Jan
3
Companies have numerous options when it comes to new business loans. The entire purpose of loans is to increase cash flow to invest in the business. Outside of typical business loans, companies have two other options including invoice discounting and invoice factoring. The first is used mainly for larger business, while factoring is ideal for small and medium businesses. Some factors are even considering new businesses if their credit history is good enough.
What Is Factoring
Invoice factoring is a method used to receive funds from unpaid invoices immediately instead of the six weeks or more you usually have to wait. These new business loans are provided by a factor that takes a set percentage of the invoice amount as their service fee. Factoring is less expensive than discounting, which is another reason it is better suited for new and small businesses.
When you invoice a customer, you direct them to pay the factor directly instead of you. You also send the invoice to the factor. They handle all debt collection, preventing you from having to manage your sales ledger yourself. This does let your customers know you are using invoice factoring.
Benefits
Factoring services as business loans offer numerous benefits. The main benefit is access to most of the invoice amount within 24 hours. You can immediately reinvest funds back into your business without waiting. Since you know exactly when funds are available, you can better manage finances without wondering when invoices may be paid.
Since the factor handles debt collection, this prevents the need to hire extra employees for credit management. This frees up more money to use for investing in the business. The factor also checks the credit history of customers to prevent you from doing business with high-risk customers in the future.
Jan
1
The currencies that are traded on the Forex market change value every day and indeed, every hour; in fact, they fluctuate from minute to minute. How is a trader to make sense of the huge amount of data that these ever-changing prices generate? The answer lies in Forex charts. To help investors better understand price data and the trends they indicate, the Forex markets use specialised charts and graphs.
The Candlestick Chart
The candlestick chart is used to perform technical analysis and is so called because price data on the chart is displayed as a series of vertical bars that resemble candlesticks. The vertical axis of the graph represents a series of prices in the price range of the currency. The top of the “candlestick” represents the highest price that a currency reaches during a given time period, typically a day. The bottom of the candlestick represents the lowest price for that day or other time period. Thus, the total vertical length of the candlestick shows the Forex investor how much movement a currency has experienced during a single day. A short candlestick tells the investor that the price is fairly stable, not varying much over the course of a given period. A long candlestick indicates a volatile price that ranges over a larger range of values during a trading period.
Most candlestick charts are colour-coded; green means that the price during the time period is increasing while red indicates a declining price.
Dec
27
If you are a new investor to the foreign exchange market, you may be looking for help to develop your personal trading style and your long-term investing strategy. Using reliable online Forex software programmes such as those recommended by CitiFX Reviews can help.
Real-Time Quotes
Many of the best reviewed Forex trading platforms offer real-time market quotes. This is particularly helpful to traders who work at other jobs during the day and are unable to monitor the market for themselves. If you install the platform on your computer, you will be able to watch market movements from any place with an internet connection.
Tested Investing Strategies
Another benefit of using Forex software is gaining access to hundreds of pre-programmed investing strategies. Many software providers also “back test” their strategies, which means that they have analysed years of past market data to evaluate how certain investing approaches worked in the market. This type of deep market research enables the trading platform to suggest certain investing strategies to you.
Dec
26
If you think that a growing business will never experience cash flow problems or that such problems are a sign of a failing business, think again. A growing business often needs a substantial investment in new machinery, tools, computer hardware and software and raw materials.
Since relatively new businesses do not have an established credit record, its suppliers might require it to pay within 30 days, while to become established it may have to grant 60 or even 90 days to its debtors.
All of this can and often does, result in cash flow problems. Especially in the case of a relatively new business, it might be very difficult to obtain finance through traditional channels, such as high street banks.
This is where invoice factoring comes in. It provides any company with a reliable debtors ledger, consisting of other business clients, to ‘sell’ its debtors to a so-called factor. The factor will then give the firm a cash advance, usually between 70% and 85% of the total value of the debtors ledger. Once the accounts have been settled in full, the balance will be paid out after deducting costs.
The main benefits of invoice factoring are that you do not need stacks of financial statements or a flawless credit record to convince the factoring company. All they will be interested in is a sales ledger showing reliable debtors to cover the amount you want to borrow.
Since the factor usually takes over the collection of all outstanding debts, you will also no longer need a credit control department, which means you can use that staff more productively elsewhere.
A word of warning, however, it takes years to build excellent relations with your customers. You should therefore choose the factoring company very carefully. Make sure you select a company with a history of dealing with customers in a courteous and professional manner.
Dec
23
If you are new to the world of Forex investing, the thought of placing your initial trade can be frightening. Fortunately, Forex trading can be as simple or as complex as you would like. With the assistance of reliable Forex software, Forex market news, and qualified Forex brokers, you can perform your first foreign exchange market transaction with confidence.
Forex Software
Software recommendations such as CitiFX Reviews can help traders pick a trading platform. Some programmes include real-time market news, access to Forex signals, and investment advice. Other platforms include trading strategies that traders can use themselves.
Forex News
Another resource for making your first trade is continuous news about the Forex market. While economic analysis and speculation does not drive the foreign exchange market in the same way as it does the stock market, investors can still benefit from keeping informed about world market events. They can use this information to adjust their trading style as they see fit.
