Finance Tips For New Business

Finance Tips For New Business

⇒ Effective Finance Tips For Your New Business

You may be in a situation where you intend to start a new business venture but do not have the required funds to put you into business. Getting funding, say worth $100000, or more, to jumpstart your new business is quite a challenge, but one you can achieve with the right kind of information and also the right lender.

With the right information, you will be able to know how exactly you can get some funding to inject into your new business. Here are a few finance ideas that new business owners can learn:

Keep Track of the Interest

Whether you have been doing business for many years or you are just starting out, you need to keep track on the interest rate for your business loans, invoices, credit cards, etc. High interest rates can reduce your cash flow and it will definitely be bad for your small business. Interest rates that are about 8% are fair, but anything above this is not good for your business and can actually lead to the collapse of your business venture.

Keep a Steady Cash Flow

Always make sure that you constantly track your cash flow. Your small business must always have a strong cash flow for it to run smoothly. A weak cash flow will negatively affect your small business and drive you out of business. Having a steady cash flow will also increase your chances of securing a loan from a lender. This is because a good and strong cash flow shows that you are capable of repaying back a loan advanced to you.

Have Multiple Financing Sources

If you are finding it difficult to secure a loan from lenders, you have plenty of other options which you can make use of, to finance your small business. Rather than using your lenders only, you can also use savings accounts, pension benefits, investors, credit cards and plenty of other options. Getting money from various sources will enable you to get the money you require to start your small business and to also expand it in the future. Whatever the source you opt for, it must be one that will ensure that your business remains viable. You should not have a source of funding that is expensive to repay back because it will bring your business to its knees because of the high repayment cost

Security

An easy way to secure some funding for your small business is to provide the money lender with collateral for the business. This security gives the lender a low risk ratio and enables you to get a higher loan term and reduced interest rate. Your best option to ensure that you clinch a loan is to provide some piece of real estate. This will effectively ensure that you get a good loan package that will be of great benefit to your business. However, if you default in your loan repayments, you face a likely risk of losing your collateral, because the lender has to recover the sum of money that had been advanced to you.

Personal Finance Tips

 Personal Finance Tips – Some Helpful Suggestions

Entrepreneur or not, your lifestyle and your decisions should be as thoroughly backed by as much meticulous planning and care as you would when you are deciding on the annual budget for a company of your own. There is a whole number of reasons why managing your money well will give you a better chance of success, and it is all about how you position yourself. Let these Personal finance tips show you how.Finances are the name of the game, and if not kept in top shape, your cluttered finances have a way of accumulating, and then catching up. Pay heed to these important Personal Finance Tips that can help you. Whether you are one of the employees of a huge company, or self employed professionals such as commercial mortgage brokers, there is simply no excuse to mismanage your money matters. Your personal finances are every bit as crucial as corporate finances, and vice versa, although the amounts of money may vary a bit.

Make use of the following tools for managing your finances, and make the best use of them for gain, and to avoid loss. Make use of modern technology and the benefits it entail, such as the Charles Schwab Credit card. As commercial mortgage brokers will tell you, “a dollar saved is a dollar earned”.

Some Suggestions of personal finance tips

⇒  Mint dot com

Mint has received raving reviews, and certainly, the site has a simple and easy to use and analyze format, which manages your personal finances in an exemplary manner. Mint aggregates the financial information in a comprehensive format, and you will know how to spend, and how to save. Best of all, its free of cost, and there is no software downloads, no commitments, trials or anything of that sort. All your accounts can be synced with no hassle. There are a good number of excellent

⇒  CreditKarma dot com

Another free service, CreditKarma gives you free credit reports, and you can find a lot of advice here that will help you save cash on mortgages, loans, credit cards, and a whole lot more, basically like commercial mortgage brokers. There are a good number of excellent services.

⇒   Credit cards

Well, shaky area to offer specific advice, but credit cards such as the Charles Schwab Credit card can do much to save your money, if you are smart enough to never carry a balance. If you can use the great rewards programs with no worry about the APR, you will have to live within your means and not carry balance.

Pay off all the items you want in a month by your card, and clear the balances regularly. This will enable you to reap benefits on the rewards. You can also keep track of the various expenses, as well as keep a reign on your spending habits.

You can enjoy the rewards such as those offered by Charles Schwab Credit card, if you have a brokerage account with them. There are a good range of rewards you can save on.

Corporate Finance Management

Corporate finance management is a branch of finance that refers to the management of financial resources of a company. The main objective of corporate financing is to maximize the company value by making proper allocation of financial resources, along with taking care of the financial risks. Finance management focuses on analyzing the financial problems and devising the universal solutions, which are applicable to all kind of companies.

