Canadian Financing Services |
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Since 1990, Accord has been providing working capital financing to small and medium sized businesses across North America. From our offices in Montreal, Toronto and Greenville, we provide accounts receivable based factoring facilities and asset based loans up to $10,000,000 to support high growth businesses and companies in transition. The following types of asset-based loans may be provided:
RECENT TRANSACTIONS Click here to see a selection of recent transactions and case studies illustrating how Accord Financial can help. FACTORING Factoring is the process of selling your invoices or accounts receivable to a factor such as Accord Financial for immediate cash. Accord Financial will advance to you a percentage of each eligible invoice that you issue, up to 90%, less our initial fees, and we will collect the invoice and remit the balance to you upon payment by your customer. We will establish credit limits for your customers in advance, and your customers will be notified to make their payment directly to Accord Financial. We charge a "discount" or processing fee based on the value of the purchased invoice as compensation for account administration, collection services and credit investigations and charge interest on the amount of funds actually advanced to you. The interest charges on borrowed funds are competitive with traditional sources of financing, and the processing fee can be offset by taking advantage of early payment discounts and by allowing you to quickly re-invest in your business. Factoring is a very accepted and mainstream form of financing that dates back several hundred years. Last year over $6 billion of sales in Canada were factored. This compares with over $135 billion of factoring volume in the USA and $450 billion in the UK. Factoring is an ideal way for new and established companies to fund their growth, as factors can often advance funds when traditional sources of working capital financing aren't available. Our business development officers will be happy to speak with you to determine which factoring products and services are right for you. TYPES OF FACTORING Recourse factoring means that you, the seller of invoices, retain the credit risk on your customers. After an agreed upon period, usually 90 days, or if your customer disputes an invoice that Accord Financial had initially advanced upon, we will charge back those invoices to your account. This type of factoring is ideally suited to businesses with customers who have good credit profiles but are slower payers. Non-recourse factoring means that Accord Financial will retain the credit risk of the account debtor in the event of non-payment by your customer. There is a premium to be paid for this bad debt protection, which Accord Financial can obtain and arrange. However, the credit coverage does not protect against disputes between you and your customer. Non-recourse factoring is perfect for businesses with a few customers, new customers, and customers with high balances as you are protected from any one bad debt. Spot factoring involves the purchase and funding of only some of your invoices, or some of your customers as opposed to all your receivables and can provide added liquidity without putting pressure on your existing bank's limits and requirements. Accord Financial has worked with all the major Canadian banks to provide spot factoring, which is ideal for companies experiencing a short-term cash flow squeeze as a result of taking on new customers, high growth with existing customers or seasonal requirements. Foreign - Export Ease Plus is a program developed jointly by Accord Financial and the Export Development Corporation combining EDC's accounts receivable insurance with Accord Financial's financing and A/R management. This product allows exporters to discount their eligible foreign receivables and turn them into immediate cash flow without worrying about collections or bad debts in foreign countries. Note that Accord Financial does not consider US based customers as "foreign." INVENTORY FINANCING We finance up to 75% of the appraised value of your eligible raw material and finished goods inventory. A satisfactory inventory reporting system must be in place and/or frequent inventory counts will be conducted. EQUIPMENT FINANCING We finance up to 75% of the appraised value of the equipment you own. These loans will typically amortize over three years. PURCHASE ORDER/IMPORT FINANCING We finance the opening of letters of credit to secure production against confirmed purchase orders. Once the merchandise is received and shipped to your customers, the resulting invoicing is factored through Accord and the balance of funds, net of our fees and the repayment of our L/C financing, is available to you. SCIENTIFIC RESEARCH & EXPERIMENTAL DEVELOPMENT TAX CREDITS For existing clients, Accord may be able to provide funding against eligible Scientific Research and Experimental Development claims, which have been filed with, and accepted by, the Canada Revenue Agency. |
