Look at the headlines in your newspaper. Environmental concerns are major concerns today and every day: people are worried about the price of gas; scientists and governments are debating the issue of global warming and what to do about it; stories abound regarding solar energy and other alternative energy sources such as nuclear energy, biodiesel fuel production, and energy produced by wind farms. The price of a gallon of gas and how many miles to the gallon a particular car can achieve- both are familiar topics. The quality of our air is reported regularly and in some areas alerts are posted on particularly polluted air days. The purity of our water and whether or not we will have enough water for humans and agriculture are serious concerns. Is it any wonder that world wide concerns regarding our environment are subjects of intense debate today? What are governments and businesses doing about these issues? What is cleantech?
According to the Cleantech Group: “Cleantech is any knowledge based product or service that improves operational performance, productivity or efficiency; while reducing costs, inputs, energy consumption, waste or pollution." In other words, cleantech may be a product, a technology, or an application (way of doing things) that achieves environmental and social goals with economic benefits superior to the status quo.
Another definition by Diana Propper of Expansion Capital Partners states: “On one side, cleantech is really about resource efficiency and productivity in supply- how to manufacture and produce to save energy, water, materials, etc. On the other side, these technologies are enhancing the bottom line of customers." Solar energy, subsidized by government and the Prius automobile come to mind.
Thomas L. Friedman in the New York Times, January 2006 said: “Sorry, but being green, focusing the nation on greater energy efficiency and conservation, is not some girlie-man issue. It is actually the most tough-minded, geo-strategic pro-growth and patriotic thing we can do."
The meaning of cleantech is changing with innovations and new thinking. For instance, polluted land, called brownfields, may be remediated i.e. cleaned up into greenfields- land suitable for homes or industry- this is cleantech. New technologies like sensors, monitors and scrubbers to reduce pollution from factories in Singapore that manufacture semiconductors- this is cleantech. Fuels for cars that pollute less like electric cars or ethanol engines- this is cleantech. Energy efficient light bulbs and double pane windows for superior insulation- this is cleantech. Other cleantech examples are wind turbines, fuel-efficient engines, geothermal energy, energy-efficient appliances and water treatment systems.
The momentum of cleantech is growing because of international political issues such as climate change, energy security issues and concerns about CO2 emissions. Consumers are demanding faster, cheaper, lighter and cleaner products. Large corporations are responding with greening efforts. The potential growth in the cleantech industry is a worldwide opportunity for business of all sizes to participate in a huge marketplace. Entrepreneurs have unprecedented opportunities to create transformative technologies in the cleantech industry.
Cleantech starts with an idea, an entrepreneur, and a new business to incubate a technology, a processes or an innovation. Until the company has proven the technology and has significant revenue and growth, it is unlikely to draw attention from large industrial conglomerates, angel investors or venture capitalists. Entrepreneurial start-ups have a much higher risk tolerance to nurture fledgling technology and retain the talent that start-ups attract. Accounts receivable financing can provide capital for start-ups to achieve profitability when other types of financing are not available.
The dominant cleantech markets are solar energy, efficiency technologies (sensors, monitoring and control devices), energy storage, and water technologies. The emergent cleantech markets are bio-based materials, marine energy technologies, superconductors and waste-reducing plasma technologies. Government subsidies may be a blessing and potential curse because if removed, an entire industry economically based on subsidies such as the solar energy industry might go bankrupt.
The creativity and ingenuity of small entrepreneurs cannot be underestimated. They will invent ways to make products, services, and processes cheaper, faster, longer and cleaner. As soon as they can bring these innovations to market and receive purchase orders for sales, accounts receivable financing companies will take the financing risks by purchasing the receivables which will create virtually unlimited capital for growth. Exponential growth for business is needed in a world that needs exponential growth of cleantech.
Attention: entrepreneurs! Here is a partial list of businesses that need cleantech innovation: car batteries, hybrid engines, lighting, toys, photograph tools, appliances, watches, calculators, medical equipment, diving equipment, cell phones, cordless phones, portable computers, power tools, industrial instruments, cranes, elevators, portable power generators, lawn care equipment and energy storage devices. Opportunities abound.
