Day: November 16, 2019

Everything You Need to Know About Accounts Receivables Financing 

… And What to Do for Funding Beyond Accounts Receivables Financing 

Accounts receivables financing is not something that you hear a lot about.  There is a ton of information out there about loans, credit cards, and even lines of credit.  No one really talks about financing your receivables though. That is, until you start trying to figure out how to get cash fast.  If you need fast cash and you have open receivables, then A/R financing may be just what you need.

Don’t confuse accounts receivables financing with accounts receivables selling.  They are two different things used for two different purposes. For example, selling your receivables serves as more of a means of getting older receivables off the books. 

The buyer pays a premium and then tries to collect the full value of the receivable.  The business owner never gets any more money than the original selling price. You get cash fast and you get the receivables off the books. 

Accounts receivable financing is different.  You can do it in a couple of ways. The first is, you can simply use the invoices as security for a loan.  The other, is invoice factoring. This is a mix of selling and financing. In factoring, the factoring company pays you a portion of the value of the invoices.  Then, they collect what they can, hopefully full value. They then keep their set, agreed upon fee, and send you the difference. 

Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

This means that the amount you get when you first factor the invoices may not be all you get. You will still get the difference in the amount collected less what you have already received and the factoring fee. 

What Are the Benefits of Accounts Receivables Financing?

Accounts receivables financing is not the best choice for every business in every situation, but there are some times when it truly is the best option.  Done correctly, there can be many benefits. For example:

  • Faster, less complicated process than what is typical with other types of financing
  • Accounts receivables financing premiums are often less than the interest rates and fees with traditional financing. 
  • In some cases, it is easier to qualify for A/R financing because lenders look at the quality of your invoices rather than your credit history.  
  • You get your money faster.
  • Accounts receivables financing can happen on an ongoing basis so as to bridge the cash gaps due to slow collections. 

How Do You Qualify for Accounts Receivables Financing? 

While all financing companies have their own qualification requirements, these can give you an idea of the minimum most require to be eligible for accounts receivable financing. 

  • They must, of course, issue invoices to customers
  • There must typically be at least $50,000 in annual revenue 
  • Usually they require that a business has been in operation for at least 6 months
  • Customers must be creditworthy, meaning they are likely to pay their invoices

It is important to remember that, while there are some instances where the financing company will take on the task of collecting on the invoices, the debt is still the responsibility of the business owner receiving the financing. Regardless of who is doing the collecting, if the invoice is not paid, the business owner is still responsible for the debt to the lender. 

Where Can You Get Accounts Receivables Financing?

There are many lenders that offer this service.  Here are just a few. 

1st Commercial Credit

This lender has been around for 15 years.  They offer invoice financing starting at .69% to 1.59% or Prime +2 and an administration fee.  1st Commercial Credit boasts a fast approval process, and they do not require financial statements for financing up to $350,000.  You can set up your accounts receivables financing with them in as little as 3 to 5 days. 

New Century Financial 

New Century Financial offers invoice financing up to 90% of the original invoice.  They claim streamlined, fast processing with no hidden fees. 

Blue Elephant Financing

This company works with businesses that have government contracts.  They offer account receivables financing related to FEMA, HUD, and other government contracts. Blue Elephant Financing prides itself on an easy application process and fast turnaround. 

Capital Plus Construction Services

Capital Plus offers accounts receivables financing related to construction contracts specifically.

Star Funding

accounts receivables financing Credit Suite

This company will not only do accounts receivables financing, but they will also help you collect on open invoices. This is a major plus for a lot of businesses. If you need or want collection help along with financing, Star Funding if for you.  They also offer accounts receivable management services.

Seven Oaks Capital Associates

Seven Oaks also offers general accounts receivables financing services along with collection and management services.  In addition, they can help you obtain credit information on those to whom you extend credit.

Of course there are hundreds of companies out there that offer these services.  These are just a few to get you started. 

A Word About Merchant Cash Advances

If you need a similar option but do not have a ton of open invoices, you might look into getting a merchant cash advance. This is similar to factoring invoices, but it works based on average credit card sales. Basically, you get an advance on your projected credit card sales. 

Here’s how it works.  First, you will submit information about your average daily credit card sales.  Then, the cash advance company will tell you how much you are eligible for based on that average.  

What Else Should You Be Doing? 

Now, the allure for many small businesses is that this type of financing doesn’t require great credit.  In fact, if your invoices are solid, the factoring company may not even do a credit check. If you have bad credit or no credit,  that is a good thing. However, you need to think beyond the right now and consider the future.

Working to build business credit is vital because this type of financing will not work for every need.  

