Non-recourse factoring is a type factoring financing in which the factoring company assumes the loss if invoices are not paid due to end customer insolvency. It is one of the two common types of invoice factoring offered by Canadian factoring companies. However, it is also widely misunderstood by clients. In this article, we discuss: 1. […]
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Financing Sales to Big Box Retailers
Becoming a distributor for a large big box retailer – companies such as Walmart, Loblaws, or Rona- can be both a important opportunity and a major challenge at the same time. Most big retailers can place large purchase contracts, which are great for revenues. However, they also negotiate payment terms that enable them to pay your invoices […]
Financing your Imports from China and Asia
Resellers and distributors often have to play a very delicate game of balancing their cash flow. This can even be more challenging if you are buying goods from factories in China, or anywhere in Asia for that matter. On one hand, the Chinese factories will want you to pay for the goods in a secure […]
Executing Your Trucking Company Business Plan (6 Steps)
The most challenging step in starting a trucking company is often the first step – getting started. However, this step can be difficult for many first-time trucking entrepreneurs. Everyone knows that the best business plan is useless unless you put it into action and implement it. This article helps you take on the six most […]
Financing for Resellers and Distributors
For many resellers, distributors and importers, managing cash flow is a very important but delicate task. Unless you have a long established relationship with your supplier, they will likely ask you to prepay for goods – or pay upon shipment. On the other hand, your commercial clients will often demand to pay your invoices in […]
How Much Does Factoring Cost?
This article explains how to calculate the factoring fees of a factoring proposal. It covers the three most common proposal fee types: flat-rate, variable-rate, and discount-plus-margin. We cover the following: 1. How does factoring work? This article assumes that you are already familiar with factoring and know how it works. Here is a short summary […]
How Do Factoring Companies Buy Accounts Receivable?
One of the advantages of invoice factoring is that most transactions are not structured as loans. Instead, the client sells their accounts receivable to the factoring company in exchange for an immediate payment. This article describes how a company sells their invoices to a factor and covers the following: 1. Factoring basics Invoice factoring is […]
Advantages and Disadvantages of Purchase Order Financing
In recent years, purchase order (PO) financing has been gaining popularity as a tool to finance companies that have been awarded a large purchase order. In this article, we discuss: 1. What is purchase order financing? Purchase order financing helps distributors and resellers that need funds to fulfill large purchase orders. The solution helps pay […]
Can I Sell My Invoices to Improve My Cash Flow?
Small business owners are often challenged when a large customer requests 30 to 90 days of credit to pay an invoice. As a business owner, you want to offer credit terms because it improves your ability to sell to large clients. However, offering credit terms can also hurt your company if you don’t have financial […]
Using PO Financing to Fulfill Large Orders
Getting a large order from a coveted client can provide an important opportunity to grow a small business. If you manage the order correctly, your client is very likely to become a repeat customer. And a large order is almost always a stepping stone to even larger orders. However, if you get a large order […]