Financial Freedom Tips

Benjamin Zander and his wife wrote a book entitled: “The Art of Possibility; Transforming Professional and Personal Life”. Their idea is that “you can create a passionate energy permeating The Art of Possibility that will be a true force in your life. You can make your own rules. ” Their book is inspirational. You will be inspired if you buy and read it. The question is: how does this pertain to accounts receivable financing?

It’s all about attitude, enthusiasm and point of view regarding how to conduct your business. Can you make your own rules regarding how banks, commercial finance companies and other financial entities operate? Of course not. Can you make your own rules regarding how you utilize the financial recourses that are available to finance your business? Absolutely!

Here are three examples how to harness the power of accounts receivable financing sometimes with other types of financing to grow your B2B business.

Case Study One:

A Solar Energy Company that designed and supervised the installation of renewable energy systems was unable to obtain bank financing. They were one of the area’s lowest cost providers of solar panels, system design and supervision. One of their biggest assets was State Solar Tax Credits that are paid to homeowners who install the solar energy systems. An obligation from a State to a consumer is not within the definition of an account receivable. In other words, it could not be financed because it was not an obligation to a business. Using the art of possibility, the homeowners were persuaded to assign their solar tax credits to the Solar Energy Company. This transformed a consumer receivable into a commercial accounts receivable. Voila! The Solar Energy Company received accounts receivable financing it needed to grow.

Case Study Two:

An individual purchased an Importing Company that had been financed with a bank’s SBA loan. As collateral for the loan, the bank placed a UCC1 filing on the accounts receivable and inventory of the business. UCC refers to the Uniform Commercial Code in effect throughout the United States of America. In some respects, it simplifies the process of lending, selling and borrowing nationally. In other ways it is very complex. A UCC1 filing by a bank usually prevents any further financing because there is no collateral left to be financed. It is similar to a first mortgage loan on a house. If you have a 95% loan on your house, no other financing is available on the house because there is no equity to lend on. Using the art of possibility, the Importing Company was successful in convincing the bank to subordinate their UCC1 filing to another commercial lender’s UCC1. The Importing Company convinced the bank that it would be mutually beneficial to lower the bank’s UCC1 lien to a secondary position to allow a commercial finance company to offer new accounts receivable financing and inventory financing. Voila! The Importing business has a new credit line available for growth. It is now more profitable and the bank is more likely to be repaid. This is a win-win situation.

Case Study Three:

A start-up Clothing Company involved in manufacturing, distributing and designing T-shirts landed a substantial purchase order for their product. The product was to be made in China, and the Clothing Company lacked sufficient funds to pay for the costs of manufacture and distribution. Using the art of possibility, the Clothing Company obtained a letter of credit to guarantee the Chinese factory of payment, purchase order financing to pay for the T- shirts upon delivery, and accounts receivable financing to pay the purchase order company upon delivery of the goods to the customer in the US.

Accounts receivable financing can help your B2B business realize the art of possibility for growth and profits. Voila!

Copyright © 2007 Gregg Financial Services

www. greggfinancialservices. com

For those of you who love the beauty, the touch of a few Premium rugs in your room will complement your sense of beauty in your home. There are a lot of rugs that can be found in several stores rugs. However, not all houses have a special room for installing rugs. Homeowners prefer to use some of their living room couch for. However, for some people who love the beauty and art, they prefer rugs to complement their living room. There are some things that make them not choose rugs and carpet floor mats for them. Among them is a treatment that is quite difficult to make rugs they do not have much time to clean their rugs.

Then what is the solution to this? When you buy rugs, you should pay attention to the bottom of the rugs to rugs clearance model is easier to clean. In addition, you can choose the model and design unique and attractive rugs. Each rug has a different design. You can customize the design rugs with a condition of your room. This will help you to get an oriental atmosphere and comfortable when you stand up and on top of your rugs. You can put your rug in your room or in your living room. If you think that rugs with different quality will be sold with expensive price, the cheap rugs will facilitate you to get some rugs at affordable prices. It’s very interesting when you want a different atmosphere in your room.

If you have a large room, then you must make a few area rugs specializing equipped rooms with rugs to limit demand. You definitely have a high taste home decor so you can determine some rooms can be equipped with the rugs. This provides an opportunity for you to have room to relax and be together with your family on the rugs. The surface layer of soft rugs and clean makes you free from allergies and feel comfortable when you sit on the rugs you to perform your activities.

You have found the best franchise for you and are really excited about its future and your new business. However, how are you going to pay for it? Many franchises require a significant investment and a large amount of liquid money that many individuals don’t have. Fortunately, there are a lot of financing options available to help you finance your franchise business opportunity.

Please keep in mind, however, that you should consider financing your franchise before you actually get your heart set on a particular franchise. The reason why is that financing can be a challenge and is the most important thing you should consider before actually opening a franchise. So, spend some time researching how to finance your franchise business opportunity to get a better understanding of how the entire process works.

Your Finances

First, you need to determine your financial situation. If you are not in a situation where you can afford to embark on a new business opportunity that may have cash flow issues in the beginning, then you should reconsider buying a franchise at this time. If you are current on all of your bills, have more holdings than debt, and make enough money to live on comfortably while saving then you may be prepared financially for a franchise. If not, then you might want to get your finances in order first. If you are doing well, and have some savings to invest, then a franchise may be a great opportunity for you.

Financing

There is a lot of information that you will need to provide in order to get financing. This includes your financial records from loans and debt payments to account balances and tax returns. Make sure all of this information is up to date and well organized before submitting it for financing approval. The more financial information you provide the easier it will be for lenders to determine your financial situation and subsequent financing options.

