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<![CDATA[ 3 Things You Need To Know About  Ar Finance. Fun Facts On Receivable Financing And Factoring In Canada When the Canadian business owner or financial manager wants to be more effective with their AR Finance strategy experts will tell you that it comes down to understanding 3 basic concepts .What are they? They are not as complicated as you might think. Let's recap them and show you how this method of business financing, aka ' receivable financing / factoring allows you to leapfrog financial challenges that seemed like huge barriers in the past.So back to those three critical concepts - they are as follows:1. All borrowing under this facility is based on the value of your receivables, and typical borrowing limits are 90% of all A/R under 90 days old2. Factoring finance is not debt and it's not managed in the way that a Canadian chartered bank would monetize its receivables 3. The way to win when you have a finance facility such as this is to understand that relationship between all 3 parties to the transaction - your firm, your client and your finance factor partner. Putting the right type of facility in place is what allows you to increase cash flow. It's also critical to understand what amount of your sales is eligible when you consider this method of financing. We've previously referenced that you typically can borrow up to 90% of your total A/R - and we remind clients that typically a Canadian chartered bank would margin your facility at only 75% - so you are already ahead of the game!If you are working with the right partner firm you should be in a position to finance all North American receivables. The challenge of non North American A/R, i.e. foreign sales typically can be solved by putting a credit insurance policy in place. There are a solid handful of credit insurance firms in Canada that will assist you in insuring your sales,<a href="http://polomore.weebly.com/">Polo Outlet</a>, thereby making them easier to finance.On occasion it may be more difficult to finance government sales due to the governments position around recognizing this type of financing.When you enter into a factoring facility its critical that your finance firm understands your day to day operations, specifically s they related to your historical bad debt experience, customer returns, etc .This entire area is viewed as ' dilution ' by your finance firm, and they want to simply understand the true value and quality of your a/r .. so they can finance the maximum for your company.Cost is always critical when it comes to entering into any business financing facility - whether that be term debt, loans,<a href="http://polomore.weebly.com/">Polo Outlet Online</a>, or, in our case today, monetization of assets. While factoring has a reputation for being expensive financing this is not necessarily true. At the end of the day costs involved in A/R finance must be viewed as your trade off to more liquidity, generating more sales more often, and rationalizing that you might not be able to get the same amount of capital elsewhere.Seek out and speak to a trusted,<a href="http://ralphlaurenway.weebly.com/">Polo Outlet Online</a>, credible and experienced Canadian business financing advisor who can assist you in ensuring you've got our 3 concepts nailed down properly!
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<pubDate>Fri, 07 Jun 2013 20:23:35 +0900</pubDate>
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<![CDATA[ Seeing Through The Fog Of   Business  Capital Financing In Canada ! Unfrazzling Credit And Funding For Canadian Businesses Business capital in Canada. There is absolutely nothing like some clarity when it sometimes seems that you're trying so hard to see through ' the fog ' of misinformation when it comes to financing and funding your business through business credit solutions that work.There is of course the old adage that he best time to be looking for business financing is when your firm doesnt need it, and we certainly have met our share of clients who don't follow that saying! It's simply stressful and often precarious when it comes to looking for business credit solutions at a time when your firm faces all sorts of challenges, not the lease of which is survival.There is a clear road map that Canadian business owners and financial managers can follow when looking for business financing solutions.What is that road map then? It's about ensuring you understand your various sources of capital, approaching them in the proper manner,<a href="http://getralphlauren.weebly.com/">Polo Ralph Lauren Outlet</a>, and with the help of a qualified advisor if needed. You then need to qualify the source of financing - is it truly the right solution for your firm? And finally it's about obtaining that commitment and executing on the solution in a timely manner. That's a road map that we all can follow.A good business plan will often assist you in ensuring you are on the right track with your business finance needs. Picking the right partner becomes a little easier when you're sharing the right information with the right party.In your case it's about making money and growing, in the lenders case it's about repayment!It's also very important to qualify your source of capital,<a href="http://polomore.weebly.com/">Polo Outlet Store</a>, and ensure the benefits of your proposed financing are in fact ... real. Taking your some challenge to different people, for different reasons, and benefits simply... does not work.Many business owners are not sometimes able to handle the objections or questions of lenders. They know their company only all to well, and are somewhat blinded to what lenders consider as relevant. That allows you to build trust and confidence with your proposed partner fir,<a href="http://getralphlauren.weebly.com/">http://getralphlauren.weebly.com/</a>, or financial institution, in the financing of your business.Sources of business capital in Canada include our chartered banks, independent commercial finance companies, and government and quasi government institutions and organizations. Speak to a trusted credible and experienced Canadian business financing advisor on how you can see through the fog of the challenge of funding and financing your firm, via solutions that make sense.
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<pubDate>Fri, 07 Jun 2013 20:22:15 +0900</pubDate>
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