit financing, short-term working capital loans based on your sales volume, etc. Financing a / r factor to guarantee your receivables, but not other assets.
Business clients will always ask if there is a ‘upper limit’ with the amount to be given by factoring companies on their sales. The answer is no upper funding limit! Your sales revenue becomes almost an automatic ATM machine!
If there is one solution that we recommend to all the others for accountsing financing facilities, this is a ‘secret’ facility. This allows you to charge and collect your own receivables and achieve all the benefits of this type of solution.
If you focus on almost every day ‘survival of cash flows’ maybe it’s time to recognize the financial solution right in front of you – A / R Finance!
Looking for and talking with the Canadian business financing adviser who is trusted, credible, and experienced with a track record in business finances.