You are in business to make money, and today the business environment is not getting better as fast as many small businesses would like, so many businesses are looking for ways to cut costs. Factoring is a strategy most US businesses do not consider, because it is widely misunderstood.
Instead small businesses look for obvious methods they know such as comparison shopping for the best deals on affordable insurance premiums, re-negotiating a lease or mortgage, however there are also some creative ways to save money such as invoice factoring.
You could start hiring short-term employees. An employee leasing company can help you save considerable amounts on benefits ,as the leasing company usually offers benefits to its workforce by itself. Employing temporary employees insures that you will be only paying for work as you need it.
Try shopping for business credit cards without any annual fee and also the lowest interest rates. Also steer clear of cash advances as credit card companies charge fees on the advance as well as a significant interest rate. And when making deposits in the bank, attempt to make them early in the day so that you start earning interest the same day.
If you can,Go paperless. it is possible to lower storage and printer costs along with better efficiency mainly because paperwork which are e-mailed get there immediately, as opposed to the time it will take to send something by way of USPS also preventing postage charges.
as opposed to buying office equipment, consider leasing it. If you not possess the equipment this will mean you are not responsible for many service or maintenance charges.
Think about factoring to help relieve cash flow complications quickly. Many business owners aren’t familiar with factoring receivables, the cash flow strategy wherein a small business sells its accounts receivable invoices to a factoring company like Neebo capital at a discount in exchange for immediate cash.
Factoring Invoices isn’t a bank loan. Loans are based on your assets and the ability to pay it back. But when factoring receivables, the funds available are based on your credit-worthy customers and are virtually unlimited. The more invoices you have, the higher your credit line is.
It is a wise idea to try alternative sources of funding like factoring receivables.
Nowadays the business environment is changing, cahsflow and capital are not easy to come by for the manufacturing and supply sectors. Business opportunities are becoming more competitive and margins are shrinking. Your clients are also needing more time to payback on their invoices.
As business owners we understand this scenario, and here at Neebo Capital we can help. We can boost your cash flow by providing advances of cash against the value of the businesses outstanding invoices.
Afterward you issue new invoices, we send you up to 90% of the exact value of the invoice within just twenty-four hours. And as soon as we receive payment from your customer, the remaining capital are paid to you, minus a small services fee.
For manufactures, suppliers and other businesses looking to sell off of credit this process of factoring gives you easy access to a continuous source of cash linked to your sales. So as your business grows we deliver the funds…fast! This cash on hand will allow you to take advantage of discounts your suppliers may offer for paying early, the capital will allow you to increase growth projects, marketing, ect.
In addition to the cash that we provide, neebo capital can also help you save valuable management time. This is time spent better focusing on expanding your business.
We provide a accounts receivable managing program where we follow up and collect outstanding invoice repayments from your customers on your behalf, to ensure that you have more time to focus on generating new business. We prepare and send out statements, telephone all of your customers, collect payments for you and maintain professional and detailed accounts of your transactions. We give you twenty four hours on-line accessibility to your records, including scanned images of the checks that we receive, conversations, ect.
We have defined factoring, and our management service we offer as an optional. If you are interested in our factoring service, or any other need for capital then please visit neebocapital.com and discover how you can get funds to grow your business.
You will find two special instances when a business owner commonly runs into cash flow problems. The first is when the business is just starting out, and the second is when the business starts growing rapidly. Unfortunately for the small business owners, banks are not looking to extend you credit in either situation. However, you can find factoring companies like Neebo Capital who will work with companies in both situations.
The heart of American business is the start-up, and everywhere you look today you see a unique start-up. This is what makes the economy grow, but start-ups experience an especially difficult time getting qualified for a bank loan.
First, a start-up doesn’t have any solid assets to secure loans. In reality, the company’s main asset is its accounts receivable, that sorry to say isn’t solid enough for a bank line because accounts receivable may disappear rapidly and with out warning. Banks look for assets which can be more tangible for example machinery, equipment, basically something actual physical that they can take hold of in the event the business defaults.
