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 (even the largest corporations in Canada) want to know why cash flow factoring offers unlimited cash flow unlocking based on your sales and accounts receivable.
Initial explanations and summaries to clients sometimes get bogged down on key issues like 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 to like something good, 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 major perceptions of 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 kinds of external financing and financing strategies), while small and medium-sized businesses in Canada tend to rely on their own cash flow to finance their continued growth. and its operation. capital. In fact, many companies realize that they have the potential to increase sales and profits, but cannot due to a lack of working capital.
Let’s get back to ‘how it works’! Accounts Receivable Cash Flow Factoring 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. Invoices are purchased at a 1-3% discount from yourself, and you get cash back, 99% of the time the same day, for those sales. So, in effect, all of your sales are now feeding into that cash flow machine that you’ve 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 customer to be notified of the process, directly or indirectly, and payments must be sent to your finance 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 bill confidential discount. This type of financing is the same cost, allows you to bill and collect your own receivables, and you get all the benefits of that cash flow factoring machine we turn your business into.
Speak to a trusted, credible and experienced Canadian business finance advisor who can place you in a suitable AR finance center, 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 are doing so well in both growth and profit.