We will demonstrate how a little-known and, in our opinion, almost secret strategy called confidential cash flow factoring can turn your receivables into a virtual cash flow machine, turning past financial obstacles into cash flow solutions!
Search engine analysis will show you that thousands of Canadian companies search every day for what we hope will be valuable information about the most popular method of business financing today. These companies, of all types and sizes by the way (even the largest corporations in Canada) want to know why cash flow factoring offers unlimited cash flow unlocking based on your sales and receivables.
Initial explanations and customer reviews sometimes get bogged down in key issues like the cost of this method of AR financing and, no less important, is the reluctance of some clients to accept how discounting an invoice (this is another name for this type of financing) works. work.
Canadian business owners and financial managers want to like something good, but at the same time they want to know how it works and how to avoid any pitfalls. Let’s first discuss the “how it works” section and then share with you the method that we think eliminates the basic pitfalls considered by many companies looking at this type of financing.
We will focus on small and medium-sized businesses – larger corporations have access to all kinds of financing and external financing strategies – while small and medium-sized businesses in Canada tend to rely on their own cash flow to finance their current growth and operating capital. . In fact, many companies realize that they have the potential to increase their sales and profits, but they cannot because of the lack of working capital.
Back to “how it works”! Receivables cash flow factoring is the current 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 discount of 1 to 3% and you receive cash, 99% of the time the same day, for these sales. So, virtually all of your sales now fuel the cash flow machine you have turned your company into.
So far so good, right? When complications arise, especially in Canada, it is the fact that this type of financing requires your client to be notified of the process, directly or indirectly, and payments must be forwarded to your factoring finance company. In our view, Canadian business is reluctant to involve its customers in its domestic financial policies and challenges. As a result, many companies are skeptical about introducing AR finance in this way.
Is there a solution? We told you there was – this is a breach called a confidential invoice discount. This type of financing comes at the same price, allows you to charge and collect your own receivables and gain all the benefits of that cash flow factoring machine that we have turned your company into.
Talk to a trusted, reliable and experienced Canadian business finance advisor who can put you in the right AR financing tool that allows you to take advantage of cash flow invoice financing while allowing competitors to customers and suppliers to stay exactly where you want to be, beyond your financial strategies and challenges! Let your competitors try and understand how you do so well in both growth and profits.