Business Finance Expert Series: "What Every Business Owner Needs to Know About Factoring"
HJ Ventures is proud to release its second Business Finance article in the "Factoring" expert series -What every business owner needs to know about factoring?http://www.hjventures.com/factoring/factoring-glossary.htmlFactoring is a promising way to stimulate the cash flow of a company. Its growing popularity can be gauged from the statistics that factor finance approximately amount to $70 billion in United States each year. In United Kingdom it represented a total volume of ?104.4 billion in 2002. However, before leaping on the factoring (http://www.hjventures.com/factoring/factoring.html) bandwagon it is important for the business owner to know what makes a business suitable for factoring?- Companies with sales up to and exceeding $250 million per year are and may be factored- Before making any decision the owner should have a list of his customers and they should be in sufficient number- No customer should contribute over third of the turnover- Customers are needed to accept the standard payment terms of the industry. - Period of credit given to the customers should be reasonable Following factors make a business unsuitable for factoring:- When there are too many small invoices (http://www.hjventures.com/factoring/invoice-finance.html)- Factoring is unsuitable when it is sold to the public.
It is only available for sales to commercial customers- There is a provision for the customers to make part payments- When there are many disputes and queries- The business is not reliable, credible and sound in its operationsIt is very important for the business owners to have a good understanding of these factors as they will be sharing important financial information of their business and will be in direct contact with the customers too. Earlier factoring was not widely used due to the ignorance of business owners regarding the benefits factoring could bring in to the company. Thus it is important for every business owner to be aware of benefits of factoring before using it in their business. Our next business finance article in our "Factoring" series will focus on "Comparing factoring to other financing options"Learn more about factoring / business finance:http://www.hjventures.com/factoring/factoring-glossary.htmlReprint rights: You are free to use / reprint this article - please just include the below copyright and URL / link to website:(C) 2005 HJ Ventures International, Inc.http://www.hjventures.com.
Refinance Your Mortgage To Rebuild Credit
Refinancing your mortgage is one way to rebuild your credit, particularly if you have recently declared bankruptcy. With a poor credit history, you can find refinancing through a sub prime lender. To rebuild your credit, make regular payments on your mortgage and other bills. Then after two years, refinance again for lower rates with your now good credit rating.A Note About Sub Prime LendersSub prime lenders offer B, C, and D credit, which means they offer credit to high risk lenders. For taking on these high-risk loans, sub prime lenders charge slightly higher interest rates and fees.
Some sub prime lenders charge excessively high fees, but you can screen these out by comparing mortgage rates. Online mortgage lenders make this easy with their online quotes and posted rates.Applying For RefinancingApplying for refinancing has been made easy with the internet. The first step is to collect several financing offers, and sort through them. Look for low fees and interest rates. Once...
Refinance Your Mortgage To Rebuild Credit
Financing > Refinance Your Mortgage To Rebuild Credit
Rental Property Investments
When talking about Rental Property Investments, the term ?working capital' has to be understood. There are two concepts of working capital: gross working capital and net working capital. Gross working capital is the total of all current assets. Net working capital is the difference between current assets and current liabilities. It may be mentioned here that though this concept of working capital is commonly used, it is an accounting concept with little economic meaning.
It makes little sense to say that a firm manages its net working capital. What a firm really does is to take decisions with respect to various current assets and current liabilities.
The management of working capital refers to the management of current assets as well as current liabilities. The major thrust, of course, is on the management of current assets. This is understandable because current liabilities arise in the context of current assets. Working capital is a significant facet of rental property...
Financing > Rental Property Investments
To Successfully Obtain Business Capital Every Business Needs A Coach
If you are a business owner the task of obtaining business capital can be very daunting. Most businesses fail because they have never been taught how to obtain financing and therefore they have no clue where to begin. The Small Business Administration reports that 97% of business loan applications fail.
The importance of seeking expert assistance when setting up business credit has many business owners turning to a business finance coach to help them establish their business credit. One of the biggest mistakes made by business owners is that they attempt to obtain business financing using their personal credit.
You should never use your social security number to obtain business financing. Personal credit has to be separated from your business credit.
Until your business has three separate business credit scores, any financing that your business receives will be based solely on your personal credit scores and your personal assets...
Financing > To Successfully Obtain Business Capital Every Business Needs A Coach