What is the single most difficult part about running a small to medium sized business in Canada?
If you were to ask 10 Canadian entrepreneurs that question, you would get 10 very different answers. But all of the answers would be centered on the common topic of money. If there is one thing that the larger competition is guaranteed to have, it is more available financial resources than the smaller companies in the industry. Many small to medium sized Canadian business owners would admit that, if they could get their cash flow moving, then they would be able to compete in their marketplace. That is where a Canadian factoring company can come in and save the day.
A factoring company in Canada steps in and unclogs the financial bottleneck your company is having with its cash flow. Inevitably, that bottleneck is created by the past due invoices created by your clients. Instead of looking at those past due invoices as reasons to be combative with your clients, a factoring company can turn those invoices into cash and repair that relationship with your clients. Not only will your client relationships improve when you work with one of the best factoring companies in Canada, but your cash flow position will turn into a stable foundation on which you can build your business.
1st Commercial Credit Is An Accounts Receivable Factoring Organisation
Every Canadian entrepreneur starts out with the best of intentions when it comes to creating invoicing processes within their organisations. The business owner invests in good accounting software that keeps an accurate record of each account and generates comprehensive invoices each time transactions are made. Those invoices are confirmed by the accounting department and then sent off to the customer. In a perfect Canadian business world, those invoices come back on or before their due dates with full payments and the company establishes is cash flow off of those paid invoices. As every Canadian business owner knows, we do not live in a perfect world.
An accounts receivable financing company such as 1st Commercial Credit can repair the part of your invoicing process that is broken, and that broken part is your customers. No matter what their intentions may be, you will always have clients that pay their bills late and leave you holding the economic bag. When you approve credit terms for your clients, you are essentially authorizing your clients to purchase products with your money. Of course, the hope is that your clients will repay you on time, but it does not always work out that way. A receivable financing agreement with 1st Commercial Credit repairs that broken process and gets things working in your favour.
Why Do You Need A Canadian Factoring Company On Your Side?
Let's take a close look at the invoice collection process and try to determine how much of it your company can actually control. Your sales professionals head out into the world and sell your products or services to a target audience. If you do your marketing properly, then you can arm your sales professionals with leads that have a strong chance at turning into paying clients. You and your accounting group do your due diligence prior to approving each and every new credit account in the hopes that you can establish relationships with customers that do not promise to buy more product than they can actually pay for. The point to credit is to allow customers to buy product now, and then pay for it later. But the unpredictable nature of when customers will actually pay is when problems start to occur.
After doing your due diligence in establishing credit accounts, you allow your customers to start ordering products. Since these customers are on credit terms, your company is fronting your customers the money to buy these products. Until your customers actually pay their invoices, your organisation is on the line for the money required to fill orders. Small to medium sized businesses do not always have the cash on hand to fulfill orders, so these businesses are sometimes forced to utilize bank borrowing to fill in the areas where cash flow is slow. Bank borrowing comes with recurring service charges and compounding interest, which increases the company's debt. As the company waits to get paid for the products it has shipped on good faith, it continues to need cash to maintain operations.
The Process Of Financing Receivables Changes Your Company's Economic Outlook
As you can see, Canadian small to medium sized business run into trouble when clients allow invoices to go 30, 60 and even 90 days past due. The issues are compounded when the small businesses have bad credit, or are start-ups with no credit at all, and find it difficult to borrow money from traditional lenders. If these Canadian entrepreneurs do manage to find a lender that will help fill in cash flow funds while waiting for clients to pay their bills, they can expect to pay high interest rates. Not only that, but bank lending has a limited ceiling that can cause a variety of other issues. When the banks will no longer extend your company's credit, then that is when slow cash flow becomes a bigger issue.
1st Commercial Credit is an accounts receivable factoring organization that removes several of the financial challenges from the invoicing process. We will take your receivables and pay you cash for them, on or before the invoice due dates. Funding receivables is something that we do all over the world and in up to 17 different currencies. We can not only help your company to meet its financial obligations with domestic transactions, but we also have the resources and expertise to facilitate international business as well. We are a full-service company that can show you how funding accounts receivable programs can help your business to grow.
