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March 19, 2018

8 Benefits of Invoice Factoring

money invoiceWhen working in B2B or B2G sectors invoice factoring is essential. With this type of invoicing, you are provided a short-term capital in exchange for assigning invoices to a factor. The company receives about 80 – 85% of the advanced payment and later when invoice is paid,- the remaining 20%.

Unlike factoring, business invoice finance is easier to use in a way that you don’t need to assign invoices. However, the two terms are often used interchangeably. Here are 8 benefits of invoice factoring in case you are still considering whether to use it for your business or not.

1. Professional Management of Your Finances

When you entrust a professional company to handle your paperwork and collection of payments on your invoices, you save a lot of time. And saving time means saving money. The cost of accessing such services has fallen significantly lately. Though fees vary from one company to another and also depend on what kind of business you have, generally, factoring finance fees range from 0.5 to 3.0%.

Your contract with an invoice factoring company doesn’t have to be permanent or long-term. You are free to choose when to avail yourself of such services depending on when you need them most.

2. Flexible Financing Terms

Accessing finances from banks can be quite challenging for small or medium businesses because most financial institutions prefer to deal with established brands and businesses. The real benefit of using invoice factoring services is that you don’t need to have a great credit or spend years in business to qualify for them.

This happens because the company looks at how capable your customers are of paying the invoices, not how credible or long-term your business is. Moreover, a factor can provide more finances for your business if the need arises. If your business experiences increased sales you can easily apply for more money from a factor.

3. No Stress

You don’t have to wait on your customers to make their payments so you would make yours. Straight away, you are provided with cash on your invoices. You can deal with your taxes and pay all the needed bills on time.

You can proceed with your day to day business without worrying about when you will get paid by the clients. You can actually grow your business, implement new ideas and try new ways of doing business in your sphere while a professional factoring company takes care of your invoices.

4. Growing Your Business

The law of business is if you want it to grow, you need a steady cash flow. Concentrating on your business and acquiring new clients rather than on chasing your debtors will help you do that. As an owner of a business you can pay your suppliers straight away without waiting for some cash from the clients.

Thus, your manufacturing works smoothly and continually without delay. Another benefit is that you will also be able to extend credit lines to your loyal customers. In business, customer loyalty is one of the most decisive factors, so this will give you an advantage over competitors.

5. Easy and Fast Access to Cash

The factoring process is rather quick and not complicated. Usually, the funds are provided to you within 24-48 hours after your invoices have been approved. The initial setup can be 5 top 10 days. However, if you consider business cash flow loans from a bank, it will take you far longer than that.

An adequate cash flow is what keeps your business afloat and growing. All the daily business routines need to be taken into consideration: financing daily operations, paying rent along with utility bills, paying employees and suppliers. That is why it is essential to have cash on your hands at all times.

6. Credit Control

Late payments from clients can cripple your business. A debtor finance company will help you and your employees to concentrate on work instead of chasing the creditors. If you hire an invoice factoring company, it will assume the functions of credit controller and will free time for you to do your business.

An invoice factoring professional knows how to deal with customers who are late on their payments, unwilling to repay their debts or fail to pay them altogether. You won’t have to spend time and money on legal actions against your debtors.

7. Stronger Balance Sheet

Factoring doesn’t appear on your balance sheet or financial statement as an expense because it is not a loan. By using invoice factoring, you avoid taking on a new debt. You will receive the cash that you need to pay your vendors or suppliers on time, to make some major purchase for your business or just to improve your cash flow.

You will use you existing account receivables and this will not be a loan, and thus, not a debt.

8. Profit Predictability

When using invoice finance services you have an opportunity to predict your profits. Since profits can be quite unstable, it is difficult for business owners to make plans.

However, when you use factoring, you know that you will immediately receive most of your payments and thus you can predict your profits and make the needed investments for the future, like necessary repairs or even company expansion.

Invoice factoring can be a huge advantage for small businesses when the credibility of your customers is more important than yours. Invoice factoring services can be beneficial both for B2G and B2B spheres.

Here are some examples of industries where it can be used:

• Construction companies. Construction project need years to be completed but workers need to be paid regularly and on time. Besides, these projects involve a lot of expenditures.

• Trucking companies. There are a lot of expenses in this industry: from truck maintenance to the cost of fuel. You simply cannot afford to wait for 30 or 60 days to be paid for your services. This is where invoice factoring solves the problem.

• Recruitment, staffing and employment agencies. Invoice finance companies are probably the most needed in this sphere. Usually you have to pay your contracted workers before the payment from the clients is received.

