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Casual Articles - Financial Myths Vs. Financial Facts
It’s true – media coverage is just about the best exposure your business can get. High impact for low cost. An article about your business generates greater readership and credibility than an ad or brochure or other sales tool. Period.I urge you to incorporate the media into your overall marketing strategy. It’s a no-lose proposition. That said, I know that cracking the crusty exterior of the media can feel rather daunting for the uninitiated. I come from the media side of the fence – a degree in journalism and career history of working for publishing companies – so my perspective includes what I know firsthand of what goes on behind the scenes.As an editor, I was always thrilled to receive a solid story idea. Thanks for helping me do my job! But for every solid pitch there were plenty of misfired press releases that, frankly, hit the trashcan quickly. So I’ve identified some of the most commonly held myths about getting media coverage as well as five “musts” that will help you hit the mark for your media blitz. I refer to the media and publications here, which can include local or national newspapers and magazines, trade journals and other printed media. But don’t exclude broadcast media – there are opportunities there, especially with the growing number of Internet radio stations.The MythsMyth 1. Sending a press release is your ticket to automatic coverage. Editors and reporters get stacks of press relea
3. If you customers typically pay in 60-90 days, a contract that requires a minimum interest charge for 60 days is not unreasonable. This condition may be a required for medical accounts receivable financing.
4. Consider whether the commercial finance company’s contract requires you to sell every invoice (100% of all invoices) on the day you issue them, or may you sell individual invoices up to 59 days past due, according to your needs? There are tradeoffs: lower price vs. flexibility. It is very much a question of assessing your commercial financing requirements and your gross margins to pay for financing costs. “Easier said than done” If something is easier said than done, it is much more difficult than is sounds. It is often used when someone advises you to do something difficult and tries to make it sound easy.
FINANCIAL MYTH No. 3 You can determine the best finance company to work with by simply by comparing several different websites. FINANCIAL FACT: Websites are advertising. Knowledge of the lender, their reputation and business practices are essential to choose wisely. KEY POINTS TO CONSIDER: When assessing the most appropriate commercial financing company to use, make sure: • the provider is a reputable company • your contract corresponds with any verbal or w
Did you know? Businesses in the United States waste $105 billion each year dealing with poorly performing employees. (Sweden $1.3b, Australia $4.1b, Hong Kong $5.0b, Netherlands $7.1b, India $10.8b, UK $24.5b) United States managers spend 14% of their time redoing or correcting the mistakes of others - approximately one hour every day. (Sweden 8%, Australia 14%, Hong Kong 24%, Netherlands 15%, India 20%, UK 11%) Could employee feedback improve this situation? What is Two-Way feedback all about anyway? Could constructive feedback really help to improve working relationships and productivity? This article draws on some of the research that highlights what's really happening in our workplaces, offers some strategies that have worked for other businesses and leaves you to draw you own conclusions. Two-Way Feedback just might be worth trying.What is two-way feedback?Giving feedback simply means telling people how they're going at work. Two-Way feedback means also taking feedback - being prepared to listen to what others tell you, without being defensive if it's not good news; listening for ways to improve your own performance and/or the business.Many people equate feedback with delivering bad news, criticism of poor performance. But feedback also can, and should be, good news.Feedback - the good newsPositive feedback, when you tell people they've don
“A fool and his money are easily parted” FINANCIAL MYTH: No. 1 Finance companies that promise funding in 24-48 hours are the best choice. FINANCIAL FACT: Unless you are desperate for funding, you should take time to compare alternatives, read the proposed contracts, and consult with your advisors. It is recommended that you read the proposed contract before you agree to terms, and carefully consider the risks regarding following matters:
1. Percentage to be advanced: This may range from 60% to 90% of the face value of an invoice. Will the percentage to be advanced be sufficient to help you grow profitably?
2. Your obligation to work with the finance company: Are you required to sell 100% of your accounts receivable every month, or are you permitted to sell at your discretion? Are there monthly minimum charges and if so, would you be likely to use the services of the commercial finance company to this degree every month?
