We’re going to demonstrate how a little-known and, in our opinion, almost secret strategy called Confidential Cash Flow Factoring can turn your accounts receivable into a virtual cash flow machine, turning AR financial hurdles into cash flow solutions. of cash.
Search engine analysis will show you that thousands of Canadian businesses are searching every day for what they hopefully believe will be valuable information on today’s most popular business financing method. By the way, those businesses, of all types and sizes (including Canada’s largest corporations) want to know why cash flow factoring offers unlimited cash flow unlock based on their sales and receivables.
Initial explanations and summaries to clients sometimes bog down on key issues such as the cost of this AR financing method and, just as important, is the unwillingness of some clients to accept how the invoice is discounted (that’s another name for this type of financing). plays.
Canadian business owners and financial managers want you to like a good thing, while also wanting to know how it works and how to avoid the pitfalls. Let’s look at the ‘how it works’ part first, and then share with you the method that we believe eliminates the top perceived pitfalls seen by many businesses considering this type of financing.
We will focus on small and medium-sized businesses (larger corporations have access to all types of financing and external financing strategies), while small and medium-sized businesses in Canada tend to rely on their own cash flow to fund their continued growth. and its operation. capital. In fact, many businesses realize they have the potential to increase sales and profits, but can’t due to a lack of working capital.
Let’s get back to ‘how it works’! Accounts receivable cash flow factoring is the continuous sale, in whole or in part, of your sales invoices as you generate them and deliver products and services to your customer. Bills are purchased at a 1-3% discount from yourself, and you receive cash, 99% of the time the same day, for those sales. So, in effect, all of your sales are now fueling that cash flow machine you’ve turned your business 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 must be sent to your financial factoring company. Canadian companies, in our view, are reluctant to involve their clients in their internal financial policies and challenges. As a result, many companies are skeptical of entering AR financing in this way.
There is a solution? We told you there was – it’s a breakthrough called confidential invoice discounting. This type of financing is the same cost, allows you to bill and collect your own accounts receivable, and gets all the benefits of that cash flow factoring machine we turned your business into.
Talk to a trusted, credible and experienced Canadian trade finance advisor who can place you in a suitable AR finance facility, allowing you to reap the benefits of cash flow invoice financing while allowing competitors to , customers and suppliers remain. exactly where you want them to be, outside of your financial strategies and challenges! Let your competitors try to figure out how you’re doing so well in both growth and profits.