5 Things You ( Probably ) Didn't Know About Canadian Business Receivable Finance . Cash Flow Financi

Clarity and quality of information surely count when Canadian business owners and financial mangers consider business finance alternatives. We've said in the past,customized bobbleheads, and still feel it's true that no other form of finance in Canada is as misunderstood or potentially confusing as business receivable finance. So does this method of cash flow financing have to be confusing? We don't think so,Why Take The Krabi Ferry,personalized bobblehead, so let's recap 12 often asked client questions with a goal of clarity for you,custom bobbleheads, the Canadian business owner.Question 1 revolves around the amount of funds you can expect to obtain in Canada. Typical advance rates for most facilities revolve around the 90% mark if you are dealing with the right party. The balance,,,The Ever Dynamic Football Shirt, i.e. the remaining 10% of your receivables is a holdback that is remitted to you immediately after your client pays. Another key question is facility size,customized bobbleheads, and the good news here is that your facility grows as your sales grow. In general there are no credit limits per se,personalized bobbleheads, unlike bank facilities,customize bobblehead, which clearly have a cap .Question 2 revolves around the process, i.e. the length of time it takes to set up a facility. We generally advise that it takes approx 2 weeks to set up a proper facility - that is a general guideline. You will know, by the way,The Trendy Modern Day Football Shirt,.,How Chair Massage Can Increase Massage Utilization, very early on in the process if you are approved. After that it's simply a question of documentation.Question 3 is the proverbial hot point. Fees and costs. Various factors come into play here,personalized bobblehead, the credit quality of your firm in general (it does not have to be as solid as you think),custom bobblehead, the size of your facility,custom bobblehead, the nature of your industry,customize bobblehead, etc. On balance a solid business receivable finance fee in Canada is 2-3% if you're billing and collecting on a 30 day term.Question # 4 revolves around types of receivables that can be financed, The key point here is that only ' business',personalized bobble heads, i.e. B2B a/r can be financed in Canada,personalized bobbleheads, so those companies with a consumer a/r base cannot take advantage of cash flow financing .Question # 5 revolves around the age of receivables that can be financed. As a pretty general rule only A/R that is under 90 days in age can be financed via this method of Canadian business financing. One can safely assume of course that if you haven't collected your accounts by that time there is an element of uncollectibility or bad debt in your A/R portfolio.There you have it. Confusion gone away? We hope so. When considering working capital finance via business receivable financing ensure you've got the right information at hand to make an informed decision. Speak to a trusted,custom bobbleheads, credible and experienced Canadian business financing advisor for your ability to get on track with cash flow finance.