Believe it or not, 2010 is just around the corner. And whether you like it or not, we are not just about to enter into a new year, but a brand new decade is on the horizon. Business owners all across Canada are currently thinking of ways to take their businesses to the next level of success, knowing that times are changing.
There are so many new technologies used today that were not even thought of a decade ago. The benefits of using the internet, for example, have proven to be endless. Companies make constant use of their websites and other social networking portals to establish themselves as leaders in the marketplace. It wasn’t too long ago that a magazine ad was among the first ideas to advertise. This, although not yet a thing of the past, is generally not a top resource.
Funding for advertising, among other things, has also changed. With the current economy still struggling to reclaim its strength, business owners are finding it harder and harder to secure the extra capital needed to take their companies to the next level.
Over the past decade, the merchant cash advance has found its way into the Canadian marketplace as a legitimate alternative source of funding for business owners. It is our strong belief that over the next decade, merchant cash advances will be considered very popular choices.
Today, however, the concept of having a merchant cash advance company purchase the future credit and debit card receivables of a business, is still a relatively foreign one. However, the practice of “factoring” future receivables is not brand new.
Wikipedia.org describes factoring as a “financial transaction whereby a business sells its accounts receivable (i.e. invoices) to a third party (called a factor) at a discount in exchange for immediate money with which to finance continued business.”
That’s it. One of the first things that we describe to our clients is the fact that they are not borrowing money. Instead, they are participating in a transaction. Synergy literally buys a portion of their future sales at a discount in order to get the merchant the necessary cash to help his or her business grow. This is how business owners avoid the hassles of paying interest and having their credit score potentially damaged. No credit is involved at all.
As Wikipedia describes, “factoring differs from a bank loan in (that) the emphasis is on the value of the receivables (instead of) the firm’s credit worthiness. Secondly, factoring is not a loan – it is the purchase of a financial asset…Finally, a bank loan involves two parties whereas factoring involves three.”
Perhaps, it’s time you factor Synergy into your plans for the new year. A simple quote is all it takes to get you started on your path to taking your company to the next level.