Factoring and accounts receivable financing.

A/R’s and P/O’s

Accounts receivable financing, sometimes known as factoring, enables a company to better meet the daily operational demands of running a business. This financing program advances the business money on their outstanding invoices, allowing the company to have consistent cash flow. Inadequate cash flow is the number one reason why businesses fail.

When to Use Accounts Receivable Financing / Factoring? Examples of when to use AR Factoring financing are described below:

  1.     Companies in a high growth cycle needing consistent operating capital (cash flow) to fuel their growth
  2.     Companies in survival mode needing consistent cash flow in order to fulfill their liabilities
  3.     Staffing agencies with high weekly payrolls requiring immediate cash on hand
  4.     Manufacturers and Business to Business service- oriented companies with high material and supply costs
  5.     Companies looking for alternative debt-free financing solutions to build their credit and enhance their business
  6.     Companies already leveraged by existing debt

The Midas Guide to Credit and Business Funding

Well, after several years of research I’ve finally published my much anticipated E-book.  The Midas Guide to Credit and Business Funding is now available by going to:  www.bizfunding101.com.  And yes I’m pretty excited.  The hard launch was Monday and we’ve sold five books so far.

The book is broken into three sections.  The first section talks about both business and personal credit and dispels all myths about each.  Loaded with nothing but the facts and what you need to have to enjoy perfect personal and business credit.  The second section reveals all loan products available to a small biz owner.  In laymans terms, I describe each and every product so you can make an educated decision as to how and where you fit.  The third section is about something no one has ever written.  You all know I’m a loan broker.  I charge fees! Those fees can sometimes be hard to swallow.  With this guide I am providing the exact model I use to get people funded every day.  I tell you everything you need in your funding package and I give you two hours of personal counseling on picking a product and getting funded.  This sounds mundane but what if you could get the money you need and not have to pay thousands in broker fees?

Peer-To-Peer Lending

Recently I had a good friend call me for some financial advice about credit card debt.  I’m not going to try and claim that I’m a certified financial planner, but I’m not afraid to offer my financial opinion.  My friend has run into a situation that has become very common place among many Americans, mounting credit card bills.  He was specifically wondering if there was an easy way to lower his interest rate and begin paying down the balance after his bank didn’t have any solutions.  I suggested taking a friendly approach to financing and brought up peer-to-peer lending.

Alternative Lending Sources

What is the proper measure for creditworthiness in this day and age?

Apparently, it is no longer simply the credit report or the verdict of one’s local banking institution. There are so many individuals who fall short of traditional standards of creditworthiness that the marketplace has naturally made room for non-traditional lenders. Besides the controversial subprime mortgage lending industry that most people are by now familiar with, there is a increasung trend in person-to-person lending organizations. Websites like Prosper.com facilitate lending transactions between individuals and other single or small group benefactors. Using such a service empowers people who may not otherwise receive loan funding to finance their dreams and goals.

Free Link!

Today I’m simply going to give you something for free that should have an immediate impact on your business well being.  Go to:   http://thesmallbizcollege.com/freeaccess.php.  This is a website I created to assist small biz owners in their endeavors.  I have over 600 people that have paid membership dues for access so “consider yourself lucky”.

You are welcome to give access to this site to any and all of your friends and business associates.  This free link will only work until August 10, 2009.

The FACTS About Your Credit

Important information about your credit

As an adult almost everything you do revolves around your credit.  Your ability to purchase a home, a car, a big screen TV.  It also affects your insurance rates, renting your apartment and even getting a job.  Heck, besides marrying my wife for her sheer inner and outer beauty, the next biggest thing that attracted me to her was her credit.  YES, that’s right!!!  It was that important she handled her finances how I did and was one of the first questions I asked her.  We laugh about it now but it caused a definite stir in the beginning.  So lets talk about credit.

First there are 5 things that are factored into the algorithm used to calculate credit.  They are:

* Payment history
* Amounts owed
* Length of credit history
* New credit
* Type of credit used

Is the Economy Right to Start a Small Business?

Timing Timing Timing

If you are thinking about starting a small business now is as good of time as any even with the current state of the {financial crisis|economy}. Now why is this you might be asking yourself? If money is so bad for everyone what is going to make the want to come out and buy from you? Read on to see that the urge to start your own small business is a very savvy thing to do even in hard economical times.

Any successful small business venture is going to need a very quality and well written business plan. If you do not have a solid Small Business Plan in place they you are setting yourself and your business up for failure. When you are starting your own business you not only want to find something that you love you want to be able to fill a niche product that is going to help make your business stand out from the crowd.

How HELOCS’s can affect your credit

Make HELOCs work for you

Today we’re going to discuss how a HELOC (Home Equity Line of Credit) can negatively impact your credit.  Odds are some of you out there have tapped into the equity in your home to finance your business endeavors.  Quick and easy right?  Yes, but it may have devastating effects on your personal credit.  You’ve done everything you’re supposed to, paid on time, and have no clue why your score went south.  Here’s why:

30% of your personal credit score is made up of how much of your credit has been utilized.  Of particular importance to a lender is the percentage of your revolving you have used.  When that number exceeds 30% your scores can suffer.  When that number exceeds 50% your scores can plummet.  Sometimes by as much as 50 points for a single occurrence.

Standing on shoulders — how great is your business?

Learning experiences

My best business lessons come from my clients. Central among these lessons is that good businesses make money, but great businesses build communities that make good business possible. “Great businesses” doesn’t mean only big public corporations. Private businesses are not only the foundation of our economy – they are essential to civic infrastructure. No other group of community leaders brings to bear the skills and entrepreneurial drive of the man or woman who owns a business.

A company that invests in its community not just money, but the talent and passion of its people, especially its owners, positions itself to move from being a success to being significant. “Being a good corporate citizen is good for business. Companies that give by donating money, products and services or volunteer time gain recognition by supporting their communities. Corporate giving can increase your company’s visibility, reputation for goodwill and employees’ sense of purpose.” — The Denver Office of Strategic Partnership’s Business Good Citizenship Kit.

The Missing Inc.

Properly naming your company

A friend referred a new business client to me recently. I’ll call the corporation “Guys and Dolls.” Only problem is its legal name should be “Guys and Dolls, Inc.” or “Guys and Dolls Company” or something which indicates it is a corporation. Similarly, if Guys and Dolls was a limited liability company, it would need to include LLC or such in its legal name.

The owner of Guys and Dolls formed the corporation through the Colorado Secretary of State, which warns that corporate designators are required under state law but still allows a user to file without one. Guys and Dolls compounded that incorporation mistake by using the Inc-less name to refer to itself in all of its business dealings.