Read this article to learn about accounts receivable funding, an effective alternative to conventional business loans.
Wondering whether you'll be able to get a loan for your business? Getting a business loan is one of the toughest tasks to accomplish for a company owner. Although banks represent a very cost effective source of funds, they are very selective about the customers they take. This is especially true nowadays were commercial credit at banks is very tight. Most banks will only provide business loans to companies that have a solid track record and substantial assets. But, what if your company does not meet the banks criteria? What is you are a startup or if your company does not have traditional assets such as real estate? One business financing alternative that has been recently gaining traction could be the right solution for you. It's called accounts receivable financing. Accounts receivable financing, commonly called factoring, is a type of financing that helps companies that need to wait 30 to 60 days to get their invoices paid. It provides funds to pay employees and suppliers while you wait to get paid by your commercial clients. Accounts receivable factoring is different than a business loan because the factoring company does not lend you money. Rather, the factoring company advances you money based on your open invoices and gets paid once your customer pays. A typical transaction would work as follows. Once you deliver your product and send the invoice to the client, you submit a copy of the invoice for financing. Within one to two business days, the factoring company advances you about 80% of the invoice. Once your client submits the payment in full for the invoice, you get the remaining 20% less a small fee charged for the service. Costs are usually determined based on the size of the financing line and can go from 2% to 5% for 30 days depending on the specific details of the transaction. One of the major benefits of receivables factoring is the flexibility that it provides. Your maximum financing line is determined by the invoices you submit and is tied directly to your monthly sales. This means that your financing line increases dynamically, as your business grows. This provides the liquidity you need to stay current on your obligations and enables you to maximize sales opportunities. Another benefit of factoring invoices is that it's relatively easy to obtain. The biggest requirement is that you do business with reliable companies (or government agencies) that pay in 30 to 60 days. This is critical because your invoice is the collateral, for lack of a better term, that the factoring company is financing. Aside from thatBusiness Management Articles, your business needs to be properly organized and well managed. Invoice factoring has been around for quite a while and has been gaining traction in recent times as a flexible solution to finance business growth. Due to its structure it's the ideal source of financing for startup and growing companies alike.
Source: Free Articles from ArticlesFactory.com
About Commercial Capital LLCMarco Terry is the Managing Director of Commercial Capital LLC, a leading accounts receivable financing company. For more information on accounts receivable factoring and receivables factoring, please call (877) 300 3258.
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April 09, 2008
Is the North East the Best place to find Business Opportunities in the UK
Surging oil prices and the fierce global demand for energy is helping fuel a new North East oil boom which is expected to create many jobs and bring millions into the North East regional economy.
The cost of oil has trebled in recent years and is currently being traded at about 100 US Dollars a barrel and with oil organisations pouring cash into exploring new reserves, the expertise of North East companies in sub-sea exploration is aiding the region develop a reputation as a world leader in Energy.
The North east being a world-leading centre for sub-sea exploration and with demand set to remain very high the number of jobs is expected to double in the region at a very fast rate.
With most of the easy oil now extracted, the challenge the oil industry faces is reaching the more difficult reserves. This is where North East companies are leading the field to meet the world's need for energy over the coming years. The quest in finding harder to reach oil means new technologies and methods are being developed right here in the region.
The skills of the companies who have worked in the harsh and dangerous environment of the North Sea are now valued across the globe. The opportunities are massive. Experts say 50 North East firms are currently involved in the subsea oil sector in the region, employing around 5,000 people and contributing £500m to the regional economy. There is opportunity for the North East to become a world leader new technology, especially for oil exploration and extraction. In 10 years' time the number of people employed in this sector could easily have doubled to 10,000 which is another great reason to invest in this flourishing region.
More evidence of this emergence comes next month with a visit to the region of more than 30 Norwegian companies armed with looking to invest in the North East and studying business opportunities UK. It will be the first visit of its kind in 30 years. The subsea sector in the North East grew 30% last year and will go on at that pace for many years.
North East England is home to 588 overseas companies from 32 countries, employing over 27Psychology Articles,000 people therefore making an ideal place for overseas investors looking for business opportunities in the UK or business opportunities in England.
Source: Free Articles from ArticlesFactory.com
Invest NorthEast England are a regional based development agency that encourage Business opportunities in the UK.
The cost of oil has trebled in recent years and is currently being traded at about 100 US Dollars a barrel and with oil organisations pouring cash into exploring new reserves, the expertise of North East companies in sub-sea exploration is aiding the region develop a reputation as a world leader in Energy.
The North east being a world-leading centre for sub-sea exploration and with demand set to remain very high the number of jobs is expected to double in the region at a very fast rate.
With most of the easy oil now extracted, the challenge the oil industry faces is reaching the more difficult reserves. This is where North East companies are leading the field to meet the world's need for energy over the coming years. The quest in finding harder to reach oil means new technologies and methods are being developed right here in the region.
The skills of the companies who have worked in the harsh and dangerous environment of the North Sea are now valued across the globe. The opportunities are massive. Experts say 50 North East firms are currently involved in the subsea oil sector in the region, employing around 5,000 people and contributing £500m to the regional economy. There is opportunity for the North East to become a world leader new technology, especially for oil exploration and extraction. In 10 years' time the number of people employed in this sector could easily have doubled to 10,000 which is another great reason to invest in this flourishing region.
More evidence of this emergence comes next month with a visit to the region of more than 30 Norwegian companies armed with looking to invest in the North East and studying business opportunities UK. It will be the first visit of its kind in 30 years. The subsea sector in the North East grew 30% last year and will go on at that pace for many years.
