Factoring and Accounts Receivable Financing Expert Tips

Shaw Capital Management and Financing sharing information, tips and advice on factoring and accounts receivable financing and factoring to avoid scams and other fraudulent transactions. Information focus on the importance of choosing the right firm and understanding the intricacies of this financing alternative and what pitfalls to avoid.
There probably isn’t a day when Canadian business owners and financial managers don’t hear about factoring and accounts receivable financing as a method of financing their business in Canada. Despite its growing popularity and, we can say, relative importance in the Canadian business financing marketplace this financing mechanism is still somewhat understood.
What information do business owners need to know in order to assess if factoring, also known as invoice discounting, is a viable transaction? Also, are there mistakes and pitfalls to be avoided when considering this financing strategy?
Let’s examine the answers to some of those questions. You can be forgiven for trying to figure out why factoring has increased in prominence from a time when no one had almost ever heard of it! The answer to that popularity is more simply and obvious than you might think, and its simply that Canadian chartered banks are finding it increasingly more difficult to fund accounts receivable (and inventory of course) to the extent that their customers need this financing.
When you have a situation where the actual need for financing is acute, and the benefits and flexibility seems significant it is not hard to see the rise in popularity of such a financing mechanism.
First of all, 99% of the time, factoring provides your firm with a greater level of borrowing based on your accounts receivable levels. Quite of 90-100% of you’re A/R under 90 days can be financed.
So is it all good news? Not necessarily, as we are always meeting with clients that have chosen the wrong type of funding or factoring, and, even worse, find them locked into contracts they cannot get out of. That is uncomfortable for any size firm as you can imagine.
As with any newer type of financing the playing field is complex. You can be forgiven for not knowing how many factor firms are out there, how they run, what their own limitations are, and, even to a certain extent, do they in fact themselves have the funding to survive, let along finance your firm. For that reason we cannot over emphasize the need to work with a credible, experienced and trusted professional in this area.
Lets talk about some of the nuances, we can call them potential ‘pitfalls ‘also, of picking the wrong factoring partner. For a starter if you choose a firm who itself is not well capitalized, as we said, you might find that the financing commitments made to you cannot be honored. Canadian business has never had to think that the Canadian chartered banks could be ‘out of money ‘but the Canadian landscape is somewhat littered with small and medium sized factor firms that do not have the financial wherewithal to support their funding commitments in all places. That just re – enforces our idea that a trusted industry expert will guide you to the best partner for your firm.
Other issues, again, we can call them pitfalls, to look for include:
– being locked into a contract
– having the total factoring cost, or pricing, not reflected properly in your term sheet
– advance rates which don’t make sense relative to the price you are paying for discounting invoices
– Excessive notification and intrusion with your customers, which is very prevalent in the U.S. model of factoring (Many Canadian factor firms are branches of U.S. firms)
So let’s recap. It’s simply that factoring is growing in popularity. It works because it is providing funding where banks often cannot. If you don’t understand who you are dealing with and the various nuances of this type of financing it becomes a burden, not a solution. Investigate this great financing mechanism, but ensure you know what you are getting into. Talking to an expert always helps – that’s just common sense
Stan Prokop is founder of 7 Park Avenue Financial. Originating financing for Canadian companies, specializing in working capital, cash flow, and asset based financing, the 6 year old firm has completed in excess of 45 Million $ of financing for companies of all size.

Car Finance UK Low Rate Finance To Purchase Your Dream Car

If you are looking for a feasible finances to procure your cream car, then consider it be done. To help you procure the car, lenders in the UK financial market are now offering easy to access car finance. The finances proves the notion wrong that finances for car are usually hard to obtain and that too at reasonable and affordable terms. In fact, with the help of finance, you can go for car of any make or model available in the market now.

The finance in UK loan market is offered in the usual format of secured and unsecured. Secured form of the finance is collateral based and to avail it, you have to place the car as collateral. The presence of an asset provides an assurance to the lender that the amount will be returned in due time. By pledging your car as collateral has a number of benefits. For instance, you get to access these loans at comparatively low rates. This makes the repayment task easier for you.

