Factoring is a product that helps companies that have slow-paying clients. These companies usually can’t wait 30 to 60 days to get paid by clients. Factoring solves this problem by financing their invoices. It provides businesses with cash that they can use to run the business. Companies often use the funds from factoring to: 1. […]
Invoice Financing
Factoring Cost vs. Rates (They are Different)
Summary: To a large extent, business owners think that factoring rates, factoring fees, and the factoring cost of a dollar are all the same. Although they are related, there are important differences. Actually, low factoring rates may translate to lower fees, but may not necessarily translate to lower costs per advanced dollar. This article helps […]
How to Evaluate Factoring Companies
The decision to use factoring to improve the cash flow of your company is not easy and should be done carefully. The success of your business depends on making the right choice and partnering with the right company. In this article, we discuss how to evaluate factoring companies effectively. The process is simple to use […]
What is a Factoring Company?
Summary: Factoring companies provide financing to businesses that have cash flow problems. They specialize in financing accounts receivable, which improves the client’s cash flow. Smaller factoring companies typically provide invoice factoring as their only service. However, larger providers typically offer additional products, such as purchase order financing, supply chain financing, and asset-based loans. This article […]
How to Finance Your Business in Canada (10 Options)
This article covers the ten most effective ways to finance a small or growing company. We cover several options that can be used to finance a wide range of situations. What do you need the funds for? There are several options you can use to finance a business. Some products are flexible and can be […]
How Does Factoring Work?
Summary: Factoring is a type of financing that helps improve the cash flow of companies that have slow-paying invoices. This form of financing gives the client access to immediate funds, which can then be used to pay for business expenses and to grow. In this article, we show you how factoring works. We go over […]
What is Invoice Factoring?
Summary: Factoring is a form of financing that helps companies with cash flow problems due to slow-paying clients. It allows your business to finance invoices, which improves your company’s working capital. Factoring transactions are structured as the sale of accounts receivables rather than as a business loan. Consequently, they can be set up quickly and […]
Recourse vs. Non-Recourse Factoring
There are two types of factoring financing, commonly known as recourse and non-recourse factoring. Some factoring companies specialize in one type of solution, though many companies offer both. In this article, we explain and compare both types of factoring. The article covers the following: 1. How does invoice factoring work? Before discussing the specifics of […]
Industries That Use Factoring
Factoring has been gaining traction in Canada as a financing solution that can help companies with cash flow problems due to slow-paying clients. This solution is flexible enough that it can be used in most industries that serve commercial or government clients. To learn more about factoring, read “What is Factoring?” What type of businesses can […]
Factoring in Canada
Factoring is a form of business financing that has been gaining popularity in Canada. It helps companies with cash flow problems because their clients pay their invoices in 30 to 60 days. This article explains how factoring works and covers: How does factoring work? The role of factoring What are the benefits? How much does […]