Are You Planning a Sustainable Business?

February 9th, 2011 by admin No comments »

Are You Planning a Sustainable Business? ImageGetting into business can be easy, but making it sustainable is hard. You might think that just doing a green business would make it sustainable and qualify you instantly for an easy business loan, but that’s not the case. Sustainable businesses aren’t just interested in making something environmentally-friendly, they are also interested in how that business will be viable for the long-term.

Short-sighted Gains Passe

After the economic crash in 2008, it became obvious that unregulated greed that sought large short-terms returns was a style of capitalism that was doomed to failure. Large companies sprouted up overnight only to take their investors and employees down when they went bankrupt due to their inability to grow larger – the only means necessary to continue to feed larger profits. Now, it’s become more important to grow your business in a way that it sticks around for a long time, rewarding everyone from investors to employees.

Sustainable Growth

Instead of injecting large amounts of capital, a sustainable business will try to manage its debt load more responsibly. Growth is managed in a way that it may be slower, but it also produces lasting value. The principles of good stewardship apply and also the ideal of being a good neighbor, whether it is in your community or via your environmental practices. Sustainable businesses are involved in their communities and try to nurture them to help sustain their customer base, instead of trying to exploit it.

Financial Health

Sustainable businesses are about capitalism, but in a style that doesn’t seek to plunder wealth that will impoverish the community that upholds the business. Debt and value are central issues to manage and this can mean slower growth, but a healthier business. Environmental practices put in place aren’t just to uphold ideals, they should also help the business to run more smoothly and to save money.

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Posted in Credit and Loan

Receivables Factoring is A Great Tool to Finance Your Business

February 6th, 2011 by admin No comments »

Receivables Factoring is A Great Tool to Finance Your Business ImageHave your business with commercial customers or government? If you answered yes to this question, that is also used to wait up to 60 days to pay their bills. One of the most difficult thing to do business with large companies to pay little by little. Sure, they pay for everything in order – they take their own sweet time to do so.

But you costs, you have to pay now. Providers should be paid. Wages and salaries must be met. This creates a challenge for small and medium enterprises.

Is the solution a business loan? It seldom is. They are hard to get. And when you get them, your hands are tied until the loan is paid off. With loans, you can only get one at a time. So if your business grows and you need more money, you are out of luck.

If your biggest headache is slow paying customers, a better solution is to factor your receivables. Receivable factoring provides you the necessary financing to pay employees, suppliers and taxes. Above all, it provides you with peace of mind by eliminating (or at least minimizing) your financial worries.

Receivables factoring works on a simple premise. Your invoices are valuable assets that can be financed. Basically, the factoring company advances you money for your slow paying invoices and waits until your customer pays. Of course, they charge a small fee for this service. This is how it works:

1. You do your work, as usual. You bill your customer but then submit a copy of the invoice to the factoring company for financing

2. The factoring company provides you an immediate advance on 70% to 90% of the invoice (there is a 10% to 30% reserve). You can use that money to meet payroll and pay expenses

3. The factoring company waits to get paid by your customer

4. Once they are paid, the transaction is settled and the factoring company rebates any reserves

As you can see, factoring gives you immediate money for your slow paying invoices, enabling you to run and grow your business. Qualifying for factoring is really easy. The biggest requirement is to do business with credit worthy customers. So, if your customers are good (but slow paying), you can finance them.

Receivables factoring is a great tool to finance your business and grow it to the next level.

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Posted in Business