If your business is experiencing a high number of credit sales resulting in reduced cash flow, then consider financing (or factoring) your accounts receivable. Factoring is where you sell your accounts receivable to a factoring firm, usually for fifty cents on the dollar. Not great, but you do get access to cash. Factoring is of benefit if:

Your clients take up to 30, 60 or even 90 days to pay

You are in need of more working capital to pay employees, suppliers, other expenses

You export goods or services

Your company is fast-growing

There are a number of companies that provide financing for businesses for these reasons and all of them offer varying rates according to the type of product or service being sold, the shipping location, the terms of payment, etc. Keep in mind that the fee you pay to finance your accounts receivable may be higher for high risk clients. If clients do not pay within the terms set out in the contract it will likely affect the fee that you pay to the financing company.

Canadabusiness.gc.ca offers information on government insurance and financing assistance. You can also search online for companies who offer accounts receivable factoring services to Canadian businesses.