The Unknown Secret In Canadian Accounts Receivable Finance - C I D Business Factoring And Financing

Updated: April 11, 2011

Actually there are only two answers to that question... maybe three. First of all it's because this type of working capital and cash flow financing is relatively easy to work with, and secondly, the more you analyze it, well it seems to make sense. Our third reason - in many cases clients we meet are almost forced to consider this type of business financing because factoring financing becomes their only method of ensuring their business has the working capital and cash flow to success.

In talking to clients we always try and dispel the perception, and trust us it's just that, that this is the ' poor mans ‘(or woman's!) solution to business financing. Hardly, some of the largest, most well known names in Canadian business, even public companies by the way, utilize accounts receivable finance. It's just disguised a bit more cleverly by those finance folks as securitization, etc.

Anyway, back to our key point today, which is simply is there a way to get all the benefits and financial leverage of accounts receivable finance and cash flow generation in a manner that allows you to control your own destiny . 99% of factoring financing in Canada is done in a very... lets call it ' pure ' manner .You sell your invoices, the buyer, i.e the ' factor' notifies your clients that they have purchased the receivable, and you get your cash flow - the same day . In effect you've just turned your company into an automatic ATM machine with yourself having the key to the back of the unit!

But wait... perhaps like hundreds of other businesses that we meet you dont want to let the world know how you are financing your business, including your competitors by the way! Is there a solution for that?

There is. It's what we've termed ' C I D'; our terminology for confidential invoice discounting or factoring financing. It allows you to bill and collect your own ar, while at the same time getting all the benefits of that same day cash flow everyone else is getting. Unless we're missing something, it's the ultimate win/win?!

An now you have opening up a window of financing that has created for your company all the benefits of this type of Canadian business financing - without taking on business debt, because C I D accounts receivable financing is simply monetizing or cash flowing your 2nd most liquid current asset - your a/r . And turning that into your first most liquid asset - cash flow!

Featured Research
  • 15 Tools for Managing Remote Call Center Agents

    Together, technology and the connective power of the internet are making drastic changes in what a typical work setting looks like today, and many companies are beginning to rely more upon a remote workforce. In fact, according to Global Workplace Analytics, “regular work-at-home, among the non-self-employed population, has grown by 105% since 2005.” more

  • The Business Case for Updating an Aging Phone System

    You may think your business phone system is functional, but is it fully modern? In recent years, telecommunications technology has made major strides. A system that was perfectly serviceable ten years ago—or even five years ago—is now very out-of-date. more

  • 2017 ERP Buyer's Guide

    Among all of the business software applications necessary for business operations, ERP is undoubtedly one of the most important. Making the wrong selection can have a disastrous impact on your accounting, manufacturing, and supply chain. With so much at stake, it is crucial to make a well-informed decision. more

  • 2017 Contact Center Software Trends

    Did you know that, according to Forbes, 86 percent of customers will pay more for a better customer experience? Customer satisfaction is always a worthy business pursuit, but to identify customer preferences and exceed expectations, you must keep pace with innovations in the technology your customers are using. more

  • The Social Intranet: A guide to getting better business results

    This whitepaper describes why the shift from a traditional to a social intranet is imperative to staying competitive, and analyzes the costs and benefits associated with implementing one. You will also find useful KPIs to measure performance and further leverage your intranet's success, raising employee engagement and boosting your competitive advantage. more