How To Properly Finance Trade Receivables In Canada

Key point any time your clients pay over 30 days increases financing costs, and that includes higher financing costs or simply the higher cost of carrying receivables that are unpaid – Example… The carrying cost on $10,000 paid insurance in 66 days at 14% interest rate would be: $10,000 x .014 / 365 x 66 = $253.00

Improving collection procedures and invoicing clearly and properly

Use your receivable credit facility to reduce overall financing costs – this includes taking prompt pay discounts with your own suppliers, as well as insurance negotiating better prices with suppliers for goods you can pay for on delivery

Two critical points come to bear here:

Offering prompt pay discounts

About the Author:

Stan Prokop – founder of 7 Park Avenue Financial

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years – has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax read more credit financing.

Considering advance/down payments in some form

Stan Prokop

Receivable credit solutions don’t always come from the bank. Any business loans selling on credit, large or small soon feels somewhat ‘ tied up ‘. Those goods and services you’ve delivered require payment and the ability to finance trade receivables is critical. Let’s click dig in.

If a Canadian chartered bank or business credit union can’t supply the financing you blog need is there an alternative? You knew there was, and it’s the financing of your A/R through an independent commercial finance company. The problem? Which of their multiple solutions works for you… is one better than the other, and can the costs of click here such financing be managed properly or reduced?

The balance of 10% is in effect a ‘ holdback’ of sorts, and when your client pays you received that 10% back immediately, less a financing cost that is in the 1.25 – 2% range. So using a 10k invoice as an example your financing cost would be 125 .00 – 200.00 $. Naturally the costs are geared toward your client paying promptly in 30 days, which are very typical commercial trade receivable credit terms…

If you’re focused on achieving the best method to finance trade receivables seek out and speak to a trusted, credible and experienced Canadian business blog financing advisor with a track record of success in Receivable Credit solutions.

1. You can reduce financing costs by focusing harder than ever on your management of receivables – That includes:

Invoice clients the day you deliver your product or service

While the ‘ street terminology ‘ refers to this method of financing as ‘ FACTORING ‘ there are in reality a number of subsets of this type of commercial finance . Choosing the click here right one is your key to success,

Ensure you have a facility read more that doesnt require you to finance all your A/R all the time – if that’s the case you’re dealing with the wrong firm

Haven’t had someone fully or clearly explain how A/R Finance works? You’ve just received your clearance for a full explanation! –> Based on an up front financing security agreement being signed you can draw down typically up to 90% of the value of your total receivables that are under 90 days old . By the way the banks typically allow you to draw down only 75% of A/R, so one immediate observation is that you just managed to negotiate more liquidity / cash flow for your business,

Focus on the benefits of a CONFIDENTIAL RECEIVABLE FINANCING solution – This is our recommended solution for all our clients, as it allows you to bill and collect your sales without the ‘ notification’ that is required by traditional factoring services

2. Only draw down on your ‘ factoring’ facility when you need it

What Are Business Ethics?

Business Ethics have only Click here! come to the fore recently. They state that there is more to business than just making a profit. The new focus is also on how the business treats the environment, reacts with the local community and works with its staff to build a responsible company that is both sustainable and adds value to the people that it interacts with.

“Greed is good” is no longer acceptable to most consumers. The consumer is now better educated with new means at his disposal. High speed internet access and forums like Ecademy now mean that good and bad news travels almost at the speed of thought. They are now demanding more from businesses even though their own ethics at times might be questionable!

Business ethics are now included in most business courses and the top management schools. The top graduates enter the corporate world ready to incorporate what they have learnt in the classroom.

Businesses need to have specific programmes in place to manage their staff and workplace in a responsible manner. They must give social welfare a high priority if they are to maintain their public image. They have to be seen to be recycling their waste and disposing of old equipment in an environmentally friendly way.