How The Most Comprehensive Factoring Company In Canada Turns Your Receivables Into Cash
1st Commercial Credit is known as the most comprehensive funding organisation in Canada because we offer flexible financial programs based on your company's real needs. We have experts who know your industry inside and out and we are able to create a plan that will fit your business perfectly. We will utilize our accounts receivable funding services to help you meet your financial needs and keep your company operating at maximum efficiency. Our services allow you to keep your vendors, clients and employees happy, which is a huge step towards making sure that your business remains profitable.
Accounts receivable factoring is actually not as complicated as you may think. It helps that 1st Commercial Credit is a professional finance company that has been funding receivables for a very long time. We have put together a process that makes it easier on you to get the cash you need. The process begins with our two-page application that you will find on our website. If you need clarification on the instructions for filling out the application, please do not hesitate to contact us. We work hard to approve all applications we get on the same day they are submitted. We understand that your business does not have time to wait for improved cash flow and that is why we get down to business as fast as possible.
1st Commercial Credit Gets To The Accounts Receivable Financing Quickly
After your application is approved, the next step is to set-up your account. It takes us five business days or less to get your account up and in working order, and we only have to do it once. A bank requires you to fill out a new application for every credit account and loan that you may feel you need. After a while, the application process can start to feel like a job unto itself. We don't do that to you. We only require you to set up one account that we will use for as long as you want to do business with us. With an approved account in your company's name, we can approve an invoice and advance you the funds in 24 hours. We become the foundation for your reliable cash flow and the way that your business grows and become successful.
As one of the premier factoring companies in the world, we pride ourselves on utilizing the latest technology to get the job done fast for our clients. We can approve invoices quickly and we can advance funds in a time frame that makes sense to your business. There is a fee that we charge for each invoice we process and we disclose that fee from the very beginning. Once we deduct the fee from your invoiced amount, the remaining balance is transferred directly into your company's account. We do not charge you a set-up fee and we have absolutely no hidden fees that will take away from the money that your company has worked so hard to earn.
How Long Should You Continue Financing Receivables Through 1st Commercial Credit?
If you are new to the idea of funding accounts receivable through 1st Commercial Credit, then you may feel like this sort of program is a one-shot deal. You set up your account, submit your past due invoices, 1st Commercial Credit advances you the cash and then you move on to other projects. But stop for a moment and think about all of the advantages this kind of program would offer if it was made a permanent part of your business process. Each time you generate an invoice to a client, you submit that invoice to 1st Commercial Credit for approval and processing. At that point, all you need to do is wait for the cash to be advanced into your account, and that wait will be never be longer than the due date on the invoice.
If you are a Canadian entrepreneur who is just getting your business off the ground, then you need to be involved with 1st Commercial Credit from the very start. As you run your start-up, you will go through your initial funding cash and find yourself at a crossroads. If your clients are not paying their invoices on time, then you may have to go to the bank and borrow more money. But will the bank approve a start-up that has no credit history? More than likely, your loan request will be denied. You can avoid all of those problems by having a receivable financing plan in place, which creates a sustainable cash flow from your invoiced sales.
Bad Credit, Good Credit, Or No Credit At All - It Really Doesn't Matter
Every day, Canadian business owners struggle with decisions that could affect their companies' financial futures. Do you pay that vendor bill this week, or do you make your payroll instead? Most Canadian business owners will choose to make payroll, and that will put their vendor invoice into a past due situation. It offers the business owner a chance to see this financial process from the side of the late-paying client and it can also damage the company's credit score. The business owner looks at the stack of his own past due invoices and cannot help to feel frustrated at the position that his own clients have put him in.
1st Commercial Credit is not interested in your company's credit score. Accounts receivables factoring is something that every company needs to utilize, regardless of their credit status. When we approve an invoice for funding, the approval is based on the financial status of your customer and not your company. We will allow you to use your client base's combined financial strength to your advantage. With this kind of a program in place, you can pay your vendor bills on time and improve your credit. A start-up can make sure that it has the cash flow it needs to grow and avoid a plummeting credit score. A company with good credit can preserve that credit profile and prevent any kind of challenges from bringing down the company credit score. This is the ideal plan for any company and we do not care what your company credit profile says. All we care about is getting your cash flow moving using your invoiced sales.