On the contrary, unsecured option of the finances can be availed without pledging any collateral. Considered as risk free finance, these loans carry a high rate of interest.

Through the finance, you can generate about 80 -90 % of the total finance required. In fact you can also utilize the finances to buy a used car but it should not he older than 5- 6 years. The repayment tenure is short and spans over a period of 5- 7 years. The reimbursement period is short as the car loses its market value with each passing year.

The finances are also made available to borrowers with imperfect credit history such as CCJs, IVA, arrears, defaults etc. however the borrowers will have to pay a high rate of interest as compared to the other borrowers.

The best way to derive Car Finance UK is by applying online. All you have to do is to fill an online application form to avail these it. Due to quick processing, the finance gets approved instantly. By taking a proper research, you can easily spot lenders offering these loans at cheap rates. Thu

Getting Into Good Financial Shape With Your Personal Finances

Do you feel completely lost when handling your personal finances? You are not by yourself. It’s easy for people to be overwhelmed by their personal finances since money management is not often taught. The article below has advice that can help.

Have your credit cards paid directly through your checking account each month. This way, you won’t forget to make your payment.

A perfect solution for all of the above is to get an auto-deduction program set up with your bank account and keep your hands free. Having an emergency fund protects you from having to make desperate choices.

You will become more successful in Forex trading by letting profits run. It is important when doing this that you do not get too greedy. Once you make a profit on a certain trade, know when to take the money off the table.

Buy generic brands instead of national brands. Many brand names are more expensive because of advertising costs. Go with the generic choice. Most of the time there really is no difference between the two, so you won’t even notice.

Carry cash with you when you are making minimal purchases throughout the day. Reconsider how you use your credit card. Credit card companies have minimums on purchases nowadays, so to avoid that, make sure to carry a debit card and cash on you.

All people should have a liquids savings account. Search for a savings account that has a high yield in order to keep your money earning decent interest. Some of these are in the form of online only banks, but all of them are FDIC insured.

Try to hold a garage sale, where you can sell all of your unwanted goods for additional cash. Also, talk to neighbors to find out some of the items that they would like to sell. Creativity is one of the most important factors towards a successful garage sale.

It can be a good idea to create an emergency fund while paying off your debts, especially if the use of credit cards helped to create the debt. To help you decide how much to save, consider costly expenses such as dental work, medical bills and car repairs. Other common emergencies include problems in the home, such as a leaking roof or a flooded basement.

To save money, cut out your cell phone. Many people don’t like this advice, but people did not have cell phones years ago. A cell phone is a convenience – not a necessity. At least try to see how much you use and attempt to reduce your bill by opting for a cheaper plan.

The key to having money is to never spend more than you bring in. Those who spend every dollar they earn or take out loans to cover their spending are unlikely to amass much wealth, as their money flies out of their pocket the instant it arrives. Determine how much money you have coming in every month, and make sure your expenditures don’t exceed this amount.

Understand your insurance needs and tweak your policies to reduce your monthly costs. This can pad your monthly budget greatly. For example, consider money-saving options like bundled policies or eliminating services that you do not need. These relatively simple steps can net you significant savings over the long term.

A credit card is a good choice over a debit card. If you can be approved for credit cards, use them for small daily purchases like food and gas. You’ll earn points or cash back on those purchases when you use a rewards card.

Financial difficulties will continue as long as you refuse to take control of your personal finances. Now you do not need to become one of those people because you know what you need to do. Avoid financial mistakes and approach finances correctly by following these tips.

Consumers Reluctant to ‘Discuss’ Finances

Despite concerns about money management, Britons are generally unwilling to talk about their financial situation, a new study indicates.

In research carried out by Picture Financial, consumers are four times as likely to discuss ‘the birds and the bees’ with their family members than monetary matters. Overall, finances are ranked fourth on the list of “hot topics” talked about in the home coming behind sex, current affairs and religion. Meanwhile, just under two out of five (38 per cent) households argue more often about money than work relationships, television, family members or politics.

The news comes as more than three-quarters of Britons are concerned about their family’s financial management, with half of the population believing that lending through credit cards and personal loans is a good thing. These respondents added that, when used sensibly, borrowing can be an “acceptable means” of maintaining a certain standard of living.

