Factoring Companies- An ideal option to seek capital on your receivables

Many companies are faced with the problem of cash flows in their day to day business process.  It is very essential that, before you consider financing your account receivables, you need to get to know all about Accounts Receivable Financing, (ARF) also known as Factoring. The basic principle behind the AR financing is that, you are extended a loan amount at a premium from an accounts receivable lender (otherwise known as the factor) holding your AR as the collateral.

This kind of financing facilitates organizations to access the needed money well in advance of realizing the payment on receivables. Once the company has got the capital from the financing institution, the risk involved in the receivables is now transferred to the financing institution and the capital receiving company is charged a premium. Business firms showing good collection rates, more accounts receivable, and credit history will be extended AR financing with attractive terms. On the other hand, if the company is poor performing and complicated AR, such company will not be able to get Accounts Receivable Financing with flexible terms.

It is a common practice that many of the factoring companies will hold back and will offer only   15-25% of your ARs as a precaution to lessen the risk of collection. The factor company will keep this, until the complete AR's factored are realized.  But for many firms this 15-25% ARs decides the profit of the company.  As a result, you will be compelled to factor your entire ARs to get the required financial cushion to run the business and this process continues as a vicious circle.

Before approaching factoring companies, you need to decide which one of the following conditions is apt for you:

•My company is running in a profitable and stable manner. I am considering using the money received through my ARs for the planned growth of my company.

•My firm is seeing profit only recently. I am in need of quick capital because my company is seeing temporary setback in business. This immediate dose of capital will permit me to enhance my profit.

•My company is in bad shape and its future is not certain. I am seeking capital for meeting various needs like employee salary, buying raw material, marketing expenses etc.

If your company is not falling under the first group, then factoring may be a risky proposition, if not highly risky, for your firm. Prior to approaching a factor, you need to interact with the present customers and try to extend discounts for early payment for your receivables. If your condition fits category 3 above, it may also be a high time for you to think of a merger.  It is better to own a small share of a bigger and profitable organization is ideal option than to own the entire lot of a loss incurring company. 

Read More

All you should know about the new repair vs. capitalization regulations

If you have spent $500,000 or more on renovations, you should seriously develop a thorough understanding of the new repair vs. capitalization regulations. In fact, you should approach a firm at the earliest for a formal study because there are chances that you’d actually be able to benefit. Meanwhile, one more thing that you should keep in mind is that you must incurred the expenditure in the last 15 years and only then you’d be the ideal candidate. Furthermore, as a taxpayer, if you have acquired, renovated or improved real estate, even then you can contemplate benefiting from the regulations.

Nevertheless, given below are some more things that you should be aware of when it comes to the repair vs capitalization regulations:

•First things first; these regulations are applicable to businesses in every industry that has anything do with the acquisition, production, replacement, or improvement of tangible property.

•Secondly, the new regulations, i.e. the ones that came into force in December 2011 can result in significant benefits if you approach a firm and ask them to perform a cost aggregation study. That’s because the regulations more or less affect real property and therefore a study can be of great help for obvious reasons.

•Thirdly, the regulations have brought some significant changes. For instance, now several subjective factors are considered so as to decide whether the building expenditure falls under the category of improvement or it’s a repair expense. Interestingly, if you get in touch with a firm, their engineers are going to help you in determining if it’s suitable for you to expense windows, pluming and other such things. Just so you know, they would be taking your unique situation into consideration.

So, you are advised to get in touch with the firm as soon as possible because in addition to everything else, they would also be able to determine if there is an opportunity for you.

Read More

A guide for online trading software

If you are just entering the world of FOREX trading then you might feel that you have been consumed by too much information too randomly. However, with the use of online trading software, FOREX isn’t as difficult as it seems to be. Although, there are hundreds of products that are being provided by different brokers, but at the same time it is also important to know what are you looking at while shopping for trading software online that can suit your requirements in a seamless manner. Additionally, online trading software is also becoming popular due to their platforms ability to be accessed anywhere.

Different stockbrokers use various trading platforms, but the requirements are the same. Here are some simple tips that can help you using online stock trading software.

•    One of the most important requirements is opening a stock trading account with an online stock broker or a bank that offers online trading services. However, at the same time, it is also important to note their fees, commissions and trade executions.

•    The next step would be to fund your stock trading account for which you can simply contact your stock broker and find out how to add funds through bank to bank deposits, money orders and wire transfers. However, here it is important to fund your account by following your stockbroker’s instructions.

•    You can use stock charting and research a few websites that can help you in understanding the fundamentals of different stocks. All you need to do is to note their earnings, management, return in investments and company news. Now log on to the stock broker’s trading platform by using the user name and account number and password that you received while opening an account.

These are just a few simple trading techniques that you can follow. However, if you search the web, you can find online trading software that can help you in trading in an impeccable manner. Since, all providers in the domain do not provide the same level of service, it is necessary to ascertain the proficiency of the chosen provider. Therefore, in order to make sure that you are choosing one of the best providers for purchasing an online trading platform, you can simply refer to some of the client testimonials and case studies that the provider has published on its site. This would help you in getting a fair idea on the level of competence that you can expect from the chosen provider. More info: http://www.investview.com/stock-market-software

Read More

The importance of investor education

Investing your hard earned money has always been one of the toughest decisions to make. Additionally, with the horde investment brokers that keep on try to get their hands to your pocket is quite enough to confuse most of the people. However, this is when you start wondering about methods through which you can start channelizing your hard earned money into something profitable as well as legitimate. In order to accomplish this, there are a few people that invest their money into properties and some of them invest in saving certificates while there are also some of them that settle with the interest which they get from their savings accounts.

However, with the right kind of investor education and the right set of tools, you can certainly make a whole lot of more money in stock option trading. Although, it would not be right to say that option trading is a guaranteed solution in order to make money, but surely it is one of the most profitable methods you can certainly go for. However, as high the profit margins are, the same time quite great are also the loss counterparts. Therefore, before planning to invest in stock trading option, it is also necessary to get the right investor education in order to make sure that you make the most out of it in a seamless manner.

However, the amount of risk that is involved in this highly turbulent market also demands you to be well prepared and be on your toes if you wish to see yourself as the success option trader. To begin with, it is recommended not to just sign up with any broker offering simple online trading solutions as you would be needing more than software to become a successful trader. It is recommended to search for a broker that not only offers robust software to trade, but also investor education in their bundled programs. By signing up with such kinds of brokers, you would be ensured that you are well equipped with the gen that is required for successful trading.

Options trading on the other way are buying the ability or the right to purchase or sell as stock at a certain amount of price in the future. However, in reality it gets quite complicated, but essentially is one of the basic ideas. Moreover, it is also judged to be an extremely risky financial vehicle, but in order to make things less complicated, there is various option trading strategies that can be helpful to minimize this risk.

To know more visit http://www.investview.com/

Read More