February 23, 2012

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Exploring Financial Resources to Finance Your Business

One thing that companies must do in order to stay successful is to be ever changing. With new technology and services available, businesses that don’t adapt will fall by the wayside. This is true for your company’s finances as well. What was not possible before is now obtainable and by exploring what resources are available, you’ll be able to save your company money.

One of the best ways to improve your cash flow is to find a way to get paid more quickly. Many companies wait months or longer to be paid on invoices sent out to clients. There is a way to get paid immediately: invoice factoring. When you hire a factoring company, they manage all of your invoices. As invoices are sent out to clients, copies are sent to the factoring company. The factoring company pays up to 90 percent of the invoice to you immediately and the client pays the factoring company.

Being paid on invoices immediately will enable you to keep up on cash flow and have consistent income. You will be able to rely on what you’ll be paid and when it will arrive rather than having no idea when the next check will come. It will prevent the need to borrow money since you’ll already have the funds to pay your debts. In exploring your options, you may choose to go with invoice factoring from Touch Financial, the company that won the Asset Based Finance Broker of the Year Award for 2011 from Moneyfacts.

Filed Under: Financial Markets Tagged With: , ,

Is It Time to Expand?

The first thing to recognize as a small business owner is that profits do not necessarily mean you are ready to expand. There are many things that need to be taken into account before that can happen.

Longevity of profits is very important. A short spurt of profits does not mean those profits will hold. It is best to wait to 2 to 4 years to see if those profits stay constant. The last thing you want to do is expand and then realize that your profits were just a fluke that lasted during a fad that made your small business popular or during a particularly prosperous year in your city.

Cash flow is the second thing to look for. A constant cash flow will allow you to invest that money back into your business and eliminate or reduce the need for business loans. You must also have possession of a substantial portion of your local market and maintain a customer base that is loyal and that constantly invest in your product or service. Additionally, as a business owner, you must be aware of whether your product is increasing with demand or whether it is slowly fading out.

If all of these components are meant, then you are ready to expand. Remember that low capital tends to be the prime reason for business failure. It is vital that you have the financial backing to expand. If not, it is best not to risk such a big move. Customers are the back bone of any business so it is also important that your company have a client base that is steady and constant. These factors will tell you whether you are ready to expand or not.

Filed Under: General Finance Tagged With: , ,

A PERSONAL FINANCIAL PLAN: THIS YEAR’S HOT NEW YEAR’S RESOLUTION

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The New Year is almost upon us. Maybe you’ve already starting thinking about your 2011 resolutions. Along with diet and exercise, 2011 is the time to begin your personal financial plan. Why? Because the world economy is still in a bad patch.  At this point a good majority of the population are letting the experts help with personal financial plans, retirement funds, stocks and loans using  personalized accounting software in order to find money that wasn’t there before. In order to navigate smoothly through the economic potholes, you’ll need a strong foundation.
Getting Started
The first thing you need to do is to gather your documents. Here are some of the documents you are going to need:
- W-2s, 1099s, and any self-employment income or rental income
- Brokerage statements
- Bank statements
- Mortgage: balance on the principal and interest rate
- Credit Cards: balances and interest rates
- Car and personal loan balances and interest rates. (Also find out what the blue book value of your car)
-Tuition and education expenses

Determining Your Net Worth

To determine your net worth:
-Add up your assets. Assets include the equity in your home, the value of your car, value of your retirement and brokerage accounts, and other belongings.
- Then add up your liabilities. How much do you owe on your mortgage, your car, your credit cards, etc.
- Finally subtract your total liabilities from your total assets and you have your net worth.

Determine Your Cash Flow

Determining cash flow is easy. You probably have a good idea of what your cash flow situation is already. However, seeing it on paper can be an eye opening experience. To determine your cash flow, simple add your total monthly net income and subtract your total monthly expenses.

Making the Plan

Now that you have a picture of your financial situation. Look at your future. Will you be sending children to college? Do you have enough money for that big vacation you’ve always wanted? Will you be able to retire anytime soon? Make plans to brighten your future and smooth the financial road ahead.

Filed Under: Finance Tagged With: , ,