The bottom line: as the meaning of cleantech expands so do the opportunities for entrepreneurs. Accounts receivable financing may be the capital source to help you succeed in the cleantech industry.
Arrows of neon and flashing marquees out on Main Street, Chicago, New York, Detroit and its all on the same street. Your typical city involved in a typical daydream Hang it up and see what tomorrow brings…"- The Grateful Dead lyrics to their song, Truckin’.
“There is a road, no simple highway, between the dawn and the dark of night, and if you go, no one may follow, that path is for your steps alone"- Jerry Garcia quotation.
Many books have been written about the Greateful Dead and about Jerry Garcia. It has been written that they succeeded “in spite of themselves". The lyrics of Truckin’ suggest a meandering of purpose albeit a desire to get somewhere. One might say that Jerry Garcia was telling us that there is no simple way to success. You have to find your own way there.
One of the greatest impediments to success in the trucking business is getting paid on time. What if it takes 30 to 60 days to be paid after you have delivered the goods to your customer? How do you pay for fuel, insurance, equipment leases and wages? Accounts receivable financing may be your answer. Once you have a receipt/bill of lading for delivery and an invoice that can be confirmed, you can receive an advance of 80% to 95% of the funds due to you. When your client pays, you receive the remainder due, less applicable finance charges.
Johnny Cash wrote in his song “Further On Up the Road":
“Now I been out in the desert, just doin’ my time Searchin’ through the dust, lookin’ for a sign If there’s a light up ahead well brother I don’t know But I got this fever burnin’ in my soul So, Let’s take the good times as they go And I’ll meet you further on up the road"
If you are “Truckin’" accounts receivable financing may help you get “Further on Up the Road" to your financial success. Why not just go to your bank for all the funds you need to grow your business? If you have great credit, two past years of successful operations, excellent bookkeeping, and no major needs for substantial growth your bank may be the best choice.
If the bank says “no" to your growing company’s needs because you do not meet their qualifications, accounts receivable financing can accelerate your cash flow to pay your payroll, your fuel, insurance and other costs. You can take on new business opportunities and grow successfully by managing your cash with this proven method of commercial financing.
Here are some questions to ask yourself: Do you need a back office to help you with your collections and operations? If you company is a startup, you may want a commercial finance company to handle one hundred percent of your collections. If your company is established and you have administrative personnel, you may not want a third party talking to your customers regarding collections, especially if you believe these contacts may cost you business. Perhaps you want something in between regarding collections, where you can be the “good cop" and the commercial finance company’s collection department can be the “bad cop".
Do you need credit check on prospective customers? Do you need help with legal or regulatory compliance issues? Are you in a cash crunch emergency that requires you to make a decision in a very short time such as one to three days? Do you have the time to read and compare proposed terms from several commercial finance companies just as you might if you were getting a loan on your home? Are you computer literate and will you have online access to your accounts? Lastly, is the cost of these extra back office services worth the extra expense you may be charged?
Here are a few legal issues to think about: Are you required to sell all invoices for a particular shipper or can you pick and choose which invoices you desire to sell? What does the contract say about choice of law? If you have a dispute with the commercial finance company and your headquarters is in California, will the dispute be pursuant to California law and California courts, or will you be agreeing to settle any dispute in a distant state such as New York? Can you afford to go to New York? Are you giving up your right to litigate disputes with a mandatory arbitration clause? Is there an attorney’s fee clause in the contract so if you have a dispute and win, your attorney will be paid?
The bottom line: The Grateful Dead and Johnny Cash were right: keep on trucking further on up the road with accounts receivable financing; and choose your lender wisely.
Gregg Elberg has sinced written about articles on various topics from Debts Loans, Business and Finance and Small Business. Mr. Elberg is a licensed attorney and licensed real estate broker. Gregg Financial Services is a full service brokerage for commercial finance companies and banks that fund B2B businesses. Mr. Elberg arranges funding from $25,000 to $50 million per month. Gregg Elberg's top article generates over 27100 views. to your Favourites.