For Canadian small and medium-sized businesses (SMBs), securing financing has traditionally been a challenge. Historically, banks and large institutions primarily catered to larger enterprises, leaving SMBs with limited options. Fortunately, the landscape is changing. Factoring companies are now providing crucial business financing and invoice discounting services across Canada.
Are you facing any of these common problems?
* Large commercial clients with slow payment cycles are impacting your cash flow.
* You need immediate funds to cover payroll and supplier expenses.
* You’re forced to decline large orders due to capital tied up in outstanding invoices.
These issues stem from slow-paying clients. Invoice discounting, also known as invoice factoring, offers a solution by accelerating client payments, reducing payment cycles from 45 days to as little as 2 days – without disrupting your client relationships.
The process is simple: you sell invoices from reliable but slow-paying clients to a factoring company. The factoring company applies a small discount and provides you with a significant advance on the invoice amount.
Invoice discounting provides the working capital you need while the factoring company manages the invoice collection. This eliminates uncertainty and frees you to focus on growth. Unlike traditional bank loans, invoice discounting is readily accessible and quickly implemented.
If slow-paying clients are hindering your business’s potential, invoice discounting offers a powerful solution to unlock cash flow and fuel expansion.