Every Small Business Needs To Establish Business Credit

This is credit in a small business’s name. It doesn’t connect to an entrepreneur’s consumer credit. Here is why you need it: 

  • Since small business credit is distinct from individual, it helps to safeguard an entrepreneur’s personal assets, in the event of court action or business insolvency.
  • With two distinct credit scores, an entrepreneur can get two different cards from the same vendor. This effectively doubles buying power.
  • Even startup companies can do this. Visiting a bank for a business loan can be a recipe for disappointment. But building company credit, when done correctly, is a plan for success.
  • Consumer credit scores depend on payments but also various other elements like credit use percentages. For small business credit, the scores really merely hinge on whether a small business pays its debts punctually.

So where do you start?  How do you establish business credit?  It’s a process that has to be done in the right order.  You have to actually work toward it. It doesn’t happen on its own.

How to Establish Business Credit

Accomplishing the steps out of sequence leads to repetitive denials. No one can start at the top with business credit. For example, you can’t start with retail or cash credit from your bank. If you do, you’ll get a denial 100% of the time.

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Start with Business Fundability

A small business has to be fundable to credit issuers and vendors. This includes a number of things.  The first, is that a business needs its own phone number and address separate from the owner. They each need to be listed with the directories.  Do that here.  It will also need an EIN.  This is similar to a social security number, only for a business rather than an individual.  You can get one free from irs.gov.

Then, the business has to be incorporated.  A sole proprietorship or partnership won’t work for building business credit.  Whether you choose to organize as a corporation, S-corp, or LLC will depend on the level of liability protection you want and on your budget.  Any of them work for business credit building. 

Another necessary step for your business to appear fundable is to have a separate business bank account.  Do not mingle personal and business expenses in the same account. Not only does that not work for building business credit, but it makes for a tangled mess come tax time.  

Lastly, and surprisingly to some business owners, your business needs a professional website.  Along with this goes an email address that is separate from the owners. The website needs to look professional, which probably means hiring a professional to do it.  A lender will be much less likely to take you seriously as a business if you have a poorly put together website in today’s business world. The email address needs to have the same URL as the website and not be from a free service such as Gmail or Yahoo.  Also, the website needs to have website hosting from a paid supplier such as GoDaddy. Free hosting doesn’t work for this situation.

Get Accounts Reporting

Start at the D&B web site and obtain a free D-U-N-S number. A D-U-N-S number is how D&B gets a company into their system, to produce a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.

After you do this, you can start establishing tradelines that will report to the credit reporting agencies (CRAs).  These are part of the vendor credit tier. They are starter vendors that will extend invoices with net terms without a credit check.  When they report your payments, your credit score will begin to grow. 

Find out our picks for the easiest starter vendors to start with here. 

Retail Credit Tier

Once you have several vendor trade accounts reporting to at least one of the CRAs, then you can move onto the retail credit tier. These are companies like Office Depot, Staples, and Lowes.  The reason you have to go through the vendor credit tier first, before applying for these store cards, is that they need to see a PAYDEX score to grant approval. 

For example, Lowe’s likes to see a PAYDEX of 78.  The only way to get this is to start in the vendor credit tier. 

As you handle credit in the retail credit tier responsibly by making on time payments, your credit score will grow even more. 

Fleet Credit Tier

After there are several accounts from the retail credit tier reporting on-time payments, your score should be strong enough to apply for cards in the fleet credit tier. These are businesses such as BP and Conoco. Use this credit to purchase fuel, and to fix, and maintain vehicles

One such example is Shell. They report to D&B and Business Experian. They need to see a PAYDEX Score of 78 or more and a 411 small business telephone listing. This is another reason why a business contact listing is important.

Cash Credit Tier

Once you work through the vendor credit tier, the retail credit tier, and the fleet credit tier, your score should be stable enough to apply for cards in the cash credit tier. These are companies like Visa and MasterCard, but not related to a specific retailer as in the retail credit tier.

Monitor Your Business Credit

As you go through the tiers, and even after you are beyond the cash credit tier, you need to know what is happening with your credit. Make sure it is being reported and take care of any inaccuracies as soon as you can. 

Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

We can help you monitor business credit at Experian and D&B for 90% less than it would cost you at the CRAs. See: www.creditsuite.com/monitoring.

Accounts Receivable Financing Can Be a Great Option, But Don’t Stop There

Whether you are looking into accounts receivable financing because it is the best option for your needs or because it is the only option due to credit issues, you can work on building business credit in the meantime.  Personal credit is just not sufficient for business expenses.  

Our tried and true method for establishing and building business credit will ensure you have strong business credit.  Then, your financing is only limited by you needs, and not by your options.   