3. Will you be more profitable if you use the finance companies services? In other words, can you afford to pay the commercial financing fees in order to grow your business?
4. Which source is better for you: a small commercial finance company, a large commercial finance company, or the asset based lending department of a bank? With the small companies, you are more likely to work with the decision makers and their usually is more flexibility and discretion. With the large companies, you can accomplish larger transactions and this may be of great significance especially if your business is international. Banks may be an excellent choice if your accounting is perfect and you are good at dealing with strict requirements. Banks are regulated institutions with safety and soundness requirements which generally make banks more conservative than private lenders. GFS works with all three types of lenders.
5. Choice of law: If you are in California, and any dispute must be litigated in New York can you afford the risk that you might have to travel to protect your interests? Where are disagreements or disputes to be decided? Is there binding arbitration?
6. Penalties for early termination: Some yearly contracts provide that if you want to leave the commercial finance company, you are liable for “the greater of Two percent (2.00%) of the Maximum Credit Line, or the number of months remaining in the agreement multiplied by the Monthly Minimum Fee”. Is the termination fee risk affordable?
7. Penalty interest if you client fails to pay on time: Some lenders provide that if a client defaults, you can substitute another invoice and not be charged a penalty. Other lenders may require that if a client fails to pay an invoice within 90 days, you are charged 20% of the invoice face amount plus 7.5% per month until payment is made. What does the commercial financing agreement require when your client does not pay on time?
“Economical with the truth” If someone is economical with the truth, they leave out information in order to create a false picture of a situation, without actually lying. FINANCIAL MYTH: No. 2 Finance companies that promise lower rates are the better choice. For instance, Co. “A” offers 3% per month; Co. “B” offers 3.25% per month. Co. “A” is the best choice. FINANCIAL FACT: Contract terms and conditions determine your actual costs based on when your clients pay. This requires analysis. It is recommended that you carefully consider the contract terms regarding how interest is charged and your experience regarding how your customers typically pay to project the true costs of financing. Here are several examples:
1. You sell an invoice with a face value of $100.00. Assume the contract charges are 3% for 30 days, with an 80% advance to you and your customer pays the commercial finance company the full amount due on the 30th day. You take an $80.00 advance on day 1 and your customer pays the commercial finance company $100.00 on the 30th day:
v Suppose Lender “A” charges 1% for every 10 days period. Assume “Payment date” is defined in the commercial finance contract as the date the finance company receives payment from your customer pays plus ten (10) banking days. Ten banking days are two calendar weeks. You will be charged for 44 days. One percent for the first 10 days, plus 4 percent for the next 34 days equals a charge of 5%. Your cost = $5.00.
v Suppose Lender “B” charges 1.5% every 15 day period. Assume “Payment date” is defined in the commercial finance contract as the date the finance company receives payment from your customer plus three business days for check clearance. You will be charged for 33 days. You will be charged 4.5%. Your cost = $4.50.
v Suppose Lender “C” defines “Payment date” as the day they receive the check or wire funds transfer. This commercial finance company stops the interest clock on the day they receive payment from your customer. You will be charged 3%. Your cost = $3.00.
v Suppose Lender “D” defines “Payment date” as the day they receive funds and charges daily interest only on the actual funds advanced, also know as per diem interest. Since you are being charged 3% on $80.00 your cost = $2.40.
2. In every contract the definition of “Payment date” and method of interest calculation are critical to anticipate your actual costs of financing. All of the above methods of calculation, except Lender “A”, may be reasonable on account of the risks inherent in the transaction. Gregg Financial Services works to obtain the most competitive rates and terms for our client’s initial funding; and GFS works to reduce commercial finance costs as you grow.
3. If you customers typically pay in 60-90 days, a contract that requires a minimum interest charge for 60 days is not unreasonable. This condition may be a required for medical accounts receivable financing.