• Clothing manufacturers and textile industries. It is obvious that before you receive payment for the products that you sell, like clothes or accessories, you need to invest in materials and of course pay your employees. Utilizing invoice factoring will help you do that without getting into debts.

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October 21, 2017

Are you paying more taxes than is necessary? Useful tips to lower your property taxes

tax for the propertyIt is the duty of every citizen to pay taxes to the government so as to aid with national and regional developmental objectives. It’s a crime not to pay your taxes and you could face a jail term if you knowingly or unknowingly fail to make your tax payments. If you own property, whether residential or commercial, you have to make regular payments to your local and federal government in the form of property taxes. The amount you pay as property tax depends on the size and value of your property with those with large property investments paying more taxes for their property. However, the tax man may make errors when determining the value of your home and you could end up paying more than you should in taxes. If you feel that you are paying more taxes than is necessary, there are a few things that you can do to solve the situation and here are some of them.

1. Visit your local tax office.

The first step in rectifying your tax situation is to visit your local tax office. Once at the tax office, inquire to find out the valuation of your property as per their recent analysis. If you have issues with their valuation, inquire to find out what one needs to do to file an appeal. If there are fees to be paid and forms to be filled, let them tell you how much you should pay and the where you can find the tax appeal forms. It is important to do everything according to the law as deviations reduce your chances of getting your tax appeal approved.

2. Get independent appraisal.

You should hire an independent appraiser to determine the value of your home for your tax appeal. Your property may have depreciated in value from the last time the taxman assessed it and an independent appraisal will help you determine by how much. Such professionals are not free and you will have to pay for their services. The upside is that you will be able to determine the true value of your home for your tax appeal.

3. Limit outdoor construction.

Outdoor structures increase the value of a home and as a result, you will have to pay more taxes for your property. Such structures include garages, carports and outdoor shades. If you want to lower your taxes, you should, therefore, strive to limit the outdoor structures in your home or at least wait until after the next property assessment by the taxman.

4. Check with your neighbors.

If the homes in your neighborhood are the same, then you and your neighbors should be paying similar taxes for your property. You should, therefore, check with your neighbors to find out how much taxes they are paying for their homes. If you find any disparities, raise that issue with your local tax agency.

Conclusion.

Paying taxes is very important but if you find yourself experiencing difficulties in paying them and your other bills, you should consider filing for Bankruptcy in Toronto.

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October 19, 2017

What You Should Know About Startup Accelerators

startup financeWith so many startup companies, the competition is fierce. It doesn’t matter what field you’re in. It’s likely that there are many other entrepreneurs in your niche. The trick is finding a way to make your company stand out above the rest. For some companies, that means working with a startup accelerator.

What is it?

A startup accelerator is an experience that supports the growth of an early company. To accomplish this growth, they provide education, mentoring, and financing. They give you a way to build your company from the ground up. The accelerator only lasts for a certain amount of time; it’s a rapid growth process. While the time period might be short, you can see a great deal of growth in the process. In only a few months, you can see the same growth that you would expect in years of hard work.

Start-up accelerators work for almost any type of industry you can imagine. For example, new insurance companies can benefit from Insurance accelerators. An insurance accelerator would specifically focus on growing a start-up insurance company. Meanwhile, a new clothing brand could find an appropriate accelerator to give them intense growth. There’s something for every company.

What makes them so special?

There are many different ways to cultivate a start-up. However, an accelerator is particularly effective. There are a few reasons for this. For one, there’s the fixed time frame. Instead of having an open-ended agreement with no true end date, you have a set time frame. It’s easier to analyze your results and predict your company’s future when you have strict time frame. You get results, and you get them before your time is up.

There’s also the fact that an accelerator uses mentorship to get results. Unlike crowd-funding campaigns and other types of investors, accelerators give you advice. While that advice helps your company in the present, it also helps your company in the future. You can learn invaluable business skills through mentorship. Additionally, you can gain insight into your industry and use that insight for years to come.

Finally, accelerators are cohort-based. For years, educators have seen the benefits of an education cohort-based environment. Those same benefits translate to business education. Being part of a larger group is a great way to grow your company.

Do accelerators really work?

While the concept of accelerators is sound, it’s important to ask yourself if they really work. It seems so, considering that many entrepreneurs would be happy to relive the experience. About 90% of entrepreneurs in a survey said that they would do the accelerator program again. Similarly, 95% of them said that the accelerator was worth equity stake that they lost. The time and equity lost in an accelerator program seems well-worth the gain.

An accelerator program might not be the right option for everyone. However, it could be the right option for your company. If you’re looking for a way to gain insight and knowledge while gaining momentum in your business, an accelerator is a great option. You could see huge business growth in only a short time.

