Factoring – A Financing Solution to Consider
by Ken McLean, Factors Western
How is the economy effecting your business?
In today’s turbulent times of economic uncertainty, predicted massive job losses (estimated to be over 400,000) in all sectors and particularly in the mining, forestry, constructions, and manufacturing industries, small to medium, size businesses are finding it ever increasingly difficult to obtain adequate financing to maintain their business operations and at best, to grow their business.
Who is at fault for our current economic woes?
- The Banks?
- Government?
- Bay Street?
Maybe it’s a combination of all these things. Everyone seemed to be doing everything to excess, nothing was going to inhibit the stock market rise, stocks and rel estate were on the ride of their life and it was never going to stop. And please, don’t regulate us, we can police ourselves. Never mind the lessons of the past, the most recent being the dot com meltdown where profits were never important, it as all about the making of the deal.
Well folks, the Roosters have come home to roost and they’ll be here for a long time, at least until the movers, shakers, and governments find a way to spend our tax money to save their own bacon.
In the meantime, small and medium size business will need to redouble their efforts to grow their business and in cases just survive. The banks are not interested in lending the money you need; they are too busy collecting government handouts, not o make credit available to you, but to strengthen their own bottom line.
But there is an alternative funding available from business like ours, Factors Western, which has been a reliable source of funding for thousands of small and medium size business in Canada for over 20 years.
About Factoring
Factoring is the process of purchasing accounts receivable invoices from small business to improve their cash flow, allow for continued and stable growth, and improve business efficiency by creating more positive time for owners to manage their companies. Factoring is not a loan, but rather the discounted sale of an asset for immediate cash. Invoices are purchased based on the credit worthiness of the payer, as opposed to the more conventional lending method of evaluating the credit and security of the client.
Factoring may appear in various forms and may not always be recognized. On the other hand, it may be the most frequently used service in the financial world. When a credit card is used to conduct a personal transaction, factoring has occurred. The credit card company guarantees immediate payment to the merchant for the goods and services provided, but for a reduced amount, retaining the difference or factoring fee as their profit margin.
Explore the Advantage
Ken S McLean
kmclean@factorswestern.com
Factors Western
604-534-4694
PS: Be sure to mention the Marketing Resource Centre when you call me.
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Perfect!