There are various topics, which are covered under the study of corporate finance such as working capital management, inventory management, debtor’s management, dividend policy, short term and long term financing and financial risk management. Each of the above mentioned subjects make use of different financial tools in deciding the allocation and management of resources among most competing opportunities. It is one of the highly discussed topics due to its own importance in growing economy of any country.

Finance management is an absolute necessity for all types of business organizations. Earlier it used to be the part of overall finance management of a firm. But, over the last one decade, it has emerges as a separate discipline altogether. Today, in both large and medium sizes corporations, there is a dedicated department involved in taking care of the corporate finance management of the company.

Professionals involved in this profession have the responsibility to maximize the company’s profit, shareholder’s wealth, capital budgeting and identifying the areas of financial resource allocation. Since, the areas involved in the discipline are critical and thus require special set of skills in the professionals for efficient handling of the job responsibility. One of the best ways to get into organizational financing is get enrolled into finance management courses, offered by various finance institutes across the country.

Courses in finance help the students to plan and act to resolve the whole conundrum of finance. The course curriculum of the finance courses includes a detailed study of different subjects like micro and macro economics, accountancy, personal and corporate finance, merchant banking, investment banking, financial markets and derivatives, the venture capital, mergers and acquisitions and many others. The detailed study of these subjects gives an overview to the students about the true picture of the industry. Finance courses are a gateway to enter into the world of corporate financing. The future in corporate financing is very bright and is likely to show tremendous growth for next few years to come ahead, which is a positive sign for the aspiring students.

WLC College India was established I the year 1995, with a vision of imparting quality education in different areas of management. Its courses like Finance Management, HR Management and Marketing Management has secured recognition from international universities.

 

Customer Finance Programs Key to Increasing Sales

While studies show that technology spending is once again on the rise, there’s a reason you haven’t heard a collective sigh of relief from the software industry. While many budgets are once again allowing for the purchase of enterprise software, hardware and peripherals, there’s no question that today’s purchasers are smarter, savvier and more selective than ever.

Even though the purse strings have loosened, competition is at an all-time high. It’s no longer enough to provide a software solution that meets the potential customer’s needs, or even to provide it at the best price. Today, smart vendors are constantly looking for ways to stay one step ahead of the competition.

While increasing sales is always part of a competitive business strategy, software development companies often overlook a simple method of accomplishing this objective – making it easier for customers to buy.

One option increasing in popularity among software vendors is to establish a customized finance program that provides no-hassle financing solutions for your prospective clients. In addition to “one-stop shopping,” your customers can reap the other benefits of financing that make it easier for them to commit to technology purchases, including:

100 percent financing — Many finance companies offer 100 percent financing for the cost of software and maintenance contracts, which requires no down payment. Because customers don’t have to come up with a down payment, they can make a purchase immediately, rather than hold up the sale with a “wait and see” mentality that often accompanies a dip into cash reserves. It also allows your customers to invest more capital in revenue-generating activities.

Improved cash flow management – With software financing, your customers can conserve capital for reinvesting in their business and improve budgeting accuracy through fixed monthly payments. Financing also makes it easy for customers to access multiple-year budgets by paying for the benefit of your software over its useful life.

Flexible payment structures – Customers can optimize project budgets by taking advantage of the flexible payment structures available through financing to maximize the return on their investment. For example, with software financing, customers can ramp up payments to match the revenue generation of a new technology project that is utilizing the software being financed.

While financing provides a clear advantage for the buyer, when a program is well planned, the list of advantages for software developers, distributors and resellers can be even more beneficial.

Improved Customer Relations

As noted above, financing packages add value for the customer by enhancing their buying power, offering greater flexibility and providing convenience. It also increases their satisfaction through the ability to leverage their budget to acquire the total technology solution – which could include software, hardware, service, support, integration and training – rather than only the parts and pieces they could afford through an outright purchase.

Shorter Sales Cycles

On the sales side, any customer who expresses some interest in a product seems like a good lead. However, there are many times when the question of how to pay for the new software prevents the sale from happening. Time lost on dead-end deals can be eliminated when financing is part of the sale, as the ability to pay is immediately considered in the equation. In addition, many finance companies now offer fast, easy credit and documentation processes, so you can complete a sale quickly and avoid costly processing delays.

Another benefit is that as software needs are being discussed in the sales process, the finance specialist can work with the chief financial officer or accountant to determine which financing option and payment plan best suits business needs and cash flow.

Direct customer financing can also save software vendors millions of dollars each year by reducing the number of days a sale is outstanding. Consider a company with quarterly cash sales of $50 million. On average, it can take 45 days to collect payment. Assuming a borrowing rate of 6 percent, the 45-day lag in payment results in a carrying cost of $371,204. If the same numbers are run with a leasing finance program that generates payment within 2 days, the carrying cost drops $82,253, saving the company more than $288,951 in one business quarter.