Commenting on the figures, Julia Dallimore, marketing director for Picture Financial, said: “There is a sharp contrast in our willingness to talk about sex and current affairs compared with credit and borrowing. This reluctance to discuss our money can lead to a ‘head in the sand’ approach to our finances. Being more open with our money management and taking regular time out to review and sort our finances can make all the difference to our financial health.”

Behavioural psychologist Donna Dawson added: “Despite being a nation of regular credit users, we tend to shroud our family finances in mystery when we really don’t need to and as a result this can lead to unnecessary tension. We shouldn’t feel so restricted when it comes to discussing our finances with our family, as a lack of communication can impact not only on family life but also on our ability to take proper financial stock.”

The Picture Financial study also showed that younger people tend to have the greatest concerns over credit. Some 19 per cent of respondents aged between 16 and 24 were reported to be constantly worried about their finances, with this proportion falling to six per cent among those over the age of 55. However, young Britons were said they were reluctant to discuss their monetary situation as only seven per cent regularly talk to their family members about this subject.

In addition, older consumers are indicated as having a “more realistic attitude” to money. Just under half (48 per cent) of the over-55s claim that credit can be a good thing if used wisely, in comparison to 34 per cent of 25 to 34-year-olds. Britons in the upper age bracket were also reported to be honest about their finances, as 92 per cent have claimed to have never lied about money.

At the beginning of last month, Helen Saxon, a spokesperson for the Finance and Leasing Association, pointed out that credit uptake is decreasing due to the effect of recent base rate increases by the Bank of England over the last year. However, she claimed that borrowing can be “a good thing” if used well as it gives people the opportunity to make purchases they would be unable to do so otherwise and has in the past helped to support the British economy.

retail finance

If financing a car is normally the only option of acquire, then why not create your transaction as fast and simple as possible? GMAC tries hard for making your transition to auto ownership as simple as it can be with GMAC Auto Financial products. Want to know a lot more? Read on!

Who is actually GMAC?

GMAC Financial Expertise is “a global, diversified financial services company. ” Being subsidiary of General Applications Corporation, GMAC originally functioned as being a financial assistance program to get auto dealers who wanted a much better selection of automobiles on the lots but did can’t you create the cash to pay more for more than just just a few. Over time, GMAC’s money options expanded beyond serving the dealers and went into customer financing. And today we use a new financing system of which assists prospective auto owners in worries now that they pays for conveniently in ones own time.

As the ages evolve, so does GMAC, and today they provide the widest number of auto financing options open to the public. While GMAC offers a number of packages for all elements of consumerism, including businesses together with brokers, in this article we will concentrate on personal loans for any everyday consumer.

Personal GMAC Auto Loans

The two varieties of personal loans we will focus on on this page are GMAC Auto Personal loans for Vehicle Financing and GMAC Car finance for Vehicle Leasing.

Vehicle financing is probably the original ways that GMAC began the “rent to own” means of purchasing a vehicle. Within umbrella of the vehicle financing process is normal retail financing and Shrewd Buy. Traditional retail financing is what most people will expect when going to get a car. This style of financing is described as “an installment sale transaction between you and your dealer whereby you admit pay the amount funded, plus an agreed when finance charge, over some time. ”

GMAC gives its prospective buyers guidelines to ascertain if traditional retail financing is a good choice for them. They explain that should you plan to drive your car for some years and you consistently drive over 15, 000 miles yearly, or even if you’re planning to alter the motor vehicle (change the paint colouring, add new wheels, modification the interior), and just remember, if the car you’re money is the one you need to own, then traditional retail financing is just about the right choice for people. Most people in nowadays go directly to GMAC so that you can finance their car; having said that, you are able to check your bank or credit union on top of that.