4. Consider whether the commercial finance company’s contract requires you to sell every invoice (100% of all invoices) on the day you issue them, or may you sell individual invoices up to 59 days past due, according to your needs? There are tradeoffs: lower price vs. flexibility. It is very much a question of assessing your commercial financing requirements and your gross margins to pay for financing costs. “Easier said than done” If something is easier said than done, it is much more difficult than is sounds. It is often used when someone advises you to do something difficult and tries to make it sound easy.
FINANCIAL MYTH No. 3 You can determine the best finance company to work with by simply by comparing several different websites. FINANCIAL FACT: Websites are advertising. Knowledge of the lender, their reputation and business practices are essential to choose wisely. KEY POINTS TO CONSIDER: When assessing the most appropriate commercial financing company to use, make sure: • the provider is a reputable company • your contract corresponds with any verbal or wr
Most new e-business owners realize they need a website that looks professional. But how elaborate do you need to be? How much energy, creativity and money should you invest so that visitors gasp, “Wow – what a beautiful website?”Experienced business owners know: Your goal is to create a website that sells, not a site that wins the electronic version of Miss Universe. Most of the time you’ll want to win sales contests – not beauty contests.Remember the commercial about the beer and the dog? A man sends his dog into the kitchen to get him a beer. We hear sounds of a refrigerator opening and a can opener humming...and then we hear lapping sounds. Oh no! The dog is drinking the beer!Great commercial, right? Except ... can you remember the brand of beer?And of course we’ve all seen that big pink battery-powered rabbit. But many viewers can’t remember the sponsor’s brand.(1) Emphasize your marketing message.Recently I heard a speaking professional say, “My speaking wardrobe is designed to avoid calling attention to me. When the audience is thinking, ‘What a beautiful suit!’ or ‘What a mess!” they’re not listening to my message.”Your website works the same way. Stay focused on the content.(2) Use graphics sparingly.Graphics take awhile to load. And what sells your product? Not graphics – copy.Research shows visitors seek information. So use graphics t
2. Your obligation to work with the finance company: Are you required to sell 100% of your accounts receivable every month, or are you permitted to sell at your discretion? Are there monthly minimum charges and if so, would you be likely to use the services of the commercial finance company to this degree every month?
3. Will you be more profitable if you use the finance companies services? In other words, can you afford to pay the commercial financing fees in order to grow your business?
4. Which source is better for you: a small commercial finance company, a large commercial finance company, or the asset based lending department of a bank? With the small companies, you are more likely to work with the decision makers and their usually is more flexibility and discretion. With the large companies, you can accomplish larger transactions and this may be of great significance especially if your business is international. Banks may be an excellent choice if your accounting is perfect and you are good at dealing with strict requirements. Banks are regulated institutions with safety and soundness requirements which generally make banks more conservative than private lenders. GFS works with all three types of lenders.
5. Choice of law: If you are in California, and any dispute must be litigated in New York can you afford the risk that you might have to travel to protect your interests? Where are disagreements or disputes to be decided? Is there binding arbitration?
6. Penalties for early termination: Some yearly contracts provide that if you want to leave the commercial finance company, you are liable for “the greater of Two percent (2.00%) of the Maximum Credit Line, or the number of months remaining in the agreement multiplied by the Monthly Minimum Fee”. Is the termination fee risk affordable?
7. Penalty interest if you client fails to pay on time: Some lenders provide that if a client defaults, you can substitute another invoice and not be charged a penalty. Other lenders may require that if a client fails to pay an invoice within 90 days, you are charged 20% of the invoice face amount plus 7.5% per month until payment is made. What does the commercial financing agreement require when your client does not pay on time?
