In today's business environment, many businesses need to fine-tune the process of getting paid on invoices, in order to improve their cash on hand. Improving cash flow can be an ongoing challenge for businesses of all sizes, and it is an issue that must be addressed to ensure the long-term viability of the business.
Once company managers realize that their receivables have become a problem, they will frequently seek an effective strategy for dealing with the problem. When faced with cash flow problems, many managers will decide to seek out financing to help the business survive a rough patch. But, for the company in a cash crunch, banks are often the wrong place to turn for help. For the business manager in the know, receivable-financing companies may be best able to help the business improve its cash flow, by offering effective management of outstanding invoices. Receivable factoring is a financial service that can efficiently help companies get their cash flow under control.
When a business needs to collect money on past-due accounts, the standard process involves tracking down the customer and making attempts to receive payment. Even if the business is well established, this process can be tedious and difficult to manage. In many cases, a customer will have let the debt carry too far, and then a credit-reporting agency will need to be contacted or a third-party collection agency must be employed in order to track down and collect payment from the customer. In other instances, a business simply designates a department to handle all outstanding receivables that inevitably lead to a bad debts expense. The bad debts expense is only generated if a debt continues to go uncollected.
Accounts receivable loans can benefit a company in part, because it can provide a consistent system that enables steady access to cash for the seller. Finding an effective way to create a faster cash-turnaround will help the business improve its own payables. Consistent billing and reliable accounts receivable can help strengthen the relationship between the business and the customer. This also increases the efficiency of billing for all parties involved, because payments can be made quickly before debt is accumulated.
If a business has accumulated a large amount of unpaid invoices, they can make use of the value of these transactions in order to obtain immediate funding – although most receivable financing companies will not buy any invoice more than 90 days old. Loans against receivables are actually different from a standard loan, since the business is backed by its own accounts.
Factoring of accounts receivable is a relatively simple process and is an easy way to improve cash flow for a business. The process is designed to make use of the value of the outstanding bills that have yet to be paid by customers. This is done by using the outstanding invoices as collateral. The factoring company can send the seller's business up to 90% of the value of the outstanding invoices in cash. These proceeds can be used to help to meet payroll deadlines, pay any bills, or to provide extra funds for current projects.
For many small businesses, these relatively simple payroll deadlines or bills can go unpaid, because of outstanding debts that are owed to them. With the assistance of a service such as accounts receivable factoring, many small business owners can pay their own bills on time and pay the employees that keep the business up and running.
Once the customer has paid the debt in full, the factoring agency will deduct their transaction fee, and they will pay the remaining amount to the seller.
Many different types of industries frequently use receivables factoring to assist in correcting financial problems. Staffing agencies, service providers, distributors, trucking companies, and manufacturers frequently make use of factoring loans and all qualify for a receivable financing. A factoring company can help to reduce and even eliminate the erratic tendencies of a company's cash flow.
When a company does not need to worry about collections or other account receivable follow-ups, they can focus on other departments within their business, such as the important items like sales and marketing. In addition, the receivables factoring company will not evaluate a business in the same format as a regular financial institution, lender, or bank. The standard measure for the factoring service is the value of the business' customers. Receivable factoring rates are subject to other conditions including the industry and the available history of customers.
A factoring company can take the necessary steps and required action to obtain payments on every single invoice, and they are able to provide funding to their customers immediately. Businesses typically make use of receivable factoring services for working capital needs, purchases, or paying a supplier. Small businesses, in particular, can find great value in factoring services, since the small business does not have the extensive resources and assets necessary to chase after all of their accounts. In addition, under funded businesses are more at risk for bad debts, since they do not have professional credit analysis available to them. Finding the correct factoring service can take some time, but reviewing past performance and industry examples can help a manager to make an effective decision.
Tuesday, May 25, 2010
Tuesday, May 18, 2010
Time Management Tips for Home Business Owners
Running a business at home requires quite a bit of discipline, organization, and time management. Many business owners have quite a bit of factors to consider when scheduling their day.
The biggest conflict that many people have while starting a new home business is family. They have to make time for their wives, husbands, and children. Not only that, but then there are grandmas and grandpas who want to see their kids, birthday celebrations, and weekend trips to take. Making time for a home business can see overwhelming at times. If you are a business owner with a large family, you can empathize. However, you can plan your schedule accordingly.
Some people think that if they have a schedule it takes away from their freedom, which is why they started the business in the first place. Although you are supposed to be able to enjoy the freedom and flexibility of working at home, you may need to try to make yourself a schedule you can stick with at least most of the time. It does not mean that you have no control of your schedule if you do this. You still will work when you want to but you will be able to decide when you should work.
If you set a certain time of the day in which to do your work and stick to it you will still have just as much time as you would if you were working a full time job. In fact, you may even have more time on your hands because you may not always have to work long hours every day.
If you are a night person, you may want to do a majority of your business work at night, and then contact your customers when you need to during the day. If you are a day person, you may want to set your primary work hours for during the day. Other options would be to work your business while your kids are at school, if you have kids.
If you absolutely cannot handle being told you should set a daily schedule, then you may at least want to make a list of the business projects that you think you could realistically get done in one day. Then, whether you complete those projects in the morning that day or at night that day is up to you. The point is at least you have written the tasks down, and that you will get to them.
When you make up your schedule with client appointments, dates with your spouse, kids’ sporting events you also should try not to overdo it. When you plan your day you may want to leave room for delays and emergencies. This will help reduce the amount of frustration you feel. For example, if you leave a half hour before you have to be somewhere instead of fifteen minutes before you have to leave somewhere you will not be as frustrated about the never ending red light.
Proper time management will also help you avoid having extra work to do on the weekends. Your friends, associates, family, and children are important. However, your financial well being is important as well. Therefore, manage your time wisely. You cannot afford to waste another minute.
If you need further help with time management, you may want to find books written by professionals regarding this matter. You can learn how to keep a calendar, when to say no to someone, and other tips to help you organize your day.
Part of time management is also staying organized. If you keep your desk clean, set up a computer file system, and alphabetize any paper records you can find them easily later on. You would be amazed how much time people waste looking for an important paper, or their car keys even. All this time could be spent completing projects or watching a movie with your child. You don’t have this time to waste any more.
Those who want to make the most of their time can put all their belongings in a designated space. Those who need help learning how to be more organized can read books and articles on organization to help them. Please visit often for further time management and organization tips.
The biggest conflict that many people have while starting a new home business is family. They have to make time for their wives, husbands, and children. Not only that, but then there are grandmas and grandpas who want to see their kids, birthday celebrations, and weekend trips to take. Making time for a home business can see overwhelming at times. If you are a business owner with a large family, you can empathize. However, you can plan your schedule accordingly.
Some people think that if they have a schedule it takes away from their freedom, which is why they started the business in the first place. Although you are supposed to be able to enjoy the freedom and flexibility of working at home, you may need to try to make yourself a schedule you can stick with at least most of the time. It does not mean that you have no control of your schedule if you do this. You still will work when you want to but you will be able to decide when you should work.
If you set a certain time of the day in which to do your work and stick to it you will still have just as much time as you would if you were working a full time job. In fact, you may even have more time on your hands because you may not always have to work long hours every day.
If you are a night person, you may want to do a majority of your business work at night, and then contact your customers when you need to during the day. If you are a day person, you may want to set your primary work hours for during the day. Other options would be to work your business while your kids are at school, if you have kids.
If you absolutely cannot handle being told you should set a daily schedule, then you may at least want to make a list of the business projects that you think you could realistically get done in one day. Then, whether you complete those projects in the morning that day or at night that day is up to you. The point is at least you have written the tasks down, and that you will get to them.
When you make up your schedule with client appointments, dates with your spouse, kids’ sporting events you also should try not to overdo it. When you plan your day you may want to leave room for delays and emergencies. This will help reduce the amount of frustration you feel. For example, if you leave a half hour before you have to be somewhere instead of fifteen minutes before you have to leave somewhere you will not be as frustrated about the never ending red light.
Proper time management will also help you avoid having extra work to do on the weekends. Your friends, associates, family, and children are important. However, your financial well being is important as well. Therefore, manage your time wisely. You cannot afford to waste another minute.
If you need further help with time management, you may want to find books written by professionals regarding this matter. You can learn how to keep a calendar, when to say no to someone, and other tips to help you organize your day.
Part of time management is also staying organized. If you keep your desk clean, set up a computer file system, and alphabetize any paper records you can find them easily later on. You would be amazed how much time people waste looking for an important paper, or their car keys even. All this time could be spent completing projects or watching a movie with your child. You don’t have this time to waste any more.
Those who want to make the most of their time can put all their belongings in a designated space. Those who need help learning how to be more organized can read books and articles on organization to help them. Please visit often for further time management and organization tips.
Tuesday, May 11, 2010
A Glimpse into the Open Book Management Style in Business
Management styles have changed significantly since the “Booming '80s”. They've even changed enough in just the last eight to ten years and open book management is perhaps an anecdote to these older management styles. This style of management can greatly improve morale among employees and bring back the passion and vision they once felt towards the company.
You see, when employees don't or can't know what is going on behind the scenes, they can sometimes feel frustrated and alienated from their work. With the advent of the Internet and lightning fast electronic communication, it is becoming harder and harder for employees to grasp what is needed or wanted from their employers. Employers are trying to communicate their needs faster and hoping the employee can fill in the gaps themselves, when just the opposite is needed, more communication and information. Millions of business owners and corporations are having this same problem.
What exactly is open book management? It is the concept of being completely open with all employees about the company for which they are working. Each employee is encouraged to review the company’s books and participate in financial planning and business strategies. It's a process that involves each employee as an integral part of the business, almost as an equal business partner in the enterprise. It is also a management style that benefits those who wish to learn the business end of the details and is great on the job training in business. A lot of female-based organizations have been doing this for years. This could be because open book management style is a natural inclination in this gender and involves actually building relationships with fellow employees. However, lately it knows no boundaries.
It was mentioned earlier that this style of management greatly improves employee morale. It has been shown that this type of management makes employees more willing to help each other even if it involves something they are not usually assigned to do. It increases the mentality of we are all in this together so let's get the job done. It has also been shown to reduce the numbers of employees who call in sick, because it holds the employees more accountable. All this can greatly benefit the corporation overall by increasing the profits through harder working, more accountable employees who are willing to do whatever it takes to get it done.
Because of many new things in the workplace this open management technique is actually very useful in today's business world. Individual employees are more likely to be making their own decisions regarding matters because of the faster pace of office environments these days. Computers make work more efficient and therefore more can get done by each individual employee, having open book management helps each employee know exactly what is going on overall and assist them in making the most efficient use of their time.
Another phenomena that has occurred is less managers in businesses now than there used to be. With fewer managers and less time to divide over more tasks, individual employees must make split second decisions and do not always have time to consult with a manager. Open book management style helps the employee have more confidence in any decision he or she may make. Building relationships within the company can help immensely when it comes to profitability. With strong internal relationships it is easier and more likely a business will be able to build quality and strong relationships with its customers. Open book management encourages this type of relationship building.
Here are a few tips on making this management style work the best for you and your company. First of all remember to have real conversations with employees, build relationships, not the typical boss giving the employee a speech. Second be prepared for miscommunication, it can still happen to the best of us. If you are prepared than it is easier to get back on track and find solutions. Third ask questions, lots of them, ask ones that you don't know the answer to. It will make the employee feel more valuable when he or she is able to help you. Employee boards are also a great idea.
Strategic communication is a good idea also; managers need to be willing to take responsibility for 60% of the conversations. Lastly empower your employees, make sure they feel responsible for part of the company whether it fails or succeeds, accountability and some authority will make each employee feel valued and therefore work harder to reach the common goal. In the end open book management can definitely improve the overall quality of the business. By making everyone feel equally involved, each employee can take pride in the success of the business. When they feel pride their passion will increase and the possibilities are endless.
You see, when employees don't or can't know what is going on behind the scenes, they can sometimes feel frustrated and alienated from their work. With the advent of the Internet and lightning fast electronic communication, it is becoming harder and harder for employees to grasp what is needed or wanted from their employers. Employers are trying to communicate their needs faster and hoping the employee can fill in the gaps themselves, when just the opposite is needed, more communication and information. Millions of business owners and corporations are having this same problem.
What exactly is open book management? It is the concept of being completely open with all employees about the company for which they are working. Each employee is encouraged to review the company’s books and participate in financial planning and business strategies. It's a process that involves each employee as an integral part of the business, almost as an equal business partner in the enterprise. It is also a management style that benefits those who wish to learn the business end of the details and is great on the job training in business. A lot of female-based organizations have been doing this for years. This could be because open book management style is a natural inclination in this gender and involves actually building relationships with fellow employees. However, lately it knows no boundaries.
It was mentioned earlier that this style of management greatly improves employee morale. It has been shown that this type of management makes employees more willing to help each other even if it involves something they are not usually assigned to do. It increases the mentality of we are all in this together so let's get the job done. It has also been shown to reduce the numbers of employees who call in sick, because it holds the employees more accountable. All this can greatly benefit the corporation overall by increasing the profits through harder working, more accountable employees who are willing to do whatever it takes to get it done.
Because of many new things in the workplace this open management technique is actually very useful in today's business world. Individual employees are more likely to be making their own decisions regarding matters because of the faster pace of office environments these days. Computers make work more efficient and therefore more can get done by each individual employee, having open book management helps each employee know exactly what is going on overall and assist them in making the most efficient use of their time.
Another phenomena that has occurred is less managers in businesses now than there used to be. With fewer managers and less time to divide over more tasks, individual employees must make split second decisions and do not always have time to consult with a manager. Open book management style helps the employee have more confidence in any decision he or she may make. Building relationships within the company can help immensely when it comes to profitability. With strong internal relationships it is easier and more likely a business will be able to build quality and strong relationships with its customers. Open book management encourages this type of relationship building.
Here are a few tips on making this management style work the best for you and your company. First of all remember to have real conversations with employees, build relationships, not the typical boss giving the employee a speech. Second be prepared for miscommunication, it can still happen to the best of us. If you are prepared than it is easier to get back on track and find solutions. Third ask questions, lots of them, ask ones that you don't know the answer to. It will make the employee feel more valuable when he or she is able to help you. Employee boards are also a great idea.
Strategic communication is a good idea also; managers need to be willing to take responsibility for 60% of the conversations. Lastly empower your employees, make sure they feel responsible for part of the company whether it fails or succeeds, accountability and some authority will make each employee feel valued and therefore work harder to reach the common goal. In the end open book management can definitely improve the overall quality of the business. By making everyone feel equally involved, each employee can take pride in the success of the business. When they feel pride their passion will increase and the possibilities are endless.
Tuesday, May 4, 2010
Tips For Getting Finance After Bankruptcy
Unless you are willing to pay terribly high interest rates, you should try to raise your credit score as much as possible. The lower your credit score, the higher the risk for the lender to grant you a loan and the higher the risk, the higher the rate. This is unavoidable, of course there are special situations that may have caused your financial breakdown, but there are no means to avoid this and lenders can’t take subjective facts into consideration when it comes to fixing the interest rate.
Repairing your credit
Repairing your credit may take some time, but here is the way to start. Open a savings account and start making regular deposits. You don’t need to deposit large amounts, but the fact that you have an income that lets you put away an amount of money regularly will soon be recorded to your credit history and will highly contribute to raising your credit score and improving your credit history. This is just the first step but as a first step, the most important one.
Credit Cards
Once you’ve a reasonable amount of money in your savings account, use it to apply for a secured credit card. Secured Credit Cards are just like regular credit cards only that you can only borrow the money that you’ve previously transferred to an account. There is no risk for the card issuer so you’ll be able to get it even if your bankruptcy is close in time and your credit is not that good.
After using your secured credit card for a while you can apply (if you haven’t been offered one yet by that time) for an unsecured credit card. Your credit score improvement will most surely let you get approved without hassles. Make sure you use the card wisely, make small purchases pay the credit card balance always in full if possible, and never miss a payment nor make late payments.
Using your credit card wisely will help you skyrocket your credit score. Now is the time to start requesting small personal loans. Asking for small loan amounts will guarantee that you’ll get approved. Your regular monthly payments will do the rest, your credit score will soon reach a status where you’ll be able to request personal loans at very reasonable interest rates.
Final Steps
At this time you should have reached a good credit tag and you’ll be able to obtain any financial product that you need. Refinancing your home loan would be the next wise step to continue improving your credit score. Or you could request a home equity loan. Either of them will prove to future lenders that you are able to commit to repaying higher amount loans and that you’ve finally put behind your bankruptcy.
Repairing your credit
Repairing your credit may take some time, but here is the way to start. Open a savings account and start making regular deposits. You don’t need to deposit large amounts, but the fact that you have an income that lets you put away an amount of money regularly will soon be recorded to your credit history and will highly contribute to raising your credit score and improving your credit history. This is just the first step but as a first step, the most important one.
Credit Cards
Once you’ve a reasonable amount of money in your savings account, use it to apply for a secured credit card. Secured Credit Cards are just like regular credit cards only that you can only borrow the money that you’ve previously transferred to an account. There is no risk for the card issuer so you’ll be able to get it even if your bankruptcy is close in time and your credit is not that good.
After using your secured credit card for a while you can apply (if you haven’t been offered one yet by that time) for an unsecured credit card. Your credit score improvement will most surely let you get approved without hassles. Make sure you use the card wisely, make small purchases pay the credit card balance always in full if possible, and never miss a payment nor make late payments.
Using your credit card wisely will help you skyrocket your credit score. Now is the time to start requesting small personal loans. Asking for small loan amounts will guarantee that you’ll get approved. Your regular monthly payments will do the rest, your credit score will soon reach a status where you’ll be able to request personal loans at very reasonable interest rates.
Final Steps
At this time you should have reached a good credit tag and you’ll be able to obtain any financial product that you need. Refinancing your home loan would be the next wise step to continue improving your credit score. Or you could request a home equity loan. Either of them will prove to future lenders that you are able to commit to repaying higher amount loans and that you’ve finally put behind your bankruptcy.
Tuesday, April 27, 2010
Finance Debt consolidation Tips
One thing that many people do, who find themselves swimming in a pool of nothing but horrible debt, is obtain a debt consolidation loan. A debt consolidation loan, is a type of loan specifically designed of anyone that has driven themselves into a debt that is well beyond their personal means. This type of loan will enable you to pay off all of your debt with one payment each month, than by having to make several monthly payments. The reason this works is because for the most part, these monthly payments will be lower than all of your monthly payments combined. Therefore, by having one payment each month, there is a higher likelihood of you being able to afford it.
These loans are typically one of two amounts, the entire amount of the debt owed or a large portion thereof. By obtaining a debt consolidation loan, you will enable yourself to pay off all the debt you have incurred and only have one left over, which will be the loan.
Typically those who apply for these types of loans do not have the greatest credit as a result of these debts, therefore the lending agent may require you to have any type of valuable property as collateral, typically a home or vehicle. When you go to apply or consider applying for a loan for debt consolidation, you will need to determine the amount of money you should borrow, this will typically be the entire amount of your debt or the amount of the largest debt that you currently owe.
By determining this amount, you will be able to better understand what type of collateral you will need to obtain the loan, and will play a large role in the determination of the amount of the monthly payment you will be required to pay and the amount of the interest rate upon the loan.
There are a variety of terms and conditions that could go along with debt consolidation loans, this is all dependant on the particular lender. Lenders will typically have an amount that is the maximum you are allowed to borrow, this will also be a determination made depending on the value of the collateral you present. Additionally, these types of loans will have a higher rate of interest than a regular loan. However, that higher interest rate could save you lots of money in the long run, because the debt consolidation loan will allow you to better control you debt, make only one payment each month, and could be the decisive factor in rather or not you need to file bankruptcy.
These loans are typically one of two amounts, the entire amount of the debt owed or a large portion thereof. By obtaining a debt consolidation loan, you will enable yourself to pay off all the debt you have incurred and only have one left over, which will be the loan.
Typically those who apply for these types of loans do not have the greatest credit as a result of these debts, therefore the lending agent may require you to have any type of valuable property as collateral, typically a home or vehicle. When you go to apply or consider applying for a loan for debt consolidation, you will need to determine the amount of money you should borrow, this will typically be the entire amount of your debt or the amount of the largest debt that you currently owe.
By determining this amount, you will be able to better understand what type of collateral you will need to obtain the loan, and will play a large role in the determination of the amount of the monthly payment you will be required to pay and the amount of the interest rate upon the loan.
There are a variety of terms and conditions that could go along with debt consolidation loans, this is all dependant on the particular lender. Lenders will typically have an amount that is the maximum you are allowed to borrow, this will also be a determination made depending on the value of the collateral you present. Additionally, these types of loans will have a higher rate of interest than a regular loan. However, that higher interest rate could save you lots of money in the long run, because the debt consolidation loan will allow you to better control you debt, make only one payment each month, and could be the decisive factor in rather or not you need to file bankruptcy.
Tuesday, April 20, 2010
Basic Tips on Personal Finance
Do you ever wonder where your money goes every month? Does it sometimes seem as though you cannot afford to do things because your financial obligations are holding you back? If you find that you are asking yourself these sorts of questions, perhaps you should take a look at your financial situation and assess whether you are practicing good personal finance management or not. Good personal finance management spends within their income, plan for the future and solve financial problems as they arise. Poor personal finance management pay more, do without and fall behind. If you find yourself in the second category, you can do something about it. You can learn to take charge of your finances by planning your personal finances.
Planning your personal finances doesn’t always come naturally, and even if you’re just beginning to take your financial matters seriously, then you likely need a few personal finance tips.
Evaluate your current financial situation. One of the most important goals for most people is financial independence. Collect accurate information about your personal financial situation. Calculate your net worth which includes the real estate, saving and retirement accounts, and all other assets. This will help you decide how much money you can set aside for meeting future needs and goals.
A basic personal finance tip is to make a budget. A personal finance budget is information made up of your income and expenses and the more accurate this information is, the more likely you are be able to meet your goals and realize your dreams. A personal finance budget should be made for at most one year at a time and include a list of your monthly expenses.
All expenses must be included. To be sure of that go through all your paid bills, check register and credit card receipts to find expenditures that recure every month and expenditures that happen less frequently. Personal finance budgeting requires some small sacrifices. To be able to make good personal financial decisions and set priorities, you must know where your money is actually going. Start your budget and accomplish your goals.
Get an electronic bill pay. This is a very convenient way to pay your bills. You pay them electronically, by direct withdrawal from your bank account. The transaction is processed immediately. You can even link your bill pay service to your personal finance budget, so that your expenditures are automatically entered in the appropriate category. Personal financial management can be really easy.
Make an investment and finance plan. Now that the fundamental state of your personal financial security has been established, the time has come for the more prosperous part of your personal financial life. You need to make a personal finance plan of what you really want in life that money can buy. Your personal financial plan can be as simple or as detailed as you want it to be. Find out how to finally start to implement this plan and get the money to finance it. This is the long term part of your financial. This journey is the most interesting and exciting part of personal financing you can have toward financial freedom.
You can prepare for a secure personal financial future by following these simple tips. When you take control with your money, you don’t have to worry about debt taking control of you.
Planning your personal finances doesn’t always come naturally, and even if you’re just beginning to take your financial matters seriously, then you likely need a few personal finance tips.
Evaluate your current financial situation. One of the most important goals for most people is financial independence. Collect accurate information about your personal financial situation. Calculate your net worth which includes the real estate, saving and retirement accounts, and all other assets. This will help you decide how much money you can set aside for meeting future needs and goals.
A basic personal finance tip is to make a budget. A personal finance budget is information made up of your income and expenses and the more accurate this information is, the more likely you are be able to meet your goals and realize your dreams. A personal finance budget should be made for at most one year at a time and include a list of your monthly expenses.
All expenses must be included. To be sure of that go through all your paid bills, check register and credit card receipts to find expenditures that recure every month and expenditures that happen less frequently. Personal finance budgeting requires some small sacrifices. To be able to make good personal financial decisions and set priorities, you must know where your money is actually going. Start your budget and accomplish your goals.
Get an electronic bill pay. This is a very convenient way to pay your bills. You pay them electronically, by direct withdrawal from your bank account. The transaction is processed immediately. You can even link your bill pay service to your personal finance budget, so that your expenditures are automatically entered in the appropriate category. Personal financial management can be really easy.
Make an investment and finance plan. Now that the fundamental state of your personal financial security has been established, the time has come for the more prosperous part of your personal financial life. You need to make a personal finance plan of what you really want in life that money can buy. Your personal financial plan can be as simple or as detailed as you want it to be. Find out how to finally start to implement this plan and get the money to finance it. This is the long term part of your financial. This journey is the most interesting and exciting part of personal financing you can have toward financial freedom.
You can prepare for a secure personal financial future by following these simple tips. When you take control with your money, you don’t have to worry about debt taking control of you.
Tuesday, April 13, 2010
Discover Business Card
he Discover Business Card is a card which you should consider using within your business when looking for a business credit card. You will want to find a card which can fit with your business needs. The Discover business card can be that card for you. This article will focus on a couple all of the different features which are available with the Discover Business Card which will be beneficial to your business.
The Discover Business Card offers you 12 months at 0% APR for balance transfer. If your business carries credit card debt, you could look at doing a balance transfer from one card to another. This would allow you to reduce the amount that you have to pay toward your credit card every month, thus freeing up monthly cash flow. You could also use the money that was put towards servicing your credit card debt interest to pay them off more quickly. This will help improve your business’s net worth as you pay down your credit card debts.
With the Discover Business Card, you can have cards issued for you as well as your employees. What is nice about this is that you can have a different amount and limits for different employees. Monthly statements can also be broken down so that employee’s spending can viewed more carefully to ensure that spending is within line with what is being reported by employees.
The number of merchants which will not accept business credit cards is declining every year but there are still many who do not accept a credit card. If you would like to use your credit card and pay these merchants, there are fee-free purchase checks which you can use to send to these merchants. This can once again helped you free up monthly cash flow since you can leave the money in the bank to earn more interest income until it must be paid on your credit card every month.
This article has talked about the benefits of using a Discover business card. Having 0% APR on balance transfers for 12 months can help you pay down high interest debt and also allow you to free a monthly cash flow. Being able to more carefully monitor employee spending as well as sending checks to merchants who don't accept credit cards can have benefits depending on the business that you are in. If you are thinking about a business credit card, this could be the card for you.
The Discover Business Card offers you 12 months at 0% APR for balance transfer. If your business carries credit card debt, you could look at doing a balance transfer from one card to another. This would allow you to reduce the amount that you have to pay toward your credit card every month, thus freeing up monthly cash flow. You could also use the money that was put towards servicing your credit card debt interest to pay them off more quickly. This will help improve your business’s net worth as you pay down your credit card debts.
With the Discover Business Card, you can have cards issued for you as well as your employees. What is nice about this is that you can have a different amount and limits for different employees. Monthly statements can also be broken down so that employee’s spending can viewed more carefully to ensure that spending is within line with what is being reported by employees.
The number of merchants which will not accept business credit cards is declining every year but there are still many who do not accept a credit card. If you would like to use your credit card and pay these merchants, there are fee-free purchase checks which you can use to send to these merchants. This can once again helped you free up monthly cash flow since you can leave the money in the bank to earn more interest income until it must be paid on your credit card every month.
This article has talked about the benefits of using a Discover business card. Having 0% APR on balance transfers for 12 months can help you pay down high interest debt and also allow you to free a monthly cash flow. Being able to more carefully monitor employee spending as well as sending checks to merchants who don't accept credit cards can have benefits depending on the business that you are in. If you are thinking about a business credit card, this could be the card for you.
Tuesday, April 6, 2010
DEBT MANAGEMENT: manage finance, manage life….
The most efficient way to produce anything is to bring together under one management as many as possible of the activities needed to turn out the product.”
We often indulge in uncontrolled expenses and spending beyond our means i.e.; spending more than you earn results in mounting debts. At times of severe financial crisis, Debt Management helps you to manage your funds and also protects you from the humiliation of debt struck conditions. The process involving the use of several techniques to curb the amount of debts is known as debt management
Some of the techniques of debt management are listed below:
1. Create an accurate assessment of your debt situation.
Make a list of all your debts. Be sure and include the amounts, interest rates, and expirations dates. So that you have a clear picture of what you owe and what you own.
2. Make a budget:
Making a budget helps keep from increasing your debt, while you're trying to pay it down. Be specific and detailed in your budgeting. Stick to your budget, and you won't get further in debt if you only spend what you have.
3. Pay off the debts one by one.
Maintain minimum payments to the rest of the debts, but pick the debt with the highest interest rate, and send extra payments to pay it off. That would help to ease the pressure
4. Consider debt consolidation: it is a personal loan that is employed to settle the debts. For the purpose of ease in settlement, all debts taken from several lenders are consolidated. You may also consider debt restructuring and refinancing.
5. If necessary, get help. You may choose a credit counseling service, or debt counseling and debt help service to help with each step of your debt solution.
Debt management is open to all. Good credit people, bad credit people or people with bankruptcy. Debt management by managing debts of a debtor can help in improving his credit score.
debt management will essentially involve keeping ones finances under control, taking the right debt from the right lender, never missing any installments, avoiding any late fees and if needed, consolidating the debt in the most efficient way. Debt management, as is clearly visible has a very wide scope. Borrowers need to keep their eyes open, particularly on the debt elimination techniques like debt consolidation loans. Debt counseling too need not be taken lightly, since they also can backfire at times when incorrect tips are implemented.
There is no magic wand as far as recovering from debt is concerned. It takes time, it can be a struggle but it will be worth it in the end
We often indulge in uncontrolled expenses and spending beyond our means i.e.; spending more than you earn results in mounting debts. At times of severe financial crisis, Debt Management helps you to manage your funds and also protects you from the humiliation of debt struck conditions. The process involving the use of several techniques to curb the amount of debts is known as debt management
Some of the techniques of debt management are listed below:
1. Create an accurate assessment of your debt situation.
Make a list of all your debts. Be sure and include the amounts, interest rates, and expirations dates. So that you have a clear picture of what you owe and what you own.
2. Make a budget:
Making a budget helps keep from increasing your debt, while you're trying to pay it down. Be specific and detailed in your budgeting. Stick to your budget, and you won't get further in debt if you only spend what you have.
3. Pay off the debts one by one.
Maintain minimum payments to the rest of the debts, but pick the debt with the highest interest rate, and send extra payments to pay it off. That would help to ease the pressure
4. Consider debt consolidation: it is a personal loan that is employed to settle the debts. For the purpose of ease in settlement, all debts taken from several lenders are consolidated. You may also consider debt restructuring and refinancing.
5. If necessary, get help. You may choose a credit counseling service, or debt counseling and debt help service to help with each step of your debt solution.
Debt management is open to all. Good credit people, bad credit people or people with bankruptcy. Debt management by managing debts of a debtor can help in improving his credit score.
debt management will essentially involve keeping ones finances under control, taking the right debt from the right lender, never missing any installments, avoiding any late fees and if needed, consolidating the debt in the most efficient way. Debt management, as is clearly visible has a very wide scope. Borrowers need to keep their eyes open, particularly on the debt elimination techniques like debt consolidation loans. Debt counseling too need not be taken lightly, since they also can backfire at times when incorrect tips are implemented.
There is no magic wand as far as recovering from debt is concerned. It takes time, it can be a struggle but it will be worth it in the end
Tuesday, March 30, 2010
10 Easy Ways To Organize Your Business Finances
Whether you are a new entrepreneur or a more experienced business owner, taking control of your finances can feel like a part-time job. Some simple tips can help you streamline your time, organize your finances and reduce the stress of business money matters.
1. Keep Your Bills in One Place
When the mail comes, make sure it goes in one place. Misplaced bills can be the cause of unwanted late fees and can damage your credit rating. Whether it's a drawer, a box, or a file, be consistent. Size is also important. If you get a lot of mail, use an area that won't get filled up too quickly.
2. Pay Your Bills on Schedule
Bill paying can be simplified if it's done at scheduled times during the month. Depending on how many bills you receive, you can establish set times each month when none of your bills will be late. If you're paying bills as you receive them, chances are you're spending too much time in front of the checkbook. Although bills may state "Payable Upon Receipt", there's always a grace period. Call the creditor to find out when they need to receive payment before the bill is considered late.
3. Read Your Credit Card Statements
Most people take advantage of low interest credit card offers but never read their statements when paying the bill. Credit cards are notorious for using low interest as bait for new customers then switching to higher rates after a few months. Make a habit of looking at your statement carefully to see what interest rate you are paying each month and if any transaction fees have been applied. If the rate increases or a transaction fee appears on your statement, a simple call to the credit card company can oftentimes be beneficial in resolving the matter. If not, try to switch your money to a more favorable rate.
4. Take Advantage of Automatic Payments
Most banks offer a way to automatically deduct money from your account to pay creditors. In addition, the creditors usually offer a lower interest rate when you sign up for this payment option because they get their money faster and on-time. Consider it as one fewer check to write, envelope to lick and stamp to buy. Just make sure you record the deduction when the automatic payment is scheduled or you run the risk of bouncing other checks.
5. Computerize Your Checkbook
Using a software program is a handy way to organize your finances. Whether it's Quicken(r), Microsoft Money(r) or another package, these easy-to-use programs make bill paying and bank reconciliation a cinch. Computer checks can be ordered almost anywhere and fit right into most printers. Once the checks are printed, all of the information is automatically recorded in your electronic checkbook. Furthermore, many banks have direct downloads into these software packages so when money is deposited or withdrawn, the transaction is entered immediately onto your computer. And, when it comes time to do taxes, it couldn't be easier.
6. Get Overdraft Protection
Most banks have a service where, if you run the risk of bouncing a check, the money will come from another source. For a nominal fee, the bank will link your checking account to either a savings, money market, or credit card so the embarrassment of bouncing a check will be avoided. Call or visit your bank to learn about this convenient feature.
7. Cancel Unused Accounts
Whether it's a credit card or bank account, write a letter requesting that the account is formally closed. Not only will this improve your credit score, it is a useful way to avoid money from being scattered all over the place. Don't let department stores and credit card companies lure you into opening new accounts by offering favorable interest rates and purchase discounts. It's easy for credit to get out of hand by taking advantage of every credit offer that comes your way.
8. Consolidate Your Accounts
If you have several credit card accounts with outstanding balances, try to consolidate them into one. Be careful and check the balance transfer interest rates and one-time fees. Also, make a list of all your open Money Markets, Savings, CDs, IRAs, Mutual Funds, and other accounts to see if any consolidation can be done. Keeping your money in fewer places eliminates all of the guesswork involved and reduces errors.
9. Establish Automatic Savings
Create a link from your checking account into a savings account that will not be touched. This can usually be done through the banks and automatic amounts will be transferred over each month. Most people will not put money into a savings account on a regular basis. They may wait until a large tax refund check arrives or some other event to actually deposit money into savings, retirement or other accounts. If you establish an automatic savings deposit every month, your accounts will begin accumulating money faster than you think.
10. Clean up Your Files
Make sure your paid bills are organized in a filing cabinet. Keep individual files for paid bills. Go through your files at the end of each year and throw out bills and receipts no longer needed for auditing purposes. Contact your local IRS office to see how long records need to be kept for audits. Usually federal tax return audits can be done three years back but cancelled checks may need to be kept for seven. Consult the Internet for auditing and records-keeping procedures for your state or region.
(c) 2005 DebtGuru.com(r). This article may be freely distributed as long as the signature file and active link are included.
Michael G. Peterson is the Vice President of American Credit Foundation, an IRS 501 (c)(3) non-profit consumer credit counseling organization that has assisted thousands of individuals and families with their financial situations through seminars, education, counseling services, and, debt management plans. For more information, and free consumer resources visit http://www.debtguru.com.
1. Keep Your Bills in One Place
When the mail comes, make sure it goes in one place. Misplaced bills can be the cause of unwanted late fees and can damage your credit rating. Whether it's a drawer, a box, or a file, be consistent. Size is also important. If you get a lot of mail, use an area that won't get filled up too quickly.
2. Pay Your Bills on Schedule
Bill paying can be simplified if it's done at scheduled times during the month. Depending on how many bills you receive, you can establish set times each month when none of your bills will be late. If you're paying bills as you receive them, chances are you're spending too much time in front of the checkbook. Although bills may state "Payable Upon Receipt", there's always a grace period. Call the creditor to find out when they need to receive payment before the bill is considered late.
3. Read Your Credit Card Statements
Most people take advantage of low interest credit card offers but never read their statements when paying the bill. Credit cards are notorious for using low interest as bait for new customers then switching to higher rates after a few months. Make a habit of looking at your statement carefully to see what interest rate you are paying each month and if any transaction fees have been applied. If the rate increases or a transaction fee appears on your statement, a simple call to the credit card company can oftentimes be beneficial in resolving the matter. If not, try to switch your money to a more favorable rate.
4. Take Advantage of Automatic Payments
Most banks offer a way to automatically deduct money from your account to pay creditors. In addition, the creditors usually offer a lower interest rate when you sign up for this payment option because they get their money faster and on-time. Consider it as one fewer check to write, envelope to lick and stamp to buy. Just make sure you record the deduction when the automatic payment is scheduled or you run the risk of bouncing other checks.
5. Computerize Your Checkbook
Using a software program is a handy way to organize your finances. Whether it's Quicken(r), Microsoft Money(r) or another package, these easy-to-use programs make bill paying and bank reconciliation a cinch. Computer checks can be ordered almost anywhere and fit right into most printers. Once the checks are printed, all of the information is automatically recorded in your electronic checkbook. Furthermore, many banks have direct downloads into these software packages so when money is deposited or withdrawn, the transaction is entered immediately onto your computer. And, when it comes time to do taxes, it couldn't be easier.
6. Get Overdraft Protection
Most banks have a service where, if you run the risk of bouncing a check, the money will come from another source. For a nominal fee, the bank will link your checking account to either a savings, money market, or credit card so the embarrassment of bouncing a check will be avoided. Call or visit your bank to learn about this convenient feature.
7. Cancel Unused Accounts
Whether it's a credit card or bank account, write a letter requesting that the account is formally closed. Not only will this improve your credit score, it is a useful way to avoid money from being scattered all over the place. Don't let department stores and credit card companies lure you into opening new accounts by offering favorable interest rates and purchase discounts. It's easy for credit to get out of hand by taking advantage of every credit offer that comes your way.
8. Consolidate Your Accounts
If you have several credit card accounts with outstanding balances, try to consolidate them into one. Be careful and check the balance transfer interest rates and one-time fees. Also, make a list of all your open Money Markets, Savings, CDs, IRAs, Mutual Funds, and other accounts to see if any consolidation can be done. Keeping your money in fewer places eliminates all of the guesswork involved and reduces errors.
9. Establish Automatic Savings
Create a link from your checking account into a savings account that will not be touched. This can usually be done through the banks and automatic amounts will be transferred over each month. Most people will not put money into a savings account on a regular basis. They may wait until a large tax refund check arrives or some other event to actually deposit money into savings, retirement or other accounts. If you establish an automatic savings deposit every month, your accounts will begin accumulating money faster than you think.
10. Clean up Your Files
Make sure your paid bills are organized in a filing cabinet. Keep individual files for paid bills. Go through your files at the end of each year and throw out bills and receipts no longer needed for auditing purposes. Contact your local IRS office to see how long records need to be kept for audits. Usually federal tax return audits can be done three years back but cancelled checks may need to be kept for seven. Consult the Internet for auditing and records-keeping procedures for your state or region.
(c) 2005 DebtGuru.com(r). This article may be freely distributed as long as the signature file and active link are included.
Michael G. Peterson is the Vice President of American Credit Foundation, an IRS 501 (c)(3) non-profit consumer credit counseling organization that has assisted thousands of individuals and families with their financial situations through seminars, education, counseling services, and, debt management plans. For more information, and free consumer resources visit http://www.debtguru.com.
Tuesday, March 23, 2010
For Sale By Owner and the Web
Unless you have been living under a rock, you know the Internet has radically changed society. In real estate, this has led to a massive surge in for sale by owner properties on the web.
For Sale By Owner and the Web
In the past, choosing to go the path of “For Sale By Owner” could turn out to be incredibly difficult and overbearing. Realtors dominated the market because they had proprietary access to the multiple listing service, known as MLS, and you had to be listed in it if you wanted your property to be seen. Thankfully, the Internet has made selling a home yourself incredibly easy in a variety of ways.
If we flash back 10 years to the pre-internet days, we would find a real estate market that looks foreign to what we have today. In that market, the number one method for selling your home was to list it in the multiple listing service controlled by real estate agents. This, of course, allowed them to get their hooks into you and squeeze out a commission regardless of the quality of service they provided. If we flash forward to the present day, we find a new landscape.
A 2005 study of homebuyers across the United States revealed a fact that most realtors are loath to admit to, but know exists. Over 70 percent of homebuyers shop for potential properties on the internet. Yes, seven out of every 10 are hopping online and finding the property of their dreams. Why? The reason is very simple. Would you rather drive all over town looking at homes that don’t really match what you are after and blowing your valuable time or would you prefer to sit at your computer and click through properties with pictures? Unless you really love driving, the answer is obvious.
In our modern society, time is the most valuable asset. Listing your property on the internet is a huge time saver because it is all point and click. If you are selling, you can upload descriptions and pictures for buyers to view. If you are buying, you can see pictures of both the inside and outside of potential properties while relaxing at your desk. Either way, it beats sitting in traffic while driving all over town.
For Sale By Owner and the Web
In the past, choosing to go the path of “For Sale By Owner” could turn out to be incredibly difficult and overbearing. Realtors dominated the market because they had proprietary access to the multiple listing service, known as MLS, and you had to be listed in it if you wanted your property to be seen. Thankfully, the Internet has made selling a home yourself incredibly easy in a variety of ways.
If we flash back 10 years to the pre-internet days, we would find a real estate market that looks foreign to what we have today. In that market, the number one method for selling your home was to list it in the multiple listing service controlled by real estate agents. This, of course, allowed them to get their hooks into you and squeeze out a commission regardless of the quality of service they provided. If we flash forward to the present day, we find a new landscape.
A 2005 study of homebuyers across the United States revealed a fact that most realtors are loath to admit to, but know exists. Over 70 percent of homebuyers shop for potential properties on the internet. Yes, seven out of every 10 are hopping online and finding the property of their dreams. Why? The reason is very simple. Would you rather drive all over town looking at homes that don’t really match what you are after and blowing your valuable time or would you prefer to sit at your computer and click through properties with pictures? Unless you really love driving, the answer is obvious.
In our modern society, time is the most valuable asset. Listing your property on the internet is a huge time saver because it is all point and click. If you are selling, you can upload descriptions and pictures for buyers to view. If you are buying, you can see pictures of both the inside and outside of potential properties while relaxing at your desk. Either way, it beats sitting in traffic while driving all over town.
Tuesday, March 16, 2010
Are Business Buyer Notes Profitable?
Like anything else, it depends on the type of business you're selling. Business buyer notes are documents secured by a business, much like a mortgage broker except there is no real estate involved. Often, personal property like cooking equipment, furniture, and office equipment obligates one individual or company to make payments, usually monthly, to another person or company. Businesses are sold without the help of bank financing; this makes it much easier for a person to buy a business with a small down payment. Because the down payment is small, most banks will not finance the remaining balance, so the seller {owner} agrees to hold a “note” on the remaining balance for the buyer. This is called seller-financing or owner-financing. The buyer then agrees to pay the seller a monthly payment. The person holding the note however does not want to wait that long to receive all the money from the business, so he or she looks for a someone to buy all or part of the note being held.
