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6 Ways Your Business Stands To Benefit from Accounts Receivable Financing

Accounts receivable financing addresses an issue most companies face. That is, freeing up capital stuck in unpaid debts. A factoring company offers a loan of an amount equal to the value of the outstanding debt. The outstanding debt serves as collateral in the financing agreement. This mode of funding has proved to be of great importance to the operations of various firms. Canada’s business environment prides itself as among the few economies with successful accounts of receivable financing platforms in operation. Here is a look at the benefits your company stands to gain from factoring finance in Canada.

1. Continued Business Operations

Firms are always seeking to expand their businesses or invest in other opportunities. Unpaid debts could cripple these growth strategies. The situation is further aggravated when there is no certainty as to when the debt will be cleared. Factoring firms step in to address this gap. By offering a line of credit known as factoring finance, your company is then able to proceed with its operations smoothly.


2. Financing For Better Management of your Firm’s Working Capital

The cash factor enhances a company’s operations. Debts owed to a firm hold money that would otherwise have been used in managing its working capital. To finance company expenses such as the payroll, or utility bills, your entity could consider selling their accounts receivable. The sale is referred to as invoice factoring and is a package offered by factoring companies. Invoice factoring Canada has grown, and you stand to benefit greatly from this opportunity.


3. Transfer of Risk

Amounts outstanding have a risk element of default by the debtor. This risk is transferred to the factoring firm. It, therefore, follows that the hustles of pursuing the debtors become a responsibility of the factoring company. This is the case especially if you consider taking up the invoice factoring package from a factoring firm.


4. Alternative Option to Bank Loans

Factoring receivables have become an alternative for many companies seeking to fund. In some situations, your business may not qualify for a bank loan. Factoring finance offers a reliable alternative especially so because of their high approval rates. You could consider the factoring option.


5. Faster Funding

In comparison to the traditional financing methods, factoring companies’ process funds faster. Banks’ bureaucracies are eliminated in the finance application process adopted by factoring firms. It becomes easier for small businesses especially to take advantage of immediate prospects that would have been lost if they opted for bank loans.


6. Improved Relations with your Customer

Financial constraints affect the population across the board. Your customers are no different. In opting for factoring finance, it is possible to extend your clients’ payment terms. Your firm’s operations will not be affected as you wait for your customers to honor their dues.

All companies need access to credit to support their operations. Some situations call for quick financing that may prove to be a challenge if you opt for traditional lines of credit. If this is your situation, understand how factoring financing could work for your firm and consider taking it up.  For more information visit www.fundthrough.com

3 Ways To Avoid Filing For Bankruptcy

Bankruptcy is practically a swear word in the world of personal finance. It is such a dramatic solution to the problem that most people want to avoid it altogether. That is understandable. A bankruptcy can have terrible impacts on your credit rating and other factors as well. For many people it is also personally embarrassing and not something that they even want to contemplate. That is why a consumer proposal Mississauga alternative is just what the doctor ordered in many cases.

Things To Think About Before Bankruptcy

Most people look at bankruptcy when they have amassed a large amount of personal debt. This could come in the form of credit card debt, medical bills, or other expenses that have been adding up over the years. While bankruptcy can provide a clean slate from many of those debts, it is also a sign that you may not be a great person to lend to in the future. If you declare bankruptcy you can expect that lenders will be hesitant about lending to you again in the future. A bankruptcy trustee can make it happen for you, but you will want to consider an alternative to bankruptcy first.

Negotiating With Creditors

One thing that should be done that people often do not talk about is simply coming clean with creditors. If you explain the situation to them, they are likely going to at least listen and perhaps even offer some helpful advice. They may also be willing to work with you on getting these debts paid on a timetable that works better for you. After all, those that you owe money to would like to at least see some of that money rather than get nothing at all.

A Consumer Proposal

The most straightforward way to work on debt repayment is to do what is called a consumer proposal. It is basically exactly what the name sounds like. It is the consumer (aka you) proposing a settlement of sorts to those who are owed money. The consumer comes up with a number that they can reasonably afford to pay back and makes that offer to the credit card company or other lender. They then agree to the terms and this helps the consumer to avoid bankruptcy.

A consumer proposal has to be reasonable, but this does not mean that it has to be entirely in favor of the debt holder. Rather, many consumer proposals are very advantageous to the consumer. The creditor just wants to get some money from this individual, and the consumer wants to spend as little as possible to get out of this problem. It is a win-win solution for both sides.