“Economical with the truth” If someone is economical with the truth, they leave out information in order to create a false picture of a situation, without actually lying. FINANCIAL MYTH: No. 2 Finance companies that promise lower rates are the better choice. For instance, Co. “A” offers 3% per month; Co. “B” offers 3.25% per month. Co. “A” is the best choice. FINANCIAL FACT: Contract terms and conditions determine your actual costs based on when your clients pay. This requires analysis. It is recommended that you carefully consider the contract terms regarding how interest is charged and your experience regarding how your customers typically pay to project the true costs of financing. Here are several examples:
1. You sell an invoice with a face value of $100.00. Assume the contract charges are 3% for 30 days, with an 80% advance to you and your customer pays the commercial finance company the full amount due on the 30th day. You take an $80.00 advance on day 1 and your customer pays the commercial finance company $100.00 on the 30th day:
v Suppose Lender “A” charges 1% for every 10 days period. Assume “Payment date” is defined in the commercial finance contract as the date the finance company receives payment from your customer pays plus ten (10) banking days. Ten banking days are two calendar weeks. You will be charged for 44 days. One percent for the first 10 days, plus 4 percent for the next 34 days equals a charge of 5%. Your cost = $5.00.
v Suppose Lender “B” charges 1.5% every 15 day period. Assume “Payment date” is defined in the commercial finance contract as the date the finance company receives payment from your customer plus three business days for check clearance. You will be charged for 33 days. You will be charged 4.5%. Your cost = $4.50.
v Suppose Lender “C” defines “Payment date” as the day they receive the check or wire funds transfer. This commercial finance company stops the interest clock on the day they receive payment from your customer. You will be charged 3%. Your cost = $3.00.
v Suppose Lender “D” defines “Payment date” as the day they receive funds and charges daily interest only on the actual funds advanced, also know as per diem interest. Since you are being charged 3% on $80.00 your cost = $2.40.
2. In every contract the definition of “Payment date” and method of interest calculation are critical to anticipate your actual costs of financing. All of the above methods of calculation, except Lender “A”, may be reasonable on account of the risks inherent in the transaction. Gregg Financial Services works to obtain the most competitive rates and terms for our client’s initial funding; and GFS works to reduce commercial finance costs as you grow.
3. If you customers typically pay in 60-90 days, a contract that requires a minimum interest charge for 60 days is not unreasonable. This condition may be a required for medical accounts receivable financing.
4. Consider whether the commercial finance company’s contract requires you to sell every invoice (100% of all invoices) on the day you issue them, or may you sell individual invoices up to 59 days past due, according to your needs? There are tradeoffs: lower price vs. flexibility. It is very much a question of assessing your commercial financing requirements and your gross margins to pay for financing costs. “Easier said than done” If something is easier said than done, it is much more difficult than is sounds. It is often used when someone advises you to do something difficult and tries to make it sound easy.
FINANCIAL MYTH No. 3 You can determine the best finance company to work with by simply by comparing several different websites. FINANCIAL FACT: Websites are advertising. Knowledge of the lender, their reputation and business practices are essential to choose wisely. KEY POINTS TO CONSIDER: When assessing the most appropriate commercial financing company to use, make sure: • the provider is a reputable company • your contract corresponds with any verbal or w
If there were a record for selling the most ballpoint pens in the shortest time to American restaurants, I would probably hold it.This was one of my part-time jobs in graduate school, along with college teaching. In fact, it was this work that enabled me to make payments on a sparkling sports car during that time, making me a rare visage among my academic peers.The pen-selling story is worth telling because it demonstrates an amazing, simple, and powerful point about increasing your sales.When I was trained, I sat next to a guy who was pitching pens to bakeries, a gross, or twelve-dozen pens at a time. The most common objection he heard was “Hey, that’s too many—I can’t use that many!”So, he’d cut back the offer to six-dozen and then to three-dozen, of course, cutting his commissions along the way.I decided to do things differently. I figured restaurants use a lot of pens, losing many to grabby or otherwise preoccupied customers. But I also determined that if I went in with a bigger initial offer, they’d cut me back, but I’d end up at a higher volume than my mentor who was selling to bakeries.Sure enough, I offered restaurant owners two small boxes of pens, with a gross in each. When they said I was overloading them, I replied, “Fine. No problem. Let’s cut that in half to just one small box, ok?”It worked like a charm.I became the ballpoint pen king of the crew.Do you want to double you
6. Penalties for early termination: Some yearly contracts provide that if you want to leave the commercial finance company, you are liable for “the greater of Two percent (2.00%) of the Maximum Credit Line, or the number of months remaining in the agreement multiplied by the Monthly Minimum Fee”. Is the termination fee risk affordable?
