small business finance

6 Tips for Credit Management

6 Tips for Credit Management

You sell a product or provide a service to a customer, invoice them and hope to receive the funds in a set period of time, say 30, 60 or even 90 days. That’s just how business works nowadays. In principle, though this piles up your sales ledger with unpaid invoices, you do not actually receive any income at the point of sale. With the slow economy having hit everyone’s pockets, the frustrating truth is that many customers would rather delay payment unless continually reminded. It is important for business owners to be on the chase in a bid to recover their funds. Afterall, you kept to your side of the agreement so your customers should stick to theirs and complete payment for their invoices. Chasing debts is a disciplined approach to seeing the cash continuing to flow into the bank. ... »

Raising Finance for Your Business

To raise money to grow your business, you have to convince likely lenders that your idea is profitable, or at least has the potential to be. This guide explores the main types of finance available, and highlights what investors and lenders look for in a business before they lend it money. Types of Finance There are many different types of finance available, depending on your needs and goals. Raising cash for day-to-day needs (working capital) is quite different from raising money for a long-term capital project – say, for buying new machinery or property. You need to be clear to financiers about the way you intend to invest the money. Sources of finance include: Credit from suppliers. Overdraft. Loans. Leasing or contract hire. Factoring. Equity. Grants. Taking credit from suppliers ... »

The Difference between Factoring and Invoice Discounting

The Difference between Factoring and Invoice Discounting

Both factoring and invoice discounting are financial services that enable businesses to release the funds tied up in unpaid invoices. Both involve a third party company advancing money against outstanding debtor balances. There are clear differences between factoring and invoice discounting: With factoring the third party company takes control of the sales ledger, chasing customers for settlement of invoices and managing the credit control of the business. They are also responsible for processing the payment of invoices, meaning that your customers are fully aware of your business contract with a factoring company. With invoice discounting your customers are unlikely to be aware of your relationship with a financing company. You maintain responsibility for the sales ledger, payment chasing... »

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