The post Everything You Need to Know About Accounts Receivables Financing  appeared first on Credit Suite.

Improved Business Writing and More –10 Brilliant Business Tips of the Week

Improved business writing will help you make more sales. Check out how better overall communications will make you money.

The Hottest and Most Brilliant Business Tips for YOU – Improved Business Writing and More

Our research ninjas at Credit Suite smuggled out ten amazing business tips for you! Be fierce and score in business with the best tips around the web. You can use them today and see fast results. You can take that to the bank – these are foolproof! Show off your improved business writing!

Stop making stupid decisions and start powering up your business. Demolish your business nightmares and start celebrating as your business fulfills its promise.

And these brilliant business tips are all here for free! So settle in and scoop up these tantalizing goodies before your competition does!

#10. Goodbye is Just as Important as Hello

Our first jaw-dropping tip is all about creating a good business offboarding process. T Sheets says the last impressions a departing employee has of your business can often be just as important as their first ones.

Knowing how to successfully offboard an employee is a vital part of running any business.

Tell People!

Don’t leave folks in the dark. In particular, the soon to be ex-employee has coworkers and, possibly, direct reports. Don’t those people deserve to know what’s going on? Otherwise, they are going to fill in the blanks. And you are probably not going to look too good if that happens.

Seriously.

It’s Also in Your Best Interests

Telling people isn’t just about making sure they don’t say bad things about you. It’s also about making sure that your departing employee imparts their wisdom before they hit the road. Yes, you’re going to ask them to document things. But the article also says – don’t overdo that. It’s unpleasant to begin with. Plus you are more likely to need them to wrap up loose-ended projects.

So keep the lines of communication open. Don’t sweep the employee’s departure under a rug. It’s nothing to hide, and it is nothing to be ashamed of. People move on all the time. It’s not a reflection on you or your company.

And, if you offboard someone really well, you know what can happen?

They just might decide to come back and work for you again. These impressions matter.

#9. Win at Negotiating With a Win-Win

The next awesome tip is about negotiating a better deal for your business. Noobpreneur notes any business person is going to have to do some negotiating in their lives. This is everything from working out the terms of employment agreements  with workers to getting a better deal on vehicles.

Their first tip is the best one.

Research FTW

If you don’t know what the other side wants and needs, you will have a lot of trouble with negotiations. Why? Isn’t the point of negotiating getting what you want, damn all the others?

Not quite.

Yes, you want to get what you, well, want. But if you can get the other side to a win, then they are far more likely to say yes to your terms.

How come?

Most people have a well-developed sense of justice and fairness. I give you a few dollars, and you give me a coffee at your shop. But if I only give you a penny, I have no right to expect a coffee from you. And if I give you $100, then I expect to get either a lot of change back or enough coffees to caffeinate the entire team.

So give to get. You just might be surprised.

Improved Business Writing Credit Suite

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Show off your improved business writing and more.

#8. Forecast Better Than Vegas Odds

Our following life-changing tip concerns forecasting sales more accurately. Sales Hacker lays it all out for us.

And like a lot of the processes which we see which involve numbers, the best practices are to be organized and consistent.

It all comes down to the metrics.

Going Metric With Your Sales

What do you need to measure? What makes the most sense to know? in the article, they lay out a few which should be no-brainers, such as churn rate and win rate. That is, who stops subscribing, and who you’ve sold to.

The most intriguing measurements had to do with pipeline. That is, are you setting things up for the next sale?

What, you’re not?

It’s time to start.

#7. Seal Your Deals With a KISS

For our next sensational tip, we looked at using basic design principles in order to close more sales. HubSpot says that the old design principle of KISS can help you land more jobs.

Kiss means: keep it simple, stupid.

Also known as, don’t overdo stuff. Don’t overcrowd. And it should be no coincidence – better design can dovetail well with improved business writing.

The article covers a few basics of design, such as balance. But the one we really liked had to do with scale.

Draw In Your Clients to Scale

Quick – what’s bigger, a man or a whale?

Usually, it’s the whale. But a baby whale (not a baby shark, thank God) can be smaller than a man, yes? How are your readers going to ever know this without scale?

The same is true for your designs. If your widget is bigger or brighter, then show it in comparison with another widget which isn’t so big and bright. Otherwise, how could your prospects ever possibly know?

#6. What Happens When We Communicate?

This tip is so neat, and it works! Young Upstarts tells us all about using conversation intelligence to improve sales.  Communications intelligence is all about understanding when certain conversations lead to closed deals and others … don’t.

