Archive for: ‘February 2015’

Factoring and Accounts Receivable Financing Expert Tips

February 25, 2015 Posted by admin

Shaw Capital Management and Financing sharing information, tips and advice on factoring and accounts receivable financing and factoring to avoid scams and other fraudulent transactions. Information focus on the importance of choosing the right firm and understanding the intricacies of this financing alternative and what pitfalls to avoid.
There probably isn’t a day when Canadian business owners and financial managers don’t hear about factoring and accounts receivable financing as a method of financing their business in Canada. Despite its growing popularity and, we can say, relative importance in the Canadian business financing marketplace this financing mechanism is still somewhat understood.
What information do business owners need to know in order to assess if factoring, also known as invoice discounting, is a viable transaction? Also, are there mistakes and pitfalls to be avoided when considering this financing strategy?
Let’s examine the answers to some of those questions. You can be forgiven for trying to figure out why factoring has increased in prominence from a time when no one had almost ever heard of it! The answer to that popularity is more simply and obvious than you might think, and its simply that Canadian chartered banks are finding it increasingly more difficult to fund accounts receivable (and inventory of course) to the extent that their customers need this financing.
When you have a situation where the actual need for financing is acute, and the benefits and flexibility seems significant it is not hard to see the rise in popularity of such a financing mechanism.
First of all, 99% of the time, factoring provides your firm with a greater level of borrowing based on your accounts receivable levels. Quite of 90-100% of you’re A/R under 90 days can be financed.
So is it all good news? Not necessarily, as we are always meeting with clients that have chosen the wrong type of funding or factoring, and, even worse, find them locked into contracts they cannot get out of. That is uncomfortable for any size firm as you can imagine.
As with any newer type of financing the playing field is complex. You can be forgiven for not knowing how many factor firms are out there, how they run, what their own limitations are, and, even to a certain extent, do they in fact themselves have the funding to survive, let along finance your firm. For that reason we cannot over emphasize the need to work with a credible, experienced and trusted professional in this area.
Lets talk about some of the nuances, we can call them potential ‘pitfalls ‘also, of picking the wrong factoring partner. For a starter if you choose a firm who itself is not well capitalized, as we said, you might find that the financing commitments made to you cannot be honored. Canadian business has never had to think that the Canadian chartered banks could be ‘out of money ‘but the Canadian landscape is somewhat littered with small and medium sized factor firms that do not have the financial wherewithal to support their funding commitments in all places. That just re – enforces our idea that a trusted industry expert will guide you to the best partner for your firm.
Other issues, again, we can call them pitfalls, to look for include:
– being locked into a contract
– having the total factoring cost, or pricing, not reflected properly in your term sheet
– advance rates which don’t make sense relative to the price you are paying for discounting invoices
– Excessive notification and intrusion with your customers, which is very prevalent in the U.S. model of factoring (Many Canadian factor firms are branches of U.S. firms)
So let’s recap. It’s simply that factoring is growing in popularity. It works because it is providing funding where banks often cannot. If you don’t understand who you are dealing with and the various nuances of this type of financing it becomes a burden, not a solution. Investigate this great financing mechanism, but ensure you know what you are getting into. Talking to an expert always helps – that’s just common sense
Stan Prokop is founder of 7 Park Avenue Financial. Originating financing for Canadian companies, specializing in working capital, cash flow, and asset based financing, the 6 year old firm has completed in excess of 45 Million $ of financing for companies of all size.

Have The Electronic Equipment Insurance For Your Industry Operation

February 24, 2015 Posted by admin

The replacement for consistency in protection is not there to ensure the least disaster in equipment. Still misfortune occurs, costly equipments and the instrumentation and taking the extensive amount invested for causes that are changed. Different conditions like sudden, unforeseen and accidental can output in equipment breakdown to equipment insurance in India is offered to solve these breakdowns and rest organizations from much income loss. Generally, the below conditions comes under the equipment insurance strategy in India. Any type of equipment can be covered against the theft, flood, problems, damage and fire.

