Canada’s Newest Biz Financing – Receivable Financing Companies and Providers An A/R Loan Plan

Updated: June 20, 2011

There are some very strong fundamental reasons why you should be looking at this type of financing for your business, not the lease of which is acceleration of cash flow. Receivable finance allows your company to receive cash flow and working capital the day you generate an invoice. Practically speaking you could draw on your invoices every day, but reality shows that most firms borrow on a weekly or monthly basis. Bottom line, it's your call.

Another key reason that provides of a receivable loan plan work is simply that they have become the de fact alternative to bank financing in Canada. That's predominantly for small and medium sized business, but you'd be surprised to know that many of Canada's largest corporations use a flavor of this type of financing also.

In today's competitive environment your ability to be cash flow positive allows you to enhance your relationship with customers and your valued suppliers. It's simply a case of what you could call ' professional visibility ‘... and that's a good thing!

If you are in fact utilizing receivable financing companies for your A/R finance you also are able to leverage at the same time other aspects of Canadian business financing, this includes equipment financing, tax credit financing, term loans, etc. The bottom line is that the providers of an A/R loan are solely interested in collateralizing your receivables, not all your other assets.

Is there one final reason perhaps to consider a provider of A/R loan plan financing? We'll give you a great one, there is essentially no funding limit, in that as your A/R grows so can your facility. Is it just us or have you turned your firm into an ATM machine. That's cash flow 101 for sure.

The attraction to invoice financing, aka factoring, is just simply that it's a solution to the ongoing struggle of businesses requiring working capital. And as biz financing tightened up in the last few years Canadian business owners and financial managers looked for alternatives.

That alternative quickly emerged as accounts receivable financing. It's the selling of your receivables at a discount, as you generate them. The challenge in Canada is picking the right type of facility - our recommended solution to clients is called C I D , confidential invoice discounting, allowing you to bill and collect your own a/r without the notification that is required by your clients for other types of facilities that predominate the marketplace.

Featured Research
  • 10 Reasons to Invest in Video Conferencing

    Have you been on the fence about implementing a video conferencing solution for your business? Not quite sure if your employees will utilize it or are concerned about the costs being too high? The modern workforce is adapting and evolving with more and more employees working remotely, it is essential that they have the tools to be able to communicate effectively. more

  • 2017 Business Intelligence Trends

    It's long been thought that business intelligence (BI) could only be utilized by highly trained analysts and was therefore unattainable for most businesses. However, advancements in BI have made it so that everyone can utilize BI solutions to help shape business decisions and drive companies bottom lines. more

  • Your Phone System and Your Bottom Line

    Businesses have been using phones to drive increases to their bottom lines for almost a century now. Telephony, much like the rest of the business world, has seen drastic changes with the increase in technological advancement. Voice Over Internet Protocol (VoIP), has enabled companies to connect with consumers at levels that have been seen as unheard of before. And trust us when we say this, it is doing wonders for the bottom line. more

  • How to Scale a Contact Center in 2017

    Are you on the fence about scaling your contact center and not sure how or whether or not now is the time? Studies have shown that 93% of executives expect that contact volume will remain constant or increase within the next two years. This means that now more than ever is the time to begin scaling and we are here to help. more

  • Making the Case for a New CRM

    Did you know that having an outdated CRM is just as bad as not having one at all? Do you find yourself working even just a little too hard to make your current CRM work to maintain your contacts and relationships? While it is increasingly more difficult to reduce customer churn, modern CRM tools are much more powerful and provide much more opportunity to develop stronger relationships with your clients that can provide more stability and revenue to your company and bottom line. more