Banker

Do you own a small or medium sized company? Then you know that obtaining business financing in Canada has not been an simple task. Till extremely recently, the Canadian business financing scene was dominated by banks and big institutions. They had been usually prepared to give company loans and credit to significant companies. But what about little and medium sized enterprise owners, who could not simply qualify for a company loan?

Until recently, you had been out of luck. But this is modifying, now factoring organizations have been setting up shop in Canada, providing their enterprise financing and invoice discounting services to little and medium sized business owners across the country.

Do any of these sound familiar?

1. You do business with big commercial customers. They spend slowly and that is hurting you

accounts receivable factoring

2. You need to have funds to spend salaries and suppliers

3. You are turning significant orders away since your funds are tied up in slow paying invoices

Even though these problems appear various, they have a typical root. You have slow paying clientele and they are affecting your business. The solution to this difficulty is to accelerate client payments using invoice discounting (also recognized as invoice factoring). Invoice discounting allows you to break the 45 day payment cycle and decrease it to 2 days. And it functions with no affecting your clients at all.

The invoice discounting premise is really straightforward. You sell your invoices from excellent (but slow paying) customers to a factoring firm. The factoring firm takes a small discount and advances you a substantial portion of what is owed to you.

Invoice discounting provides you the funds you need to run your organization, while the factoring company waits to get paid by your client. This gives you with the necessary funds to run and grow your company and eliminates the headaches and uncertainties of waiting for payment. And as opposed to banking loans, invoice discounting is quite effortless and fast to obtain.

If slow paying clients are holding your enterprise growth back, then invoice discounting is the resolution that will help you develop.