Financing by Franchisor

When you buy a franchise many times the franchisor will offer some percentage of financing to help you get started. The franchisor you are working with will heavily influence the financing options. Keep in mind, however, that just because you are buying a franchise and decide to go with franchisor financing the application process will not be any easier or more lenient. Also, you will need to invest some of your own money in the franchise because 100% franchise financing is highly uncommon.

Additional Financing

A Small Business Administration loan is a great option for additional financing for a franchise. Also, most banks are willing to finance successful franchises because they have a proven business model. Private investors may also be another option for financing your franchise opportunity.

Small business finance acts as a stepping stone for the small businesses, to explore innovative and holistic approach of business to increase their profits. With small business finance borrower can minimize the difficulty of funds that the borrower comes across during the business.

Small business finance depends upon nature of the business i. e. new or seasoned business. Amount fetched through the small business finance can be used for various purposes like buying a land, furniture, raw material, advertisement, machinery, outgoing expenditures etc.

Depending upon the borrower’s requirement he can either opt for the secured or unsecured loans. If the borrower wants to enjoy the attractive features and larger loaned amount then he should opt for the secured small business finance, but for that he has to place some valuable collateral against the loaned amount.

Borrowers who are looking for small amount can opt for unsecured small business finance. Unsecured small business finance is often availed by those borrowers who are unable to place collateral against the loan amount. Tenants or non-homeowners can avail the unsecured business finance at the competitive rate of interest.

Small business finance can be accessed from various lenders like prominent banks, institutions, lenders. With these, nowadays small business finance is also available through the online market.

Online has proved to be a simple and the fast method of acquiring the small business finance. While opting for the small business finance borrower must not forget to compare the quotes of different lenders in respect to repayment period, lower interest rate, and the loaned amount.

Borrower with bad or poor credit history like CCJ’s, bankruptcy, defaults, arrears IVA, etc can freely opt for the small business finance.

The most important task to obtain small business finance is preparing a business plan. In small business finance, business plan provides the borrower to know what amount to be raised for his business.

Vehicles and particularly van contributes a major role in the development of a business, as it makes transportation easy and faster. You might also feel the necessity of a van for commercial use and the inadequate finance is becoming the barrier between you and your ends. To tackle such insufficiency of finance, corporate van finance can aid you monetarily if considered. Corporate van finance is a loan scheme with the help of which a business person or any individual can finance a vehicle for commercial purposes. Though auto loans are easily available but opting corporate van finance can rationalize your financial budget.

Finance can be obtained under corporate van finance by applying for any form available secured and unsecured. The applicants have to place collateral while applying for secured form because this form facilitates them to borrow large amount of money at easy and low rate of interest. If collateral provided carry a higher equity then the borrowers can enjoy the privilege to borrow more finance. Individuals who are incapable of providing property can take the track of unsecured form to avail finance. Corporate van finance welcome persons having bad or adverse credit holders and offer the same proposals of secured and unsecured forms.

Corporate van finance is indeed a loan according to ones budget. But if applicant takes a little bit of effort to evaluate the value of the vehicle then he can borrow loan equilibrium to his repayment strength. Moreover, relying entirely on the sales persons will not be rewarding as they are target conscious and are not well aware of ones financial budget. So, for any decision or consultation concerning corporate van finance you can approach financial experts.

Now-a-days corporate van finance is advanced within less time and also can be approved by sitting comfortably from home or office, as online provides round the clock services within seconds. So, with the coming of the vehicle you can increase your strength of business and expand to your expected horizons with the aid of corporate van finance.

There are often situations when small, medium and even large companies find themselves in a tough spot as far as revenues are concerned. They are at a loss of funds or finance to undertake a project that is expected to give good results. In such a scenario the option available for financing is accounts receivable financing.

Accounts receivable financing is a secured loan for which accounts receivables are pledged as collateral with financial organizations. For small businesses it acts as a boon to help improve their cash flow. Generally small businesses find it hard to receive finance from a bank as they have less credit rating to show because they are yet in a developing stage. Unless finance is available, it is not possible for business to grow at a good pace. A timely finance from finance companies or even banks proves to be helpful for their growth. They often have customers who do not pay before 30-60 days. In such cases the accounts receivable are given as security to a financial organization and finance is received.

Any company can opt for accounts receivable finance. It is very popular with transport or trucking companies, construction companies, manufacturing companies, textiles, staffing and engineering and other small businesses. It benefits medium business and any other business that needs finance on a daily basis. These companies would need to have accounts receivable in hand. The companies who can qualify for such finances would need to have accounts receivables from credit worthy customers.

Moreover, aging of accounts happen to very large extent. They may have regular contracts with organizations with good credit history or government organizations. Some financial organizations also consider the period for which the credit is given, which they prefer should be within 30- 60 days. Companies which are experiencing modest speed of growth and find it hard to keep the cash flow constant find the accounts receivable finance very beneficial.

These finances ensure growth and stability of a company. The process is very quick and you can get the finance in a very short period of time. As finances are available on a timely basis, the companies may be able to get some advantage of reduction of overheads. The processing time of this type of financing is very less. Some of the companies also have online submission, and invoice submission systems which are then verified and checked and finance is provide in less than 2 days also which is a very timely help for these companies which need finance to undertake their daily activities. One more benefit that you get from such a finance function is that the accounts of the companies are managed better as proper records and collection on the due date is very important. For the small companies it is an additional benefit that the business in itself is well organized to make the entire process cost effective.

Accounts receivable financing is available to all those organizations that are in urgent need of finance or cash and are caught up in tricky situations wherein customers make payments very late. Companies find this financing highly beneficial to keep the growth of their organization on track.