We are going to demonstrate how a little known, and in our opinion almost a secret strategy can called confidential cash flow factoring can turn your accounts receivable into a virtual cash flow machine, turning past AR finance obstacles into cash flow solutions! Search engine analysis will show you that thousands of Canadian businesses search everyday for what they hopefully believe will be valuable information around the most popular method of business financing today. Those businesses, of all types and sizes by the way (even the largest corporations in Canada) want to know why cash flow factoring offers unlimited unlocking of cash flow based on your sales and receivables.
Initial explanations and overviews to clients sometimes become bogged down in key issues such as the cost of this method of AR finance, and, equally important, is the unwillingness of some clients to accept how invoice discounting (that’s another name for this type of financing) works.
Personal loan with collateral – If you have a decent credit score and are willing up to put up collateral, banks will offer you reasonable amounts of cash as a loan that will be processed quickly. Unlike business loans with a long application process, secured personal loans will usually go through a quick approval process. The very big downside is you are now on the hook for the loan and essentially waive any protection from incorporating.
Accounts receivables loan – We’ve all been in the unique position of being receivables rich, but cash poor. Our dearly beloved customers owe us money, but haven’t paid or aren’t due to pay for net 30 or 60 and we need money NOW! The Accounts receivable loan is one way for dealing with this.
Franchises If you plan on buying a Franchise for your first business, getting approved for a 7(a) loan is a little easier. This is because of the support you will receive from the Franchisor. The strongest Franchisors have 2-3 week training programs which go a long way towards helping you build credibility with a bank. In addition, the on-going support from the Franchisor is a great tool to help make your business successful. Here are several things you need to know: 1. 30% of the Total Cost to start your Franchise will come from your pocket, just like a start-up. 2. You’ll still need a Business Plan, but a lot of the information you’ll need will come from the Franchisor. 3. The Franchisor can provide sales results from there franchisees which is very helpful to banks when making a lending decision. 4. You can count the Franchise Fee as part of your cash injection into the business. 5. Banks have pre-approved lists of Franchises they are willing to finance. Find out from the bank if your Franchise is on that list. If it’s not, they may still approve a loan for you, but it can take a lot longer because they’ll need to go through a special process to approve the Franchisor.
Those are the basics when looking at financing a franchise. Keep in mind the better quality the Franchise, the better the chances you have of getting approved.
Is there a solution? We told you there was – it’s a breakthrough called confidential invoice discounting. This type of financing comes at the same cost, allows you to bill and collect your own receivables, and gains all the benefits of that cash flow factoring machine we turned your company into.
Speak to a trusted, credible, and experienced Canadian business financing advisor who can put you into a proper AR finance facility, allowing you to reap the benefits of cash flow invoice financing, while at the same time allowing competitors, customers, and vendors to remain exactly where you want them to be, outside your financing strategies and challenges! Let’s let your competitors try and figure our how you’re doing so well in both growth and profits.
Harris Smith is a writer on personal finance education. Her article tackles the pros and cons of home equity line of credit . Clear Debt Now offers links to Debt Consolidation and consolidation programs in your area.