It’s time. We’re talking about purchase order finance in Canada, how P O finance works, and how financing inventory and contracts under those purchase orders really works in Canada. And yes, as we said, its time… to get creative with your financing challenges, and we’ll demonstrate how.And as a starter, being second never really counts, so Canadian business needs to be aware that your competitors are utilizing creative financing and inventory options for the growth and sales and profits, so why shouldn’t your firm?Canadian business owners and financial managers know that you can have all the new orders and contracts in the world, but if you can’t finance them properly then you’re generally fighting a losing battle to your competitors.The reason purchase order financing is rising in popularity generally stems from the fact that traditional financing via Canadian banks for inventory and purchase orders is exceptionally, in our opinion, difficult to finance. Where the banks say no is where purchase order financing begins!It’s important for us to clarify to clients that P O finance is a general concept that might in fact include the financing of the order or contract, the inventory that might be required to fulfill the contract, and the receivable that is generated out of that sale. So it’s clearly an all encompassing strategy.The additional beauty of P O finance is simply that it gets creative, unlike many traditional types of financing that are routine and formulaic.It’s all about sitting down with your P O financing partner and discussing how unique your particular needs are. Typically when we sit down with clients this type of financing revolves around the requirements of the supplier, as well as your firm’s customer, and how both of these requirements can be met with timelines and financial guidelines that make sense for all parties.The key elements of a successful P O finance transaction are a solid non cancelable order, a qualified customer from a credit worth perspective, and specific identification around who pays who and when. It’s as simple as that.So how does all this work, asks our clients.Lets keep it simple so we can clearly demonstrate the power of this type of financing. Your firm receives an order. The P O financing firm pays your supplier via a cash or letter of credit – with your firm then receiving the goods and fulfilling the order and contract. The P O finance firm takes title to the rights in the purchase order, the inventory they have purchased on your behalf, and the receivable that is generated out of the sale. It’s as simple as that. When you customer pays per the terms of your contract with them the transaction is closed and the purchase order finance firm is paid in full, less their financing charge which is typically in the 2.5-3% per month range in Canada.In certain cases financing inventory can be arranged purely on a separate basis, but as we have noted, the total sale cycle often relies on the order, the inventory and the receivable being collateralized to make this financing work.Speak to a credible, trusted and experienced Canadian business financing advisor as to how this type of financing can benefit your firm.

In a small business, the business leader may only be in charge of a small number of people, all of whom they directly manage. However, as a business becomes successful and expands, with more staff joining the ranks, the business leader might have to employ managers or team leaders to take care of its employees, creating a hierarchy or pyramid structure containing a number of branches or channels. This will inevitably mean that the business leader is then in charge of managing the management team, who are in turn responsible for managing the other employees.While there are obvious benefits to this approach, with a business leader focusing priorities in other areas while managers organise the work and staff, it is important that an element of control, trust and responsibility are exercised by those managers to delegate tasks effectively. While managing staff might be one thing, managing managers is a different game entirely.So what is the best approach to adopt when supervising a management team? Here is a list of methods detailing how to manage managers most effectively:Set clear short and long-term goals: It may sound obvious, but it is imperative that managers know what they are working towards. Be sure to set clear short-term (monthly) as well as long-term (yearly) goals, which are realistic and achievable. If they have failed to meet their targets when expectations were clearly laid out and agreed upon, then they can be held accountable; however, if no clear path has been previously laid out, it is fair to say that their leader is to blame.Do not make plans without consulting them: A manager in a department may have been employed for a particular reason, for example their skill set or knowledge on a certain topic, so imagine their frustration if a decision is made by somebody higher up in the chain of command – particularly if it is an incorrect decision – without checking with them first or asking for their opinion. When working on a business-wide plan which will affect certain managers, be sure to include them. If anything, it should help improve the plan, but also the manager will feel involved.Do not micromanage: A sin of the small business owner who has had to expand. Managers at the top of the chain should not micromanage every nitty-gritty detail of their management team. Managing their staff directly – without going through the manager – should also be avoided, as it could confuse workloads and mess with a manager’s plans. It may be hard for someone who used to control everything, but business owners should understand that managers should be given space to make their own decisions, with influence and guidance, instead of being told exactly how they should manage.Listen to your managers: Managers will not only need guidance and assistance but may also come up with ideas within their own department which may influence other areas on a business-wide scale. Listen to their concerns, listen to their suggestions. A leader who does not listen to his or her managers will never be able to manage effectively, especially if they are too nervous to speak up.Keep an eye on your managers’ staff: Without micromanaging (see above), it is still important to observe a team or department’s progress. Do employees seem unenthusiastic? Are they unhappy? Is there high absenteeism or a high turnover of staff? These could be signs of a bad manager who is upsetting their staff, which could affect workloads, productivity and deadlines.Treat each manager differently: At the end of the day, all people are different, so no two managers will be identical, even if they appear to be similar in the ways they operate. Being able to understand managers and tailor approaches specific to them should be regarded as one of the most effective ways to get the most out of them, which will then disperse into their team or department.