Most small Canadian freight carriers don’t have adequate cash reserves. This situation is common for small businesses. Unfortunately, this lack of a reserve leaves them vulnerable to cash flow problems. Managing these cash flow problems is difficult because smaller trucking companies usually don’t have easy access to bank financing. This article discusses how small carriers […]
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How to Finance an Oilfield Services Company
Managing the cash flow of an oilfield services company can be a demanding task. The oil and gas industry is dynamic, with periods of fast growth usually followed by sharp slowdowns. In this operating environment, small and midsize companies can face cash flow problems when their growth gets ahead of their financial capabilities. This article […]
How to Finance an Oilfield Transportation Company
Invoice factoring is a popular solution used by oilfield transportation companies with working capital issues due to slow-paying invoices. This article discusses how factoring works and helps you determine if it’s the right solution for your company. We cover: 1. Slow cash flow is a problem Oilfield transportation companies can be very profitable but are […]
How to Finance a Commercial Landscaping Business
A common problem for commercial landscaping companies is that corporate customers usually pay invoices in 30 to 60 days. As a landscaper, you often have to provide payment terms to your clients if you want to win their business. However, offering payment terms can expose you to cash flow problems. This article discusses how to […]
How to Finance a Technology Staffing Company
Summary: Most staffing companies are launched by entrepreneurs who have a vision but little start-up capital. The companies operate on tight cash flows for their first few years as they grow the client roster. However, growing a company with a tight cash flow is challenging and carries significant risks. All it takes are a couple […]
How to Finance a Software Development Company
Software development companies can be very profitable businesses but are also cash-flow intensive. This challenge must be managed correctly to avoid cash flow problems that could affect the viability of the business. This article discusses two techniques Canadian software developers can use to address this issue. We cover: 1. Revenues vs. costs Software companies often […]
How to Finance a Building Products Distributor
Working with builders and general contractors (GCs) has advantages. They are often recurring customers who place larger orders and can help grow your business. However, these customers usually ask for net-30-day payment terms. This request is a challenge because offering payment terms can lead to cash flow problems if not handled correctly. This article presents […]
How to Finance a Consulting Firm
Summary: Most consulting companies are launched with very little capital and few assets. They usually do not have a substantial cash reserve. The company operates month-to-month, using incoming revenues to cover expenses. This approach can work for small companies. However, it can create financial problems if your company is growing. This article discusses how to […]
Should You Factor Invoices That Are Collections Problems?
Factoring companies often get calls from prospective clients interested in factoring invoices that are hard to collect. These invoices tend to be substantially past due and have become collections problems. The prospect hopes that the factor will buy the invoice and take on the collection problem. Past-due invoices that have become collections problems cannot be […]
How to Finance an Office Cleaning Company
Managing the working capital of a small and growing office cleaning company can be difficult. The company usually has to pay its regular expenses before it gets paid by clients. This payment delay can lead to financial problems. This article discusses two techniques to improve your cash flow and financial stability. We cover: 1. Slow-paying […]