The Big Picture

Overall, equipment financing programs can:

Generate larger, more profitable sales faster;

Increase account control;

Improve sales efficiency and productivity;

Lower days-sales-outstanding;

Improve cash flow;

Differentiate your company from its competition; and

Provide complete solutions for your customers.

Taking the Next Step

After identifying an interest in offering flexible financing as part of the sales process, the next step is to develop a finance program. By partnering with an experienced leasing company to develop a finance program for your customers, you can transfer all of the uncertainties of extending terms to your customer to the finance company.

Partnering with an experienced finance company also means you can concentrate on what your company does best – developing software – while letting a finance expert handle the intricacies of a finance program. Put simply, by working with a third party, your company will receive all of the benefits with none of the risk.

Whether you choose to refer your clients directly to your financing program partner or to work with a third-party finance partner to develop an in-house program, it is essential to choose an experienced equipment finance partner. During the sales process, the finance expert will be working closely with your customers, and it’s important that his or her actions and service levels reflect your company’s ability to meet your customers’ expectations. When searching for a finance partner, look for a company that:

Is flexible and willing to work with your management team to develop a program that will meet your financial objectives;

Is experienced in the IT and software finance world, since the sales process, client-decision criteria, and revenue recognition issues are different than that of capital asset sellers;

Provides marketing support and materials to help you promote your financing program

Is willing and able to provide your sales team with materials and training to ensure sales team members are comfortable and easily able to raise financing as an option with their clients; and Is a financially stable, long-term business partner.

Personal Finance Benefits

Personal Finance Benefits For Ensuring Your Future

Sometimes we earn money to live a life. But living in an optimized manner just seems the smarter thing to do. There are certain things like debt, savings, assets, liabilities, balance sheet and so on to keep us confused enough in the world of finance.

In modern society today, there are much benefits from being savvy about your finance. You have to be a master of your own domain when it comes to money matters. Sure, you could rely on accountants. But that is a whole different level there altogether. Let us start with the basics.

Finance Benefits

 

A smart person in finance has to organize his or her money properly. How do we do this? Well, by building enough savings and eliminating all debts of course. Is not that simple? But in reality, it is much harder to conceive, what more taking action based on this principle.

The good news is, you will know exactly why is it so important to be in charge of your money:-

You would now stop paying for high interest rates and charges whenever there is debt Truth to be told, debt is expensive.

They often have all sorts of extraneous fees and excessive charges. When you are in debt, you are in trouble. That is because you have to be paying all your money towards the interest and little in clearing the debt itself. In simple terms, you are only servicing the debt or working for your debts.

What you should concentrate on is settling the debt altogether, instead of delaying and avoiding it. No need to feel guilty anymore Can you imagine getting up everyday with the miserable feeling of being in debt? What about sleeping at night with that worrisome feeling? To make things worse, the debt is over the top and out of your control. What if people found out about you and your huge debts? Is that a shame? Clearly, it is a burden that you get rid of as soon as you can.

 

Smart Finance Tips

        Smart Finance Tips for Freelancers

 

If you possess a valuable skill and a sense of independence, life as a freelancer could be just what you are looking for. When you work as a freelancer, you get to pave your own path, go your own way and work on your own terms.
You can work from home if you wish, or establish a professional office where you greet your clients. You can keep to a set schedule, or you can create your own schedule built around the needs of your family.

 

This kind of freedom and flexibility is hard to beat, but it comes at a price. The transition from nine-to-five worker with a steady paycheck to freelancer with uncertain earnings is not always a smooth one, and things will be even worse if you are unprepared.

Preparing your financial life is a vital part of moving from traditional work to freelancing. Here are some of the things you need to know as you make the leap into full-time freelancing.



Maintain a Separate Business Bank Account

 

Keeping your personal and professional lives separate is important for a number of reasons, and it all starts with maintaining a separate bank account for your freelance business. If you do not yet have a separate account for your business, now is the time to start one.

Even if you work as a sole proprietorship and choose not to incorporate your business, keeping a separate bank account will simplify your taxes and help you avoid future problems. Maintaining a separate bank account

for your business will also make budgeting easier and allow you to see at a glance how profitable (or not) your new enterprise really is.

Keep Your Emergency Reserves Full

When you work as a freelancer, one thing is certain. No matter how carefully you plan or how many clients you land, your income will still be unpredictable. This unpredictability of income is one of the hardest things for freelance workers to adapt to, especially if they are the main breadwinner in the family.

There is not a lot you can do to even out the bumps in your freelance income, but there is plenty you can do to adapt. One of the most critical things freelancers can do is set up an emergency reserve fund and keep it stocked with at least six months worth of living expenses.

When times are good and you earn more than you expected, take a good portion of that windfall and use it to beef up your emergency reserves. When you have a tough month (or a few slow-paying clients), you can dip into those reserves to tide you over.