Working Capital is an area of business that requires solutions that revolve around timing. Timing is everything when it comes to the fundamental problem of managing and solving the cash flow conundrum!Let's examine some of those solutions using the example of a company trying to grow... which is what it's all about is it not?!
This is when what we could call your ' cash flow cycle ' needs to be both understood... and addressed. That's because the concept of timing has just kicked in ... your have produced your goods or provided your services and a specific amount of time has lapsed as you now generate revenues via invoicing... and wait for payment. It's no secret that that whole cycle varies between each company and industry. But whether your cycle is 30 days or 120 days the effects of that timing require certain activities to be financed.
The timing around this cycle, as well as the solutions that your bring to bear makes or breaks your overall liquidity and solvency - aka ' Survival'!Example of the need to finance that cycle are should be quite clear - your firm must buy supplies or inventory, at the same time taking on payables. Wages and salaries must be covered and then you're in the waiting game when it comes to delivery and acceptance of your goods and services, as well as final payment from your clients based on your credit terms. It's therefore no secret to the business owner to see that using our example it can easily take those 30-120 days for a dollar to in effect flow through your company.
Again... it's ' timing'!When you look at your balance sheet you see that the ratios of current assets and liabilities have also changed dramatically. You're unfortunately less liquid and this can only be solved by financing the shortages you have carried. Of course your customer could pre pay you in advance for orders, or pay you ' cash on delivery ' but that's not the perfect world we dream about.Financing business cash flow is all about monetizing and managing your assets.
Solutions in Canada include:
Receivable financing
Commercial bank lines of credit
Asset based lines of credit
Sale lease backs
Tax credit monetization
Purchase Order and Supply Chain financing
Utilize one or a combination of solutions to manage the ' patterns' of financing that your business needs. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist your with putting together a solution that addresses the timing of cash flows and capital in your business.
Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts
Monday, April 15, 2013
Tuesday, February 19, 2013
Women Business Loans: Best Funding Aid for Women Business Holders
There is nothing in this world which women cannot do. In today's world a woman is not only a perfect home maker but she can also is capable of running a business successfully. For all those women business holders who are in need of finance for expanding their business can anytime go for the perfect financial provision of women business loans. These loans are mainly framed for all those women who wish to fulfill their dream of running a successful business into reality.
With the help of these loans you can procure suitable financial support that allows you to fulfill your many important business related requirements in an effective way. You just have to show your business projects and record of your financial transactions of the lenders. In this way, Small Business Loans For Women help you to arrange finance for your business in an easy way without facing any trouble.
Women business loans can be entailed in both secured as well as unsecured ways. The secured women business loans are bound with placement of collateral against the loan. Under these loans you may able to procure huge finance for a longer time period. There is lower interest rate charge on these loans, because of the presence of collateral.
On the other side, the unsecured women business loans are not bound with any requirement to put any collateral against the loan. These loans help you to borrow suitable finance for the flexible time duration. There are comparatively higher rates of interest charged on these loans, because of the absence of any collateral against the loan.
Consider the highly popular and efficient online medium to apply for these loans in a hassle free and reliable way. By collecting and then comparing online lenders different loan quotes in a careful way you may able to pick the most convenient loan deal at modest rates without doing much struggle. Now you have the facility to choose right financial deal for you suiting your needs and budget easily while just sitting at the comfort of your home or office.
Use the funds accessed with Business Loans For Women to satisfy all your important business purposes like buying raw material, purchasing machinery and other essential equipments for business, pay out remuneration to the staff, buy a land for office and many more.
With the help of these loans you can procure suitable financial support that allows you to fulfill your many important business related requirements in an effective way. You just have to show your business projects and record of your financial transactions of the lenders. In this way, Small Business Loans For Women help you to arrange finance for your business in an easy way without facing any trouble.
Women business loans can be entailed in both secured as well as unsecured ways. The secured women business loans are bound with placement of collateral against the loan. Under these loans you may able to procure huge finance for a longer time period. There is lower interest rate charge on these loans, because of the presence of collateral.
On the other side, the unsecured women business loans are not bound with any requirement to put any collateral against the loan. These loans help you to borrow suitable finance for the flexible time duration. There are comparatively higher rates of interest charged on these loans, because of the absence of any collateral against the loan.
