Factoring And Purchase Order Financing In Canada

Factoring And Purchase Order Financing In Canada



Factoring and Purchase Order Financing in​ Canada
There was a​ time when obtaining business financing in​ Canada was very hard .​
But this is​ changing as​ small business financing companies are moving into an​ area previously dominated by large banking institutions .​
As most business owners know, qualifying for a​ business loan or​ a​ line of​ credit is​ very hard .​
Bank lending criteria is​ so strict that few companies ever manage to​ get any financing .​
But that is​ changing .​
If you own a​ company that sells goods or​ services to​ other businesses (or the government), then there are two financing options that are available to​ you .​
They are invoice factoring and purchase order financing .​
Are your clients taking up to​ 60 days to​ pay their invoices? Consider invoice factoring.
Selling to​ mid size and large companies is​ great, as​ they can provide you with reliable and steady business .​
However, their payment terms are always challenging .​
They usually demand the right to​ pay in​ up to​ 60 days .​
In the meantime, you must cover paying rent, salaries and suppliers .​
This can easily be fixed by factoring financing .​
Factoring can eliminate the 60-day wait and get your invoice paid in​ 2 days .​
The process is​ simple, you sell your invoices to​ a​ factoring company, who pays you up front for them (less a​ small fee) .​
You get your money up front, while the factoring company waits to​ get paid .​
Need money to​ pay your suppliers? Consider purchase order financing.
If you sell products as​ a​ reseller or​ wholesaler, then your biggest challenge is​ getting the financing to​ pay your suppliers .​
In this case, purchase order financing may be the right solution for you .​
Purchase order funding provides you with the necessary funds to​ cover your supplier expenses, allowing you to​ fulfill the order and deliver to​ your clients .​
The transaction is​ then settled when your client pays their invoice and the collateral is​ the purchase order from your client .​
Conclusion
Both factoring and purchase order funding are easy to​ obtain and can be set up in​ days .​
The biggest requirement is​ that you own a​ profitable company and that you do business with reputable clients.




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