receivablesfactoring

Managing cash flow could be a challenge for numerous businesses. But creative funding options like invoice factoring and purchase order (PO) funding can make the job much simpler. These financial solutions offer convenient, cost-effective and immediate access to operating capital. Invoice factoring and purchase purchase financing are suitable for businesses in just about any business. They can provide monetary support to expand, manage company surges as well as meet day-to-day operating expenses. And they're ideal if your company is newer and can't obtain a loan. The Ins and …

Factoring Invoices

There continues to be a fair amount of press about the alternative financing method known by a number of different names - These include Factoring, Working Capital Financing, Cash Flow Financing, Invoice Discounting, etc!! Let's keep it simple and we'll just call it factoring for our purposes.
The old cliché that the 'cheques is in the mail 'probably has never run more true for Canadian business owners and financial managers. Receivables, on balance, tend to be in most cases either the largest (or pretty close to it) liquid …

Invoice factoring is when a business sells the invoices that are owed to them to a third party company. This company will buy the invoices at a percentage less than what is due on them, give the business immediate funds, and when the customer pays the invoice the money will go to the third party company. The invoices will be paid by the customer exactly as they would if invoice factoring were not involved and the customer will not be informed of this arrangement. This method can be an important …

Working Capital via factoring continues to be a viable solution for Canadian business owners and financial managers. The process at first glance is quite simple - your firm 'sells' its invoices to generate immediate same day cash for those invoice assets.
Clients ask us how this is different from a bank operating line of credit based on receivables. Simply speaking the difference is simply the method in which the asset - the receivables, is secured. In a Canadian chartered banking type arrangement your receivables are 'assigned ', not 'sold' to …

Factoring financing in Canada is a proven, and growing in popularity method of generating cash flow and working capital for your Canadian firm. It often works best in conditions when your firm is experiencing higher than historical growth, or in many cases you are a start up or early revenue company who requires additional cash flow that you might not be able to attain from Canadian chartered banks.
In speaking to many clients factoring is clearly mis - understood. Last week we got a call from a customer who …