Best Tools to Digitize Your Finances

It’s certainly no secret that almost everything these days has gone digital. Pretty much anything you want or need to do, can now be done on your laptop or smartphone quickly and easily. With endless amounts of online tools, electronic options and smartphone apps, driving to the bank to manage your finances is becoming nearly primitive. Completely digitizing your finances can help make your life easier, here are the best online tools to use.

Almost every bank (especially major ones) have online websites to utilize. Not only will you be saving stress with checking the mail and sending in bills on time, you will also be helping to save the planet and be kind to the Earth. Online banking tools include both direct deposits as well as bill pay.

Direct deposit: Direct deposit means that your paycheck will be automatically sent to your checking account. This will ensure that your paycheck is never lost or stolen, you can avoid trips to the bank, your money is always deposited even if you forget (which is unlikely) and some banks even offer discounts or free checking accounts that use direct deposit.

Pay Bills: Automatic bill pay is an awesome digital tool to help manage finances because it makes payments nearly instant so you don’t have to worry about sending in bills to get there on time, or spend money on postage. You will be reminded of when your bills are due, you can transfer funds quickly an easily and you can also use recurring payments.

Financial planning: Managing your money has become easier with digital tools that aim to help simplify your financial life. You can formulate a financial plan and keep track of your finances through a number of online devices. Bookkeeping through virtual sites like Quicken can help you organize your expenses into categories and track your income as well. You no longer have to use a bank book or paper bills and checks. Simply plan out your finances in an easy and simple manner using online tools.

Budgeting: Keeping a budget would be much more difficult if digital sites weren’t around. There are a number of websites that help you create and track your spending and saving, making it much easier to track where your money is going, and stick to a budget. Free online budget sites include Mint.com and Geezeo.com, and they can help you track spending, saving and investments. Anyone can become a master money manager with these digital tools.

Mobile Apps- You don’t have to be sitting at a computer to manage your finances. With smartphone apps catering to almost everything and anything these days, there are plenty to help you digitize your money on the go. Many banks offer a number of ways to use smartphone applications to bank from your phone. With these apps you can make transactions, text banking options and find bank and ATM locations near you via geo-location tracking.

Manilla.com- This secure online and mobile service is an award-winning digital tool to help you manage everything from bills and accounts, to household utilities and magazine subscriptions. Manilla.com is a one-stop place where consumers can see all of their expenses in a single spot, and can even use sites like Netflix and Groupon to make life easier. A great feature of this website is that is provides free, unlimited online document storage which automatically organizes, stores and pulls account documents. This amazing digital tool also sends automatic email or text message reminders to you when your bills are almost due, when its time to use a Groupon or LivingSocial voucher, or when your travel points are about to expire. Not only does this website help you stay up to date on all of your payments as well as keep all of your money in order, it also has amazing smartphone apps for the iPhone and Android.

Credit Sesame- Credit Sesame is a free online service to help consumers track and manage credit and debt. This digital tool provides automatic loan and debt tracking tools that will help consumers better manage money and know where their finances are. A great feature of this online instrument, is that after you sign up, the site automatically pulls your information to show you your free credit score. Managing credit and debt has never been easier with this site, and it’s a great way to ensure you are taking care of managing your money in the right way.

Landscape of the Last 20 Years’ Infrastructural Financing in India

In this article following two major points are discussed to understand the whole scenario.

(1) Trend and Initiative of the Budgetary Support and Institutional Borrowings -

The system of managing and financing infrastructural facilities has been changing significantly since the mid-eighties. The Eighth Plan (1992-97) envisaged cost recovery to be built into the financing system. This has further been reinforced during the Ninth Plan period (1997-2002) with a substantial reduction in budgetary allocations for infrastructure development. A strong case has been made for making the public agencies accountable and financially viable. Most of the infrastructure projects are to be undertaken through institutional finance rather than budgetary support. The state level organisations responsible for providing infrastructural services, metropolitan and other urban development agencies are expected to make capital investments on their own, besides covering the operational costs for their infrastructural services. The costs of borrowing have gone up significantly for all these agencies over the years. This has come in their way of their taking up schemes that are socially desirable schemes but are financially less or non-remunerative. Projects for the provision of water, sewerage and sanitation facilities etc., which generally have a long gestation period and require a substantial component of subsidy, have, thus, received a low priority in this changed policy perspective.

