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Casual Articles - Cash Flow Solutions with Factoring
In Part 1 of setting up a new Nursery we looked at how important researching the Nursery market was along with making sure you get your finances right from the very beginning.This next instalment will deal with 2 further issues that anyone looking to open their own nursery, Pre School, kindergarten or day care centre needs to know. They are Business Plans and your Competitors.1. Nursery Business PlansYour Business Plan really goes hand in hand with market research and finances. Do your research so you know how many children your new Nursery is going to have as this will have a direct effect on how many staff you need, what size premises you need and how much you can charge p
Why Accounts Receivable Factoring Makes Financial Sense
Accounts Receivable Factoring offers many Advantages:
• Initial funding is typically available between 5-7 business days upon receipt of completed formal agreements, and then all future advances are funded within 24 hour
Taking good care of your cleaning equipment not only extends the life of your machines, but it saves you money too. Cleaning equipment such as vacuums, buffing machines, and automatic scrubbers can last years longer with the proper care. Caring for your cleaning equipment also shows your clients that you are a professional and you are serious when it comes to making their buildings look good! Proper maintenance of equipment helps to assure that your machine is available when you need it and will help to avoid those unexpected equipment breakdowns.Preventative maintenance is the best practice for your cleaning machines. Your maintenance program should start when you buy a new piece of equipment. Although v
Any business that provides a product or service to other creditworthy businesses and is constrained by their day-to-day cash flow situation.
Does your business need:
• Cash to Cover Payroll?
• Working Capital to Fuel Growth?
• Help with Cash Flow Problems?
• Help because of Bank Turn Downs or refusal to extend current lines?
• New Equipment to Grow?
What is factoring?
In a traditional factoring arrangement, a company actually sells its receivables to another company (a “factor”) at a discount. After the sale, the receivables balances are carried on the factor’s balance sheet since title has passed. Because the factor then owns the receivables, it generally provides all the required credit, collection and accounting services necessary to collect the receivables, including assumption of the ultimate loss exposure from the client debtor. The important difference between factoring and asset-based lending is ownership. In factoring, the receivables are purchased and owned by the factor. In asset-based lending arrangements, accounts receivable are pledged to the lender as security for the loan, but the borrower retains ownership and complete control of the receivables and the value of the receivables remains on the borrower’s financial statement.
Keeping the cash flowing is a challenge for all businesses. Does your company face cash flow challenges because of slow paying customers? Have you been forced to decline new opportunities because of cash flow issues?
As every business owner knows, sales alone do not measure the profitability of a company. For example, sales may be increasing, but a company may have to wait weeks or even months for payment. During that time, your company cannot purchase materials for more orders, meet payroll, or other basic operating expenses. The solutions may be Accounts Receivable Funding provided through Diversified Funding Services, Inc. Accounts Receivable Factoring is quickly becoming a popular choice for its flexibility and rapid injection of needed capital.
Why Accounts Receivable Factoring is a Popular Choice in Today’s Business World
Accounts Receivable Funding or “factoring” has been in existence for several decades. Today, virtually any-sized business that extends credit to other businesses for goods or services can enjoy the many benefits of Accounts Receivable Funding.
Simply stated, Account Receivable Factoring is the exchange of creditworthy commercial accounts receivable for an immediate injection of working capital. When an invoice is generated, it may be purchased with an advance of anywhere between 75 to 90% of the net invoice amount. When your customer pays the invoice, you will receive the reserve portion minus a nominal servicing fee.
Why Accounts Receivable Factoring Makes Financial Sense
Accounts Receivable Factoring offers many Advantages:
• Initial funding is typically available between 5-7 business days upon receipt of completed formal agreements, and then all future advances are funded within 24 hour
Business corporations are now facing one of the most competitive eras ever. With globalization and technology, businesses need to identify various areas for improvement in order to stay relevant. Although increasing revenue and profits year on year are essential, rising costs and escalating customer demands have developed a need for corporations to improve internal processes, increase productivity, optimize resources and decrease expenditure, or face the consequences of being wiped out by the competition.This is where the concepts of Business Process Management (BPM) come in. Through BPM, business processes that occur within the entire organization are analyzed and areas of improvement are identified. As
Keeping the cash flowing is a challenge for all businesses. Does your company face cash flow challenges because of slow paying customers? Have you been forced to decline new opportunities because of cash flow issues?
As every business owner knows, sales alone do not measure the profitability of a company. For example, sales may be increasing, but a company may have to wait weeks or even months for payment. During that time, your company cannot purchase materials for more orders, meet payroll, or other basic operating expenses. The solutions may be Accounts Receivable Funding provided through Diversified Funding Services, Inc. Accounts Receivable Factoring is quickly becoming a popular choice for its flexibility and rapid injection of needed capital.
Why Accounts Receivable Factoring is a Popular Choice in Today’s Business World
Accounts Receivable Funding or “factoring” has been in existence for several decades. Today, virtually any-sized business that extends credit to other businesses for goods or services can enjoy the many benefits of Accounts Receivable Funding.
Simply stated, Account Receivable Factoring is the exchange of creditworthy commercial accounts receivable for an immediate injection of working capital. When an invoice is generated, it may be purchased with an advance of anywhere between 75 to 90% of the net invoice amount. When your customer pays the invoice, you will receive the reserve portion minus a nominal servicing fee.