Smart Buy is another type of vehicle leasing available through GMAC Car finance. Smart Buy is as well a program that will let you eventually own your automobile, however monthly payments can be lower than those of traditional retail financing. Exactly how is this possible? Because GMAC has a fraction of each payment per month and moves them all to your end of the commitment, combining them into one lump sum which is to be paid in something labeled a “balloon payment. ” The advantages of the Smart Buy financing option is that if you don’t have or don’t need to pay the balloon payment in the end of your contract, you may simply return the vehicle and pay an inferior disposal fee, which comes with mileage and excess have on charges.

Manage Your Personal Finances Prudently.

“As flies to wanton boys are we to gods they kill us for their sport”-everyone at one time or other in their life, when the going gets tough should have praised the bard for these words full of wisdom. But why should we curse our fate, every time when something does not turn out the way we want. You can now avail the help of a personal finance manager to overcome these hurdles. We often blame it on our stars when we fail, without thinking about the possibilities around us. A plethora of opportunities are wasted because of our ignorance. A powerful and flexible personal finance manager could allow you to control your budget using as less time as possible. Nothing helps you as accounting software at a time of financial ailment. Even your most trusted friend may turn you down when you are in deep waters. This is where a little bit of planning by using a personal finance manager keeps you going. Just one week after the payday you will be on the lookout for next payday, even if you are paid a handsome amount. Expenses are on the rise and incomes are falling. Personal budgeting can keep your woes at bay. Personal finance brings about a discipline in our spending habits which hitherto went unbridled. The tools & facilities make accounting and personal finance management easier. Many people are not aware of various features that a personal finance manager would offer. This association with personal finance gets you in touch with these tools and you could direct your finances into investments with returns. If we can spend and save then why should we waste money in areas that do not yield? Choosing the right personal finance manager is not a problem now. Many companies provide you with powerful tools which are adept in helping you handle your money. These tools will give you an estimate of your daily spending and savings and prevent you from overindulging. Prudent spending and saving is the soul of any life. A person might end up in disaster owing to his irresponsible way of spending.
Manage Your Personal Finances Prudently.

Cheap Used Car Finance – buy a car with a burden less loan

You can buy a used car easily as it comes at low price. However, you may require a loan as the amount is still too high for sourcing it from own income. So, cheap used car finance becomes necessary. Cheap used car finance is called cheap because the finance is approved at lower interest rate. You can buy a used car of any make or any model through cheap used car finance.

The best way for availing lower interest rate on cheap used car finance is to offer the lender some security of the loan. The security may be any valuable asset of the borrower. Apart from the security, if the borrower has a good record of paying previous loans, his chances of getting cheap used car finance increase. So check your credit score first. An amount approved as cheap used car finance will depend on equity in the property placed as collateral. Your current repaying capacity also plays a role in determining the loan amount. Since you are buying a used car, lender will approve cheap used car finance for short repayment duration of few years. You can avail cheap used car finance without collateral but in that case the interest rate will be comparatively lower only when your credit score is excellent.

Sourcing part of cheap used car finance is important. Though you can get finance for used car from car dealers but they usually charge higher interest. It would be better therefore to go for a personal loan specifically meant for car buying. Such used car finance comes at cheaper rate of interest. You can contact cheap used car finance providers on their websites. Compare their individual interest rates for picking up a suitable lender offering cheaper rates.

After getting the finance, while buying used car make sure that the car has no mechanical defects and so hire a mechanic for ensuring the quality. Pay off the loan in time for escaping any debt and this way your credit score also will move higher.

An Education In Personal Finance For Ordinary People

Poor financial management is, unfortunately, something that is all too common. Do you think that you’re not good at managing your money? Learn how to manage them now. This article will help you care for your finances. Read and analyze this article to help you pinpoint and fix your problem areas.

When using a broker, it is very important that you choose someone that you can really trust. They should have stellar references and be truthful with you. It is also important to be sensible, and have the experience to know when something is not quite right.

In order to save money when eating in a foreign country, try the local food. Most likely, the restaurant in the hotel, and the restaurants located in tourist areas will be expensive, so look around and discover where the local people eat. The food in local restaurants will taste better and cost less too.

Times are tough, and it can be a good idea to keep your savings in a number of places. Put some in a pure savings account, more in a checking space, invest some in equities, and then put more into higher-interest arenas and even gold. Using a variety of strategies will help you protect the money you have.