Housing and Urban Development Corporation (HUDCO), set up in the sixties by the Government of India to support urban development schemes, had tried to give an impetus to infrastructural projects by opening a special window in the late eighties. Availability of loans from this window, generally at less than the market rate, was expected to make state and city level agencies, including the municipalities, borrow from Housing and Urban Development Corporation. This was more so for projects in cities and towns with less than a million populations since their capacity to draw upon internal resources was limited.

Housing and Urban Development Corporation finances even now up to 70 per cent of the costs in case of public utility projects and social infrastructure. For economic and commercial infrastructure, the share ranges from 50 per cent for the private agencies to 80 per cent for public agencies. The loan is to be repaid in quarterly installments within a period of 10 to 15 years, except for the private agencies for whom the repayment period is shorter. The interest rates for the borrowings from Housing and Urban Development Corporation vary from 15 per cent for utility infrastructure of the public agencies to 19.5 per cent for commercial infrastructure of the private sector. The range is much less than what used to be at the time of opening the infrastructure window by Housing and Urban Development Corporation. This increase in the average rate of interest and reduction in the range is because its average cost of borrowing has gone up from about 7 per cent to 14 per cent during the last two and a half decade.

Importantly, Housing and Urban Development Corporation loans were available for upgrading and improving the basic services in slums at a rate lower than the normal schemes in the early nineties. These were much cheaper than under similar schemes of the World Bank. However, such loans are no longer available. Also, earlier the Corporation was charging differential interest rates from local bodies in towns and cities depending upon their population size. For urban centres with less than half a million population, the rate was 14.5 per cent; for cities with population between half to one million, it was 17 per cent; and a huge number of cities, it was 18 per cent. No special concessional rate was, however, charged for the towns with less than a hundred or fifty thousand population that are in dire need of infrastructural improvement, as discussed above.

It is unfortunate, however, that even this small bias in favour of smaller cities has now been given up. Further, Housing and Urban Development Corporation was financing up to 90 per cent of the project cost in case of infrastructural schemes for ‘economically weaker sections’ which, too, has been discontinued in recent years.

Housing and Urban Development Corporation was and continues to be the premier financial institution for disbursing loans under the Integrated Low Cost Sanitation Scheme of the government. The loans as well as the subsidy components for different beneficiary categories under the scheme are released through the Corporation. The amount of funds available through this channel has gone down drastically in the nineties.

Given the stoppage of equity support from the government, increased cost of resource mobilisation, and pressure from international agencies to make infrastructural financing commercially viable, Housing and Urban Development Corporation has responded by increasing the average rate of interest and bringing down the amounts advanced to the social sectors. Most significantly, there has been a reduction in the interest rate differentiation, designed for achieving social equity.

An analysis of infrastructural finances disbursed through Housing and Urban Development Corporation shows that the development authorities and municipal corporations that exist only in larger urban centres operate have received more than half of the total amount. The agencies like Water Supply and Sewerage Boards and Housing Boards, that have the entire state within their jurisdiction, on the other hand, have received altogether less than one third of the total loans. Municipalities with less than a hundred thousand population or local agencies with weak economic base often find it difficult to approach Housing and Urban Development Corporation for loans. This is so even under the central government schemes like the Integrated Development of Small and Medium Towns, routed through Housing and Urban Development Corporation, that carry a subsidy component. These towns are generally not in a position to obtain state government’s guarantee due to their uncertain financial position. The central government and the Reserve Bank of India have proposed restrictions on many of the states for giving guarantees to local bodies and para-statal agencies, in an attempt to ensure fiscal discipline.

Also, the states are being persuaded to register a fixed percentage of the amount guaranteed by them as a liability in their accounting system. More importantly, in most of the states, only the para-statal agencies and municipal corporations have been given state guarantee with the total exclusion of smaller municipal bodies. Understandably, getting bank guarantee is even more difficult, specially, for the urban centres in less developed states and all small and medium towns.

The Infrastructure Leasing and Financial Services (ILFS), established in 1989, are coming up as an important financial institution in recent years. It is a private sector financial intermediary wherein the Government of India owns a small equity share. Its activities have more or less remained confined to development of industrial-townships, roads and highways where risks are comparatively less. It basically undertakes project feasibility studies and provides a variety of financial as well as engineering services. Its role, therefore, is that of a merchant banker rather than of a mere loan provider so far as infrastructure financing is considered and its share in the total infrastructural finance in the country remains limited.