Forex Brokers
Selecting a professional Forex broker can also help you prepare for your first market transaction. Experienced brokers have access to hundreds of trading strategies that can give you some guidance when you are deciding on your investing method. Brokers can also provide detailed financial advice regarding the style of investing that will help you meet your financial goals. If you are intimidated by the idea of making the trade yourself, you can also ask your broker to perform the transaction for you.
Dec
20
There are several reasons why a business might choose to make use of invoice factoring rather than opting for business loans.
Factors will look at how creditworthy a business’s debtors are, rather than the creditworthiness of the business itself. Therefore, it can often be the case that funds will be made available by factoring companies when they would not offered as business loans.
The cost of a bank loan could be less than the cost of invoice factoring, but there are key differences in the terms and conditions that will apply to the business, depending on which facility they use. It may be that restrictions are placed on a business taking a bank loan that would make it difficult to operate in the way that it chooses. A factoring company might be chosen instead to maintain flexibility.
Taking the cost into consideration, factoring can be a method of wealth creation within itself, particularly if there is a good margin between the cost and sale price of the product involved. If finance cannot immediately be obtained elsewhere, invoice factoring can allow a business to continue growing when otherwise it might be forced to slow down.
If a bank loan cannot be obtained, factoring might also be chosen above alternative methods of finance such as venture capital. Other forms of finance often cost more and could take too long to obtain. Alternatively, different types of financing can be combined or invoice factoring can be used as a bridging facility while other finance is sought.
Dec
18
Using Forex brokers helps to ensure that your trades are executed properly. The last thing you want is to have a winning trade, but to input it incorrectly. However, brokers are not free of charge of course. Before you choose a Forex broker, you should carefully consider the costs, to ascertain which trading method works best for you.
Commission or per Trade?
Most brokers work on either a commission or per trade basis. Ideally, find a Forex broker that works on commission. They are much more likely to put clients first as they only make money when you do. However, commission means you never know exactly how much will be made until the order is exited. With a per trade fee, you pay the broker for every trade executed, regardless of the result.
What Else Is Offered?
When you use a broker, you also use their currency trading platform. While this may be provided for a one-time fee, you may also be subject to a monthly fee for access to features such as analysis tools and software. Each broker’s fees vary greatly. Great tools are well worth the fee.
Dec
15
New business loans are hard to come by. A standard loan requires collateral. However, with an excellent credit history and profit potential, you may be eligible for invoice factoring. This only applies if you sell to other businesses on credit rather than directly to customers. Invoice finance companies help you decide whether a loan, factoring or discounting is the better option.
Factoring Requirements
The purpose of new business loans is to have immediate cash flow in the business. Factoring works the same way. When you sell to a business, you are left with outstanding debt until the customer pays. This can take one to three months, sometimes even longer. This is money you desperately need to keep the business running. To take the burden off you, factoring allows you to sell your invoices to a third party.
They keep a set percentage, which is often higher for new businesses. They also manage all debt collection to save on hiring credit management employees. Most factors require an annual turnover of at least £50,000, but with slightly higher fees, smaller, newer businesses may be eligible as well.
Dec
13
The most important starting point when considering foreign exchange trading is to identify and sign up with the right broker. This can be a daunting task and many novice traders avidly read reviews, get personal recommendations and search for evidence of reputable and trustworthy firms before making their decision.
Sometimes it is useful to prepare a list of questions to ask prospective brokers, so that a thorough comparison can be made between those offering similar services but with differing costs or conditions.
The Bigger Forex Options
The Forex market does not have any kind of central governing agency, so that brokers are able to act independently and determine what prices and quality of service they offer to individuals and institutions. Often, larger brokers such as Citgroup – trading via CitiFX Pro – are better placed to pass on a number of benefits, including improved prices and execution.
It is important to note that CitiFX reviews make it clear that CitiFX Pro is aimed at the more experienced, professional traders including institutions. Whilst this is not the right choice for a new trader, a relationship with the well-regarded CitiFX Pro is certainly one to which Forex traders can aspire once they are more experienced.
Dec
10
Selecting an efficient invoice finance service takes some careful research. One of the most respected invoice finance brokers is Touch Financial. Touch Financial works with your business to help you grow more quickly without waiting for customers to pay. By working with over 20 UK lenders, they work to find the most effective solution for every individual business. Touch Financial understands businesses are different and there isn’t a one size fits all solution. This is why they provide both factoring and invoice discount options with varying rates and requirements.
Factoring
Touch Financial acts as a broker to provide invoice factoring services to businesses that meet certain requirements. Factoring available to both large and smaller businesses. This service is best for businesses without their own in-house credit management department. The main fee associated with factoring is called the service fee, which is only a small percentage of what is borrowed.
In most cases, you can expect to be able to borrow between 80%-90% of the invoice value from a lender. This allows you to put the majority of your outstanding invoices back into the business in as little as a day.
Invoice Discounting
With factoring, the factoring company actually handles your sales ledger for you. This also means your customer details are known by them and your customers must be informed of this. With invoice discounting, you handle your ledger and everything remains confidential. Your customers’ never know you are using the service. After you create a special bank account, you place in it the money you collect. The discounter then pays you the rest of the invoice minus the lending charge. This service is only for larger businesses with a high turnover rate.
Why Touch Financial Invoicing?
Touch Financial invoicing solutions are perfect for businesses of all sizes. By working with multiple lenders, you receive the best rates possible for your situation.
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