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10 Ways A/R Financing Makes Life Better for Alberta Business Owners
Are you looking to get some cash to cover your daily business expenses or to expand your operation?
Do you live in Alberta? Or Western Canada?
You may want to consider accounts receivable financing!
A/R financing, also referred to as accounts receivable factoring, involves you selling your business’ invoice to a top Calgary factoring company such as Calgary Business Cash in exchange for immediate money.
Most business owners in Alberta do not know what A/R Financing involves, but here is how it can benefit your business.
1. Fast cash
If your business needs immediate cash to buy inventory, make payroll, or do some renovations, you can always rely on accounts receivable financing. A business makes its cash from its customers, and if some are late in paying their bills, you may need to look for other alternatives to cater for your expenses. Traditional lenders like banks make you undergo a lot of processes before giving you funds, and they may not be suitable if you are looking for fast cash. Accounts receivable factoring, however, is an effective alternative that can see you receive some cash within a day or two.
2. You retain full ownership of your business
Most business owners are oblivious of how invoice factoring in Alberta works, and as such, they opt for other options to finance their business. Some of these options involve selling equity in your business to fund a particular project. What you don’t know is that as much as this is a viable option to get funding, you may want to consider accounts receivable financing. Why? With this option, you get to keep full ownership of your business, and still get the funding to expand your operations.
3. You can free up some working capital
If you serve the oil field in Alberta and are looking to free up some working capital to purchase more inventory, accounts receivable financing can help you out. We offer you instant cash to let you buy more inventory to expand your business. You can use the money we give you to market your business to reach more customers, or purchase equipment that will boost production. Accounts receivable financing can free up the money in your unpaid invoices, and you can use it to carry out your day to day business operations.
4. No Collateral is needed
Accounts receivable financing is a type of unsecured funding. Therefore, if you need invoice factoring in Alberta, you can come to us without having to worry about the risks of using your personal or business assets as collateral. Traditional lenders usually offer secured loans. As a result, they require you to put your asset as collateral, and this may compromise the success of your business if you are unable to pay. With accounts receivable funding, however, you receive immediate funding without having to use any of your assets as collateral.
5. You get to save time
Time is money, and the more you waste, the less your business gains. More often than not, business owners spend a lot of time following up with their debtors to clear unpaid invoices. Accounts receivables financing can help you avoid wasting all this time. How? Calgary Business Cash takes care of getting the money from the customers who owe you. This gives you time to focus on core business operations that will see your business grow.
6. You are charged affordable fees
One of the things that places us as that top Calgary factoring company is the reasonable fee that we charge for our services. The fee we charge is based on a number of factors- some of them include the customer worthiness, how long it takes the customers to pay, the advance rate, and the number of invoices we handle for you.
7. You can use it to increase business growth
If you run a business in Alberta and you want to expand it, accounts receivable funding is one of your smartest options! You can use the money your business receives to fund growth and to increase your profits. The money you receive can be used to increase inventory for large orders, keeping in mind that most suppliers offer discounts for larger orders. Factoring your invoices may also see you benefit from early payment discounts from your suppliers.
8. There is cash flow without debt
Individuals that run small businesses are well aware of the fact that cash flow is a very important factor in business operations to cover expenses, and to meet daily business needs. In case you are looking for a viable alternative of obtaining funding, we suggest you consider accounts receivables funding. Why so? Factoring is not a loan, therefore, it doesn’t count as a liability on your accounts. Your balance sheet shows no debt payments.
9. You don’t need a good credit rating
More often than not, startup companies have poor credit, and this makes it difficult for them to obtain funding from traditional lenders. With accounts receivable funding, you don’t have to have strong financials or good credit to receive some cash. What we mostly consider is the strength of the customers paying the invoice, and not your business. Therefore, if you recently opened a business that sells products to other companies in Alberta, and you need financing to expand your operations, you stand to benefit from accounts receivable funding.
10. There is professional accounts receivable management
Have you been facing a lot of challenges in your attempts to follow up with your unpaid invoices in Alberta? If so, you may want to involve professionals, like the ones at Calgary Business Cash, to manage your receivables. A professional factoring company will bring its expertise to handle your paperwork, process it, and also collect the payment on your invoice in the most efficient manner.
If you want accounts receivable funding in Alberta and greater Western Canada, call or email us today!