Alternatively factors provide cash depending on the stability of the company you invoice, your accounts receivable becomes your asset.
Failing Rates for New Businesses Are Too High
The second situation that could prevent a new company from obtaining a business loan is that banks will not contemplate loaning to businesses who are in business for fewer than 3 years due to the fact of the high failure rate for new businesses.
Keep in mind, factoring companys (Neebo Capital) have a different approach for lending capital to new businesses plus they aren’t turned off if your company is just starting-up. Capital lenders should stress to entrepreneurs that factors such as Neebo Capital the credit-worthiness of their customers and the quality of their invoices.
Furthermore, factoring companies such as Neebo Capital investigate the credit-worthiness of their clients customers. For a start-up is is important to be aware that the businesses they sell goods to have a good credit history as a way to gain easier access to capital from factoring companies.
Expanding Companies Do not Have Enough Credit History
Another time when entrepreneurs end up short of funds during fast growth periods. Most of the time, a fast growing company visits a standard bank in search of a much larger loan than what last year’s earnings could justify because they intend to use the loan to double or triple last year’s revenues.
Banks as we mentioned above will not lend a credit lines to new growing businesses.The bank is looking for tangible assets in order to lend the capital.
Factoring companies, alternatively, lend to start-ups and growing businesses.
In summary, companies who are just starting out or have begun to expand quickly can be approved for factoring even when banks have previously turned them down because the lending criteria differs. If you find your business in this situation pick up the phone and speak to a finance represenative at Neebo Capital for Free.
Funding a business in our current economic climate is unquestionably a challenge. Especially with banks and lending institutions restricting use of working capital, numerous companies have found it challenging to fund their everyday operating expenses. Businesses that would normally be considered as financially strong are having a hard time managing cash flow and securing credit that is so essential to their needs and growth goals.
Dont loose hope there is a financial strategy that works in 2012…
This financing strategy is enabling companies to make use of their existing assets to finance their company. This strategy dates back over five thousand years and it is one that enables companies to make use of liquidity built up within their own assets to finance their everyday cash flow needs. Factoring Invoices is this financing strategy businesses can consider when conventional lending institutions are no more an option.
However, the issue then becomes: just how does a company incorporate Factoring their invoices into their business strategy??
When you are looking at factoring invoices, consider it is a form of outsourcing your companys account receivable . Factoring Invoices works by allowing companies to sell their clients un-paid invoices to a Factoring company like Neebo Capital. In return, the factoring company (Neebo Capital) will extend credit based on the value of the invoices and the capability of your client to pay back those invoices.
You win because your Company secures the business creditline you need, without having the responsibility of waiting for clients to pay. This improves cash flow and allows your company to use capital on hand to finance business opportunities your team has.
Neebo Capital has low rates, and a motivated staff to work through any financing hurdles that may face your business.
There was a time, not too long ago, generating capital through venture capital funds was the most viable option to take for growing businesses. But, over the last few years more independent business owners have been taking advantage of a stronger financial stratagey in 2012: Microfinancing.
Despite the fact that the volumes change by lender, nearly all Microfinancingloans are under $100,000. Based on a newly released survey in Entrepreneur-Magazine, non bank loan providers such as the SanFrancisco Bay Area’s Opportunity Monetary fund provide financial loans that on average are around $8,000. And, even more shocking is the fact that the same lenders say that the companies they give loans to have a survival rate that is more than twice the nation’s average with a repayment rate about comparable to standard banks.
In part, Microfinancing as a general practice has been increasing as many banks continue to struggling to serve the requirements of small business owners.
Experts in microfinancing believe that businesses who Microfinance do better than business owners who have went the route of traditional banks or charge cards as a result of a wide variety of factors such as more thorough screening. We know Microfinancers such as neebo capital make the extra effort to better know business owners individually, a practice which is not normally employed by traditional banks.
In addition, Microfinancing is often made in a group setting where business owners support one another and are also financially responsible for each others loans.
Moreover, smaller scale financial loans help the entrepreneur or business owner stay on target with their business and not as likely to get caught up in over extending.
