Working Capital Factoring A Business Dear John Letter To My Customer!-www.dde8.com

Business Dear John – Working Capital Factoring is not what you thought it was, so I have heard. When I heard that you were disappointed in your working capital factoring facility I wanted to try and provide you with proper information and insights into what will in fact get you the cash flow and working capital that you anticipated with your new Canadian working capital factoring facility. So John, what went wrong after we initially talked. You wanted business financing that would allow your business to grow in order to be more competitive in your business and grow those profits and sales. Factoring seemed like a great solution, and you indicated it is not up to expectations. Let’s backtrack a bit. I think at the end of all this you will see a viable way to achieve ALL of your business financing goals! Here’s where we think things went wrong for your firm. You need to understand that factoring came to Canada from the U.S. and Europe. Their method of doing business there is somewhat more ‘ abrupt ‘ if we can use that word. As a result you entered into a U.S. model type of factoring with a branch of a U.S. Factoring firm. Under that facility you do receive immediate cash for your receivables but you found out only later the factor firm more or less bill, collects, and follows up with your customer directly. Many Canadian business owners don’t like that method of doing business. So, John, the solution, and I remind you it’s the one we proposed, is a non-notification factor facility. Guess what, under this facility you of course still get same day cash, but you bill and collect your own receivables. Now we’re talking, right! You just achieved total financing control, you are getting all the cash flow you need, (i.e. not waiting 30-60, or 90 days) and you’re able to re invest in more inventory, sales, etc. John – you said that you were considering going back to your bank – just remember that all the financing that you need is, in our opinion, not going to be achieved by either a bank term loan, or a Canadian chartered bank line of credit. You will have a great interest rate , but you business will not have the cash flow and working capital that is required for your current sales and contracts . So whats the bottom line John – it is as follows – work with a trusted, experienced , and knowledgeable business advisor – put a working capital factoring facility in place that runs the way you want it to, and then focus on your business growth and let the cash flow and working capital work for you to those goals . Investigate non notification factoring – It’s a Canadian alternative to everything you didn’t like about factoring, with all the benefits! About the Author: 相关的主题文章: