ComputerHunter.org |
|
|
|||
|
 |
Oasis in a Cash Flow Desert - Four Resources That Increase Small Business Capital Streams
For small business owners, an enthusiastic vision for smooth, steady growth can become nothing more than a mirage once company cash flow problems begin to heat up. Most will struggle with the timing of payment from clients or customers at some point, all while attempting to pay their own bills in a timely fashion. With all of the best laid plans for rapid flowing cash streams evaporating down to just a gurgle in the ditch, the potential risk of joining the ninety-percent of businesses that fail within their first three years of operation becomes a very sobering possibility. Many of us would like to operate our companies the same way we do our personal lives. If we need a new lawn mower, we simply pull out the trusty credit card, sign on the dotted line and put off worrying about it until next month. Meanwhile, we enjoy the benefits of the new equipment, at least for the time being, without it costing a dime. Though in this way we may seek a certain gratification from owning our possessions, it's really just a trick we play on ourselves. The above "charge now, pay later" example doesn't really convey any kind of real, initial ownership. Instead, it's just a very common example of a direct loan. The credit card company facilitates a credit arrangement between you and themselves, and the proceeds of this extension are directly used and repaid by you, the borrower. In business, however, whipping out the plastic to cover expenses is definitely not the best idea. Many have given in to this temptation, and are paying the heavy cost of damaged or ruined credit. And with that, their chances of digging out of the hole with other means of financing, which should have been sought in the first place, are slim to none. Thankfully, there are better, specially designed cash flow tools available for businesses that are beginning to feel the scorch of the capital income desert. Many business owners are unaware of these tools. Others that are aware fail to take advantage of them. All of them would do well to at least consider the following: Purchase Order Financing - Simply put, this tool is a loan against the future income of the business. It's designed primarily to provide the cash needed to pay suppliers and sales-generating business expenses while patiently waiting for clients to pay their invoices. Similarly, purchase order funding is utilized for the completion of existing orders by securing materials when working capital is running short. Once purchase order financing has been successfully utilized for some time, it usually becomes easier for the business to take advantage of more economical means of credit. Equipment Leasing - With it's one-hundred percent financing, preservation of credit lines, tax benefits and the ability to avoid obsolescence, equipment leasing is one of the sharpest and most efficient cash flow tools a business owner can utilize. Paying a premium in order to own equipment can be a huge waste of money. What companies profit from is the use of equipment, not the ownership. Leases can be extremely flexible to meet the custom needs of each business. Therefore, both small and medium-sized companies can greatly benefit from them. Accounts Receivable Financing - This tool provides a line of credit secured by the company's accounts receivables. It is a strong method of financing for both short-term working funds and the permanent working capital requirements of businesses that are growing. The paperwork is considerably less involved than in more traditional types of business loans. It is also especially helpful in providing financing flexibility to firms that are growing rapidly. Factoring - This is the sale, at a discount, of a business' accounts receivables. It is not based on the company's ability to repay the money advanced. Instead, it based on their customer's ability to pay what is owed. Once the factoring facility purchases the accounts receivables, they assume the responsibility for collection. It is not a loan, so neither the time in business, nor the company's debt to equity ratio are a consideration. A business has the freedom to sell only the AR that it chooses, and is not obligated to continue to do so. Factoring is an excellent source for additional working capital needed by both small and startup businesses. The descriptions above are general, and it's important to understand that there is flexibility and variation within each lender program. In order to get educated on the details of these types of tools, and to find which of them might be beneficial to your situation, talk to a professional loan broker or a commercial lender representative. He or she will explain the benefits of each, and help you decide which tools are right for keeping your business out of the cash flow wasteland. Mark Uptain is the owner of Regent Business Capital, a loan and lease brokerage that works with lenders nationwide to help small and medium-sized businesses get financing. His website, http://www.EquipmentLeasingSource.com, offers free equipment leasing information and competitive quotes to businesses throughout the United States.