For those business owners interested in microfinancingt, visit neebocapital.com and speak with one of our specalists…. we’re business owners too.. we understand cash flow issues, and solutions.
There is a point to think about whenever your business is looking to factor invoices. You need to think about your profit margins.Whenever you have to pay interest on capital you raise from outside sources, like Neebo Capital factoring company, you have to first decide whether you can pay for the added expense.
It’s a good idea in any event to know precisely the amount of profit you gain from every single sale you are making. If it is a product or service driven business it ought to be fairly easy to do.
To do this: deduct the cost of the product in advance of sale from the sales price minus all the added costs; shipping and delivery, taxes, commission rates, business overhead etc. It is also a good idea to work with your accountants to acquire a fixed percentage of the sale that represents your “overhead costs” such as rent, utilities, office managing.
With a service oriented business it is somewhat different, but when you treat an per hour wage like a product you can get an idea of the expenses involved with your jobs. An additional benefit of dealing with this exercise is determining precisely what it is you do that is the most lucrative.
Clearly you want to focus on activities or goods that have by far the most profit potential for your business. When factoring your invoices with Neebo Capital, the discount rate for supplying cashflow to help you increase your business is going to be an added cost towards the net profit we are discussing here.
For example if your business is a high volume- low margin venture, factoring may not be suitable financing. So knowing what your profit margins are will permit you to make the right decision when thinking about using factoring invoices with Neebo Capital as a tool for growth.
As you know business owners need cash. However how do you get money for your small company when banks are unwilling to offer your company any type of funding?Our team would like to introduce you to accounts receivable factoring,a proven approach of obtaining investment capital swiftly. That way, you will make the payments required to keep your business afloat while reducing your risk amounts.Factoring invoices involves selling yourcompany accounts receivable to a company such as NeeBo Capital in order to obtain instant cash flow. The factoring company pays you an advance, which is a percentage of the total invoice (typically 80-95%). Your clients re-pay the factor, and you receive the remaining, minus a small factoring fee. This is a time tested method to keep your company cash flow growing.If many of your invoices are not paid on time, use NeeBo Capital as your factor. Your business depends on money to run, and factoring is a way to avoid waiting Thirty to 60 days for invoices to be paid. Factoring companys such as NeeBo Capital look at your customer’s credit history and offer you an advance and a fee.
Something to remember is the fact you do not have to factor all your invoices. You should not look to factor clients who usually pay rapidly and dependably. The loss of money from the factoring fee would be greater than the immediate benefits. By studying your invoices and choosing carefully which ones to factor you will increase your profits. You do not have to take the very first rate that a factor company offers.
In the event you do not feel like you are receiving a bargain, check if the factoring company can offer a reduce rate over time or even determine if you could get a greater advance at the start while the factor works with your customers. Most factor companies give lower fees to companies that use their services often. This benefits the factor in addition to your business by generating a partnership.So do not hesitate, start factoring your invoices with neebo capital.com today!
Generally it appears that the bigger the job the slower the payment. Think about a construction company that secured a contract to service an event for a very large business. The large company pays out on the 10th of every month, but the construction company pays its employees on the first.
The problem is, The construction company will need to pay their employees before they receive payment from the large company. This small business does not have the cash flow to buy all of the required supplies for the event and pay their employees. What options does the construction company have? Delay paying their employees? Implement for short-term credit with their bank? It’s important to pay employees on time and seeking credit from a traditional financial organization might take more time than wanted due to the demanding approval process.
One remedy to solve this construction company’s cash flow problem is to make use of account receivables factoring. This way of short-term financing would permit the construction company to invest in supplies, pay vendors and meet payroll.
It is crucial to know that when your business is experiencing difficulty meeting payroll you will find a number of remedies available to you. Staying aware of these remedies is essential, particularly when time turns into a factor. Applying for short-term credit from a bank normally takes time and the application process is tough. Take the time to learn about the options available to your business now so that if you end up in a situation where you can’t meet payroll, you’ll know what to do. Have a solution before the problem arises.