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Keeping Cash Flowing
As a business grows, so does its need for cash — to build inventory, buy equipment and pay additional employees or suppliers. In most cases, the cash is needed long before the business sees higher revenues.
To keep the cash flowing freely as your business grows, consider cash-flow strategies that bridge the gap between when expenses must be paid and when money from clients and customers is received.
Find out how RBC can help:
If your business is inventory-based, growth requires you to have products on hand to meet increased demand. Short-term financing lets you build the inventory you need, even when you don’t have sufficient cash on hand.
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Overdraft
Eliminates the worry about having the cash to pay your suppliers or employees.
Operating line
Borrow as much as you need, when you need it and pay it back when you have surplus cash.
Visa* Business credit cards
When you need a convenient payment method, business credit cards are fast and easy, allowing you to make purchases on the spot.
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Sometimes cash gaps can occur when suppliers need payment before you have received payment from your clients. To bridge the gap, consider flexible, short-term financing.
If you make the payment process easy for your customers, you’ll increase your chances of timely payments and having the cash you need in your account. In addition, you’re likely to see increased customer satisfaction, which may lead to repeat business and improve client retention levels.
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Moneris
Accept client debit and credit card payments with a Moneris card payment solutions. All daily card payments are deposited into one RBC account. Plus, Merchant Direct Online Reporting lets you view all daily transactions online by 7:00 a.m. the next business day.
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Whether you’re expanding a service offering, increasing your manufacturing capabilities or adding to a delivery fleet, adding capacity often involves a capital purchase — a high-priced item that you’ll use over several years.
Paying for it with cash on hand is often impractical and can strain short-term cash flow. A financing solution might be the best way to meet the cost of longer-term capital assets.
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Leasing
Preserve your cash and working capital for other uses by structuring a lease to match the useful life of the asset – leasing may provide up to 100% financing including applicable taxes. Your monthly rentals may be tax-deductible (lowering your effective cost of borrowing) and end-of-term options can provide additional flexibility to purchasing equipment.
Term loan
Accurately forecast monthly cash flow with regular term loan monthly payments. The money you need to borrow to purchase your more expensive assets can be repaid over an extended period of time, sometimes as long as the life of the asset.
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Your current business premises may not be capable of housing your expanding business. To meet your new needs, you may need to expand your existing location or move. No matter which option you choose, there are financing solutions that can help.
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Commercial mortgage
Reap the benefits of owning real estate, whether it’s the building you work in or another commercial building. Variable or fixed-rate commercial mortgages are available.
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Given the complexities of human dynamics, human resources issues can multiply exponentially as you hire more employees. Juggling vacation timing, pay demands, promotions, unexpected illness and performance problems can require a lot of attention. Many small businesses turn to outside professionals to help manage their human resources responsibilities.
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ADP HR management solutions
Spend more time focusing on your business, and ensure that your employees are well looked after, with a human resources management solution. Take advantage of strategic planning, business process engineering, integration and implementation services and legislative compliance services.
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Avoiding a Cash Flow Crunch |
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Pros and Cons of Leasing vs. Buying |
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| A sudden unexpected expense can throw off even the most carefully thought-out business plan. |
New equipment can be essential for a growing business. But is it better to lease or buy? |
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Talk to a Small Business Advisor |
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