Consider how understanding your communications work, or not, will improve all aspects of the selling process. Like many data-driven aspects of business, knowing what works and what doesn’t will save you time later. Communications can be oral or written, so improved business writing should be included, too.

We recommend you read the entire article to get the full idea behind this new concept which, to us, sounds a lot like listening to your customers.

What a concept.

#5. Listen to Ernest Hemingway and Start Showing Off Your Improved Business Writing

Grab this mind-blowing tip while it’s hot!

Improved business writing is where it’s at. Because no one – no one – wants to read boring business writing.

Copy Blogger says the Pulitzer Prizewinning author has tips which you can use, too.

Here’s what we loved.

Forceful Prose That Means What it Says

Oh. My. God.

Essentially, the idea is as follows. Vigorous English is the kind of prose which tells you what’s going on, and does so in a way that you are immersed in it.

Better Biz Communications Credit SuiteConsider the following two sentences.

For sale: one electric scooter.

For sale: your ticket to freedom – an electric scooter.

Now, does everything benefit from such treatment? Probably not. After all, if you sell casket, an immersive experience is probably the last thing on your prospects’ minds. Unless it’s Halloween, of course.

Used well and not all the time, kind of like chili powder, vigorous prose can work wonders.

That’s not the only part we loved when it came to creating improved business writing.

What Is It? It’s This, Not Something That’s Not That

Say what?

So the other bit we really loved is the concept of forcefully and clearing declaring positively what something is.

This doesn’t mean happy talk. It’s not that kind of positive. Rather, it’s being clear and declarative with your prose.

Improved business writing – or any sort of writing, for that matter – starts here.

Let’s talk  about toothpaste as an example, okay?

And let’s say that your toothpaste has a cinnamon flavor. You don’t say that it isn’t spearmint flavor. No. You say that it’s cinnamon flavor.

It’s assertive. And it’s accurate, of course. But it’s also not apologetic. Saying that it’s not spearmint – doesn’t that feel like an apology? Like the copywriter is sorry, we didn’t go in the spearmint direction. But here’s some cinnamon as a consolation prize.

No. Don’t write like that!

Say what you mean. Mean what you say. Thanks, Papa.

Improved Business Writing Credit Suite

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Show off your improved business writing and more.

#4. Ready, Set, Write!

Check out this spectacular tip, all about writing better blog posts faster. Addicted 2 Success notes that there are a few ways to speed up the process of writing blogs.

Templates and the Blank Page

So, here’s a dirty little secret about these Friday posts.

C’mere, and I’ll tell you.

It’s based on a template. And that is for a very specific reason. Just like the posts being referred to in this article, this post has to be written rather quickly. With a template, the article comes together with a  lot less effort.

And there’s another perk to using templates. Blank pages can be daunting. By themselves, they can cause the kind of anxiety that can slide you right into writer’s block.

Templates banish the blank page.

We strongly suggest you check out the entire article. It’s a great ticket to improved business writing.

#3. Lights, Camera, Your Business!

It’s not your imagination: this winning tip can help you build a great studio for a video series. Wistia tells us that your first mission is to figure out just where you’re going to put your studio. But that makes a ton of sense, as a lot of your other considerations will follow from this.

So, what’s best?

Consider how you’re going to use the space. Is this going to be a space to record videos where the expected sounds come from the action on the screen? Or can you dub it in later? Either way, you need a quiet place to do audio. But if you’re going to do unboxing videos where the narrative is added later, or music plays over it, then you can kind of do your unboxing while a jet flies overhead, yes?

But then there’s one little thing.

Say What?

It’s sound. Viewers are going to forgive a lot these days. They know that you’re not in the business of making videos – unless you are, of course. So if you aren’t in the business of making videos, a lot of prospects and customers are going to  be perfectly fine with that. In fact, it can even turn into an asset.

How?

Have you ever seen a slick used car salesperson on TV? Of course you have. And they are about the most artificial people out there, amirite?

A little imperfection in the visuals is pretty easy to forgive.

Not so with sound.

Your customers and fans want to hear what you have to say.  So have decent microphones! And then there’s post-production.

True Story Time

So, your intrepid blog writer used to be a podcaster. Podcasting, when you’re an amateur, means you wear nearly every hat there is. You book the talent, write up the questions, and even serve as your own laugh track.

I used to use Adobe Audition. And I still recommend it. It’s a great program, not too horribly expensive, for cleaning up audio. Clip out longer silences and put in segue music. You can even add introductory music and closing credit music. Most of all, it’s not too hard to use.

I cannot recommend this program enough, for any endeavor you pursue which requires good sound, such as podcasting or releasing your own video.