Consider the highly popular and efficient online medium to apply for these loans in a hassle free and reliable way. By collecting and then comparing online lenders different loan quotes in a careful way you may able to pick the most convenient loan deal at modest rates without doing much struggle. Now you have the facility to choose right financial deal for you suiting your needs and budget easily while just sitting at the comfort of your home or office.
Use the funds accessed with Business Loans For Women to satisfy all your important business purposes like buying raw material, purchasing machinery and other essential equipments for business, pay out remuneration to the staff, buy a land for office and many more.
Friday, February 15, 2013
Small Business Credit: Your D&b Number Explained
When growing your small business, you'll face many operational challenges: a bigger space, more employees, higher revenue, and greater cash flow. You will also need business credit. When you apply to a bank or other lender for your first company credit card or loan, you'll be asked for your company's DUNS number.
What's a DUNS number? In 1963, the Dun & Bradstreet Corporationtoday known as the D&B Corporationintroduced the Data Universal Numbering System, or D-U-N-S Number, as a way to identify businesses numerically for data-processing purposes. A DUNS number is a unique nine-digit sequence that is recognized as the universal standard for identifying and evaluating the financial and credit performance of over 100 million businesses worldwide.
What is the D&B Corporation? The company was founded in New York City in 1841 as the Mercantile Agency. It was the world's first business information provider. The Mercantile Agency evolved into the R.G. Dun & Company, which merged with the rival John M. Bradstreet Company in 1933. The current D&B Corporation was formed upon the separation of Moody's Corporation on September 30, 2000.
D&B is the world's number one provider of business credit information. Other providers include Experianwhose databases hold information about the credit status of about 35 million businesses around the worldEquifax, and TransUnion. As it grows, your company will almost certainly be represented in their databases.
Who uses DUNS numbers? The number is how lenders identify your business and access your business credit profile. The U.S. government and many major corporations require their suppliers and contractors to have a DUNS number.
How do you get a DUNS number? It's free, and you get one by completing the online DUNS application. It takes approximately one week before the information is reflected in the D&B website. The information you provide to get your DUNS number includes:
Organization name, address, and name of the CEO or owner.
Legal structure of the organization (corporation, partnership, proprietorship).
Year the organization was founded.
Type of business.
Total number of employees (full and part time).
What type of credit ratings does D&B provide? Once your company is on the D&B radar screen, it will be given a variety of ratings. They include:
D&B Rating. This is a scale that assigns your company to a category based on revenues, and provides a composite credit appraisal number of one (high) to four (limited, meaning not good).
D&B PAYDEX Score. This 100-point scale rates your company based on how quickly you pay your bills.
Financial Stress Score. This score predicts the possibility that your company will cease business without paying all creditors in full, reorganize, or obtain relief from creditors under state/federal law during the next twelve months.
U.S. Commercial Credit Score. This predicts the likelihood that your company will pay in a delinquent manner (over 90 days past terms) during the next twelve months. The highest score is 670, putting you in credit score class #1. The lowest score is 101, which is credit score class #5. D&B also provides the Incidence of Delinquent Payment, which shows the percentage of firms that paid in a delinquent manner (over 90 days past terms) over the past year.
Can you check your D&B credit ratings? Yes. You can manage your D&B profile online, and you should check your profile periodically. Your good credit is an asset to your business, and it's important to challenge and correct any erroneous information as quickly as possible. It's also important to make sure that your good credit activitypaying vendors and lenders on timeis included in your credit record.
2008 Thomas Hauck Communications Services
What's a DUNS number? In 1963, the Dun & Bradstreet Corporationtoday known as the D&B Corporationintroduced the Data Universal Numbering System, or D-U-N-S Number, as a way to identify businesses numerically for data-processing purposes. A DUNS number is a unique nine-digit sequence that is recognized as the universal standard for identifying and evaluating the financial and credit performance of over 100 million businesses worldwide.
What is the D&B Corporation? The company was founded in New York City in 1841 as the Mercantile Agency. It was the world's first business information provider. The Mercantile Agency evolved into the R.G. Dun & Company, which merged with the rival John M. Bradstreet Company in 1933. The current D&B Corporation was formed upon the separation of Moody's Corporation on September 30, 2000.