Infrastructure Leasing and Financial Services has helped local bodies, para-statal agencies and private organisations in preparing feasibility reports of commercially viable projects, detailing out the pricing and cost recovery mechanisms and establishing joint venture companies called Special Purpose Vehicles (SPV).

Further, it has become equity holders in these companies along with other public and private agencies, including the operator of the BOT project. The role of Infrastructure Leasing and Financial Services may, thus, be seen as a promoter of a new perspective of development and a participatory arrangement for project financing. It is trying to acquire the dominant position for the purpose of influencing the composition of infrastructural projects and the system of their financing in the country.

Mention must be made here of the Financial Institutions Reform and Expansion (FIRE) Programme, launched under the auspices of the USAID. Its basic objective is to enhance resource availability for commercially viable infrastructure projects through the development of domestic debt market. Fifty per cent of the project cost is financed from the funds raised in US capital market under Housing Guaranty fund. This has been made available for a long period of thirty years at an interest rate of 6 percent, thanks to the guarantee from the US-Congress.

The risk involved in the exchange rate fluctuation due to the long period of capital borrowing is being mitigated by a swapping arrangement through the Grigsby Bradford and Company and Government Finance Officers’ Association for which they would charge an interest rate of 6 to 7 percent. The interest rate for the funds from US market, thus, does not work out as much cheaper than that raised internally.

The funds under the programme are being channelled through Infrastructure Leasing and Financial Services and Housing and Urban Development Corporation who are expected to raise a matching contribution for the project from the domestic debt market. A long list of agenda for policy reform pertaining to urban governance, land management, pricing of services etc. have been proposed for the two participating institutions. For providing loans under the programme, the two agencies are supposed to examine the financial viability or bankability of the projects. This, it is hoped, would ensure financial discipline on the part of the borrowing agencies like private and public companies, municipal bodies, para-statal agencies etc. as also the state governments that have to stand guarantee to the projects. The major question, here, however is whether funds from these agencies would be available for social sectors schemes that have a long gestation period and low commercial viability.

Institutional funds are available also under Employees State Insurance Scheme and Employer’s Provident Fund. These have a longer maturity period and are, thus, more suited for infrastructure financing. There are, however, regulations requiring the investment to be channeled in government securities and other debt instruments in a ‘socially desirable’ manner. Government, however, is seriously considering proposals to relax these stipulations so that the funds can be made available for earning higher returns, as per the principle of commercial profitability.

There are several international actors that are active in the infrastructure sector like the Governments of United Kingdom (through Department for International Development), Australia and Netherlands. These have taken up projects pertaining to provision of infrastructure and basic amenities under their bilateral co-operation programmes. Their financial support, although very small in comparison with that coming from other agencies discussed below, has generally gone into projects that are unlikely to be picked up by private sector and may have problems of cost recovery. World Bank, Asian Development Bank, OECF (Japan), on the other hand, are the agencies that have financed infrastructure projects that are commercially viable and have the potential of being replicated on a large scale. The share of these agencies in the total funds into infrastructure sector is substantial. The problem, here, however, is that the funds have generally been made available when the borrowing agencies are able to involve private entrepreneurs in the project or mobilise certain stipulated amount from the capital market. This has proved to be a major bottleneck in the launching of a large number of projects. Several social sector projects have failed at different stages of formulation or implementation due to their long payback period and uncertain profit potential. These projects also face serious difficulties in meeting the conditions laid down by the international agencies.

(2) Trend and Initiative of the Borrowings by Government and Public Undertakings from Capital Market -

A strong plea has been made for mobilising resources from the capital market for infrastructural investment. Unfortunately, there are not many projects in the country that have been perceived as commercially viable, for which funds can easily be lifted from the market.

The weak financial position and revenue sources of the state undertakings in this sector make this even more difficult. As a consequence, innovative credit instruments have been designed to enable the local bodies tap the capital market.

Bonds, for example, are being issued through institutional arrangements in such a manner that the borrowing agency is required to pledge or escrow certain buoyant sources of revenue for debt servicing. This is a mechanism by which the debt repayment obligations are given utmost priority and kept independent of the overall financial position of the borrowing agency. It ensures that a trustee would monitor the debt servicing and that the borrowing agency would not have access to the pledged resources until the loan is repaid.

