Factoring Financing for Merchant Cash Advance and Canadian Companies
Running a business in Canada has always had its particular merchant cash advance set of challenges. One of the biggest challenges has always been finding the right business merchant cash advance financing. The market has been dominated by banks and institutions, which have merchant cash advance very tough and strict lending criteria. Obtaining a business loan or almost any other type of business financing in Canada in merchant cash advance pretty difficult. However, that is changing. Quickly. Recently, Canada has seen an increase in the number of independent merchant cash advance financing companies that specialize in business financing. Some offer business merchant cash advance loans, but the majority have focused on offering invoice discounting merchant cash advance (also know as invoice factoring). Although a relatively young industry, the Canadian factoring industry is growing quickly. But, what is invoice discounting?
One of the biggest problems for small and mid sized businesses is w merchant cash advance aiting up to 60 days to get invoices paid by their commercial clients. This can affect their merchant cash advance ability to pay rent, suppliers or salaries on time. This problem is merchant cash advance common for many businesses, such as trucking companies, staffing agencies, manufacturers, consultants and merchant cash advance others. Invoice discounting is a financial product that eliminates merchant cash advance slow paying invoices by financing them. The factoring process is merchant cash advance very simple. Once you invoice an approved client, you send a copy of the invoice to the financing merchant cash advance company (also known as the factoring company). The factoring company advances you a significant portion of the merchant cash advance invoice while they wait to get paid by your customer. The transaction is settled once the customer merchant cash advance pays the invoice. The factoring company offers this service for a small fee or discount.
An invoice discounting arrangement provides you with the necessary funding to pay merchant cash advance expenses such as rent, suppliers and employee salaries. This enables you to operate your business efficiently, merchant cash advance without worrying about when your clients will merchant cash advance pay. Furthermore, invoice discounting can help you win bigger clients, because it eliminates the worries merchant cash advance of having to wait for them to pay. As opposed to bank financing, invoice factoring is relatively merchant cash advance easy to obtain. The biggest requirement is that you do business with established clients who pay merchant cash advance their invoices regularly. Invoice discounting is truly a flexible product that is within easy reach of small and mid sized businesses.
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Posted on: August 3, 2011 09:58 PM