Selling your (financial business coach) Collection Accounts
No commentsBy Joel Booker
When you engage in factoring or selling your accounts receivable, you’re accepting less money for an asset than you might expect to get for it. But there are great reasons for factoring and here are 10 of them:
1. The ready cash you’ll get by factoring will help your company to grow. If you have $2000 ready cash in the bank, but you’ve invoiced for $100,000 down the line this will lead to $75,000. Think about it: the ability to hire more necessary staff, buy needed equipment, and have stock on hand could make a real difference to your business.
2. Ready cash can help you pay your suppliers sooner, helping you negotiate discounts and have a larger credit line than you had before.
3. Factoring your current invoices gives you the capital to take on large, deadline-oriented contracts and orders that you’d otherwise have to pass up because of slow cash flow.
4. Those large accounts are worth money. Having cash on hand now allows you to offer longer payment terms to the new large accounts.
5. Out of marketing comes business. With ready cash you can get from factoring, you can buy billboards, newspaper and radio ads, and even have direct mail campaigns for those timely marketing campaigns.
6. If you’ve invoiced too much and now are finding yourself in a cash crunch, factoring will help you to meet your current expenses right away, reducing the chance of not being able to pay your bills. Nothing is worse for your company than not meeting payroll; you lose your best employees, and the ones who stay are probably going to be seeking other employment.
7. You can improve your balance sheet with working capital without incurring debt.
8. Pay off limited lines of credit, or lines of credit that are costing you too much in interest and fees.
9. Factoring out slow debts allows you to skip the unpleasantness of making payment collection calls; instead, the factoring company does this for you.
10. If you factor out part of your accounts receivable, the factoring company will give you a free analysis and comparison of what payment terms and credit amounts your customers really qualify for. This is invaluable information for conducting business in the future.
In addition to these ten great reasons to try factoring your accounts, there are a few reasons never to factor your accounts. If you’re concerned about late and slow payments without a good reason such as; you’ve given a thirty-day due date to someone and they take forty days to pay, then factoring is not a good idea. Instead, you should change your business practices to give a shorter due date. If you think your customer won’t pay, factoring their invoice out is dishonest, and will win you no points with a factoring company. Do you really want to ensure you have a bad reputation with people who trust you with a large amount of their capital?
If you’re in a dispute with a customer and you decide factoring out your invoice is a way out, you’re wrong. The customer could simply refuse to pay the factoring company and then sue you, or worse, tell everyone else what a horrible company you run. Face your disputes head on. If you are dissatisfied with the customer, don’t do business with them again.
Factoring to sustain a non-profitable business without some hope of profitability in the future is a sure way to drive your self into bankruptcy. Instead, you should let your business die a dignified death. Factoring so that you can remove cash from your business is a bad idea, akin to taking out a dozen credit cards so you’ll have money now. When you engage in factoring, you’re essentially agreeing to a profit loss; you should only do this if you stand to make more money in the long run.
For tips on miniature bulldogs, old english bulldogs and other information, visit the Knowledge Bin website.
Your Source For Business Coaching And Financial Mentoring
Get A Good Car Loan With Bad Credit
By Gen Wright
Even if you have less than perfect credit, there are quite a few different routes to finance a car. Today it is possible to finance an auto with little or no money down. A bad credit car loan is definitely something harder to get approved for and it’s more costly than typical auto financing. Interest rates are always higher with bad credit versus good credit. When you are trying to finance an automobile with bad credit, your best option is to buy a used car that is low in cost. The car loan will help you rebuild your credit, and in the future you can get a better car as you build a strong credit history.
To be successful in obtaining a car loan with bad credit, the first step is to be educated about your credit. Consumers oftentimes are frustrated when shopping for an automobile because their expectations are too high in relation to how bad their credit may be. It is very important to shop around, know how good or bad your credit really is, and make sure you are dealing with a company that offers bad credit financing. A bank usually doesn’t offer auto financing to people who have bad credit, so exactly what type of place you are applying to must be kept in mind. There are many car dealerships that specialize in bad credit car financing. These are known as the “Buy Here, Pay Here” car dealerships. Typically these car dealerships offer their own financing, and you go around the banking process altogether.
