Confidential Cash Flow Factoring – Turn Accounts Receivable Into Your Best AR Finance Strategy
We are going to demonstrate how a little known, and in our opinion almost a secret strategy can called confidential cash flow factoring can turn your accounts receivable into a virtual cash flow machine, turning past AR finance obstacles into cash flow solutions!
Search engine analysis will show you that thousands of Canadian businesses search everyday for what they hopefully believe will be valuable information around the most popular method of business financing today. Those businesses, of all types and sizes by the way (even the largest corporations in Canada) want to know why cash flow factoring offers unlimited unlocking of cash flow based on your sales and receivables.
Initial explanations and overviews to clients sometimes become bogged down in key issues such as the cost of this method of AR finance, and, equally important, is the unwillingness of some clients to accept how invoice discounting (that’s another name for this type of financing) works.
Canadian business owners and financial managers want to like a good thing, at the same time they want to know how it works and how they avoid any pitfalls. Lets discuss the ‘ how it works ‘ portion first and then share with you the method we believe eliminates the major pitfall perceptions viewed by many firms considering this type of financing.
We’ll focus on small and mediums sized business – the larger corporations have access to all sorts of financing and external finance strategies – while the small and medium sized businesses in Canada tend to rely on their own cash flow to fund their ongoing growth and working capital. In fact many firms realize they have potential to grow sales and profits, but cant because of that lack of working capital.
Back to the ‘how it works’! Cash flow factoring of accounts receivable is the ongoing sale, in whole or in part of your sales invoices as you generate them and deliver products and services to your customer. The invoices are purchased at 1- 3{3bb2a8e703be8d5bb7fc1289a915cd39229c5bcd006c8cdf059732c7e19a8eab} discount from yourself, and you receive cash, 99{3bb2a8e703be8d5bb7fc1289a915cd39229c5bcd006c8cdf059732c7e19a8eab} of the time the same day, for those sales. So, in effect all your sales now fuel that cash flow machine you have turned your company into.
So far, so good, right? Where complications arise, especially in Canada, is the fact that this type of financing requires your client to be notified of the process, directly, or indirectly, and payments are required to be forwarded to your factoring finance firm. Canadian business, in our eyes, has a reluctance to involve their customers in their internal financing policies, and challenges. As a result, many firms are skeptical of entering into AR finance of this manner.
Is there a solution? We told you there was – it’s a breakthrough called confidential invoice discounting. This type of financing comes at the same cost, allows you to bill and collect your own receivables, and gains all the benefits of that cash flow factoring machine we turned your company into.
Speak to a trusted, credible, and experienced Canadian business financing advisor who can put you into a proper AR finance facility, allowing you to reap the benefits of cash flow invoice financing, while at the same time allowing competitors, customers, and vendors to remain exactly where you want them to be, outside your financing strategies and challenges! Let’s let your competitors try and figure our how you’re doing so well in both growth and profits.