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April 27, 2017

The Benefits of Hiring an Injury Lawyer for Your Small Business

injury lawyerDespite all the precautions you take, injuries can and will happen in the workplace. They may be rare, or uncomfortably frequent, but it’s always a good idea to ensure you have a knowledgeable professional attorney at your side for when these issues occur.

Filing for claims, dealing with insurance companies, and weeding through the paperwork can be a tasking matter, so having an attorney trained in this area is essential to avoid mistakes. Having their professional guidance can ensure your business no unneeded loss and help improve the quality if safety for your employees.

What are all the ways an injury attorney can help your business? I’ve listed a few of the common benefits hiring an attorney can bring your business. They may vary depending on the nature of your industry.

1. You’ll save money in the long run. Insurance agencies are excellent at they do, and they’ll weave the situation to fit their needs. Your business will be the one shelling out the big bucks for a claim, but an attorney can make sure you’re not giving more than is needed.

2. A better understanding of the weak safety areas. An injury lawyer can go over the problem with you and help you come up with a solution. One of the most common workplace accidents result in brain injuries, and your attorney will be able to help you navigate your options.

3. If the case goes to court, you’ll be well protected. Many small businesses falter and end up suffering from serious setbacks if an injury case goes to court because they don’t have the knowledge or resources to get through the situation.

4. An extensive knowledge of medical professionals and solutions. Unlock the doors to all the answers you’ll need about the law surround injuries, and get expert advice on where to send your employees suffering from a work-related accident. An attorney can help you learn and improve the general functionality of the workplace.

5. Less stress on you and more time for managing the work. Since all of the bills and paperwork around an accident will be handled by your attorney, you can return your focus to what you do best. Your job. No one enjoys being weighed down with confusing paperwork.

If this is the direction you want to take for your business, it’s important to do your research before an attorney. Ask family, friends, or others in your industry about which firms they turn to. Host an interview before making the final decision to get a feel for their personality. Remember, this person will become a part of your team, so make sure they fit.

Once you have met with the lawyer, make sure to ask them questions that will give you insight to how they plan on handling cases with you in the future. What is their strategy? What sort of professional history do they have?

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March 25, 2017

Health Insurance that makes your Grand parents happy

health insurance for grand parentsThe right thing to know – The world we live in is full of risks and insecurities. Families, individuals, businesses, assets and properties are exposed to numerous types and certain levels of high risks. These definitely include the risk of health, life, property, assets, etc. We know that it’s difficult to prevent these risks, especially sudden miss happenings so the financial world has taken the responsibility to protect business and individuals against losses by compensating them with finance. Therefore, insurance is required with the full pace that eliminates or reduces the loss caused by any risk.

When we talk about health insurance, the first thing that comes to our mind is ‘Grandparents’. Ever thought health is such an important thing, especially when it’s about growing age. Sometimes, we initially don’t take a risk of traveling with them to abroad; we suffer from a fear of bad health. But every time this tact can’t be followed rather we need to find some solution for this. The best and relevant to this is – Super Visa Health Insurance.

Now, what exactly is Super Visa?

Super visa is a long term multiple entry visa for both grandparents and parents of Canadian citizens or permanent residents. They can stay up to maximum 2 years in Canada for every visit. This is valid up to 10 years. However, a regular multiple entry visa is also valid up to 10 years; but you can stay for 6 months only for every visit.

Eligibility for Super Visa

Super Visa is for grandparents and parents for Canadian citizens or permanent residents. Apparently, the grandparent or parent must be admissible to Canada and meet all the terms and conditions. Read on:

  • The applicant need to show Canadian medical insurance that meets the basic requirements and also covers then for minimum 1 year.
  • The applicant needs a letter of finance support from their grandchild or child in Canada, who earns the minimum required income.
  • Private medical insurance proof is required for the minimum time slot of one year with a copy of Canadian insurance company that covers hospitalization, repatriation, and health care and provides a minimum coverage of the certain amount, also is valid for the entry in Canada.
  • A copy of employment insurance pay stubs for grandchild or child.

Importance Generated

Although, the procedure can be little different if a grandparent or a parent is from another country, therefore, a visa is strictly required to enter Canada as a visitor. Health Insurance plays a key role in Super Visa, so make sure this is not ignored.

Validity for Super Visa

The maximum validity for Super Visa is 10 years, or it can be an addition to one month prior if the passport expires (whichever is earlier). Within this time Super Visa holders can stay up to two years.

On That Note

We truly know, how important is health insurance in today’s life, especially for our parents and grandparents. Therefore, in every limit, we need to make sure that this insurance is taken care.

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