7. Penalty interest if you client fails to pay on time: Some lenders provide that if a client defaults, you can substitute another invoice and not be charged a penalty. Other lenders may require that if a client fails to pay an invoice within 90 days, you are charged 20% of the invoice face amount plus 7.5% per month until payment is made. What does the commercial financing agreement require when your client does not pay on time?
“Economical with the truth” If someone is economical with the truth, they leave out information in order to create a false picture of a situation, without actually lying. FINANCIAL MYTH: No. 2 Finance companies that promise lower rates are the better choice. For instance, Co. “A” offers 3% per month; Co. “B” offers 3.25% per month. Co. “A” is the best choice. FINANCIAL FACT: Contract terms and conditions determine your actual costs based on when your clients pay. This requires analysis. It is recommended that you carefully consider the contract terms regarding how interest is charged and your experience regarding how your customers typically pay to project the true costs of financing. Here are several examples:
1. You sell an invoice with a face value of $100.00. Assume the contract charges are 3% for 30 days, with an 80% advance to you and your customer pays the commercial finance company the full amount due on the 30th day. You take an $80.00 advance on day 1 and your customer pays the commercial finance company $100.00 on the 30th day:
v Suppose Lender “A” charges 1% for every 10 days period. Assume “Payment date” is defined in the commercial finance contract as the date the finance company receives payment from your customer pays plus ten (10) banking days. Ten banking days are two calendar weeks. You will be charged for 44 days. One percent for the first 10 days, plus 4 percent for the next 34 days equals a charge of 5%. Your cost = $5.00.
v Suppose Lender “B” charges 1.5% every 15 day period. Assume “Payment date” is defined in the commercial finance contract as the date the finance company receives payment from your customer plus three business days for check clearance. You will be charged for 33 days. You will be charged 4.5%. Your cost = $4.50.
v Suppose Lender “C” defines “Payment date” as the day they receive the check or wire funds transfer. This commercial finance company stops the interest clock on the day they receive payment from your customer. You will be charged 3%. Your cost = $3.00.
v Suppose Lender “D” defines “Payment date” as the day they receive funds and charges daily interest only on the actual funds advanced, also know as per diem interest. Since you are being charged 3% on $80.00 your cost = $2.40.
2. In every contract the definition of “Payment date” and method of interest calculation are critical to anticipate your actual costs of financing. All of the above methods of calculation, except Lender “A”, may be reasonable on account of the risks inherent in the transaction. Gregg Financial Services works to obtain the most competitive rates and terms for our client’s initial funding; and GFS works to reduce commercial finance costs as you grow.
3. If you customers typically pay in 60-90 days, a contract that requires a minimum interest charge for 60 days is not unreasonable. This condition may be a required for medical accounts receivable financing.
4. Consider whether the commercial finance company’s contract requires you to sell every invoice (100% of all invoices) on the day you issue them, or may you sell individual invoices up to 59 days past due, according to your needs? There are tradeoffs: lower price vs. flexibility. It is very much a question of assessing your commercial financing requirements and your gross margins to pay for financing costs. “Easier said than done” If something is easier said than done, it is much more difficult than is sounds. It is often used when someone advises you to do something difficult and tries to make it sound easy.