D&B is the world's number one provider of business credit information. Other providers include Experianwhose databases hold information about the credit status of about 35 million businesses around the worldEquifax, and TransUnion. As it grows, your company will almost certainly be represented in their databases.
Who uses DUNS numbers? The number is how lenders identify your business and access your business credit profile. The U.S. government and many major corporations require their suppliers and contractors to have a DUNS number.
How do you get a DUNS number? It's free, and you get one by completing the online DUNS application. It takes approximately one week before the information is reflected in the D&B website. The information you provide to get your DUNS number includes:
Organization name, address, and name of the CEO or owner.
Legal structure of the organization (corporation, partnership, proprietorship).
Year the organization was founded.
Type of business.
Total number of employees (full and part time).
What type of credit ratings does D&B provide? Once your company is on the D&B radar screen, it will be given a variety of ratings. They include:
D&B Rating. This is a scale that assigns your company to a category based on revenues, and provides a composite credit appraisal number of one (high) to four (limited, meaning not good).
D&B PAYDEX Score. This 100-point scale rates your company based on how quickly you pay your bills.
Financial Stress Score. This score predicts the possibility that your company will cease business without paying all creditors in full, reorganize, or obtain relief from creditors under state/federal law during the next twelve months.
U.S. Commercial Credit Score. This predicts the likelihood that your company will pay in a delinquent manner (over 90 days past terms) during the next twelve months. The highest score is 670, putting you in credit score class #1. The lowest score is 101, which is credit score class #5. D&B also provides the Incidence of Delinquent Payment, which shows the percentage of firms that paid in a delinquent manner (over 90 days past terms) over the past year.
Can you check your D&B credit ratings? Yes. You can manage your D&B profile online, and you should check your profile periodically. Your good credit is an asset to your business, and it's important to challenge and correct any erroneous information as quickly as possible. It's also important to make sure that your good credit activitypaying vendors and lenders on timeis included in your credit record.
2008 Thomas Hauck Communications Services
Saturday, February 9, 2013
"what's In A Name?" - Just Your Business Survival!
"What's so important about how I sign my name?"
I get asked that question all of the time from my business consulting clients.
I tell them that a better question to ask me is this:
"Who cares about how I sign my name?"
The answer is a simple one.
NOBODY.
FINE PRINT: Except... your customers and clients, your creditors, your bank, your mortgage company, your landlord, the I.R.S... oh yes... and anyone else that wants to SUE YOU (and don't forget ALL their lawyers!).
As in many areas of the law, the exception to the rule swallows up the rule!
What do I mean by this?
Well, let's start with some basics. For instance, if you've already formed a corporation or limited liability company (LLC), you may think that you're already protected from personal liability in the event of a lawsuit against your business.
In general, the rule is that a corporation or LLC, if formed correctly, and if all of the formalities required under the law of the State where the entity was formed are followed, does protect you from personal liability for business debts and lawsuits.
FINE PRINT: Except... when you choose to do business as an individual, and not as the corporation or LLC that you initially formed.
You see, whenever you sign documents like contracts, purchase orders, contractual agreements, leases, loans, mortgages, promissory notes, and most other legal documents involving your business, you need to make sure that you sign your name only in your business capacity.
You MUST avoid signing your name in your individual capacity.
And how do you do that? It's pretty simple. You see, the format that you use to sign your name is the controlling factor.
In many cases, you as the business owner, sign your name without knowing how to properly sign your name to business documents. In fact, most business owners of corporations and LLC's still sign legally binding agreements in their individual capacity...and not as the business.
SIGN AS AN AGENT OF YOUR BUSINESS
If you have formed a corporation or an LLC, you must remember to sign all contracts, agreements, invoices, etc... as an agent of the business.
For example... Many business owners haphazardly, or perhaps inadvertently, sign legal documents like the format shown in
EXAMPLE 1 below:
EXAMPLE 1
(signature)
------------------------
John Doe
"But what is the consequence of signing my name like in EXAMPLE 1 above to invoices, agreements, or documents?"
EXAMPLE 1 and the above signature format legally establishes that YOU have signed the contract, invoice, loan, or agreement as an individual.