Google News - Top Stories
|
|
|
|
RELATED ARTICLES
Integrity... Should It Matter? In our fast paced work culture, manned by technology savvy generation in a globally competitive environment, quality and productivity became the battle cry of corporations to stay in business. Though this is not necessarily bad, an equally important ingredient to succeed is seemingly taking the back seat. Four Steps to Better Performance Reviews Direct reports-people who need direction and leadership-rely on their leaders to give them feedback and mentoring, not just management and evaluations. However, these people who most need their boss's help frequently lack the guidance that would enable them move to the next levels of success-theirs, their team's and the company's. Too often leaders are not prepared or trained to conduct an appraisal that stretches performance and ensures their direct reports' development. Instead, the appraisals become confrontational and judgmental; goals are not clear; neither person is prepared; and the discussion occurs when it's too late to do anything about the problem. Today's organizations demand more from their leaders. Therefore, a well thought out performance appraisal system, clear expectations, reviews that inspire, and action plans are critical to the individual's and organization's success. Be a Leader - The Importance of Going Home Early! How you run your business is, of course your business. A little focus from your end will dictate the way your people act and behave. So the onus is on you to show the way.Why does this matter?If you create a style of working within your organisation which is able to get the very best from your people, you will have a vibrant business, your people will develop beyond their (and even your) expectations and above all, you will enjoy your work and success more than ever before. Try these eleven quick and easy ideas:- Solve Problems Permanently - Ask WHY As Albert Einstein said:- Leadership Style: What Makes A Good Boss? In today's competitive environment, companies realize that a good boss is one who can identify and build on the talents of the staff and knows how to retain top performing employees. Take this quiz and see if you are a good boss. How to do SWOT Analysis for your Business SWOT analysis is needed for all business to understand how to improve their business. Year 2010: Permanent Employees No Longer Required Jack Welch joined a conference that was held in Duke Fuquay Business School where he was invited to promote his new book called "Winning". He told audience about how culture is important in a company. Culture builds integration and integration guarantees better products and services for customers. In GE's 1994 annual report his statements were no different. "Boundaryless behavior?" he said "?has become the right behavior at GE, and aligned with this behavior is a rewards system that recognizes the adapter or implementer of an idea as much as its originator. Creating this open, sharing climate magnifies the enormous and unique advantage of a multibusiness GE, as our wide diversity of service and industrial businesses exchange an endless stream of new ideas and best practices." Communicating When A Crisis Strikes How would you handle communication if your business or practice got into a crisis situation? Tales from the Corporate Frontlines: Ideas for Everyday Training This article relates to the Training competency, commonly evaluated in employee satisfaction surveys. It tells the story of a group of team leaders who worked together to find ways to use information sharing and communication to provide valuable employee training. A Gallup poll conducted in 1998 reported that eight out of 10 employees said they would be more likely to stay with their present employer if they were offered more or better training. Specifically, the questions included in this competency are written to measure the adequacy, availability, content of training, and satisfaction with the delivery of training within your organization. Hiring Great People And How to Be One Yourself: Five Secrets Bad news. Five Ways to Increase Profitability By Doing The Right Thing 1. Base your business in the Magic Triangle. Honesty, integrity, and quality are the three sides of the Magic Triangle of business success. Create the kind of company that stands for something more than the bottom line, and your bottom line will increase. Muggers in Our Midst - When Rumour and Gossip Pay You a Visit 'I heard it on the grapevine' the old song goes. But the grapevine has the potential to cause your business strife, misunderstanding and ruin! In effect the rumour mill and gossip are dangers you cannot ford to ignore. People who indulge in these behaviours are like muggers ? they leave you feeling you have been robbed! Can A Business Still Be Profitable When People Skills Are Absent? In our current world of rapid and amazing technological advances, many entrepreneurs have managed to dramatically limit the need for staff in highly profitable operations of all kinds. How Bad Communication Can Hold You Back and How to Break Free of It The reason jobs are often not done right and employees are fired is because of lack of skill. Right? Wrong! Poor communication and ineffective human relations are the major causes. Remember: Communication is a "meeting of meanings." It's getting through to the other person what you mean in a way that they understand. In fact, you want them to do more than understand, you want them to act on the information in the correct way. Effective communication is talking and listening to create that understanding. The end result is to get things done in a way so that you, the organization, and the employee will all be satisfied. Change Management: Getting Everyone on Board the Change Train How do you get everyone on board the change train that is gaining speed and heading out of the station? How do you get your people to, not only go through the motions, but also actually "buy into" the changes that are necessary? People's resistance to change is not entirely irrational; it stems from good and understandable concerns. Here are the six most common reasons people resist change and tactics to convert this resistance to commitment. 10 Fundamentals for Effective Meeting Here are ten fundamental concepts that characterize an effective meeting. Employee Retention: Keeping the People Who Keep You in Business The retention of highly skilled knowledge workers is one of the major challenges today for all organizatons. Knowledge workers are those whose work primarily requires the use of "mental power rather than muscle power." Travel the World - for Free! I have been very fortunate to travel to several countries of the world while on business - countries I may have never visited on a holiday. There are pros and cons to working/doing business in a foreign country vs. visiting as a tourist but I have found it to be very rewarding. I have made many friends, been invited into many colleagues' homes to meet their families, dined on local specialties, and seen all the local attractions (I've been to the Giza pyramids three times - see photo on the right) because business partners are always proud to show you their country. After all, don't we always take visitors to Alberta to the Rocky Mountains? Foreign business delegations traveling to Calgary always schedules time to go to Banff, often timing it to coincide with the weekend. Knowledge Management - Keys to Successful Communities of Practice (Networks) How can I make my community of practice truly effective? Keep The Faith - Transform The Fear FEAR! To what extent does fear rule your life? How is fear controlling or motivating you? Bring up the topic and watch people react. Our lives incorporate so many beliefs about fear- reinforced by what we tell ourselves and what we hear from others. Is it any wonder that finding peace and serenity becomes such a challenge within a strong climate of negativity?
|
|
|
|
|
