It is not uncommon for Canadian business owners to be concerned about their cash flows. Ensuring that you have enough money for the day to day needs of your business is a practice that only makes practical sense. There are a number of ways to go about sustaining sufficient cash flow. Tax evasion, however, is not one of them.
According to a recent article by The Canadian Press: “One of every four Canadian businesses that collect GST fail to turn the money over to the federal government on time, often because they want to improve their own cash flow…The most common reason for failure to meet filing obligations was ensuring funds on hand didnt run dry.”
A recent report, using statistical information from 2007, discovered that there were 776,000 businesses with “unresolved” accounts, meaning that one or more of their scheduled GST payments to the government was past due.
This, of course, provides an unfair advantage to tardy business owners who do not submit their GST remittances on time. As the report notes, it is no different than borrowing money past the deadline that it is due. This extra cash flow likely seen as a benefit to making late tax payments doesn't allow for a fair playing field.
The report reveals the astounding number of businesses who seem to utilize this practice: “With 3.2 million businesses authorized to collect the sales tax in trust on Ottawas behalf, the non-compliance level means one-quarter of all businesses are benefiting from unauthorized loans from the federal government.”
Needless to say, there is a much more rewarding and guilt-free method of maintaining a business' cash flow. A merchant cash advance allows for small to medium sized businesses across Canada to make their future sales work for them immediately. With the extra capital, not only will businesses attain the cash needed to grow and expand, but the payback method ensures that cash flow is never a problem.
Unlike traditional bank loans, a merchant cash advance requires no regular monthly payments. A small percentage of a company's credit and debit sales serves as the repayment with each batch out. This also allows for sustainable cash flow as no business owner is ever required to make a payment that is more than what is affordable.
Here's an idea. Get yourself a free quote from Synergy Merchant Services. It will certainly help to be a much easier and legal method of maintaining your business' cash flow. So call us today…and don't forget to pay your taxes on time!