1st Commercial Credit Can Serve Your Canadian Company's Full Financial Needs
What allows 1st Commercial Credit to lay claim to being the premier accounts receivable factoring company for small to medium sized businesses in the world? We have a network of international financial affiliates that allows us to reach out and help Canadian businesses no matter where their customers are located. We have billions of dollars in financial resources that allow us to meet the financial needs of our clients no matter what those needs may be. We also take the time to understand your industry and develop solutions that are specific to your company. We do not try to shove your company into some pre-packaged financial solution that is not going to meet all of your needs. We examine your situation and then create a program that has value to you.
1st Commercial Credit has extensive experience in a variety of industries including trucking, manufacturing, staffing, distribution, oil field exploration, medical and government contracting. Our financial experts know your industry lingo and understand the new challenges that your company will be facing as the months move ahead. We offer you access to financial resources that will allow you to meet those challenges and plan for the future success of your organisation. We also offer special programs that will enhance your business process. For example, we have a fuel discount program that we use to help our transportation clients become more competitive.
What Would Your Company Do With An Improved Cash Flow?
Sometimes it helps to create a strong frame of reference that will help Canadian business owners to understand how accounts receivable factoring will make their company more successful. It is easy to lose track of how important good cash flow is to your company when you spend so much time scrambling to meet your financial obligations. When your business life becomes a blur of loan applications and bank audits, it is easy to forget that you can avoid all of that if you just take advantage of the financial programs that are made available through companies such as 1st Commercial Credit.
A strong cash flow allows you to meet payroll and pay your vendor bills on time. You will also have the cash you need on hand to pay your government tax obligations as well. When you have a strong cash situation, you can get into good economic habits that make your company self-sufficient and able to sustain itself with the hard work that is being done by your sales professionals. You can schedule payroll deposits and vendor payments with confidence, which allows you to analyze your company's finances and make plans to expand in the near future. You can go back to your original business plan and execute those growth projects that have been on hold for so long.
Bank Borrowing Is A Hard Habit To Break, But Breaking It Is Essential For Success
When you check your company's aging reports, it can become obvious that your current cash flow solutions are not going to help pay the bills on time. Your past due invoices become a dam that slows your cash flow down to a trickle. As you look at your pending bills and financial obligations, you begin to scramble to find ways to pay those bills and avoid the damaging effects of bad corporate credit. Up until now, the only solution that you felt you had was bank borrowing. The past due invoices continue to pile up, the cash flow continues to be slowed to a trickle, and your company finds itself perpetually applying for bank loans or reaching into a bank credit account to keep operations going. It is a dangerous cycle that only makes the situation worse.
The cycle of bank borrowing your company is involved in creates an unstable financial position for your company. Instead of becoming used to using your own cash to pay your bills, it becomes habit for your accounting people to go to the bank and add to your corporate debt. The sheer weight of that new debt, as it is strung-out over many years, could collapse your company's finances and cause you to go out of business. 1st Commercial Credit has the way for you to break that bank borrowing cycle and get into some better and more productive economic habits. The sooner you break the stranglehold that the bank has on your company's bottom line, the sooner you can start planning to achieve those corporate goals that you mapped out when you first started your business.
Don't Let The Bank Borrowing Cycle Strangle Your Business
One of the great things about factoring is that it has no limits. As your company grows and your invoiced sales expand, 1st Commercial Credit will be able to increase your cash flow to keep right up with your growth. Bank borrowing has a limit and you never know what that limit will be. With accounts receivable factoring, the only limit is the amount of approved invoices your company can generate. 1st Commercial Credit has no per month or per invoice minimums. That means that our finance plans are geared towards satisfying your company's economic needs. You only pay for the services you use and you never have to worry about mysterious monthly charges being assigned to your account.
With the help of a factoring plan from 1st Commercial Credit, your company can start thinking about taking on bigger orders as well. For example, let's say that you have a client that wants to place a significant order with your company, but the client needs a net 90 credit term to make the order work. Under normal circumstances, you would never be able to accommodate such a request. But with a factoring account from 1st Commercial Credit, you can take that order knowing that you will get your cash on time and you will be able to fulfill that order with confidence. Not only can we help you run your business with a sustainable cash flow, but we will offer you the tools you need to grow your business as well.
Contact 1st Commercial Credit today and let us explain factoring to you and show you how it can benefit your company. We do not charge you to talk to our financial experts and you are under no obligation to try our services. But we feel confident that, when you understand just how much our accounts receivable factoring services can do for your company, you will want to get started right away.