The most important development in the context of investment in infrastructure and amenities is the emergence of credit rating institutions in the country. With the financial markets becoming global and competitive and the borrowers’ base increasingly diversified, investors and regulators prefer to rely on the opinion of these institutions for their decisions. The rating of the debt instruments of the corporate bodies, financial agencies and banks are currently being done by the institutions like Information and Credit Rating Agency of India (ICRA), Credit Analysis and Research (CARE) and Credit Rating Information Services of India Limited (CRISIL) etc. The rating of the urban local bodies has, however, been done so far by only Information and Credit Rating Agency of India, that too only since 1995-96.

Given the controls of the state government on the borrowing agencies, it is not easy for any institution to assess the ‘unctioning and managerial capabilities’ of these agencies in any meaningful manner so as to give a precise rating. Furthermore, the ‘present financial position’ of an agency in no way reflects its strength or managerial efficiency. There could be several reasons for the revenue income, expenditure and budgetary surplus to be high other than its administrative efficiency. Large sums being received as grants or as remuneration for providing certain services could explain that. The surplus in the current or capital account cannot be a basis for cross-sectional or temporal comparison since the user charges permitted by the state governments may vary.

More important than obtaining the relevant information, there is the problem of choosing a development perspective. The rating institutions would have difficulties in deciding whether to go by measures of financial performance like total revenue including grants or build appropriate indicators to reflect managerial efficiency. One can possibly justify the former on the ground that for debt servicing, what one needs is high income, irrespective of its source or managerial efficiency. This would, however, imply taking a very short-term view of the situation. Instead, if the rating agency considers level of managerial efficiency, structure of governance or economic strength in long-term context, it would be able to support the projects that may have debt repayment problems in the short run but would succeed in the long run.

The indicators that it may then consider would pertain to the provisions in state legislation regarding decentralisation, stability of the government in the city and the state, per capita income of the population, level of industrial and commercial activity etc. All these have a direct bearing on the prospect of increasing user charges in the long run. The body, for example, would be able to generate higher revenues through periodic revision of user-charges, if per capita income levels of its residents are high.

The rating agencies have, indeed, taken a medium or long-term view, as may be noted from the Rating Reports of various public undertakings in the recent past. These have generally based their rating on a host of quantitative and qualitative factors, including those pertaining to the policy perspective at the state or local level and not simply a few measurable indicators.

The only problem is that it has neither detailed out all these factors nor specified the procedures by which the qualitative dimensions have been brought within the credit rating framework, without much ambiguity.

Alternative Financing Vs. Venture Capital: Which Option Is Best for Boosting Working Capital?

There are several potential financing options available to cash-strapped businesses that need a healthy dose of working capital. A bank loan or line of credit is often the first option that owners think of – and for businesses that qualify, this may be the best option.

In today’s uncertain business, economic and regulatory environment, qualifying for a bank loan can be difficult – especially for start-up companies and those that have experienced any type of financial difficulty. Sometimes, owners of businesses that don’t qualify for a bank loan decide that seeking venture capital or bringing on equity investors are other viable options.

But are they really? While there are some potential benefits to bringing venture capital and so-called “angel” investors into your business, there are drawbacks as well. Unfortunately, owners sometimes don’t think about these drawbacks until the ink has dried on a contract with a venture capitalist or angel investor – and it’s too late to back out of the deal.

Different Types of Financing

One problem with bringing in equity investors to help provide a working capital boost is that working capital and equity are really two different types of financing.

Working capital – or the money that is used to pay business expenses incurred during the time lag until cash from sales (or accounts receivable) is collected – is short-term in nature, so it should be financed via a short-term financing tool. Equity, however, should generally be used to finance rapid growth, business expansion, acquisitions or the purchase of long-term assets, which are defined as assets that are repaid over more than one 12-month business cycle.

But the biggest drawback to bringing equity investors into your business is a potential loss of control. When you sell equity (or shares) in your business to venture capitalists or angels, you are giving up a percentage of ownership in your business, and you may be doing so at an inopportune time. With this dilution of ownership most often comes a loss of control over some or all of the most important business decisions that must be made.