Business buyer notes can be a good asset because the holder of the note can get cash in hand from an interested buyer and there are a lot of company's willing to buy business notes. The note holder may choose to sell all or part of the note and receive a lump sum for the cash he or she needs to pay off bills, go on vacation, or to buy another business, while still receiving monthly payments from the one who bought the business. The holder may also want to sell the note to get out from under the responsibility of the business. Most business owners really don't want to be note holders but in order to sell the business quickly the note was agreed upon. A drawback to being a business note buyer is when future payments are sold for cash, the current balance is always sold at a discount. The reasons behind this is time erodes the value of money, and the payee is paying the owner over time. Another reason business buyer notes are sold at a discount is because personal property and office furniture does not provide the same degree of safety that real estate does. Also the interest rates on business buyer notes are not high enough to interest investors to purchase these notes unless it is sold at a discount price.
If you are interested in purchasing a business buyer note it's probably a good idea to contact a service that will help you in these matters. First there needs to be an assignment of the security instrument and receive the endorsement of the promissory note. The service you hire in this matter will examine all aspects of this transaction, and verify all notes in question, plus they will of course record all of the necessary documents for your records. It all depends on the nature of your agreements with all involved whether your business buyer notes are assets or not.
Business buyer notes can be a good asset because the holder of the note can get cash in hand from an interested buyer and there are a lot of company's willing to buy business notes. The note holder may choose to sell all or part of the note and receive a lump sum for the cash he or she needs to pay off bills, go on vacation, or to buy another business, while still receiving monthly payments from the one who bought the business. The holder may also want to sell the note to get out from under the responsibility of the business. Most business owners really don't want to be note holders but in order to sell the business quickly the note was agreed upon. A drawback to being a business note buyer is when future payments are sold for cash, the current balance is always sold at a discount. The reasons behind this is time erodes the value of money, and the payee is paying the owner over time. Another reason business buyer notes are sold at a discount is because personal property and office furniture does not provide the same degree of safety that real estate does. Also the interest rates on business buyer notes are not high enough to interest investors to purchase these notes unless it is sold at a discount price.
If you are interested in purchasing a business buyer note it's probably a good idea to contact a service that will help you in these matters. First there needs to be an assignment of the security instrument and receive the endorsement of the promissory note. The service you hire in this matter will examine all aspects of this transaction, and verify all notes in question, plus they will of course record all of the necessary documents for your records. It all depends on the nature of your agreements with all involved whether your business buyer notes are assets or not.
Tuesday, March 9, 2010
Accounts Receivable Financing, Tax Write Off And What Does It Cost?
Banks won't lend money to a business seeking to acquire larger contracts because its not viewed as an asset. So if you are a small start up company, funding for expansion may be hard to obtain. Accounts Receivable Financing could be the key to funding for a start up with desires to bid on large Government (or Corporate) contracts.
So what is Accounts Receivable Financing? It is the selling of your accounts receivable invoices for cash versus waiting 30-60 or 90 days to be paid by your customer. Accounts Receivable Financing is also know as Factoring.
Securing the services of an Accounts Receivable Financing Company will allow a small company to bid on almost any contract within reason. A small company would know in advance that the funds needed to produce goods or provide services are available once they win the contract. In fact, some A/R Companies will advise you on which companies they will Factor Invoices from and which to avoid! (Federal Government contracts are considered "gold" however not all Factoring companies can handle Government Receivables)
One of the major concerns for most small business owners is how much does Accounts Receivable Financing cost? Between 1 to 5% generally speaking. Since Accounts Receivable Financing rates depend on the credit-worthiness of your customers, your average invoice, average payment cycle, and factoring volume, its hard to predetermine the exact cost of the money. However, you should remember, whatever the cost is: Its TAX DEDUCTIBLE and this is important. This means that the cost to factor is offset by IRS.
Not all Factoring companies are created equally (you can't tell that by looking at their web pages). A Cash Flow Consultant or an Accounts Receivable Broker can stir you in the right direction. There are issues such as: process to acquire funding, will the Accounts Receivable Financial company (factoring) company handle your collections, will they provide the funds through a credit card or will they wire the monies into your business checking account, will the Accounts Receivable Financial company factor with recourse or without recourse? (Meaning will they take responsibility for the debt or will you the client take ultimate responsibility? The rates are different)
Sometimes an A/R Broker has a choice, but not all the time. For instances, there are not that many companies that provide Accounts Receivable Financing for health care or construction. It all depends on what type of business you have and what your needs are.
So what is Accounts Receivable Financing? It is the selling of your accounts receivable invoices for cash versus waiting 30-60 or 90 days to be paid by your customer. Accounts Receivable Financing is also know as Factoring.
Securing the services of an Accounts Receivable Financing Company will allow a small company to bid on almost any contract within reason. A small company would know in advance that the funds needed to produce goods or provide services are available once they win the contract. In fact, some A/R Companies will advise you on which companies they will Factor Invoices from and which to avoid! (Federal Government contracts are considered "gold" however not all Factoring companies can handle Government Receivables)
One of the major concerns for most small business owners is how much does Accounts Receivable Financing cost? Between 1 to 5% generally speaking. Since Accounts Receivable Financing rates depend on the credit-worthiness of your customers, your average invoice, average payment cycle, and factoring volume, its hard to predetermine the exact cost of the money. However, you should remember, whatever the cost is: Its TAX DEDUCTIBLE and this is important. This means that the cost to factor is offset by IRS.
Not all Factoring companies are created equally (you can't tell that by looking at their web pages). A Cash Flow Consultant or an Accounts Receivable Broker can stir you in the right direction. There are issues such as: process to acquire funding, will the Accounts Receivable Financial company (factoring) company handle your collections, will they provide the funds through a credit card or will they wire the monies into your business checking account, will the Accounts Receivable Financial company factor with recourse or without recourse? (Meaning will they take responsibility for the debt or will you the client take ultimate responsibility? The rates are different)
Sometimes an A/R Broker has a choice, but not all the time. For instances, there are not that many companies that provide Accounts Receivable Financing for health care or construction. It all depends on what type of business you have and what your needs are.
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