Ineffective Colleges & Universities: Go Green and Gold

The following combines information from government and standardized testing company resources, years of experience with college fairs/marketing, working with, through, against and in spite of school administrations, direct consumer-query challenges to college admissions teams, and that acquired via numerous other strategies employed to understand the business of college education.The school colors are green and gold. The pom-poms shake and free gifts are offered generously at the Fall college fairs. Prospective students and their families are offered free tickets to home football games with one hand, and marketing or application materials with the other. The high school counselors scurry around the gym, their faces glowing, proud of the events they coordinated.Two days later, the newspaper reports the contents of an interview with a local university President. The President quite reluctantly responded to queries about the school’s very poor graduation rates, the high percentage of students they allow to matriculate into remedial courses (paying full tuition to take non-college credit classes), and regarding their apparent failure to work with the regional high school systems so that their incoming students would be better prepared to start college work.


Interestingly, if you look at historical student performance statistics, for the vast majority of schools these findings are not new (good or bad). What may be new is that increasing numbers of prospective applicants are looking at graduation rates, the average number of years taken to graduate, as well as average post-graduation student debt, and school-assisted job placement effectiveness. Unfortunately, under duress, college administrations are casting blame upon the students.Of course, too many students reach campuses believing that every week should include sports entertainment and elements of contemporary “Animal House” experiences, with a modicum of adjustments for the schools’ specific missions, the local environments, and reflecting the student bodies. However, most incoming students actually understand the true objectives of their attendance. That said, the admissions committees are professionals, as are those employed to teach, counsel, perform research, manage finances, and provide all other administrative support. By history, the institutions know exactly who they recruit and accept; their student body profile. They know the student body strengths as well as the distribution of academic, social and financial challenges they will face with their students. As such, by accepting the students and their money, they are saying “We are able [in every manner] to successfully instruct, develop, graduate and deliver these student-customers to quality positions in the market.”


But, colleges and universities have not been effective. The average school graduates only fifty percent of its students in six (6) years, and most cannot afford to spend more than six years in college, thereby never graduating. Schools do not want to be accountable to “helicopter parents” who wish to kept in the “progress loop” regarding more than unpaid bills. Additionally, as many senior leaders are unwilling or unable to explain the shortcomings of their business models, educational institutions simply blame the failures on the students and all those associated with them (family, guardians, associates, prior educational systems, and so on). Who needs colleges and universities with such attitudes as those?… Not you!!

Who’s Financing Inventory and Using Purchase Order Finance (P O Finance)? Your Competitors!

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.