If you are a small business, you can get through the credit crunch by putting single invoice factoring in your monthly business accounting plan.
You may have been getting "late payments" or "missed payments" notices and charges on your business credit card accounts lately, because your clients are late in paying. If so, then it may be time to listen up and make some changes.
Typically entrepreneurs often find it difficult to sun a start up business because you never know when and if people will pay your invoices on time. You probably have little money in the bank and you are not likely to get a loan, especially today in this poor economy.
Here's one tip you may not already know. If you have been late in making credit card payments lately, you do not have to worry about creditors reporting late payments to the credit reporting agencies unless they are more than 30 days late. If your payment missed the due date by a few days or a couple weeks it will not have any effect on your credit score, so you can relax.
Late-payment fees are sometimes more than what you are charged in interest for the month, which can be the equivalent of paying a 30 to 100 percent penalty. So how do you avoid this problem?
You need to get organized and choose a strategy and stick to it. If people are not paying you on time, and you need some cash, think about These tips:
Step 1) Pay your bills the same day they arrive in the mail.
Step 2) Mark your calendar with due dates for credit card bills and other accounts in bold ink. Then look back two weeks for a mailed payment or four days for an online payment. Simply pay the bill on that date.
Step 3) Determine what time of the month is best for you to pay your credit card bills and contact your creditors and ask that your due dates be changed to that time of month. Watch statements carefully and always keep good records.
If your clients are not paying you on time, think about how many bills you could pay on time if you just had some money in reserve because you have enployed single invoice factoring every month. This helps by providing small businesses like yours with immediate working capital, allowing you to increase your revenues. How? Increased cash flow means you can accept more purchase orders.
Single invoice factoring comes in especially handy when a client is on a 60 or 90 day pay cycle, and you can get up to 90 percent of what they owe you ... early. Factoring companies become involved after a company's product or service has been shipped or delivered and an invoice is produced.
You will typically get the money in 24 hours and the rates are competitive. No minimums or sales volume requirements. Most clients use the service only as needed, plus there are no maximum limits.
If you have tried accounts receivable factoring, you already know just how easy and convenient it is, and that you can rely on it for better cash flow.
Federal Grants For Small Businesses
As a 34-year-old, born-and-bred New Yorker, as I read the details of Barack Obama's stimulus plan, many memories come to mind. A product of the NYC public school system, I have worked hard for my money, and according to government classifications am ?rich?, as I have made many sacrifices to get to where I am. I've weathered a divorce, failed friendships, dwindling family time, and many others sacrifices entrepreneurs make, and I am sure these self-sacrifices will continue.
Growing up in a Bronx household where my mother worked very hard, we were ?latchkey? kids. I worked 40 hours a week from the age of 11 in a local pizzeria run by a 30-something, hardworking Italian immigrant. This man saved his money to open the business and worked 90 hours a week there to send his two young children to Catholic school. My mom was the daughter of Holocaust survivors, who had instilled in her a unique endurance, but she was stubborn and refused to ever accept help from anyone. It had to always be her way, and she refused to lose. We never asked nor received any help from the government. My mother raised my sister and me to believe in ourselves, and she sacrificed herself tremendously so we could advance.
Prior to entering the field of Public Relations, I had one job. I worked in that same local pizzeria every day until I was 23 years old. Summers? Eighty hours a week doing dishes, mopping floors, and delivering pizza. Though it was grueling, I loved it and wouldn't change it for the world. But from a young age, I promised myself my children would never want for anything.
I was blessed to be accepted to an elite NYC public school, Stuyvesant HS. I managed to avoid attending my local Bronx high school, described at the time as ?one of the most dangerous high schools in the country,? by taking the subway system an hour and a half each day in the pre-Rudy Giuliani NYC. Those were the lovely days of boom-boxes, graffiti and muggings every minute. From the age of 14, I learned to navigate those causeways safely in order to reach school. In high school, I met driven, focused young people for the first time, and was inspired to work harder. Despite being accepted to numerous elite private colleges, I attended a NY State School, which I graduated from in 3 years after working hours and hours. Memories of my mother clipping coupons, always picking up pennies from the floor, having me return bottles for the 5 cent return (in the pre-green days), and never using credit cards because you never knew if you'd be able to pay the bills remain in my mind then and now.
I started my agency, 5W Public Relations, in 2003. Since then, it has grown to become one of the 20 largest independent PR agencies in the U.S., ending 2008 with nearly $12 million in revenue. We have no debt, pay all vendors on time, and have always had a profitable business, as we work very hard and deliver results. We don't accept complacency; we demand and deliver. We have never had a line of credit, don't carry credit card balances and pay our bills.
Government to date has affected my firm in many ways: we have footed the bill for jury duty for countless employees; we have matched Medicare tax rates (with little faith the system will exist when most of my employees will eventually need it); and as my firm grew, we paid extra commercial real estate taxes. Yet, we have always followed the letter of the law and kept forging forth.
Over the last few months, my firm, like many other companies across the world, has seen our business depreciate. We have lost clients due to finances, collections have become much harder, and we have had layoffs. Yesterday, the stimulus package arrived at my business. We learned that my firm will have to pay 65% of COBRA's costs for each laid-off employee, eventually to be reimbursed in some form of tax credits (as a business owner I pay and pay and pay ? and never seem to get credits). This stimulus package adds bills to my business, which is already down and suffering from lower cash flow.
I hear about New York's governor proposing to raise taxes another 4 percent and Obama consumed with the popular tale of ?taxing the rich.? Growing up in NYC, I always viewed the rich as elite folks who were billionaires ? Rockefellers who ran humongous publicly-traded corporations ? not my boss from 20 years ago, who owns seven local pizzerias and surely makes more than the $250,000 a year our President and Governor deem as the salary of the rich. These so-called rich are the people who create jobs and who sacrifice. People who work hard.
Today's government is putting more strain on the hardworking entrepreneur. It is taxing energetic people who sacrifice every day to create opportunities for others as well as themselves. This is simply not the answer to the nation's devastating problems. Countless small businesses are comatose and need stimulation; it's not their responsibility to bail out individuals. The drivers of the American economy aren't the poor and the jobless, but the entrepreneurs who create the opportunities for these jobless Americans.
The new government taxes will result in more job losses. They will penalize the productive and give needlessly to the unproductive. They will relinquish an entrepreneur's motivation to work even harder to provide jobs. This political hurricane sweeping through our businesses will change the country's landscape for the worse. It's nothing more than un-American. (And by the way, don't forget, when I die, my kids will be taxed another 50 percent on my money.)
Both Kristin Gabriel & Ronn Torossian are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Kristin Gabriel has sinced written about articles on various topics from Cure Anxiety, Heart Diseases and Aging Problems. Kristin Gabriel is a writer who works with The Interface Financial Group (IFG), North America's largest alternative funding source for small business. The company provides short-term financial resources including. Kristin Gabriel's top article generates over 90500 views. to your Favourites.
Ronn Torossian has sinced written about articles on various topics from Guide Guitar, Fishing. Ronn Torossian is CEO of NYC-based 5W Public Relations, a Top 25 PR agency which was named to the INC 500 list of fastest growing companies in the U.S. is a leading. Ronn Torossian's top article generates over 2400 views. to your Favourites.
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