And not as an agent on behalf of your business.
If you sign your name to agreements in the form depicted in EXAMPLE 1 above, YOU could very well be liable personally to meet all of the terms of the agreement.
And you likely don't want to do this!
Why Simply out, because you're therefore subjecting all of your business assets and personal assets as well to the risk of a lawsuit.
If you sign agreements as depicted in EXAMPLE 1 above, YOU will very likely be named personally, as well as your business, in any lawsuit filed against the business.
Remember then:
Signing your name like in EXAMPLE 1 above DOES NOT establish that you have signed the agreement as an agent on behalf of your business.
"Okay. So how should I sign my name to my invoices, contracts, leases, loans, or any other business agreements?
What simple step can I take to protect my business, and my personal assets as well?
SIGN DOCUMENTS ONLY AS AN AGENT OF YOUR BUSINESS
Make sure that you only sign legal documents, letters, memos, invoices, loans, leases, etc... as an agent of your business.
How must I sign my name to any legal document or agreement to show that I am signing only as an agent of my business?
Follow EXAMPLE 2 below:
EXAMPLE 2
ABC CORPORATION, INC.
(signature)
-----------------------------------
BY: John Doe
President (Company Title)
If you sign your name on the dotted line following the exact format depicted in Example 2 above, you legally establish that you are only signing as an agent on behalf of the business...and not in your individual capacity.
But you MUST follow the Example 2 precisely.
CAVEAT: Another very important point on this topic.
AVOID SIGNING documents that state "PERSONAL GUARANTY" on them.
A Personal Guaranty is usually a separate legal document attached to the main agreement. You generally see a Personal Guaranty in a loan, mortgage, or lease. However, sometimes a Personal Guaranty can be established just by the way you sign the legal document, invoice, lease, or agreement.
How?
Simple. If the agreement merely has a signature line that has your individual name on it without any reference to your business name, you are signing the document as a Personal Guaranty. You are therefore personally liable for that agreement if you sign the agreement with such a signature line.
But, what do I do if I am being required to sign a Personal Guaranty, like for a business loan or commercial lease for example?
If a Personal Guaranty is required, you or your lawyer should negotiate a limited period of time (the shortest possible) that the Personal Guaranty will bind you as an individual.
Remember, if you formed a corporation or LLC in the first place, you did it to avoid personal liability and to protect your personal assets. Anyone who does business with your company should, and usually does, know this. So, be careful. Other possibilities can be negotiated too. Just do your best not to sign in your personal capacity by signing a Personal Guaranty.
It's important to remember to only sign legal documents, invoices, and even letters as an agent of your business. (Follow the format found in EXAMPLE 2 above).
How else can I make sure that I am signing my name properly to all of my business documents?
Call your attorney to review all of your agreements, invoices, leases, and legal documents BEFORE you sign them. Your attorney will offer sound advice that protects YOU, your loved ones, and your business.
Now, let's review.
What's in a name?
Well... besides your business...
...it could be all of YOUR personal and family assets!
The best advicve especially in the midst of tough economic times or a Recession, is to have any document you sign first reviewed by your lawyer or business consultant.
Copyright (c) 2008. Miguel Mendez, Jr. All rights reserved.
I get asked that question all of the time from my business consulting clients.
I tell them that a better question to ask me is this:
"Who cares about how I sign my name?"
The answer is a simple one.
NOBODY.
FINE PRINT: Except... your customers and clients, your creditors, your bank, your mortgage company, your landlord, the I.R.S... oh yes... and anyone else that wants to SUE YOU (and don't forget ALL their lawyers!).
As in many areas of the law, the exception to the rule swallows up the rule!
What do I mean by this?
Well, let's start with some basics. For instance, if you've already formed a corporation or limited liability company (LLC), you may think that you're already protected from personal liability in the event of a lawsuit against your business.
In general, the rule is that a corporation or LLC, if formed correctly, and if all of the formalities required under the law of the State where the entity was formed are followed, does protect you from personal liability for business debts and lawsuits.
FINE PRINT: Except... when you choose to do business as an individual, and not as the corporation or LLC that you initially formed.
You see, whenever you sign documents like contracts, purchase orders, contractual agreements, leases, loans, mortgages, promissory notes, and most other legal documents involving your business, you need to make sure that you sign your name only in your business capacity.