FINANCIAL MYTH No. 3 You can determine the best finance company to work with by simply by comparing several different websites. FINANCIAL FACT: Websites are advertising. Knowledge of the lender, their reputation and business practices are essential to choose wisely. KEY POINTS TO CONSIDER: When assessing the most appropriate commercial financing company to use, make sure: • the provider is a reputable company • your contract corresponds with any verbal or w
My Space is one of the top web sites online where hundreds of thousand of people join each day to get together and talk, share interests, etc. For this reason, Internet marketers are considering how to use MySpace to create online traffic. The website could lure in potential customers who share the interest in what is being marketed.While talking to people you can share your products through photos along with videos. This will enable users to see what they are buying, how the product can be used, and how to operate it via a sample.Those people who see your ads can tell their friends about the product, your business, and etcetera. Also this works in a ripple effect because all of your employees can get on My Space opening more options for you.Each employee will know a different set of people that can be contacted for business. These people that become customers you can contact about new items, sales, and new things about the store.Also you could encourage customers to talk to each other and to share these similar interests. Anytime that a customer needs assistance they could leave a message or a comment. When an employee gets on they can respond to the message in the best way possible. Or if the person could have them work 24/7 checking every so often on their customers in case help was needed. This also could lead to the sale of multiple kinds of items in the specific store.In summary, posting your information at
v Suppose Lender “A” charges 1% for every 10 days period. Assume “Payment date” is defined in the commercial finance contract as the date the finance company receives payment from your customer pays plus ten (10) banking days. Ten banking days are two calendar weeks. You will be charged for 44 days. One percent for the first 10 days, plus 4 percent for the next 34 days equals a charge of 5%. Your cost = $5.00.
v Suppose Lender “B” charges 1.5% every 15 day period. Assume “Payment date” is defined in the commercial finance contract as the date the finance company receives payment from your customer plus three business days for check clearance. You will be charged for 33 days. You will be charged 4.5%. Your cost = $4.50.
v Suppose Lender “C” defines “Payment date” as the day they receive the check or wire funds transfer. This commercial finance company stops the interest clock on the day they receive payment from your customer. You will be charged 3%. Your cost = $3.00.
v Suppose Lender “D” defines “Payment date” as the day they receive funds and charges daily interest only on the actual funds advanced, also know as per diem interest. Since you are being charged 3% on $80.00 your cost = $2.40.
2. In every contract the definition of “Payment date” and method of interest calculation are critical to anticipate your actual costs of financing. All of the above methods of calculation, except Lender “A”, may be reasonable on account of the risks inherent in the transaction. Gregg Financial Services works to obtain the most competitive rates and terms for our client’s initial funding; and GFS works to reduce commercial finance costs as you grow.
3. If you customers typically pay in 60-90 days, a contract that requires a minimum interest charge for 60 days is not unreasonable. This condition may be a required for medical accounts receivable financing.
4. Consider whether the commercial finance company’s contract requires you to sell every invoice (100% of all invoices) on the day you issue them, or may you sell individual invoices up to 59 days past due, according to your needs? There are tradeoffs: lower price vs. flexibility. It is very much a question of assessing your commercial financing requirements and your gross margins to pay for financing costs. “Easier said than done” If something is easier said than done, it is much more difficult than is sounds. It is often used when someone advises you to do something difficult and tries to make it sound easy.
FINANCIAL MYTH No. 3 You can determine the best finance company to work with by simply by comparing several different websites. FINANCIAL FACT: Websites are advertising. Knowledge of the lender, their reputation and business practices are essential to choose wisely. KEY POINTS TO CONSIDER: When assessing the most appropriate commercial financing company to use, make sure: • the provider is a reputable company • your contract corresponds with any verbal or w
There are many people on the Internet who cruise around surfing and looking to pick a fight on Forums and Blogs. For those who participate in the online community where ideas and opinions are shared surely you have been personally or verbally attacked for your opinion or ideas. Well for us online article authors we often are attacked too by naysayers and detractors who comment on our articles.Sometimes these negative folks are commercial competitors or opinionated politically charged advocates of one thing or another. Others are just really vindictive schmucks. But here is what I think;I simply do not care what they think or what they consider they are doing when they think they are thinking? This opinion is from observations or humans and Internet Slander, fake and bogus comments and weak minded peanut galleries. Too harsh; too negative? It is the reality on many of the article comments. Not to mention those who have an axe to grind. I want all my comments and star erased, I do not want anyone to have the option.If they do not like the article, write their own then maybe they can then see my point. Really I am not a negative person, but after writing some 5555 articles and that is a lot of work, I really do not feel I should have to put up with negative folks commenting or demeaning my character. That’s just BS. Maybe all the online article authors should consider this in 2006.