Businesses now have to be wary of using sweat Main page shop labour in the third Site world especially if they treat them badly. Everybody realises that third world country wages are lower but they expect Western companies to treat their employees with some respect and dignity. Businesses that employ children are now frowned upon even though child labour is the norm in these countries.

Many “watch dogs” now exist that “police” most large companies and report any blatant abuse of ethics. Most of these have only been set up in the last twenty years. Most large media organisations also have special reporters whose sole click here purpose is to identify where breaches are taking place and publicise them.

The top brands in the world need Annotation to be extremely careful now. The value of a brand might have taken decades to build See page but can be destroyed in a matter of weeks. An example of this is when Gerald Ratner made a speech to the Institute of Directors and in humour referred to a cheap necklace that “everyone knows is crap”. These comments served to wipe out over a half a billion dollars of the companies value and played a major part in the downfall of a once thriving jewellery retailer in the United Kingdom.

There are now funds that specialise in only investing in ethical businesses. They refuse to invest in companies that produce weapons or manufacture cigarettes as an example. These funds have taken of spectacularly and have billions of dollars to invest in the stock markets. Before they invest in a business they send their fund managers in to investigate the business fully to see if they comply with their guidelines. If the company is not willing to answer all their questions fully then they might not get Visit site approved for investment.

When properly managed and executed the use of business ethics can actually serve Facebook page to enhance the profitability of the company Go here now concerned. The business can proudly declare their values in brochures, newspapers, internet and television marketing campaigns. Reputation is the strongest asset that a company has and maintaining this and click here the value of their brands is essential to the long term future of the business.

Why Do You Need Restaurant Insurance?

If you have ever been to a restaurant, you will be aware of the many potential risks and hazards that employees and customers alike could be exposed to: a kitchen full of staff trying to work at pace around ovens, stoves, hot plates and each other; maintaining hygiene standards throughout the restaurant while trying to serve food; service staff trying to juggle sharp knives, hot plates and the general public. Plus the most common risk of all – trips, slips and falls.

All businesses would benefit from ensuring that their restaurant insurance policy cheap car insurance includes public liability insurance. This will protect your restaurant from claims made against you or your business, in a situation where you or your business has done any damage to a customer or their property. A lawsuit against a restaurant without public liability insurance could be highly damaging to the company, sometimes leaving it without enough money to continue to operate.

As well as claims made by members of the public, it is also vital that a business has insurance in case an employee falls ill or is injured on the premises, known as employers liability insurance. Your employees should feel they are working in a safe environment, and this includes knowing that they are covered in case an accident should happen which could leave them unable to work and unable to earn money.

Buildings insurance is a very important thing to have, especially if your restaurant is particularly click here old, or has any features which may need protecting. Although a very rare occurrence, damage to the building itself could be the result of a fire, which is a very real hazard in the kitchen environment. Another vital part of your restaurant insurance is contents insurance; apart from the actual building, this is where most of the businesses money will be invested, so it makes sense to guarantee all of the stock and equipment in your business is insured in case the worst should happen.

There payday loans may also be instances where you payday loans have to temporarily cease trading due to a major incident, such as a fire, a burglary or even a flood. This would result in a loss of earnings while you are trying to get the business back on its feet. 80% of businesses which do not have sufficient cover go bankrupt after a major fire. In cases such as these, business interruption insurance would reimburse the restaurateur payday loans any earning which would have been lost, meaning you can carry on where you left off.

There are all kinds of potential risks in click here the restaurant trade, meaning that it is absolutely essential for those click here who own or run a restaurant of any size, shape or description, to make sure they cheap car insurance have the right insurance cover. For click here those new to the catering sector, this can prove a challenge. Thankfully there are reputable brokers which deal with restaurant insurance. Their expert knowledge and understanding of the complex insurance industry allows them to help restaurateurs of all kinds get the cover they need.

About the Author:

We are based in the U.K. and understand the demands and needs of you, our customers, for all your insurance needs.To explore our range of restaurant click here insurance options, please visit our website at