Saturday, March 30, 2013

Consider the accounts receivable business worried about the cost? Solve the problem!


This type of many Canadian companies and representatives of financial managers accept substantial benefits from the business accounts receivable to consider, while they continue to struggle with the financial cost. Let's look at a way to minimize the financial and effective partner of choice and the cost of the appropriate method of cost reporting.

Basically basic primer invoice financing or sale of bonds, short-term your company immediately generate cash flow and capital 'AR' is. A good idea until right now? ) But is not our favorite, or recommended strategies we are honest and the type of funds (Your credit decisions handed to another company, in some cases, remove all credit cards and collection costs. Obviously being in total control of the loans and their invoice collection that you can reap the benefits of this type of thing is the optimal solution.

When I go back to all the cash flow business owners sales into cash quickly considered do not realize the financial benefits of accounts receivable, and he continued to be a problem. We (hourly every day!) Otherwise struggle on the basis of cash and equity issues, and seems logical to them all, or business debt financing account from the bank's own can secure adequate funding that many entrepreneurs advice Given to meet really is probably the best solution.

So, again, we understand that the main topic of the type of cost jaejeonguiyi! That stops you from growing your business, the lack of business financing in Canada, the following new financial costs should realize that perhaps it should not be the biggest worry that.

The actual type of the examples. Look at your balance sheet. You probably limits or the considerable investment has the least amount of cash on hand and receivables.

Let us use this example, sales of $ 1,000,000 to the Company. Any decent number of even larger gross margin, or 'cost of sales' homes. Control your overhead, and fixed costs, and you, the company is profitable. Since the bank did not have any access to traditional financial or net income is positive, but it does not grow.

Growth, or even two, if you solve the cash flow problem consider the following business bonds business by providing debt financing costs alone account associated with additional growth accounting.

Again, back to our example, your sales 1,000,000 are not your financial Factoring or Invoice Discounting for sale $ 20,000 can be increased. Financial cost will probably be in the range of $ 40,000 50,000 - however, overhead, or fixed costs, such as stayed. Your profit minus factor cost is probably easier to be doubled.

Achieve more sales and profit above the capital that can be done, for our example, focuses on the concept of opportunity cost.

Vary goryeohaeyi of Canada bonds the actual financial costs of business accounts - they are generally between one to 3% a month. Tend to be 2% standard. The relative quality of the bond, as well as the facilities, the better price you entered as an array of bond financing can be achieved, depending on the size of the processing of the type of company you. And confidential accounts receivable financing, in many cases you can use, do not forget - you are totally your customer base, and cash flow can be controlled so.

Truly a real loss of opportunity costs, we provide as an example to help you understand the problem you experienced, trusted and reliable Canadian business financial adviser to the rich I talk. It's your ultimate Revelation and cash flow can be solution!

No comments:

Post a Comment