A short circuit, electrical atmospheric pressure, interruption, thrashing of action of protective devices, structural mistakes, material faults are the problem happened in the equipment. If you have the workers or do not have the workers compensation insurance is an essential coverage to have. An employee’s compensation insurance costs for the workers medical payment and gone wages from the work linked injury. By taking a couple of minutes to research through online equipment insurance east west providers, you will be capable to protect the monetary safeguard, so that you may go back to deciding your life. .

Most of the states looked-for industry with more workers has the compensation coverage. It is likewise significant to add yourself as the worker in this case, so that you are wrapped like other workers. Insurance providers have modified the insurance policies for better. The equipment insurance east west offers the protection against unforeseen and sudden problems resulting in damage to the equipment while working. The equipment that can be wrapped in equipment insurance are telecommunication, audio visual, scanner machines, electro medical devices, testing and research of the machine, computers and the office devices. Know about the equipment insurance to get the best insurance policy your equipments that are utilized in your industrial operation.

A Basic Understanding of Investing and the Types of Mutual Funds

February 21, 2015 Posted by admin

Finance, this is a world that you feared when you were in school and college as it meant, tables columns and figures that would go above your head. But as you grow older, you realise the importance of it and why you should make it a point, to not only keep track of your funds but to also plan, to make sure that they grow and multiply in the long run.

You realize that it is not only important to save a part of your income, but that it is equally important to invest it wisely. In this manner you can reach your financial goal in good time and also have a regular income plan, for your golden years. Now for a first timer this can be a little nerve wrecking, as this is your hard earned money and with so many options available, how do choose the right one?

There are a number of articles and blogs which will tell you about the basic rules of investing:

Invest keeping the financial goal in mind
Compare options before making a purchase
diversify and build a portfolio
Start investing early
Alter your portfolio according to market fluctuations

But let us take a look at the types of investments you can choose from, with the focus on mutual funds. Even under this head, the options are plenty:

Equity Funds: Basically speaking, this is a fund that is invested in the stocks of companies. It can be either active or passive.
Debt Funds: These are fixed income investments, that can produce both long-term and short-term gain
Diversified Funds: These funds have a number of securities in order to reduce the risk involved.
Money Market Funds: These are short-term securities that are liquid in nature and aim and maintaining a decent net asset value (NAV)
Sector Specific Funds: as the name suggests the money in these funds are invested in one particular industry.

Apart from this basic classification, mutual funds can be further divided according to the tax charged. There are; tax saving schemes like (ELSS) Equity Linked Savings Schemes. These work like pension plans that spread over a long period of time. Thus, tax benefits and rebates are offered on the funds in these schemes.

You must also consider open and close ended schemes. Open ended schemes can be redeemed at any point of time. While close ended schemes are close ended schemes can be purchased only from a security market.

In this manner, it is very important to study the market and understand which investment will help you achieve your financial goal in quick time. Accordingly, you can go ahead and make a purchase and enjoy the long-term benefits of the same.

Awareness of Business Finance

February 20, 2015 Posted by admin

Adam Tyler, the CEO of the National Association of Commercial Finance Brokers (NACFB), went to 10 Downing Street on 4 September 2013 to discuss financing and funding for SME’s and the need for better understanding of options that are available.
Mr Tyler explained that there is lack of knowledge and information regarding funding options that is available. Which he feels is one of the main factors holding back SME growth and the economy in general. There are a lot of financial requirements for all types of businesses but just don’t know where to go to get help. We need to enable and help businesses to gain access to commercial finance via an approved independent UK broker.
Mr Tyler was asked to attend a meeting for financial innovators to discuss how businesses in the UK would benefit from having more knowledge regarding commercial finance and how important it is for the industry to keep the UK at the forefront of financial innovation. He was also joined by other senior regulators including FCA chairman John Griffith-Jones senior representatives from HM Treasury and the Department for Business, Innovation & Skills.
Gaining access to finance for SMEs is a major factor for the economic recovery. This is an urgent problem and is getting out of control. There are too many businesses that are going to administration or being liquidated because of lack of knowledge of finance that is available to them. Business owners and finance directors don’t really understand the finance market and the alternative forms of finance to include invoice factoring, invoice discounting, asset finance or re-financing any machinery or equipment and vehicle leasing, these type of finance helps unlock cash into the business and gives the business a cash injection. Businesses can really benefit from these kind of finance but there needs to be more promoting regarding alternative finance for business owners thus making sure the economy strives and get it back to booming again. Commercial finance also helps business owners to expand their business further. At the meeting Mr Tyler expressed the importance of improving this understanding and to make sure that all businesses knows that there are other options that are available. NACFB have been creating The Small Business Finance Directory. It’s the only resource of its kind, so we need to be encouraging small businesses to use it.�
On 5 September Mr Tyler also met Patrick Magee of the Business Bank, a Government institution aimed at easing the credit crunch on SMEs by way of supporting and developing of diverse debt and equity finance markets for businesses, promoting competition and increased supply through new commercial finance providers and brokers.