Having less meals from fast food places and other restaurants can save one money to help their personal finances. Making your own meals is cheaper, as well healthier for you.

Take advantage of being married and the spouse having the better credit should apply for loans. You can improve bad credit by regularly paying down credit card debt on time. Keep working on restoring the credit of both spouses so that your financial liabilities can be equally shared.

Every time you get a check, save some money from it immediately. Planning to save whatever is left after the month is over is not a good idea. Knowing from the start that those funds are off limits sets the right tone for budgeting and being mindful of your spending and planning.

If you are new to financial independence, be cautious about using credit cards, especially if you are under the age of 21. Once upon a time, credit cards were freely issued to college students. You have to have a cosigner or be able to prove your income. Research each card’s requirements before you apply.

Some choose to gamble by purchasing lottery tickets when they should be putting that money toward savings. When you invest your money in a savings account, you will be guaranteed a return on your investment. If you buy lottery tickets instead, however, your “investment” is likely to yield no returns at all.

If might take you some more time, but it can save money by using ATMs from your bank instead of paying fees. You are often charged a big fee for using ATMS from other banks.

To avoid a frantic, last minute search for your financial records, it is a good idea to maintain a filing system for these documents. Keep an organized filing system containing your receipts, healthcare statements, insurance documents, and other important papers.

When you track your money, you dramatically increase your chances of avoiding banks charging your for overdrafted accounts or not having enough money when a situation arises. You will feel more positive about your personal financial situation simply by monitoring your income and spending, instead of using the bank’s computers to manage it for you.

Trade Finance Is An Ideal Financial Answer For Ambitious People

Debtor finance services are a financing instrument wherein your business gets an improvement against your remarkable receivables. This helps discharge plentifully obliged working capital and enables smooth operation of your business. It can get you recognizes as savvy as 24-48 hours. Normally the credit wholly runs between 70% -90% of the aggregate nature of the account holder’s records. The financer discharges the offset downright when your receivables are really assessed it.
Why pick Debtor finance?
Affiliations are fundamentally done using a Visa and from time to time the portion assertion takes as long as 60-90 days. Such credit terms deal the working capital and effect the cash stream, inexorably affecting business operations. Account holder finance can handle the paragon of piety’s part in such circumstances and help you free up your working capital and keep your change organizes in line. The unbelievable part about Debtor finance is that land security is not required like in endeavoured and honest to goodness financing.
The diverse sorts and terms
Debtor finance services can totally be engineered into the private class of finances. For this circumstance, the business finances are not taught to your clients. They don’t consider the game plan occasion between the crediting affiliation and your business and they make their remarkable portions to your affiliation just. Revealed: for this situation an alerted is sent to your client clearing up that you have progressed out the debt holder’s record and your clients make their remarkable portions to the advance authority.
The general course of events is 90 days. Additionally financers don’t normally perceive invoices that are more than 90 days old. On the off chance that the client does not pay inside 90 days, the financer all around recourses such invoice, which hint the credit responsibility again advancements anew to your relationship following 90 days. Occasionally non-mastermind of movement Trade finance is likewise open wherein the financer expects some bit of the credit danger or additional response periods are offered for assertion of the striking receivables. Despite the way that no range security is needed, to use this kind of finance, you may bring to the table certification of certain particular belonging and individual insurance of the business manager, adjacent your debt holder’s record.
Capability criteria for Trade finances
There are no particular parts fundamentally, however customarily affiliations that offer things or services to affiliations are more qualified and are fundamentally the ones that utilize this sort of office. It is focal however that your business has a financially powerful client base since account holder finance is less subject to the financial soundness of your own business and more reliant on that of your clients. It is additionally crucial that you have an entire deal and compelling association with your clients for you to be possessed all the necessary qualities for Debtor finance.
Trade finance services may be perfectly modified to individual business necessities acknowledging upgraded financial association and enhanced cash stream. For example, by raising finance against story credits – affiliations may can profit from stores being discharged promptly. With Import Documentary Credit incites, it might be conceivable to genius discounts from suppliers which can help enhance horrendous edge for the business.