Why Accounts Receivable Factoring Makes Financial Sense
Accounts Receivable Factoring offers many Advantages:
• Initial funding is typically available between 5-7 business days upon receipt of completed formal agreements, and then all future advances are funded within 24 hour
A recent movie starring Richard Dreyfus and Bill Murray tells the story of a man desperately trying to be included as a member of his psychiatrist's family. Whenever the doctor attempted to exclude him, his family would respond by asking, "What about Bob?"In the midst of all the work relating to diversity in the workplace, one group often gets excluded. When affirmative action categories are closely examined, we find that nearly everyone is covered in some way except this group. In discussions of equity, this group is excluded. As we struggle with ways to break through the glass ceiling, they are the ones on the other side. In our quest to value differences, we often fail to account for and hono
Keeping the cash flowing is a challenge for all businesses. Does your company face cash flow challenges because of slow paying customers? Have you been forced to decline new opportunities because of cash flow issues?
As every business owner knows, sales alone do not measure the profitability of a company. For example, sales may be increasing, but a company may have to wait weeks or even months for payment. During that time, your company cannot purchase materials for more orders, meet payroll, or other basic operating expenses. The solutions may be Accounts Receivable Funding provided through Diversified Funding Services, Inc. Accounts Receivable Factoring is quickly becoming a popular choice for its flexibility and rapid injection of needed capital.
Why Accounts Receivable Factoring is a Popular Choice in Today’s Business World
Accounts Receivable Funding or “factoring” has been in existence for several decades. Today, virtually any-sized business that extends credit to other businesses for goods or services can enjoy the many benefits of Accounts Receivable Funding.
Simply stated, Account Receivable Factoring is the exchange of creditworthy commercial accounts receivable for an immediate injection of working capital. When an invoice is generated, it may be purchased with an advance of anywhere between 75 to 90% of the net invoice amount. When your customer pays the invoice, you will receive the reserve portion minus a nominal servicing fee.
Why Accounts Receivable Factoring Makes Financial Sense
Accounts Receivable Factoring offers many Advantages:
• Initial funding is typically available between 5-7 business days upon receipt of completed formal agreements, and then all future advances are funded within 24 hour
Event Planning, the basic elements demystifiedIt seems no matter the type of work you do or even the type of life you live there always seems to be a need to understand the basic elements of event planning. Whether it’s planning a company Holiday Event, or Staff BBQ, or even your child’s birthday party understanding the basic steps to pulling together a smooth running event can make things just a little bit easier. So with that in mind, let’s explore some of the basic elements to any event.Begin with the End in MindSo you have your event to plan, whether it’s for 4 people or 600 people, the initial element in planning an event is the same. Decide how you want to eve
Why Accounts Receivable Factoring is a Popular Choice in Today’s Business World
Accounts Receivable Funding or “factoring” has been in existence for several decades. Today, virtually any-sized business that extends credit to other businesses for goods or services can enjoy the many benefits of Accounts Receivable Funding.
Simply stated, Account Receivable Factoring is the exchange of creditworthy commercial accounts receivable for an immediate injection of working capital. When an invoice is generated, it may be purchased with an advance of anywhere between 75 to 90% of the net invoice amount. When your customer pays the invoice, you will receive the reserve portion minus a nominal servicing fee.
Why Accounts Receivable Factoring Makes Financial Sense
Accounts Receivable Factoring offers many Advantages:
• Initial funding is typically available between 5-7 business days upon receipt of completed formal agreements, and then all future advances are funded within 24 hour
Commercial property, industrial units and offices are becoming more and more valuable to their owners. Whether bought to use by the owner or bought to let to other businesses, the value of these units and offices have huge potential for long term capital gain.Every business whether service based or manufacturing needs premises to operate from and this is what makes industrial units and commercial property so valuable. Owning a commercial property gives a business a major advantage. It increases the value of a business hugely and means that a company has a valuable asset which can be used in various different ways. Firstly, owning and using the property eliminates rental bills incurred when a company has t
Why Accounts Receivable Factoring Makes Financial Sense
Accounts Receivable Factoring offers many Advantages:
• Initial funding is typically available between 5-7 business days upon receipt of completed formal agreements, and then all future advances are funded within 24 hours.
• Accounts Receivable Funding does not create a financial liability on your company’s balance sheet and generally no other collateral (outside of the receivables) is required.
• The amount of funding available to you is only limited by the creditworthiness of your customers.
• Accounts Receivable Factoring will focus on the creditworthiness of your clients instead of your financial history.
• Accounts Receivable Factoring allows quick access to working capital, instead of waiting 30, 60 or 90 days to receive payment from your customers, money is immediately available on demand.
Accounts Receivable Factoring Programs have been “generally” designed with the following criteria in mind.
• Your company must be providing a product or service to other credit worthy businesses
• Your company must be selling on terms
• Your company must be billing in arrears (no pre-billing)
• Your company must have minimum monthly sales of at least $10,000 or annual sales of $120,000
• Your company is not required to be in business for any length of time
• Your company should have the capability to generate financial reports (A/R and A/P aging reports, etc.)
• Your company may have current and/or historical losses or a deficit net worth position
Ideal Candidates
• Start-ups
• Companies suffering financial setbacks
• Service Companies
• Companies with seasonal orders
• Mature companies seeking cash flow support
• Companies seeking credit assistance
• Businesses experiencing rapid growth
• Non-bankable businesses
An example of the application process:
1. Complete the application
2. Provide your most recent and detailed accounts receivable aging report
3. Provide your most recent and detailed accounts payable aging report
4. Provide an actual sample invoice
5. Provide a copy of your Articles of Incorporation/d.b.a. filing
6. Provide a copy of your customer list
7. Some factoring companies require financial statements, others do not.
Preferred Industries
• Service
• Temporary Staffing
• Security companies
• Manufacturing
• Transportation
• Textile/Apparel
• Computer Consulting
• Distribution Companies
• Printers
• Sub-Contractors
• All other Industries
• Any company that provides a business to business product or service to another credit worthy business!
Thanks for reading!
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