Canadian technology companies, to remain competitive, sometimes must offer credit terms of 30–90 days to their customers; however, this may put a strain on their cash flow. To counter it, an invoice factoring facility can be the ideal option for the company to maintain positive cash flow.
By selling their invoices to a factoring company, tech businesses can receive immediate cash, allowing them to invest in operations or meet other financial obligations without delay. This strategic move not only alleviates cash flow issues but also enables technology companies to focus on growth and innovation.
Moreover, this approach can enhance their creditworthiness, as timely payments from the factoring company can improve their financial standing. As a result, tech businesses may find it easier to secure larger customers or negotiate better terms with suppliers, further supporting their growth.
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