North East England is home to 588 overseas companies from 32 countries, employing over 27Psychology Articles,000 people therefore making an ideal place for overseas investors looking for business opportunities in the UK or business opportunities in England.
Source: Free Articles from ArticlesFactory.com
Invest NorthEast England are a regional based development agency that encourage Business opportunities in the UK.
Types of Passive Residual Income You Can Use
Understanding passive residual income is important if you wish to increase your business' earnings. It's not about potential ?'s about generating actual earnings, simply from doing something that is already an integral part of your job. By changing a few aspects of your products and offering new ones, you get to enjoy a steady source of income over a long period of time.
Not every business can make use of passive residual income, however. If you're involved in the retail of one-time-use products such as perishable consumer goods, for example, you may not have the opportunity to enjoy the benefits of residual income. To use it to your advantage, learn what it is and understand how it works.What is passive residual income?Passive residual income refers to the type of income you can generate from a completed task, project or product. It's called passive because the business owner does not have to do additional or sustained work in order to keep the income coming. This, irregardless of the initial amount of work you placed into the project. A traditional form of income, on the other hand, will only pay you commensurate to the amount of work you have done. If you get paid $50 per hour for offering computer system maintenance and technical support, for example, that's all you get for working 60 minutes straight. With residual income, you can invest 10 hours of your time to produce a product and then enjoy far more income than you would normally receive for the same number of hours you went to work.Types of passive residual income There are several ways you can generate passive residual income through your business or simply through your creativity. The types of residual income you can produce include:CommissionsCommissions refer to income obtained as a percentage of the total amount of a sale, whether directly or from the sales of referrals. This is the type of income that sales people, network marketers and insurance agents generate. As a consequence of direct sales, however, commissions may be limited by how much you sell. Although your income will increase from your commissions from referrals, it will also be affected by how fast and how well your referrals can generate sales.Copyright and royaltyA copyright fee refers to the payment for the right to use and reproduce an original work, whether it's a document, software, image, electronic data, music or video. If your work is protected by copyright, you have legal control over its use. Royalty refers to the income obtained from the sale of books, music or an invention. This comes in the form of a percentage from the income or total amount.SubscriptionYou can create passive residual income by offering subscriptions for your articles, newsletters or premium content from your blog or website. Even though you've completed the task of writing the article, you will still be able to receive payment long after you've published or posted it.Rentals and leasesIf you have assets that you can offer to people to use or rent, you could earn passive residual income on a regular basis. An example of this is land, a natural resource that you can offer for others to use, for a fee.InterestIf you place your money on investments or a savings account, you will be able to earn interest after a definite time period. This type of passive residual income pays well provided you know where to invest your money. Although regular investments and savings are usually enough to earn you a decent amountHealth Fitness Articles, you could place your money in high-yielding investments to earn more.
Source: Free Articles from ArticlesFactory.com
Daegan Smith Is And Expert Online Marketer"Wanna Lean The Secret To Making $85,147,717Per Month While Quickly And Easily EXPLODINGYour Network Marketing Organization by 7,141People Without EVER Buying Or Calling aSingle Stinking Lead?" Free CD Explains All:==> http://www.easymlmprofits.com
Not every business can make use of passive residual income, however. If you're involved in the retail of one-time-use products such as perishable consumer goods, for example, you may not have the opportunity to enjoy the benefits of residual income. To use it to your advantage, learn what it is and understand how it works.What is passive residual income?Passive residual income refers to the type of income you can generate from a completed task, project or product. It's called passive because the business owner does not have to do additional or sustained work in order to keep the income coming. This, irregardless of the initial amount of work you placed into the project. A traditional form of income, on the other hand, will only pay you commensurate to the amount of work you have done. If you get paid $50 per hour for offering computer system maintenance and technical support, for example, that's all you get for working 60 minutes straight. With residual income, you can invest 10 hours of your time to produce a product and then enjoy far more income than you would normally receive for the same number of hours you went to work.Types of passive residual income There are several ways you can generate passive residual income through your business or simply through your creativity. The types of residual income you can produce include:CommissionsCommissions refer to income obtained as a percentage of the total amount of a sale, whether directly or from the sales of referrals. This is the type of income that sales people, network marketers and insurance agents generate. As a consequence of direct sales, however, commissions may be limited by how much you sell. Although your income will increase from your commissions from referrals, it will also be affected by how fast and how well your referrals can generate sales.Copyright and royaltyA copyright fee refers to the payment for the right to use and reproduce an original work, whether it's a document, software, image, electronic data, music or video. If your work is protected by copyright, you have legal control over its use. Royalty refers to the income obtained from the sale of books, music or an invention. This comes in the form of a percentage from the income or total amount.SubscriptionYou can create passive residual income by offering subscriptions for your articles, newsletters or premium content from your blog or website. Even though you've completed the task of writing the article, you will still be able to receive payment long after you've published or posted it.Rentals and leasesIf you have assets that you can offer to people to use or rent, you could earn passive residual income on a regular basis. An example of this is land, a natural resource that you can offer for others to use, for a fee.InterestIf you place your money on investments or a savings account, you will be able to earn interest after a definite time period. This type of passive residual income pays well provided you know where to invest your money. Although regular investments and savings are usually enough to earn you a decent amountHealth Fitness Articles, you could place your money in high-yielding investments to earn more.
Source: Free Articles from ArticlesFactory.com
Daegan Smith Is And Expert Online Marketer"Wanna Lean The Secret To Making $85,147,717Per Month While Quickly And Easily EXPLODINGYour Network Marketing Organization by 7,141People Without EVER Buying Or Calling aSingle Stinking Lead?" Free CD Explains All:==> http://www.easymlmprofits.com
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