Gil Jesus 's blog ::5 steps to a healthier Accounts Receivables
Accounts receivable financing is becoming more and more popular as an alternative financing and working capital solution for Canadian business owners and financial managers. What is it? At its most basic it is a true form of an asset financing arrangement. Your company uses its receivables as collateral in a financing arrangement. The financing can be on one receivable, all your receivables, and, more commonly, some or all of your receivables on an ongoing basis. The industry tends to refer to the term 'factoring' as the day to day description of accounts receivable financing. Factoring or receivable financing allows Canadian business owners to receive immediately, on billing, cash for the receivable. A portion of the invoice is always held back, representing a traditional 'holdback 'plus some of the lenders financing fee. We would point out that the holdback is always paid back to your firm as soon as your customer pays the invoice The company receives an amount that is equal to a reduced value of the receivables pledged. The age of the receivables have a large effect on the amount a company will receive. The older the receivables, the less the company can expect - Generally speaking, invoices over 90 days can not be sold - therefore no cash flow will result on those items. Factoring, or accounts receivable financing helps companies unlock capital that is invested in accounts receivables. Accounts receivable financing on some occasions transfer the default risk associated with the accounts receivables to the financing company; this type of facility is set up as a non-recourse facility, meaning the lender or finance firm that is doing your factoring in fact accepts the credit risk associated with the ultimate collection of your accounts receivable . How does the lender do that - quite frankly the receivable portfolio originated on your customers in effect is 'insured 'by the lender. We will let you guess who pays for that and if it is included in your cost of financing. Yes, you are right, you pay. Typically the cost of such insurance as at least a per cent age or two to your cost of financing. The Canadian market place is dominated by a variety of firms that will factor your accounts receivable. These firms are either divisions or subsidiaries of large U.S or other foreign countries, or they are smaller Canadian owned, operated and funded firms. Typically the latter type of firm, the Canadian single entity has a difficulty in accessing all the funding it typically might need for a large number of transactions. The factoring business requires a significant amount of capital. When a Canadian business originates an account receivable financing it is prudent for the company to ensure they understand the over all profile, reputation, and capabilities of the firm that will be financing your accounts receivable. Unless the business owner negotiates a very special type of facility the accounts receivable financing firm generally has a good amount of customer contact with your customer base; they will want to validate your invoices, confirm customer acceptance of your invoice and products and services, and in most cases follow up directly with your customer for payment. In summary, Canadian firms can increase cash flow by the use of the alternative financing method known as 'accounts receivable financing ', commonly called factoring. Cash is secured for your receivables soon that your customer actually paying for it - As we have pointed out that comes at a cost in both financing cost as well as some level of customer intrusion. Canadian business owners should dutifully look into who they are dealing with, their capabilities and procedures, and possibly utilize the services of a trusted and credible expert in the area to determine their best receivable partner. |
Image of collection of an accounts receivable
collection of an accounts receivable Image 1
collection of an accounts receivable Image 2
collection of an accounts receivable Image 3
collection of an accounts receivable Image 4
collection of an accounts receivable Image 5
Related blog with collection of an accounts receivable
- tuananh108.wordpress.com/... a means of accurately...credit, collections, and accounts receivable. Most... of Accounts Receivable ...Applicator and A/R Deduction...
- debtcollectorsanon.blogspot.com/... a building... debt collection agency (DCA...admin side of the ..., all accounts payable & receivables, payroll...
- zengersmag.blogspot.com/... of the city payroll...six people to fill a pothole?” he ...99 million in accounts receivable but won’t hire third-party collection agencies...
- dentalcpas.blogspot.com/...on a PnL statement. A couple of comments: 1. By "accounts receivable", are you ...point in time OR the collections figure from an...
- rangerfs.wordpress.com/...we’ll talk to an account receivables professional — someone... of dollars...also in B2B collections? The accounts...
- redinccareerhelp.wordpress.com/...Accounts Receivable/Collections Analyst in New...to work in a growing... accounting or documentation... Knowledge of commonly-...
- frontlinesource2444.wordpress.com/... in need of an Accounts Receivable & Collections Specialist for... one of the ...Information Technology, Accounting, Legal, Human...
- iwantajobabroad.wordpress.com/...or collections wanted! What is the role? This role is a mixture of accounts receivables and collections. The role will have the admin aspects of accounts receivables...
- mychecksinthemail.wordpress.com/...be in danger of filing...at least once a month). 4. Be... under Accounts Receivables , AK Collections , ...
- dondowney.blogspot.com/...why AR collections in the professional...into some of the major...delinquent receivables. The last... as an accountant. I saw the...
Collection Of An Accounts Receivable - Blog Homepage Results
View of the Accounts Receivable world from a 30 year veteran. Commentary on collection practices, debt sales, specific industries, technology changes.
Collections- Day to Day Collection of Your Company's Accounts Receivable in a "Customer First" manner (by Peter J. Cunningham)
... the starting point for accounts receivable management services that create true value...you not only benefit from the short-term value of an…
Related Video with collection of an accounts receivable
collection of an accounts receivable Video 1
collection of an accounts receivable Video 2
collection of an accounts receivable Video 3
collection of an accounts receivable
Accounts Receivable Collection Agency Accounts Receivable Collections Inc Accounts Receivable Collection Process Accounts Receivable Collections Job Description Commercial Debt Collection Agencies Collection Services Sample Accounts Receivable Collection Letters Collection Policy for Accounts Receivable
0 개의 댓글:
댓글 쓰기