The more your credit is damaged the more likely it is that the bank will demand a higher down payment. The reason is, the larger your down payment, the less risk the lender is taking. A down payment can range from 20% to 50%, depending on how bad your credit really is. Interest rates range anywhere between 10% and 29%. You may end up paying your state’s maximum allowed interest rate.
If refused by traditional lenders, financing can be applied for through a car dealership, preferably one that is larger in size. Lenders work with almost all car dealerships, but the larger ones usually have more leverage and options when it comes to getting you financed. Another alternative is a major car manufacturer. Car manufacturers usually have their own finance companies to sell more cars. Car dealers will sometimes offer instant financing with many different payment options for someone with bad credit.
Your goal in the short to middle term should be to increase your credit worthiness. Get a car loan, make your payments on time, and you’ll establish a strong payment and credit history. Credit scores are more heavily weighted to what has happened in the past 12 to 24 months. If you can show payment history with no missed or late payments, your credit score will drastically improve. The next time you are car shopping, you’ll get that car you really had your eye on.
The author has written additional articles on bad credit loans and entry level finance jobs.
Get Easy Home Loans and Finances Options
By R Williams
Home is the place where your soul remains. In this world of uncertainty and insecurity, having a home is very important as well as hard to achieve. It acts as a protection and shields you from all the odds of life. So building a home requires utmost care and planning in terms of its size, locality, area as well as the amount of money that you spend.
It is an important move of life that comes with anxiety and great expectations. Building a home require huge investment which is sometimes not possible for an individual. In that case, you can take help of the home loans that are available widely nowadays. So if you want to build or buy your dream house, you can proceed by taking a home loan that will help you with all the arrangements.
With the help of home loans, you can have access to large amount of funds. This amount will depend on the equity of the borrowers’ home. Equity is the actual market value of your selected property inclusive of all the debts. This means with higher equity you will get large amount and with lower equity you will get lower amount. Through the borrowed home loan amount, you can also fulfill all the other requirements like financing of higher education, home improvement, meeting wedding expenses, undergoing cosmetics surgery, buying a brand new car and so on.
People with a poor credit history also have options for home loans. In this case, the interest rates will be a bit higher but through proper research, you will be able to find the ideal loan package at competitive rates. The lenders do not show up with any problems during the loan approval period as they have a benefit on which they can bank.
Home loans are categorized into two types- unsecured and secured. In an unsecured loan option, you will be free of collateral possessions and if you are having a good history of credit, you can enjoy this option full-fledged. Whereas, in a secured loan option, you need to keep your home as collateral possession. You will be getting many facilities with this option like flexibility in the interest rate and the duration of repayment. You can apply for your loan through various options like leading institutions, internet, banks, lenders and so on. One of the most cheapest and convenient way of accessing to home loans is the World Wide Web which will provide with wide options. You can compare and contrast the loan quotations in order to avail the beat deal.
If you are going through any financial crisis, seeking financial help is nothing wrong. But while looking for such options, be sure about the interest rates which always has to be nominal and easy on your pocket. This is important and you will be able to repay the borrowed amount well in time. As per your needs and requirements, it is better to avail the option of secured loans especially if you own a home and ready to assure for the collateral for the loan. By pledging collateral, you will be assuring your lender that the fund will be returned in due course of time. With this process, you will get the advantage of deriving a huge amount at considerably low rates as well as other benefits that comes along with this package.
Robin Williams works for CashOne, a company whose services include online payday loans and Cash Advance Payday Loans . He has extensive knowledge about payday loans and an understanding of urgency of clients & how they use payday loans for. His work at CashOne includes providing seamless loan transaction into customer account.
Wednesday, March 17th, 2010 at 3:25 am and is filed under finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
