Can you relate to the following statement, clients who have been shared with us: ‘getting working capital financing for my order and contract is actually more difficult than getting the order itself?’
Your company has orders and contracts, now you only need to fulfill it to finish the work and be paid of course. This is working capital and cash flows that come out of contracts and commands which will of course help you grow sales and profits.
So how do you finance purchase orders and P.O. Factoring work in Canada? And is it actually available?! The answer to the following two questions.
Financing or Factoring Purchases receivable gives you capital for the key elements of your business, Le.e. Purchasing products, payroll, and working capital to bring accounts receivable. Most of the clients we encounter in the purchasing area of financial orders have what can only be explained as the best and worst problem – that is they have orders, they just do not have access to the capital to complete orders or projects. You also don’t want to strengthen your relationship with the main supplier, while at the same time you try to send your product or service based on ‘timely’. Naturally your ability to accept larger orders increases your competitiveness as a whole in your industry, and larger orders usually translate (hopefully!) Greater benefits.
Canadian business owners and financial managers consider financing purchase and factoring orders receivables their purchase orders, but at the same time they do not want to take additional debt, or give their business ownership to investors / partners.
So how kind of financing this type is in the real day of the world. You have P.o. And contracts from companies that are worth a legitimate credit – more often than not some of these clients can really be outside Canada – we see it all the time. Financial firms The purchase order gives you the minimum amount of capital you need to complete the order. Often this only involves payments to your inventory on your behalf.
Therefore the benefits of this type of Canadian business financing are very clear – your company can complete the order / contract may have been forced to not accept – no business owner to reject business. You can often jump over competitors with the same size as you only with the ability to finance orders, competition may not be possible.
You can enter long-term working capital or cash flow loans, but this usually involves repaired payments for 3-5 years. Although purchasing order financing is generally a little more expensive than bank financing that allows you to do short-term financing without taking additional debt on your balance sheet.
In some cases PO Finance or P o firm factoring can be asked to issue a letter or credit to suppliers on your behalf – which is also a financing strategy and factoring of the same P.O receivables with the same purpose.
Talk to trustworthy, credible and experienced business financing advisors who can give you information about the way of financing and factoring PO receivables, how you access it, and who can help you determine whether the financing costs meet your business and financial goals.