Bad Credit Unsecured Loan Alive Your Dying Finance Feel

February 20, 2015 Posted by admin

Options remain scarce for the people facing credit deformity. Their problems aggravate when they do not have any worth asset as for the loan security. Though such a class of people is a serious risk for the lenders yet finance options are viable. A borrower of bad credit class can go for Bad Credit Unsecured Loan [http://www.loansfiesta.co.uk/unsecured_loans.html]. This money borrowing concept has resurrected your dying finance feeling amongst the borrowers with poor credit problems.

Basically unsecured loan is a personal loan, but due to bad credit problem it get a bit expensive than other loan. These loans come in handy for those borrowers with questionable credit who are in need of fast cash. If you are applying for a loan from a company where you are a new borrower then company will rely on your credit check to ascertain whether you are an acceptable risk.

You are offered to select the rates which one is best-suited to your financial status. These rates can be fixed and variable. The advantage of a fixed rate loan is that your interest rate is fixed and the payments constant and they do not rise if the market rate rises. Only the disadvantage is that you will not benefit from a decline of the market rate. Whereas, the advantage of a variable rate of interest is that you save money when the market rate decreases. Its disadvantage is that you are not protected from an increase in the market rate and the interest you pay boosts the market rate.

In all, bad credit unsecured loan is non-collateral-backed money provision. There are several lenders out there in the money market. You can apply for the loan online and offline as per your convenience. Though processing online is preferred these days as it saves a good amount of your time and energy.

The best advanced innovative performance marketing company

February 15, 2015 Posted by admin

There are many niche marketing agencies available in the world but choosing the best among them will be efficient for delivering the International Performance Marketing. Choosing the right agency for marketing will be useful for increasing the profit as the fast type of improvement in the business will be made through marketing. MediaGroup World Wide (MGWW) is one of the top class company for providing the excellent Performance Marketing techniques. The industry and staff expertise will give the best type of focus on the bottom line of the given concepts. Choosing the MGWW agencies will be efficient for increasing the full services as well as helping the clients.

The Creative, Strategy, Media Buying, CRM, Marketing Automation and many more techniques involved in the business marketing will be the main aim of the marketing person. Since there are many teams involved in the process of planning the strategies, it will be quite efficient for increasing the business profits in the best manner. They will provide multi-day response times for the improved type of specialized external marketing so that it will be useful for getting the fast and cheap advanced marketing techniques for the business. This performance marketing technique can be viewed in this website mediagroupww.com as they know all the strategies involved in handling the clients.

Media Group World Wide offers the full services for the clients with the advanced in-house marketing department, they will provide the extraordinary services. The Marketing Automation, SEO, Pay Per Click Marketing, CRM and many more services are provided so they work based on the maximum response time. Appropriate type of customer service will be provided for the clients so that to will be useful for increasing the marketing strategies. The innovative team can also be contacted using the website mediagroupww.com.

Fixed Maturity Plan – Mutual Fund Investment!

