One of the challenges of working with large commercial clients is that they often demand trade credit as a condition of doing business with your company. This gives them the ability to pay your invoices in 30 to 60 days. While this can be great for your clients, it can wreak havoc with your cash […]
Receivables Financing
How to Finance a Canadian Business
Most commercial sales are done using trade credit. This means that the seller is expected to provide the buyer up to 60 days to pay an invoice. Most companies provide payment terms to their customers because clients demand it. You have little choice. Often, these provisions are inserted into contracts and you have to comply […]
How does Factoring Work?
This article provides a detailed view of how factoring works and of how a factoring transaction is structured in Canada. It covers everything from setting up an account to financing the first batch of invoices. Transaction Summary In a factoring transaction, you sell your invoices to a finance company in exchange for an immediate payment. […]
What is Invoice Factoring?
Factoring is a form of financing that has been gaining popularity in Canada as a way to finance a company with cash flow problems. This article helps you understand invoice factoring better and determine if it is the right solution your company. What problem does factoring solve? Most corporate sales, especially those to large customers, […]
How Receivables Loans Improve Your Cash Flow
It’s not unusual for successful businesses to experience cash flow problems. Problems often occur because you have to pay corporate expenses quickly; however, your commercial clients have 30 to 60 days to pay their invoices. Having a lot of money tied to slow-paying receivables forces you to use cash reserves – leaving you in a […]
What is Accounts Receivable Factoring?
Accounts receivable factoring is a financial tool that can help companies with cash flow problems because clients are paying invoices in net-30 to net-60 days. Small business owners are often faced with having to offer term credit to corporate clients. Unfortunately, many owners don’t have sufficient cash reserves to run their businesses, pay their expenses, […]
How to Use Receivables Factoring to Improve Your Cash Flow
Losing a sale because you could not afford to service the client and wait for payment is probably one of the most frustrating things that can happen to a business owner. Unfortunately, this very thing happens to business owners across Canada every day. They have the sales expertise and the business acumen to grow their companies, but […]