You MUST avoid signing your name in your individual capacity.
And how do you do that? It's pretty simple. You see, the format that you use to sign your name is the controlling factor.
In many cases, you as the business owner, sign your name without knowing how to properly sign your name to business documents. In fact, most business owners of corporations and LLC's still sign legally binding agreements in their individual capacity...and not as the business.
SIGN AS AN AGENT OF YOUR BUSINESS
If you have formed a corporation or an LLC, you must remember to sign all contracts, agreements, invoices, etc... as an agent of the business.
For example... Many business owners haphazardly, or perhaps inadvertently, sign legal documents like the format shown in
EXAMPLE 1 below:
EXAMPLE 1
(signature)
------------------------
John Doe
"But what is the consequence of signing my name like in EXAMPLE 1 above to invoices, agreements, or documents?"
EXAMPLE 1 and the above signature format legally establishes that YOU have signed the contract, invoice, loan, or agreement as an individual.
And not as an agent on behalf of your business.
If you sign your name to agreements in the form depicted in EXAMPLE 1 above, YOU could very well be liable personally to meet all of the terms of the agreement.
And you likely don't want to do this!
Why Simply out, because you're therefore subjecting all of your business assets and personal assets as well to the risk of a lawsuit.
If you sign agreements as depicted in EXAMPLE 1 above, YOU will very likely be named personally, as well as your business, in any lawsuit filed against the business.
Remember then:
Signing your name like in EXAMPLE 1 above DOES NOT establish that you have signed the agreement as an agent on behalf of your business.
"Okay. So how should I sign my name to my invoices, contracts, leases, loans, or any other business agreements?
What simple step can I take to protect my business, and my personal assets as well?
SIGN DOCUMENTS ONLY AS AN AGENT OF YOUR BUSINESS
Make sure that you only sign legal documents, letters, memos, invoices, loans, leases, etc... as an agent of your business.
How must I sign my name to any legal document or agreement to show that I am signing only as an agent of my business?
Follow EXAMPLE 2 below:
EXAMPLE 2
ABC CORPORATION, INC.
(signature)
-----------------------------------
BY: John Doe
President (Company Title)
If you sign your name on the dotted line following the exact format depicted in Example 2 above, you legally establish that you are only signing as an agent on behalf of the business...and not in your individual capacity.
But you MUST follow the Example 2 precisely.
CAVEAT: Another very important point on this topic.
AVOID SIGNING documents that state "PERSONAL GUARANTY" on them.
A Personal Guaranty is usually a separate legal document attached to the main agreement. You generally see a Personal Guaranty in a loan, mortgage, or lease. However, sometimes a Personal Guaranty can be established just by the way you sign the legal document, invoice, lease, or agreement.
How?
Simple. If the agreement merely has a signature line that has your individual name on it without any reference to your business name, you are signing the document as a Personal Guaranty. You are therefore personally liable for that agreement if you sign the agreement with such a signature line.
But, what do I do if I am being required to sign a Personal Guaranty, like for a business loan or commercial lease for example?
If a Personal Guaranty is required, you or your lawyer should negotiate a limited period of time (the shortest possible) that the Personal Guaranty will bind you as an individual.
Remember, if you formed a corporation or LLC in the first place, you did it to avoid personal liability and to protect your personal assets. Anyone who does business with your company should, and usually does, know this. So, be careful. Other possibilities can be negotiated too. Just do your best not to sign in your personal capacity by signing a Personal Guaranty.
It's important to remember to only sign legal documents, invoices, and even letters as an agent of your business. (Follow the format found in EXAMPLE 2 above).
How else can I make sure that I am signing my name properly to all of my business documents?
Call your attorney to review all of your agreements, invoices, leases, and legal documents BEFORE you sign them. Your attorney will offer sound advice that protects YOU, your loved ones, and your business.
Now, let's review.
What's in a name?
Well... besides your business...
...it could be all of YOUR personal and family assets!
The best advicve especially in the midst of tough economic times or a Recession, is to have any document you sign first reviewed by your lawyer or business consultant.
Copyright (c) 2008. Miguel Mendez, Jr. All rights reserved.
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