Account Receivables Solution & Financing, Business Factoring

Account Receivables Solution & Financing, Business Factoring

Accutrac Capital 0 Comments

Account Receivables Financing: Key Benefits

Account receivables financing has seen tremendous growth in Canada over the years. Industries at the macro economic level have found an ideal partner in small business factoring companies. According to surveys, small and medium enterprises (SMEs) in Canada have factored or indulged in transactional account receivables financing by more than 500% as compared to figure status; a decade back. Now, we all must understand a simple fact. Accounts receivables financing is one of the best loan alternatives available in the market.

The operational mechanism for factoring is crystal clear. A company can hire the services of an account receivables financing firm. The firm, in turn will hold responsibility of your invoices and pay you around 90% of the invoice amount in advance. The rest of the amount minus a nominal fee will be paid on the maturity of the accounts receivable invoices. This concept also offers some great benefits. Here is a list of some of them in more detail.

Funds Injection: The concept of account receivables financing ensures quicker funding for your business. This makes sure that your business is never short of working capital funds. Accounts receivable financing gives you the immediate opportunity of converting your receivables into immediate cash flow for your business.

By getting your outstanding invoices or receivables monetized by a commercial financing company, you are able to get your money when you need it. You don't need to wait weeks and months to receive your dues from your clients. You gain immediate access to working capital for your business. Quick funding from a factoring financing company gives you the advantage of an enhanced credit rating by virtue of you having the funds available to make timely payments and occasionally even ahead of schedule. Now that your business has the required capital to operate there should be no reason to seek additional funding like venture capital. Unlike venture capital, funding from factoring companies does not require the relinquishment of your equity in the company so equity will now continue to be with you, the business owner.

Enhanced Growth Prospects: Modern day businesses face trouble when it comes to having a regular cash flow chain. This often leads to loss of orders as clients doubt the deadline meeting capacity of an organization. Funding available through factoring ensures that such projects are also grasped.

Accutrac Capital Solutions is a leading accounts receivables factoring company providing services across sectors. For details log onto:


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