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The Bank of Canada Governor Mark Carney announced today that the Bank’s main focus going forward is to closely monitor the inflation factors.
In a speech to the Hailfax Chamber of Commerce he stated the following main points:
1- monetary policy focus on the inflation and the financial crisis is key
2- inflation targeting of 2%
3-Our labour, product and capital markets are flexible and our bank system is sound
4-Canada has the clearest most powerful monetary policy framework in the world
5-Canada should accelerate to above-potential growth in 2010
The official Bank of Canada announcement is below:
HALIFAX, Jan. 27  – Canadians can be confident that monetary policy will maintain a “relentless” focus on controlling inflation, whether it rises above or drops below the official target range, Bank of Canada Governor Mark Carney said today.
Experience has shown that controlling inflation is the best contribution that monetary policy can make to Canadians’ economic and financial well-being, an issue that is particularly crucial during this period of extraordinary global financial turmoil, the Governor said in a speech to the Halifax Chamber of Commerce.
“In time, the global financial crisis will end, and the global economy will recover, although the speed with which this will happen is subject to a high degree of uncertainty,” the Governor said. “The relentless focus of monetary policy on inflation control is essential in this time of financial crisis and global recession, and remains the best contribution that monetary policy can make to the economic and financial welfare of Canada.”
Governor Carney noted that the Bank’s inflation-targeting framework, established jointly with the Government of Canada, takes a symmetrical approach to controlling inflation. This means that the Bank worries as much when inflation falls below the target of 2 per cent as when it rises above target, he said.
Although the severe global financial crisis has raised concerns about deflation in some countries, the possibility of such a sustained fall in prices is remote in the Canadian economy for several reasons, said Governor Carney. Canada’s labour, product, and capital markets are flexible; its banking system is one of the soundest in the world; and households, businesses, and the public sector have considerable financial flexibility. As well, Canada’s floating exchange rate allows for an independent monetary policy which ensures that “we are in control of our own monetary destiny,” he said.
Moreover, Canada has the clearest, most powerful monetary policy framework in the world. “The advantages of that framework have been demonstrated, with inflation brought down and kept low and stable since the early 1990s, and they are equally relevant in times of disinflationary pressures,” he said. The Governor reiterated the Bank’s economic projection as outlined in its Monetary Policy Report Update published on 22 January.
Although economic activity in Canada is projected to decline this year, it should accelerate to above-potential growth in 2010, supported by policy actions and the past depreciation of the Canadian dollar. On an annual average basis, real GDP is projected to decline by 1.2 per cent in 2009 and to rebound by 3.8 per cent in 2010.

Whenever you choose to enter into a leasing agreement with a company, you want to make sure the company that you choose can fulfill your expectations and needs sufficiently. It is important to consider certain things before signing a lease agreement.

For example, if you are searching for an equipment leasing company, you will want to make sure that the company offers a wide range of equipment from which to choose from. This means that you can choose high end equipment, mid-range equipment or more basic equipment to meet your current needs.

The best thing to do is to ask the equipment leasing company up front what types of brands of equipment they provide and what types of equipment can be leased. In addition, it is important for you to know if, under the lease agreement you secure with the company, you will have the ability to acquire new equipment as needed, or to replace outdated or non-functional equipment.

This is important, and should be explained in the terms of your lease. While equipment leasing is not the only solution for businesses needing equipment, it can be a solution that works well due to the fact that it can keep your business capital available for other needs that may arise.

U.S. President George W. Bush dipped into the financial bailout package on Friday to offer $17.4 billion US in short-term loans to automakers. GM and Chrysler are expected to participate while Ford has stated that they are not in need of the money at the present time, but would be badly damaged if one or both of the other two companies were to go under. Ford has said the bailout will help stabilize the industry.

According to CNN George Bush stated that, “If we were to allow the free market to take its course now, it would almost certainly lead to disorderly bankruptcy and liquidation for the automakers.”

Prime Minister Stephen Harper along with Ontario Premier Dalton McGuinty announced a $4-billion bailout package for Canadian subsidiaries of the Big Three Detroit-based automakers.

The pair announced that the Canadian plan will provide GM Canada with loans of up to $3 billion and Chrysler Canada will receive up to $1 billion. The first payment will be issued December 29th and the next and final payment will be paid out within the next two months.

