Factoring is a financing solution commonly used by carriers and brokers that need financing. It helps improve the company’s cash flow by financing slow-paying invoices. The solution provides the company with funds to operate the business more effectively. This article explains how factoring works and addresses some specific details about the due diligence for carriers […]
What is Accounts Receivable Factoring?
Accounts receivable factoring is a type of business financing that helps companies with cash flow issues. It allows companies to finance their accounts receivable (A/R), which provides immediate funding. A/R factoring is commonly used by small and growing companies that don’t have large cash reserves. In this article, we cover: 1. Do you provide net-30 […]
Factoring Financing for Small Freight Carriers
Most small Canadian freight carriers don’t have adequate cash reserves. This situation is common for small businesses. Unfortunately, this lack of a reserve leaves them vulnerable to cash flow problems. Managing these cash flow problems is difficult because smaller trucking companies usually don’t have easy access to bank financing. This article discusses how small carriers […]
How to Finance an Oilfield Services Company
Managing the cash flow of an oilfield services company can be a demanding task. The oil and gas industry is dynamic, with periods of fast growth usually followed by sharp slowdowns. In this operating environment, small and midsize companies can face cash flow problems when their growth gets ahead of their financial capabilities. This article […]
How to Finance an Oilfield Transportation Company
Invoice factoring is a popular solution used by oilfield transportation companies with working capital issues due to slow-paying invoices. This article discusses how factoring works and helps you determine if it’s the right solution for your company. We cover: 1. Slow cash flow is a problem Oilfield transportation companies can be very profitable but are […]
How to Finance a Commercial Landscaping Business
A common problem for commercial landscaping companies is that corporate customers usually pay invoices in 30 to 60 days. As a landscaper, you often have to provide payment terms to your clients if you want to win their business. However, offering payment terms can expose you to cash flow problems. This article discusses how to […]
How to Finance a Technology Staffing Company
Summary: Most staffing companies are launched by entrepreneurs who have a vision but little start-up capital. The companies operate on tight cash flows for their first few years as they grow the client roster. However, growing a company with a tight cash flow is challenging and carries significant risks. All it takes are a couple […]
How to Finance a Software Development Company
Software development companies can be very profitable businesses but are also cash-flow intensive. This challenge must be managed correctly to avoid cash flow problems that could affect the viability of the business. This article discusses two techniques Canadian software developers can use to address this issue. We cover: 1. Revenues vs. costs Software companies often […]
How to Finance a Building Products Distributor
Working with builders and general contractors (GCs) has advantages. They are often recurring customers who place larger orders and can help grow your business. However, these customers usually ask for net-30-day payment terms. This request is a challenge because offering payment terms can lead to cash flow problems if not handled correctly. This article presents […]
How to Finance a Consulting Firm
Summary: Most consulting companies are launched with very little capital and few assets. They usually do not have a substantial cash reserve. The company operates month-to-month, using incoming revenues to cover expenses. This approach can work for small companies. However, it can create financial problems if your company is growing. This article discusses how to […]