February 15, 2015 Posted by admin

FMPs are the equivalent of a fixed deposit schemes, with a little difference that The FMP’s returns are only indicated and not �guaranteed’, Since the fund house knows the interest rate that it will earn on its investments, it can provide �indicative returns’ to investors. FMPs are debt schemes, where the corpus is invested in fixed-income securities. The tenure can be of different maturities, from one month to three years. They are closed-ended in nature, which means that once the NFO (new fund offer) closes, the scheme cannot accept any further investment. These FMP NFOs are generally open for 2 to 3 days and are marketed to corporate and well-heeled, high net-worth individuals. Nevertheless, the minimum investment is usually Rs 5,000 and so a retail investor can comfortably invest too. The actual return can vary slightly, if at all, from the indicated return. Against that, a bank fixed deposit exactly prints the amount which is due to you on maturity on the FD receipt. However, FMPs do earn better returns than fixed deposits of similar tenure.

Key Benefits of FMPs

There are several benefits of the FMPs which make them a lucrative option available in the market. The most important advantage of the FMPs is that for tax purpose they are treated at par with fixed deposits. Since they are basically debt funds they also enjoy all the benefits of the debt funds in terms of short terms capital gains as well as long term capital gains. For the short term capital gains, the income from FMDs as in the case of any debt oriented fund is added to the annual income and the taxation is done as income tax. In case of the long term capital gains, the income from FMPs, as in the case of all debt oriented funds, is taxed as the higher among the two – 10% without indexation and 20 per cent with indexation.

Comparing the FMPs with Bank Fixed Deposits

In order to understand the basic advantages of investing in fixed maturity plans as against conventional bank fixed deposits we will have to compare the returns from both these instruments both pre tax as well as post tax. Assuming an initial investment of Rs. 10000/-, let us study the variations in returns in different options.

In this table the various tax implications in different schemes of FMPs as compared to the tax implication in a bank fixed deposit is illustrated on an initial investment of Rs. 10000/- with a interest rate of 10%. Important derivations from the above table of comparison are as follows:

� The net returns from FMPs far exceed that by any bank fixed deposit.

� The dividend option is better when buying FMPs for less than a year.

� The growth option is better when buying FMP for more than a year.

� Maximum double indexation benefit can be achieved by buying a FMP towards the very end of a financial year which is eligible for redemption at the commencement of a future financial year.

Personal Unsecured Loans Risk Free Finances For Both Tenants And Homeowners

February 15, 2015 Posted by admin

People now are more inclined towards meeting their needs and wishes. The trend is such that they can go to any extent to meet their demands. Availing loans is just another way through which they get access to finance, which in turn enables them to realize their dreams. Among the various loan options available, Personal Unsecured Loans [http://www.loansfiesta.co.uk/] are most sought after. These loans are a viable option for those borrowers who are not in a position to pledge collateral or do not have any.

As the name suggests, these loans are designed especially to provide monetary assistance, so that the borrowers can fulfill their needs. In fact the amount approved under these loans can be used to serve a number of purposes such as purchasing a car, consolidating debts, home renovation, meeting wedding expenses, financing education and so on.

As these loans are bereft of any collateral pledging, it is very much popular among borrowers like tenants and non homeowners. Homeowners too who do not want to attach any collateral can avail these loans too. Moreover in the absence of collateral, the processing of the loans is fast as the task of evaluating equity value present in the collateral does not take place. If the in case, the applicants are looking for quick cash approval, then it is preferable to opt for these loans.

The amount advanced under these loans is a lot based on the borrower’s income and repaying capability. Usually a limited amount in the range of £1000-£25000 is made available, which then has to be repaid over a period of 6months – 10 years. However these loans have a slight disadvantage and that is its high interest rate. In the absence of collateral, lenders to minimize the risk factor approve the loans with a high rate of interest. However a proper research of the loan market will help the applicant to derive the loans with competitive rates.

Personal unsecured loans can be sourced from various banks and financial institutions. However to save considerable time and effort, it is better to apply online. Applying online is considered to be cheapest and the easiest way to derive the loans. Further on comparing the rate quotes, it gets easy for the borrower to spot a low rate deal.

