There are certain pieces of information that have to be on your invoices if you are charging GST, HST and/or PST. Your invoice must include: â€¢ your business name â€¢ the date of the invoice â€¢ your Business Number (also known as the GST Registration Number) â€¢ the purchaser's name â€¢ a brief description of the goods or services performed â€¢ the total amount paid or payable â€¢ the terms of payment â€¢ an indication of items subject to GST at 5% or HST at the appropriate provincial rate, or that the items are exempt, and either the total amount of GST/HST charged, or a statement that the GST/HST is included and the total rate of tax â€¢ if applicable, an indication of items subject to PST (also known as RST) at the provincial rate, or that the items are exempt, and either the total amount of PST charged, or a statement that the PST is included and the total rate of tax.
Advantages of Invoice Factoring Besides providing fast access to capital, invoice factoring offers a number of other important advantages. It gives you unlimited access to funds without adding liability to your balance sheet. Because invoice factoring isn't a loan, there's no debt or monthly payments involved. Plus, invoice factoring is a flexible arrangement because it doesn't require any long_term contracts. Additionally, invoice factoring makes it easier for you to offer credit terms to customers. This can help you increase your sales without negatively impacting your cash flow. Invoice factoring also can help you take advantage of the early payment discounts many vendors offer on bills within ten days. Ultimately, invoice factoring can help build business credit. The cash flow you create from invoice factoring can make it possible to pay your vendors on time and establish a stronger credit rating. And this can assist you with securing credit from other vendors and financial institutions.