3. If you customers typically pay in 60-90 days, a contract that requires a minimum interest charge for 60 days is not unreasonable. This condition may be a required for medical accounts receivable financing.
4. Consider whether the commercial finance company’s contract requires you to sell every invoice (100% of all invoices) on the day you issue them, or may you sell individual invoices up to 59 days past due, according to your needs? There are tradeoffs: lower price vs. flexibility. It is very much a question of assessing your commercial financing requirements and your gross margins to pay for financing costs. “Easier said than done” If something is easier said than done, it is much more difficult than is sounds. It is often used when someone advises you to do something difficult and tries to make it sound easy.
FINANCIAL MYTH No. 3 You can determine the best finance company to work with by simply by comparing several different websites. FINANCIAL FACT: Websites are advertising. Knowledge of the lender, their reputation and business practices are essential to choose wisely. KEY POINTS TO CONSIDER: When assessing the most appropriate commercial financing company to use, make sure: • the provider is a reputable company • your contract corresponds with any verbal or written quotations • you are aware of any financial penalties if you wish to end the agreement early • the financing credit limits are sufficient for your initial needs • you have read the contract carefully before signing it, checking the amount of financing and notice periods • you understand all terms and conditions, and the costs you will have to pay
Commercial Finance Brokers work with many dedicated commercial finance companies and banks across several businesses of all sizes. There are many areas of specialization, such as purchase order financing, accounts receivable financing, inventory financing and SBA financing. Most commercial finance companies limit their services to one or two of these categories. A commercial finance broker will assess different companies and match you with one that best fits for your business needs. They also keep a close watch on commercial finance companies that may charge non-competitive fees and will not match you with them. In addition to comparing rates, there are many points to consider when choosing services. To anticipate problems with customers that inevitably arise, find out what level of customer service they offer to help resolve problems. Do they provide telephone support and in-person meetings, e-mail help and live chat, or a combination of services? Choose the commercial finance company that offers multiple ways to reliably address concerns or answers questions. Consider differences in where you are located and the time zone where the commercial finance company is located. How will this affect cut off times for funding? How will this affect your ability to reach your key finance representatives? You may want to ask for a list of references before you do business with them. Make sure to ask such questions as: • Were they able to quickly process your funding requests? • Was the approval process simple? How long did it take? • Was the company easily accessible through phone and email? • How long did it take before you received funds? • If you had a problem with your account, what did they do to resolve it? • How did your clients react to working with the commercial finance company? Did they handle them appropriately? • Would you recommend this company?
“Face Value” If you take something at face value, you accept the appearance rather than looking deeper into the matter.
FINANCIAL MYTH: No. 4 A non-recourse contract means you do not have to pay the finance you to pay unless your company if there is a default. FINANCIAL FACT: Most contracts require you to pay unless your client files bankruptcy or goes out of business. There are two general types of factoring: recourse and non-recourse. Recourse factoring is the most common. With recourse factoring, the commercial finance company generally will fund every invoice you submit, but will require a refund plus their fees for invoices that are not paid within a specific period of time, usually 90 days. Non-recourse factoring may free your company of any responsibility for non-paying accounts, if, and only if, it is truly “non-recourse” without conditions.
“Look after the pennies and the pounds will look after themselves.” If you look after the pennies, the pounds will look after themselves, meaning that if someone takes care not to waste small amounts of money, they will accumulate capital.
“Take the plunge” If you take the plunge, you decide to do something or commit yourself even though you know there is an element of risk involved. Copyright © 2007 Gregg Financial Services
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