Jun 13, 2015
Canadian Receivables Financing ' Grow Cash Flow And Lose Money ! Receivable Factoring Equals Busines
Canadian business owners and financial managers should not be ' tricked' around our statement of 'grow cash flow' and ' lose money' as a recommended strategy. But when they understand the essence of receivables financing they do see the truth in that statement,custom bobbleheads, which revolves around how receivable factoring is priced and how it benefits their benefits their business.Receivable finance is a source of working capital. It is not debt financing, which is a common misperception of what it is and how it affects your business. In technical terms the A/R is sold to your A/R partner. That sale is done at a discount basis,customize bobblehead, meaning that over a 30 day period you would typically receive 98,personalized bobbleheads,000.00 on a 100,000.00 receivable. That 2k cost is in essence a loss,customized bobbleheads, or a financing cost. What you do with those funds and how you run your business allow you to sell more,custom bobblehead, do more, and recover a huge portion of that financing cost.This type of financing arrangement is used in a wide variety of industries in Canada,customize bobblehead, by thousands of companies,History Of Golf For Women,,, including,., we bet, many of your competitors. If we had to identify the two major benefits of this method of Canadian business financing we would say it's simply the high advance rate on your sale/receivable, as well as of course the quick turnaround.Quick turnaround? If you consider same day funding for any sale you make in our book that's a quick turnaround.Relatively speaking (relative,Duke Blue Devils Basketball Tickets � So Good � Yet So Close, say, to a Canadian chartered bank) the financing is perceived as expensive. We say perception, because when we sit down with clients and review the fact that they are already carrying receivables anywhere from 60-90 days , plus the fact that the new found cash flow can be used for a variety of profit generating activities .. well we think you get the point. And that's that perception is not always reality.When receivables financing arrangements are done properly you are even in a position to ensure that you are not introducing a third party to your client process. Our recommended strategy is a C I D facility,custom bobblehead, which is the term for confidential invoice discounting,custom bobble head, allowing you to bill and collect your own A/R, reaping the benefits and eliminating the disclosure!We're pretty sure you're getting our main point today,custom bobbleheads, which is simply that information,personalized bobblehead, facts,Thinking About A Trip To London,personalized bobble heads, and the proper interpretation around this method of financing is what generates a winning combination.Some of the key benefits can simply be grouped under the term ' predictable cash flow. And if you choose the right partner firm and our recommended confidential A/R facility your strong customer relationships stay intact.We're open enough to say that the majority of firms who in fact entertain receivable factoring can't get financing elsewhere, particularly at their bank. But don't forget also that many instances involve firms such as yours who are growing too quickly or who have landed that ' big contract' or order. It's at this time that busines owners appreciate the fact that their net worth,customized bobbleheads, profitability,personalized bobblehead, debt coverage,Positive Lifestyle Changes With A Outside Operated Skateboard, or operating losses arent under the microscope anymore. And your firm is free to explore other methods of debt financing outside your A/R assets.Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you to work through the benefits of this type of finance.
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