Confidential Cash Flow Factor – Make accounts your best AR finance strategy

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.

Canadian Fiscal Scale: Are We Still There?

Today we hear a lot of talk about the US economy approaching the so-called “fiscal scale”. What about your personal financial affairs? Are you on the fiscal scale as we head towards 2013? Canadians are overwhelmed with debt. We read monthly about the growing debt-to-disposable income ratio, which is now around the uncertain level of 164%.

Although the world and many in our country recommend our government for brilliant fiscal governance, few warn of unsustainable levels of personal debt. In fact, the head of our central bank, Mark Carney, accepted an appointment for a similar role in the prestigious Bank of England. Will his legacy here be of a hero or a villain? Will history show that he kept interest rates low for too long, encouraging many people to take on debts they could not afford?

In his honor, he, our finance minister and prime minister are warning Canadians of these dangerously high levels of personal debt. However, Carney can curb the rise by raising interest rates. Of course, higher rates will slow the current slow economic growth. However, I think that short-term pain is better than the likely collapse of personal finances that can occur if debt stays at current levels or grows.

What can Canadians do to avoid their fiscal scale? Let’s look at three vital steps.

  1. Accept that you are dangerously attracted.
  2. Set a mechanism in place to live with declining debt
  3. Develop a new vocabulary to guide your behavior

Accept that you are dangerously attracted

You cannot solve a problem unless you recognize it. Do you think you have too much debt? Your banker may tell you no; however, you can answer this yourself. Take action helicopter view. What are the emotional reactions of you and your family to your debt? Are you worried? Can’t sleep? If so, you have too much debt. Of course, look at the ratios, but this is the key barometer.

The emotional price of debt is the first and most significant price. If the debt is 10% of the income and creates problems for you or at least for one of your family, that’s too much. Still, you have to accept reality and decide to live with it, stop doing it, and start without a long lifestyle.

If you are a Christian, pass this emotional stress on to Jesus (Matthew 11:28).

Set up a mechanism in place to live with declining debt

People are impatient. We live in now community. Unfortunately, you’ve probably been in debt for a long time and you’re likely to get out for a long time. Accept this fact and learn to live with it.

Develop a strategy to live in debt. See how you got there; draft principles for the prevention of recurrence; and then write a financial plan – alone or with help. The plan should show concisely how, following your principles, you can be without debt for a certain period of time.

If you get into debt through impulsive spending, you can develop the principle of never buying without a list and budget. Also, when you feel you need to spend, you may want to wait 24-48 hours, during which time you would talk to your spouse or partner.

You will need to find what can work for you, decide if you need help, and try to get it.

Prepare a long meter and place it in your refrigerator. Monthly, while paying off debt, adjust the length gauge.

Develop a new vocabulary to guide your behavior

This sounds easy, it’s easy, and when you get it, it will be your most effective “debt control tool.” What you believe will decide how to behave. If you believe that emergencies happen and make you spend unevenly, you will not change your behavior. However, if you think that in addition to time, most “budget emergencies” can and should be planned by regularly allocating funds for their implementation, you will plan accordingly.

Your car will need repair. He will need new tires. Your furnace will go, etc. The question here is time. You don’t know when these potential budget breakers will happen. However, you know that they will appear, so create a capital fund, a rainy day fund, an emergency fund or any other means of saving for these foreseeable events. If you take this fact for emergencies and realize that to get there, you have to sacrifice today’s consumption, this is the beginning of your great victory over debt.

Another key change in vocabulary is to accept that you can’t manage money, you can only manage your behavior – a change from money management to lifestyle management.

Summary

With the entry of 2013, see your finances. You will find out if you are on the fiscal scale. Make sure you don’t need more money to cross, first you have to accept where you are. Then set a mechanism to live where you are while working off your debt. Then explore your vocabulary, beliefs and adapt them to reality.

Please step away from easy tempting lending and start moving away from debt.

(c) Copyright 2012, Michelle A. Bel

Reasons for choosing mezzanine finance

If you are not specifically involved in banking or are not familiar with the features and offers it can offer, it is very likely that you are not familiar with mezzanine finance. However, this does not mean that it will not benefit you. You are more than likely missing a feature that your local bank can offer. If you have recently found out about the term and are looking for more information about it, then you have come to the right page. The information mentioned below about mezzanine finance will help you a lot.

If all you’re looking for is an amazing and pretty combination of equity financing and debt, mezzanine financing is exactly what you’re looking for. Many companies do not use it to adequately fund expansion costs. As required, timely payments on the loan or interest in equity must be made or even ownership will be given to the lender in the company. However, it should be borne in mind that the interest rate on such loans is extremely high than ordinary, and it also happens to be in the short term.

There is no doubt about the fact that the benefits that mezzanine financing can offer are at least numerous. And before you go out to opt for this type of finance, it is paramount to be aware of the benefits it can offer in order to analyze whether such benefits will be appropriate or valuable to you and your company. . With this in mind, we have mentioned several of the remarkable advantages that such a financial option can offer.

You may be aware of the fact that your company’s cash flow plays a vital role if you expect to apply for a traditional loan. However, more often than not, the company’s cash flow may not reach the target set by the financial institutions, making it almost impossible to apply for a traditional loan. Equity investors can be a suitable alternative to the aforementioned issue. Here, however, it is imperative to mention that capital investors are perhaps the most expensive option for capital, as in such circumstances; the capital must be replaced by ownership in the company.

That’s why mezzanine financing proves to be a commendable option, as it allows you to get the required amount in cash without the lender having to own property in your company, as long as it ensures that the debt is to be paid on time. In addition, this type of financing option appears as equity in the company’s balance sheet, which allows the owner to apply for traditional loans in a much more convenient way.

Given the above information, it is fair to conclude that Mezzanine Finance offers a number of different benefits that you should look for if you own a company and are looking for a loan. The advantages that this type of financial option can offer over traditional loans make it an absolutely useful option to consider. Rest assured, you will certainly not have to regret that you have made the decision to choose mezzanine financing over traditional loans, provided you are able to pay the debt on time.