If you are in the market for a new vehicle chances are you have been shopping around for the best finance package to fit your car-buying needs. Residents of Canada have several options when it comes to finding the right lender for their car loan and by investing a little bit of time in doing research and comparison shopping they can often cut as much as 1-2 percentage points off their financing.

Auto loans are as a part of the car buying experience as finding the right vehicle itself. In fact, many consumers will often investigate financing options before they begin searching for their new vehicle in earnest. There are a number of factors that influence the rates you will receive when looking for vehicle financing. These include such things as credit rating, length of the loan, down payment and vehicle type. By doing a little legwork up front you can be an informed consumer as you explore your financing options.

First, since auto financing is based on a fixed-interest loan you will be paying the same amount of finance charges no matter if you pay it off early or make regular payments as scheduled. As such it pays to finance the least amount as possible when taking out a loan to buy a new vehicle. Consider making a large down payment, trading in older vehicles or looking at vehicles that aren’t as expensive when car shopping. The money you save in finance charges could very well help you upgrade to a higher model vehicle on your next purchase.

The best source for an auto loan may be your local bank or credit union. Often with established customers they will offer a discount in the interest rate in order to keep your business in-house. Failing that take your search online where hundreds of finance companies will actively compete to get you to sign on the dotted line.

There was a time when obtaining business financing in Canada was very hard. But this is changing as small business financing companies are moving into an area previously dominated by large banking institutions.

As most business owners know, qualifying for a business loan or a line of credit is very hard. Bank lending criteria is so strict that few companies ever manage to get any financing. But that is changing.

If you own a company that sells goods or services to other businesses (or the government), then there are two financing options that are available to you. They are invoice factoring and purchase order financing.

Are your clients taking up to 60 days to pay their invoices? Consider invoice factoring.

Selling to mid size and large companies is great, as they can provide you with reliable and steady business. However, their payment terms are always challenging. They usually demand the right to pay in up to 60 days. In the meantime, you must cover paying rent, salaries and suppliers. This can easily be fixed by factoring financing. Factoring can eliminate the 60-day wait and get your invoice paid in 2 days. The process is simple, you sell your invoices to a factoring company, who pays you up front for them (less a small fee). You get your money up front, while the factoring company waits to get paid.

Need money to pay your suppliers? Consider purchase order financing.

If you sell products as a reseller or wholesaler, then your biggest challenge is getting the financing to pay your suppliers. In this case, purchase order financing may be the right solution for you. Purchase order funding provides you with the necessary funds to cover your supplier expenses, allowing you to fulfill the order and deliver to your clients. The transaction is then settled when your client pays their invoice and the collateral is the purchase order from your client.

Conclusion

Both factoring and purchase order funding are easy to obtain and can be set up in days. The biggest requirement is that you own a profitable company and that you do business with reputable clients.