This is a great way to approach the problem. Always remember that you are not the only one facing these issues. The credit card companies have dealt with cases like yours in the past and they will again in the future. Try to work with them to help yourself and them out at the same time.

Credit Counseling

5 Steps To Procure Credit Counseling Services

As you’re reviewing your current financial situation, you may feel as though you are in trouble. Issues can arise, especially when credit is involved. Fortunately, you can seek out credit counselling services to assist. Preparing yourself before the meeting or telephone call can be of great assistance.


1. Call the Company

The best way to prepare for debt counselling services is to call the company to find out what you should bring with you. Even if you are having a phone session to determine your immediate needs, you can ask a representative what to have prepared. For example, you may need to provide exact information about your income. If you don’t have the proper paperwork in front of you, doing so accurately may prove difficult.


2. Know Your Debt Situation

When you speak with representatives from credit counselling services, you want to provide a clear depiction of your debt. While it can be difficult to state exactly how much debt you have, coming to terms with it now can help you to start resolving the issue. Also, if you give a figure lower than the actual sum of debt you have, you might find that the stipulations of your verbal discussion need to change.


3. Express Your Full Intents

You may just want to enroll in a program that allows you to minimize your debt. However, you also may wish to procure a loan that permits you to pay off your debt and achieve other financial goals. For example, you may have work on your house that needs to be done. You can use the loan to pay for that work and for your debt, but if that is what you are intending to do, you need to let the credit counselling service provider know that right away.


4. Calculate a Figure

You will probably be asked how much money you can pay each month for the loan. Giving a figure without thinking about it might mean that you provide a number you can’t afford. Before you speak with a representative, you should sit down to figure out what you are able to pay each month. While you’re speaking with the representative, ask if a penalty will apply in the event that you pay the loan off early.


5. Confirm the Interest Rate

The interest rate that you get can seriously affect your ability to pay off this sum in a timely fashion. When you ask about the interest rate, make sure that it will not change. You don’t want to just guess how much money you will pay off each month; you want to know.


8 Benefits Of Choosing an Effective Business Management Consultant for Your Small Business

Most small businesses have a common assumption about business management consulting. They believe that it is only for big and well-established organizations. In reality, business management consulting is an essential part of every organization’s culture because it helps business management improvement in organizations of all sizes. Implementation consultants offer high-caliber advice and information on various business topics, which ensures quality management.

Benefits of hiring management consultants 

1. Expert management advice

A company that hires a business management consultant is assured of trustworthy suggestions about how to achieve sales growth among other issues in the enterprise. The expert will give reliable tips on how to steer the company forward. Management consultants are trained; therefore, they have knowledge on various aspects of business management.

2. Discretion

It is the responsibility of a consultant to keep a company’s information private. That means you can trust your management consultant with the company’s sensitive information. Consultants who fail to keep private company information discrete soon lose their clients.

3. Real-world and hands-on solutions

Some business problems cannot be solved by reading a book. Management consultants typically carry out an analysis of your company like utilization analysis and workload analysis to understand your business and its challenges. Since they are dealing with your situation directly, they can offer excellent solutions that ensure a return on investment.

4. Choosing a business management consultant

After looking at the benefits of hiring a consultant for your small business, the next big step is choosing the right one. There are many consulting firms today; hence, small businesses need to be careful the firm they select. Here are guidelines that will help you settle for a good consultant for your small business.

5. Unimpeachable character

An effective management consultant should be an individual of the highest character. The person should be the consummate professional. Additionally, the expert ought to be willing to put the best interests of your business ahead of their own.

6. Solid experience

An effective consultant needs to have experience with problems or opportunities your company is facing. The professional brings to the table expertise in dealing with the types of issues your business is facing. After being aware of the challenges, consultants use the logistics to come up with solutions and help in implementing them to achieve business performance improvement.

7. Creative problem-solving skills

You want the consultant you hire to be a problem solver. After all, your aim of hiring a management consultant is to help you solve your business problems or take advantage of available opportunities. Therefore, ensure you hire an exceptional problem solver.

8. Outstanding communication skills and interpersonal skills

Good consultants must be articulate. They should have strong communication skills. You need to be comfortable revealing details of your company to the consultant you hire. A trust-based relationship should develop with your business management consultant.

For more information visit www.carpedia.com