Questions About Services You Must Know the Answers To

Reputability in Equipment Financing Endeavors

Equipment and machines are extremely essential elements in any type of business. Having these will provide you the possibility to thrive in all your business objectives primarily on earning profit. Nevertheless in some cases, these things are not that easy to have. In addition to the problems of spotting the excellent quality units, the financial capability to have these will be of more significant issue. But despite of how tough acquiring these merchandises are, businessmen will often find means to get finances and pay for these units. Some may go for outlawed tactics which is absolutely not advisable due to the damaging consequences it can lead to the business and to the owner, while others would go for financing and other lawful means.

Needless to say, the second option would be the best among the methods of obtaining tools and equipment. For any business owner to fully realize the capacity of the business to make profit, it is a good idea to have an institution to finance for the equipment.

Agencies that accommodate financing may involve a variety of procedures, regulations and guidelines, and all things about processing. Financing corporations might also vary in the type of tools or machines and the total of money they can finance. Some of which may finance vehicles, computers and accessories, medical equipment, and other things necessary to run a particular business. However, most of these organizations also are turning into a watchful mode on financing which implies that in order for them to give funds, the individual is awarded funding only if verified to have the capability to pay or other forms of confirmation. This is truly not a surprising situation. With the world we have today, which is filled with lots of scammers and con artists, they would make sure that they only give financing to the right persons, otherwise, their business will be doomed.

On the side of a business owner, finding the right financing institution is also a must. As said, not all financing companies are the same, so it is important to have one that will suit your needs. There are some agencies in which the procedures are less complex than the others. Some also may have quite challenging rules but can provide larger financing. Nonetheless, there are also others that instead of helping you acquire the equipment you need for your business, they would try to grab you down by having unrealistic interest rates and mode of payment.

In summary, equipment financing is ideal for businesses. Even so, it is a fact that financing companies will always provide financing only to the suitable men and women with confirmed trustworthiness. And the thought of it must be placed on business owners who desires equipment financing too.


Accounts Receivable Financing For Small Businesses 2011

One of the more pressing issues all business owners face is managing cash flow. However, this really shouldn’t be a pressing concern. When companies want to alleviate their cash flow concerns, they often turn to the trusted benefits of accounts receivable financing. What exactly is accounts receivable financing and how can it help your business deal with cash flow, raise those much needed funds and allow you to concentrate on what you do best?

When thinking of accounts receivable financing, think of it as a business loan on your receivables without the bank and without the waiting. In essence, accounts receivable financing is when your company uses your outstanding customer invoices, or receivables, as collateral. Since one of your company’s greatest assets are your receivables, being able to draw upon their value in times of need, will finally put an end to those concerns of cash flow. So, what are the options with accounts receivable financing?

Finance companies involved with accounts receivable financing have a number of financing options that allow business owners to draw upon the value of their outstanding invoices. In some cases, companies may choose the route of using invoice discounting where companies can use their outstanding customer invoices as collateral and borrow money from the finance company. Most finance lenders allow their customers to continue to draw upon invoices going forward. Customers are able to have a running credit limit and will benefit from immediate cash provided they maintain their payment frequency. The benefit in this approach is discretion as the company is able to use much needed funds without their own customers being involved. Earlier invoices garner higher upfront cash and returns while older invoices are less likely to be valued by the finance company.

Another option with respect to accounts receivable financing is invoice factoring where the finance company provides upfront payment on receivables and then proceeds to collect from the company’s customer directly. The benefit of this approach is that it allows some companies to make a clean break from unpleasant customer relationships or to break away entirely from a given market or industry. However, factoring companies are professionals and understand the importance of retaining strong customer relationships. As such, companies often come to rely upon factoring companies to strengthen their customer relationships. In this sense, it’s perceived more as receivable collection outsourcing.

For business owners who want to put an end to their cash flow concerns, nothing is as powerful and flexible as accounts receivable financing. There are a number of options available to suit almost every need. Do away with those business loans and credit lines and use your receivables to your advantage.

Why Canadian Companies Use Factoring Receivables Solutions for Business Financing

Knowing you are making the right choice in factoring receivables for your Canadian business is half the battle. You then have to pick the best firm to facilitate your transaction, and like most business owners you want to know you have made the right decision.

Let’s recap why A/R financing works, and more importantly, how to select the best companies to work with based on your own needs.

There are numerous reasons why you might want to use a factoring receivables strategy to finance your business. The best reason you can have is that you are growing! And growing quickly – Because in that situation you are unable to achieve the sort of traditional financing you need to run and finance your business on a daily basis. Simply speaking working capital and cash flow become your overwhelming priority on a day to day basis, and that shouldn’t be the case!

So, yes… you have identified invoice factoring and financing as your solution – but more importantly you also want to know how it works and how it will both affect and benefit your business on a day to day basis. The reality is that if are a small and medium sized business owner in Canada you are probably relying heavily on what the finance folks call a ‘ self financing’ strategy. That simply means that you are only using your existing cash flow to finance your growth and profits – you are not in a position to, or don’t want to… take on more debt for your company.

Enter at stage left receivables financing companies! They purchase your a/r a daily, weekly, monthly ( its your choice!) basis and provide you with same day cash flow as soon as you have generated a valid sale and invoice.

And why does this strategy appeal to Canadian business owners? Simply because you are not creating debt on your balance sheet, and the personal guarantee situation is all but eliminated and you have the ability, ( if you choose the right partner firm ) to exit this financing at any time.

So, it all seems like a perfect world right? in effect the perfect business financing situation. Well in business it doesn’t work that way, there are pitfalls and mistakes you need to avoid when utilizing a factoring receivables strategy.

So what are those mistakes you should not make? Partnering… you need a firm that meets your needs, both geographically, with competitive rates, and the ability to transact with you on a daily basis. We strong recommend what we call a C I D solution, which is the acronym for Confidential Invoice Discounting. This allows you to bill and collect your own receivables, finance them when you want, and receive the same rates as your competitors who aren’t using this C I D strategy. In their case their customers are contacted for payment by the factor firm, and this is unappealing to many Canadian businesses.

Whether we like it or not our clients always focus on rate when talking about a move to companies that will finance their receivables. Factoring rates are perceived as more expensive but in many cases when you factor in use of funds, ability to grow your business, etc the decision is not as difficult as you might think.

Speak to a trusted, credible, and experienced Canadian business financing advisor who is an expert in factoring pricing, picking the best solution for your firm, and negotiating pricing and fees and advances that work best for your future growth and profits.