Purchase Order Financing and Factoring

Can you relate to the following statement a client once shared with us: ‘Getting working capital financing for my orders and contracts actually is harder than getting the order itself?’

Your firm has the order and contract, now you just need to fulfill it to complete the job and get paid of course. It is the working capital and cash flow that come out of those contracts and orders that will of course help you grow sales and profits.

So how does purchase order financing and P.O. Factoring work in Canada? And is it actually available?! The answer to those two questions follows.

Purchase order financing or factoring provides you with capital for the key elements of your business, i.e. Product purchases, payroll, and working capital to carry receivables. Most clients we meet in the purchase order finance area have what can only be describe as the best and worst of problems – that is to say they have the order, they just don’t have access to the capital to complete the order or project. You also don’t want to strain your relationship with key suppliers, while at the same time you strive to deliver your product or service on an ‘on time ‘basis. Naturally your ability to accept larger orders enhances your overall competitiveness within your industry, and larger orders usually translate (hopefully!) into larger profits.

Canadian business owners and financial managers consider purchase order financing and the factoring of their purchase orders, but at the same time they don’t want to take on additional debt, or give up ownership of their business to an investor / partner.

So how does this type of financing work in the day to day real world. You have a P.O. and contract from a legitimate credit worthy company – More often than not some of these clients can actually be outside of Canada – we see that all the time. The purchase order finance firm provides you with the minimum amount of capital you need to complete the orders. Many times this simply involves making payments to your supplies on your behalf.

Therefore the benefits of this type of Canadian business financing are very clear – your company can complete orders/contracts it might otherwise have been forced not to accept – no business owner hates to turn down business. You can often also leapfrog a competitor of similar size to yours by simply the ability to finance orders the competition might not be able to.

You could enter into long term working capital or cash flow loans, but these typically involve payments that are fixed over 3-5 years. Although purchase order financing is generally quite a bit more expensive than bank financing it allows you to do short term financing without taking on additional debt on your balance sheet.

In some cases the PO finance or P O Factoring firm could be asked to issue a letter or credit to a supplier on your behalf – that is also a common p.o financing and factoring strategy that achieves similar objectives.

Speak to a trusted, credible and experienced business financing advisor who can provide you with information on how PO financing and factoring works, how you access it, and who can also assist you in determining if the cost of the financing meets your business and financial objectives.

Available Online Accounting and Finance Training Programs

Working to facilitate and record monetary funds for a business, bank, or an individual person is a career path that can be entered through education. Online accounting and finance programs are available in several areas for students wanting to work with an organization’s finances.

Online colleges and universities offer training in every form, allowing students to not only pick their degree level but concentration area as well. Education in accounting and finance is available in areas that include:

  • Accounting Technology
  • Bookkeeping
  • Corporate Finance
  • Finance and Backing

Schooling opportunities prepare students to work with monetary funds in many ways. The career goal of students will ultimately determine what type of degree to earn. For example, completing a corporate finance degree is the best options for students that want to work with organizations on their financial plans. Degree programs at the undergraduate level train students to begin entry-level careers in accounting and finance. Students that are looking to enter graduate degree training can expect to study advanced material that will prepare them to enter managerial or executive positions within the work place.

Becoming a versatile member of the industry can be gained within an accounting technology degree program. Students gain analytical skills while learning to use the industry’s latest technology and accounting tools. Students learn the accounting process by working to understand how the mathematics of the industry is applied to financial management. Education gives students experience by requiring them to take courses on accounting info systems, taxation procedures, and more.

Another side of accounting and finance is bookkeeping. Students can complete an online degree program in bookkeeping to gain the knowledge to produce accurate and efficient financial statements. Students learn about accounting by working through business-oriented courses and money management. After a general foundation is gained students study tax depreciation, payroll, inventory, and entry adjustment.

Students that want to work specifically with organizations on their monetary activities can seek out education in a corporate finance degree. Investment banking, market directive, and cost analysis are subjects that train students to become financial reporters, fraud investigators, stockbrokers, and more. Online graduate degrees in corporate finance are taken as concentrations in finance programs. Other possible online degree programs can be pursued in finance and banking where students learn to work in financial institutions like credit unions and banks. Students can expect to learn about accounting principles, macroeconomics, and banking information systems inside a standard degree program.

Numerous areas can be entered in accredited online degree programs that are related to accounting and finance. Full accreditation is provided by various agencies like the Distance Education and Training Council http://www.detc.org to online schools and colleges that meet all requirements. With the field being so diverse students can choose what type of degree and concentration they want to complete. Education establishes the needed knowledge for the field so students can enter a career. Beginning education is available once students search out the right degree for them.

DISCLAIMER: Above is a GENERIC OUTLINE and may or may not depict precise methods, courses and/or focuses related to ANY ONE specific school(s) that may or may not be advertised at PETAP.org.

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Specialization In Finance Is Most Desired Amongst MBA Students!

Specialization in MBA-finance is perhaps the most desired and sought after finance courses in India. More and more aspiring MBA students opt for courses in finance as their first choice. But why choose MBA finance over other fields in business administration? The answer is very simple! The changes in the Indian economic scenario and a rise in the financial sector combined with lucrative opportunities have made finance one of the favourite choices amongst students.

Moreover cutting edge technologies, advanced business strategies and the need to always stay ahead of your competitors have increased the want for business houses to take accurate financial decisions. And with a degree in finance, individuals can help various organizations take important and valuable financial decisions according to market trends. Also, with MBA finance programs, individuals get the chance to enhance their knowledge on financial topics and also increase their chances of better career opportunities.

The demand for finance professionals is not only apparent in India but also in the international market as well. There are various reputed MBA colleges and business schools that offer courses in finance to help students learn the methodology and strategies of the finance and banking sector. Most of these institutes offer a curriculum that focuses primarily on the recent business trends, banking strategies, financial instruments etc and includes extensive practical classes, assignments, case studies and workshops.

Choosing a renowned MBA institute is very important that offers the requisite knowledge and helps students to face the competitive industry with full confidence. Numerous students, on successful completion of these courses have received lucrative offers and joined Indian as well as top international companies. Different courses of finance can help students to land up in the sectors of corporate finance, risk management, insurance sector, Insurance manager etc. The demand for qualified and smart finance professionals can never go out of demand with vast career scope and immense opportunities. Therefore the need for effective and well designed courses in finance is mandatory to churn out intelligent, well read and extremely knowledgeable students who can take the industry by storm.