#2. Expand the Right Way

Our second to last unbeatable tip can give you a new perspective on expanding your business. E One Network reveals all about expanding your business.

We think the best tip was the first one – and of course we welcome your opinion if you disagree!

Being Cash Poor is Not Going to Help You Expand

Truer words were never written (well, maybe a few times…).

The bottom line is, if you don’t have enough cash on hand when your business has, say, three employees, what makes you think things are going to get any better once you have six? Unless, of course, you do something about that.

So think about what you can do. You might be able to get into a cheaper lease. Maybe you can stretch your fleet a little longer, rather than buying so soon. Or maybe you can switch to mugs rather than expensive one-use paper mugs and cups.

They had a terrific idea which should help – consider reducing your terms to Net-30 or Net-15.

Getting paid faster is bound to get you more cash on hand.

#1. Scaling Up

We saved the best for last. For our favorite remarkable tip, we focused on scaling your business successfully. The Self Employed says the move from a small startup to a larger business can be accomplished if you follow a few steps.

While this is similar to tip #2 (and the opposite of tip #10!), it goes beyond the financial aspects of making a business bigger.

Here’s our fave tip of the bunch.

Invest in Good Technology

It’s like buying a better sweater which will last for several seasons, as opposed to one  which costs less up front but you need to replace in a year.

Buying better tech which will help your business is key. Think about what you can automate. Is the cost prohibitive? It might not be if you start small, such as with an individual license versus an enterprise one.

Are your computers durable? Do you have good warranties for them? Now might be a good time to invest in that sort of assurance that bad components will be repaired or replaced.

We want your business to get bigger. These are just a few ways to make that happen.

So which one of our brilliant business tips was your favorite? And which one will you be implementing now?

Improved Business Writing Credit Suite

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Show off your improved business writing and more.

The post Improved Business Writing and More –10 Brilliant Business Tips of the Week appeared first on Credit Suite.

What are Penny Stocks?

What are Penny Stocks?

Purely talking, cent supplies are supplies that the starting financier, in numerous situations, can in fact manage to acquire. For the purpose of this write-up nonetheless, dime supplies are in some cases huge business going with a down spiral, which makes them, simply like the brand-new business, rather of a threat.

Basically, dime supplies are those that are not traded on the significant supply exchanges such as NYCE, AMEX, are NASDAQ. Dime supplies are a little bit a lot more dangerous than several of the remainder nevertheless for great factor. Simply as they are extremely high-risk nonetheless, they are likewise rather rewarding for those that handle to trade cent supplies effectively.

There is really little ability that goes right into efficiently trading dime supplies however a whole lot of good luck. It is really essential nonetheless that you get in right into cent supplies trading with the company understanding that you aren’t most likely to be effective. There are those nevertheless, that have actually taken care of to oppose the chances as well as win rather handsomely in the video game we’ve come to understand as cent supply trading.

Of all, cent supplies are not such as normal supplies where they are greatly traded as well as there is practically constantly somebody waiting in line to buy. This implies that cent supplies are not the most fluid supplies on the world and also if you require fast accessibility to your cash this is certainly not the supply for you.

When it comes to cent supplies is that there is typically really little details on these business, an additional point to maintain in mind. Unless you have superb study abilities and also the moment as well as power to place them to utilize for your trading undertakings you are really not likely to locate much history as well as monetary details on these business in contrast to several openly traded business that are virtually called for to open their publications to capitalists. Due to the fact that understanding is essential and also systems are plenty, this is unsafe to capitalists.

Every cent you spend in cent supplies must be a dime that you are really well prepared to completely delighted and also loosened to make a return with. You can strike the lotto game on your dime supply financial investment as well as gain essentially 3 to 4 (or even more) times what you spent in your supplies. When making your choices regarding the kinds of supplies, funds, or bonds you want to consist of in your profile you might desire to consist of a couple of dime supplies for the benefit of variety and also to take the chance of a little amount of cash on a lengthy shot.

Purely talking, dime supplies are supplies that the starting capitalist, in several instances, can really manage to acquire. Basically, cent supplies are those that are not traded on the significant supply exchanges such as NYCE, AMEX, are NASDAQ. Of all, cent supplies are not such as routine supplies where they are greatly traded and also there is practically constantly somebody waiting in line to acquire. You can strike the lotto on your cent supply financial investment as well as make essentially 3 to 4 (or even more) times what you spent in your supplies. When making your choices concerning the kinds of bonds, supplies, or funds you desire to consist of in your profile you might desire to consist of a couple of cent supplies for the benefit of variety as well as to run the risk of a tiny amount of cash on a lengthy shot.

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