A Guide to Mid Cap Fund

February 13, 2015 Posted by admin

Mid cap funds, as the name suggests, are those types of funds which invest the capital in small or medium sized companies. As there is a lack of standard definition pertaining to the size of a company, the decision is entirely discretionary. Each of the mutual funds has its own and unique classification for medium and small companies. As a general rule, a company with a market cap of Rs 500 crores is considered to be small. Companies which have a market cap of above Rs 500 crores but less than Rs 1000 crores is classified as medium sized companies.

Big investors such as FIIs and mutual funds are increasingly investing in such funds. The reason attributed to this phenomenon is that the prices of large funds have increased significantly. As small sized companies are under the gambit of research, they present a good investment opportunity in companies hitherto unidentified. Small funds invest in such companies as they offer a greater growth potential. Most investors and fund managers perceive such companies to be wealth creators and in a position to climb the size hierarchy. They are of the view that such companies are flexible, nimble and are able to adapt to changes quickly. One of the toughest tasks a fund manager has is to identify such high growth potential companies.

All may seem hunky dory to readers regarding the future prospect of a small and mid-cap fund , but a word of caution is imperative. The small and mid cap funds are highly volatile and routinely follow the domino theory during times of financial upheavals. Investors who want to have a little diversity in their investment portfolio, These fund are plausible options.

These kinds of investments have time and again evoked a sense of caution in the cognizance of the investors. These are not suitable for people who cannot metabolize risk efficiently as they tend to be very volatile in nature. Due to the fact that, such funds invest in stocks of companies with less than Rs 7500 crores market capitalization. Regardless of this fact, most mid-cap funds have fared well at the market place with regards to their benchmark.
From the year 2006 onwards, the number of funds with focus on these types of companies has increased from 27 to 45. Over the last 3 years, 6 out of 10 midcap funds have performed better than their respective indices such as the BSE Midcap and S&P CNX-500. And that’s not all, the return on investment of mid-cap funds have either outperformed or matched large-cap fund and CNX Nifty over one-two-three year periods.

With regards to the category of funds, Mid-cap funds have lagged behind both large-cap funds and Nifty for the time-frame ranging 4-5 years. But this isn’t reason enough to shy away from all this as some of them have given great results.

Therefore, the trick is to time your investment correctly and selecting the right fund. And if these two things fall in line, there is nothing stopping such funds from getting investors great returns.

Restaurant Funding – Creative Financing Might Be Juste What You Ned

February 13, 2015 Posted by admin

So you’ve decided to open up a restaurant. You’ve got the location, the menu, the ambiance and layout of the restaurant all figured out, but now you need restaurant funding. Getting funding to open a restaurant is the toughest because there is such a high failure rate among in the restaurant industry.

You might have some cash of your own saved up that you are ready to use to get your restaurant open, but you’ll likely need a fair bit more. Whether you need money to buy assets like kitchen equipment, the food you need to stock the kitchen, menu printing, or salaries once the restaurant is open. The trouble is there’s few businesses that can get off the ground without some type of financing.

You have options when it comes to your restaurant funding. You can try traditional banks and see how that goes for you. However, if that avenue doesn’t work out, don’t be too surprised. You can look for investors that could be interested in investing in your restaurant. You would need to structure it as a limited company. Or you could search online for restaurant funding options.

These days, thanks to the internet we are no longer limited to traditional forms of lending. And there are some lenders that offer more creative forms of financing such as merchant cash advances. This unique system provides you with the cash you need. You install their credit card processing system, and they take a percentage of all your credit card sales. The amount is agreed upon in the contract. No qualifying, no strings attached, no fixed payment schedules. When things are good you pay more, when sales are down you pay less.

This creative form of restaurant funding is growing in popularity and you can see why. This is just one form of creative restaurant funding. There are others. Your internet search won’t disappoint you but you it might take awhile to find the right restaurant funding for you.

Save yourself time, know how much funding you need to get your restaurant off the ground. Have a list of your assets, and what type of payment scheme would work for you. That way you’ll be much better prepared to fill out the online applications.

Restaurant funding can be more difficult than other types of business funding, but it’s available, so don’t give up – find the right restaurant funding for your new exciting venue online. Creative financing might be just what you need.