Top 7 Reasons Canadian Companies Should Consider Factoring Financing

Obtaining financing for companies in Canada has always been a challenge. Bank financing is almost impossible to obtain and there are few available alternatives.

Factoring, a type of asset based financing, has been gaining traction in Canada as an alternative to conventional bank financing. It uses your strongest asset - your customers - as collateral. It has a number of advantages over conventional financing.

1. Factoring provides an advance on your slow paying invoices, strengthening your cash flow.
   
   
2. Factoring strengthens your balance sheet, since it is not debt but rather the sale of a financial right to the factoring company.
   
   
3. Factoring financing can be set up quickly, usually in a couple of weeks.
   
   
4. Factoring is available to new businesses and startups.
   
   
5. Factoring is easier to obtain than bank financing or private equity financing.
   
   
6. Factoring lessens the risk of selling on net-30 or net-60 terms.
   
   
7. Factoring lines are tied to your sales and grow as your business grows.

About Marco Terry

Marco Terry is Managing Director of Commercial Capital LLC, a leading provider of factoring in Canada. He can be reached at (877) 300 3258.