CBC news reported “that under the deal, GM and Chrysler are required to fulfill the following conditions:

* accept limits on executive compensation.
* pay money owed to Canadian parts suppliers.
* provide weekly reports on their finances.
* report any business transaction worth more than $125 million.”

The Canadian government will also extend additional accounts receivable insurance coverage for automotive suppliers. They will also set up a new facility to support access to credit for consumers.

In Ontario it is estimated that over 400,000 people and their families rely on the auto industry to maintain their family households. Moving forward this should help out struggling economies in Windsor and Oshawa, where recent statistics show unemployment insurance claims are up 45% and 100% in the month of November alone.

I for one am glad that the both governments have stepped up to help out. There is just too much at stake for both countries. Putting conditions in place is wise, as we have seen with the AIG business party, oh I mean plan.

Finance Minister Jim Flaherty said Thursday he and Bank of Canada Governor Mark Carney will meet with the heads of Canada biggest banks next month to discuss why credit remains tight in Cannada even though the federal government continues to pump cash into the financial sector.
This has been more and more evident as companies have been looking for alternative financing solutions such as equipment leasing and accounts receivable financing. A businesses inability to secure loans is one of the biggest concerns for Mr. Flaherty and Mr Carney. Mr. Carney has stated to the The Globe and Mail’s editorial board in Toronto that “banks were being too cautious with their lending, further choking an economy that is entering a recession.”

CBC News reports that “The federal government is buying $75-billion of mortgage securities from banks to help them expand their balance sheets and pledged to backstop their sales of wholesale debt. The central bank is offering billions more through short-term loans to financial institutions hurt by the credit crisis.”

There is an ongoing perception that there is less capital available due to there being less second-tier U.S. financiers.  The Bank of Canada has recognized this when Mr. Carney stated that he has no issue with the conduct of the Canadian banks.

Obtaining Business Financing for companies in Canada has always been a challenge. With today’s economic climate Bank Financing has become almost impossible to obtain and there are very few alternative sources.

Factoring or Accounts Receivable Financing has been gaining popularity in Canada as an Alternative source to conventional bank financing. Using the companies strongest asset, the customer as security. Factoring has a number of advantages of bank financing.

Top 10 Reasons to Use Factoring:

1-    Fast and Easy Process – unlike conventional bank financing, the application process is relatively easy and answers can be obtained quickly.
2-    Cash Received for Your Invoices in 24 Hours or Less – Once you have been approved Factoring can provide you with the ability to meet you cash flows need NOW!
3-    Add Capital to Your Business That is Not a Loan - Loans require collateral limited by your hard assets. Factoring is NOT a loan, so there is no debt to repay. A factoring company purchases your invoices at a discount. This enhances the financial ratios often used to determine your credit worthiness in obtaining other types of financing. Your balance sheet is more attractive and your financial position is strengthened.
4-    Invoice Processing – You can greatly reduce your cost of processing invoices because factors can handle much of the work.
5-    High Advance rate – Our participating factors provide Higher Advance Rates which means you factor fewer invoices to meet your cash flow needs, which also means YOU WILL SAVE MONEY.
6-    No Financial Statement required – In many cases, no business or personal financial statements or tax returns requested. Clean personal credit is not required.
7-    Increased Productivity – Business owners often spend more than half of their time work in their business not on their business, with such duties as collections, administration, bookkeeping, warding off creditors and searching for additional capital. Factoring can help eliminate this unproductive time.
8-    Enhance Your Credit – Once you begin factoring, the increased cash flow will provide the liquidity to pay your vendors on time. This will allow you to take advantage of early payment discounts that may be offered. Making timely payments to vendors positively affects your credit rating and allows you to obtain credit from other vendors and financial institutions.
9-    No Loss of Business Ownership or Equity – Ownership percentages remain unchanged with invoice factoring.
10-    Reduce Overhead – outsourcing your Accounts Receivable – Factoring Companies handle collections in a professional manner. Factors are not collection agencies. They understand the importance of business relationships and treat each debtor as though it is your best customer.

Although there are many more reasons that your business should be using accounts receivable financing, Dominion Leasing believes that these 10 reasons are the most important in your decision to work with an accounts receivable factoring company.