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Factoring: A Brief History
(And What That Really Means for the Future of SMEs in Calgary)
Many SME’s, Small and Medium Enterprises in the Calgary area find themselves in full operation, servicing their customers well and managing their day-to-day affairs, yet lack the funding they need to meet their financial obligations and fulfill their financial gaps.
As an accounts receivable financing company that serves small and mid-sized Western Canadian business owners, we at Calgary Business Cash understand your need for short-term financing through accounts receivable factoring.
What Is AR Factoring? (A Brief History and Overview)
AR Factoring, also referred to as accounts receivable financing is a practice whereby AR Funding companies advance businesses whose finances are tied up in their accounts receivables with the funds they need to operate their business today.
When the payment terms of the accounts receivables become due, business’ customers pay the financing company rather than the business itself. The funding company provides immediate funds at a discounted rate to the business owner.
How This Helps SMEs
When business owners (SME's) attempt to provide products and services to their customers, they often extend various credit terms on their behalf, which is normally the only way that they can close the sale. However, this has a great impact on the business’ cash flow and often creates negative cash flow issues for the business owner. When their client’s payment terms are set at 30, 60, or 90 days out, it can create financial hardship for the business owner who needs immediate cash now.
Here's how we can help. To ensure that you have the cash you need today, we can purchase your invoices so that you can get paid today rather than wait for your customers to fulfill the terms of their invoice.
We know that you may have some concerns about how the receivable factoring process works and has an effect on you directly as well as how our team of professionals can provide you with the a/r financing that you need to address your financial gaps.
Our team is trustworthy, professional, and knowledgeable in the area of invoice factoring in Alberta. We are the top Calgary factoring company in the area and will fight hard to earn your trust.
We focus on B2B businesses that operate in the Province of Alberta in the towns of Calgary, Edmonton, and Fort McMurray. We provide up-to-date, ethical receivable factoring services that comply with the laws of Alberta and the surrounding areas.
We operate our A/R financing business in the manner in which traditional factoring companies operate. When making cash for invoices available to companies, we do so at a discounted rate and can issue the funds in as little as 24 hours based on several different factors, including the following:
• How long you've been in business
• The number of your overall receivables on your books
• The credit rating of your current customers
The amount of the factoring is based on the amount of the invoices that your business has and whether or not your business has a history of collecting payments on time. In almost all cases, as your accounts receivable balance continues to grow, we can increase the amount of financing that we make available for your business.
Advantages and Benefits of AR Factoring
There are a variety of benefits and advantages of obtaining factoring from our company. Some of them consist of the following:
• It provides an increase to your cash flow and reduces cash shortage issues
• It assists you with your collection efforts I
• It allows you to continue to fulfill sales orders
• It provides you with the working cash you need to operate your business on a day-to-day basis
• It prevents you from having a poor credit rating
• It helps you to stay in standing with your creditors, vendors and suppliers
• It helps you to meet payroll and pay other expenses as they occur
• It allows you to continue to operate your business uninterrupted
Why You Should Work With Us
We know that you have concerns about working with a factoring company and we can assure you that our company works in an ethical and professional manner. We will be open and transparent about how we can best work on your behalf to assist you meet your cast needs. For example, we will only contact your customers directly based on our prearranged agreement. Since there are instances where your customers would never know that factoring is taking place, we will do what we can from our end to ensure that integrity is always being practiced when working with your business.
Our rates are very competitive and consistent with other with similar businesses in the area. Also, we will let you know far in advance if you qualify to work with our company or not.
We at Calgary Business Cash have been in business for many years and operate based on the rules and regulations set forth by the International Factoring Association and other regulating bodies. As a result, we adhere to performing the highest level of professional ethics at all times. We will also operate with the highest ongoing competence by obtaining on going continued education, conferences and other avenues to continue to enhance our knowledge.
We are always open, honest, and forthright as it relates to all business dealings with you directly as well as with your customers. We also work in a manner that is consistent with other funders in similar industries.
We also maintain accurate accounting systems and keep track of each of our client’s accounts receivable balances and avoid conflicts of interest at all times.
We practice and uphold all factoring codes of ethics and practices which are reflected in our day-to-day business operations. We also uphold practices that reduce violations in the Province of Alberta and beyond.
Our expert staff is friendly and professional and we are standing by to be of assistance to you. For more information about our company and how we can be of service to you, please email us please contact us –please call or email us today.