Let's take a close look at the invoice collection process and try to determine how much of it your company can actually control. Your sales professionals head out into the world and sell your products or services to a target audience. If you do your marketing properly, then you can arm your sales professionals with leads that have a strong chance at turning into paying clients.
You and your accounting group do your due diligence prior to approving each and every new credit account in the hopes that you can establish relationships with customers that do not promise to buy more product than they can actually pay for. The point to credit is to allow customers to buy product now, and then pay for it later. But the unpredictable nature of when customers will actually pay is when problems start to occur.
Since these customers are on credit terms, your company is fronting your customers the money to buy these products. Until your customers actually pay their invoices, your organisation is on the line for the money required to fill orders.
As you can see, Canadian small to medium sized business run into trouble when they allow invoices to go 30, 60 and even 90 days past due. If these Canadian entrepreneurs manage to find a lender that will help fill in cash flow funds while waiting for clients to pay their bills, they will be in a great cash flow position.
1st Commercial Credit is an accounts receivable factoring organization that removes several of the financial challenges from the invoicing process. We will take your receivables and convert unpaid invoices to cash in your bank account.
Funding receivables is something that we do everyday. We can not only help your company meet its financial obligations with domestic transactions, but we also have the resources and expertise to facilitate international business as well. We are a full-service company that can show you how funding accounts receivable programs can help your business to grow.
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Bad Credit, Good Credit, Or No Credit At All
Every day, Canadian business owners struggle with decisions that could affect their companies' financial futures. Do you pay that vendor bill this week, or do you make your payroll instead? Most business owners will choose to make payroll, and that will put their vendor invoice into a past due situation. It offers the business owner a chance to see this financial process from the side of the late-paying client and it can also damage the company's credit score. The business owner looks at the stack of his own past due invoices and cannot help to feel frustrated at the position that his own clients have put him in.
1st Commercial Credit is not interested in your company's credit score.
Accounts receivables factoring is something that every company needs to utilize, regardless of their credit status. When we approve an invoice for funding, the approval is based on the financial status of your customer and not your company. We will allow you to use your client base's combined financial strength to your advantage.
With this kind of a program in place, you can pay your vendor bills on time and improve your credit. A start-up can make sure that it has the cash flow it needs to grow and avoid a plummeting credit score. A company with good credit can preserve that credit profile and prevent any kind of challenges from bringing down the company credit score. This is the ideal plan for any company and we do not care what your company credit profile says. All we care about is getting your cash flow moving using your invoiced sales.
A factoring company (or accounts receivable factoring) converts invoices sold on credit terms for immediate working capital at a discount. It has become a simple, fast and easy way to access business cash flow. In comparison with a traditional bank loan, a company that factors receivables has a quicker approval process.
1st Commercial Credit is a factoring company that specializes in evaluating accounts receivable and can make a prompt approval decision. The documentation requirements are not as lengthy, and the main requirement is that an applicant has invoices for work or orders that have already been satisfied. It also helps to have creditworthy customers. As long as a business has been in operation, meets revenue requirements and is free of liens or legal issues, approval is likelier.
Invoice factoring services offer great cash flow solutions to a variety of companies. Businesses that operate in certain industries use receivable factoring more than others. Industires may include staffing agencies trucking companies, and manufacturing companies often rely on invoice factoring to meet cash flow needs.
What makes these and other companies ideal candidates for receivable factoring services? Factoring companies offer invoice factoring to organizations that work on business-to-business models rather than business-to-consumer ones.