Sometimes, owners are enticed to sell equity by the fact that there is little (if any) out-of-pocket expense. Unlike debt financing, you don’t usually pay interest with equity financing. The equity investor gains its return via the ownership stake gained in your business. But the long-term “cost” of selling equity is always much higher than the short-term cost of debt, in terms of both actual cash cost as well as soft costs like the loss of control and stewardship of your company and the potential future value of the ownership shares that are sold.

Alternative Financing Solutions

But what if your business needs working capital and you don’t qualify for a bank loan or line of credit? Alternative financing solutions are often appropriate for injecting working capital into businesses in this situation. Three of the most common types of alternative financing used by such businesses are:

1. Full-Service Factoring – Businesses sell outstanding accounts receivable on an ongoing basis to a commercial finance (or factoring) company at a discount. The factoring company then manages the receivable until it is paid. Factoring is a well-established and accepted method of temporary alternative finance that is especially well-suited for rapidly growing companies and those with customer concentrations.

2. Accounts Receivable (A/R) Financing – A/R financing is an ideal solution for companies that are not yet bankable but have a stable financial condition and a more diverse customer base. Here, the business provides details on all accounts receivable and pledges those assets as collateral. The proceeds of those receivables are sent to a lockbox while the finance company calculates a borrowing base to determine the amount the company can borrow. When the borrower needs money, it makes an advance request and the finance company advances money using a percentage of the accounts receivable.

3. Asset-Based Lending (ABL) – This is a credit facility secured by all of a company’s assets, which may include A/R, equipment and inventory. Unlike with factoring, the business continues to manage and collect its own receivables and submits collateral reports on an ongoing basis to the finance company, which will review and periodically audit the reports.

In addition to providing working capital and enabling owners to maintain business control, alternative financing may provide other benefits as well:

It’s easy to determine the exact cost of financing and obtain an increase.
Professional collateral management can be included depending on the facility type and the lender.
Real-time, online interactive reporting is often available.
It may provide the business with access to more capital.
It’s flexible – financing ebbs and flows with the business’ needs.

It’s important to note that there are some circumstances in which equity is a viable and attractive financing solution. This is especially true in cases of business expansion and acquisition and new product launches – these are capital needs that are not generally well suited to debt financing. However, equity is not usually the appropriate financing solution to solve a working capital problem or help plug a cash-flow gap.

A Precious Commodity

Remember that business equity is a precious commodity that should only be considered under the right circumstances and at the right time. When equity financing is sought, ideally this should be done at a time when the company has good growth prospects and a significant cash need for this growth. Ideally, majority ownership (and thus, absolute control) should remain with the company founder(s).

Alternative financing solutions like factoring, A/R financing and ABL can provide the working capital boost many cash-strapped businesses that don’t qualify for bank financing need – without diluting ownership and possibly giving up business control at an inopportune time for the owner. If and when these companies become bankable later, it’s often an easy transition to a traditional bank line of credit. Your banker may be able to refer you to a commercial finance company that can offer the right type of alternative financing solution for your particular situation.

Understanding Working Capital Financing Options For Franchises

One of the oldest adages regarding starting and running a franchise is the answer to a common question; “What are the three most important aspects of a successful business?” and that answer is – “location, location, location.”

Which is great when you are just starting out and want to ensure that your business – your franchise – is located where the largest amount of your potential customers are (or, where they are most likely to find your business).

However, after finding the perfect location, launching your business and drawing all those potential consumers to your company – then what? How do you ensure that your business can service them all – can keep them happy and satisfied with your products or services?

Launching a business in the perfect location is a great first start – but, it is only the start. After your business is up and running, that is when the hard work really begins.

A retail franchise has to not only ensure that it has the inventory on hand to meet customers needs but it also has to continuously reinvent its inventory mix to meet those same customer’s expectation – bringing them back over and over again.

A service franchise business not only has to offer services that customers are willing to pay for (not just do themselves) but has to have the supplies and labor on hand to meet that demand and be flexible enough to service each customer’s individual needs across any level of demand.

And, a retail manufacturer has to ensure a ready and constant supply of raw materials to meet the demand for its products – regardless if that demand is up or down.

In essence, this means that the franchise has to ensure that its operations are flexible enough to overcome and eventually satisfy any and all customer needs.

How this is done, however, is by asking another question; “What are the three most important aspects of running a successful business?” and the answer is – “working capital, working capital, working capital.”

What Is Working Capital?

Working capital is essentially the life blood of a business – any business including franchises. If you compare your business to a vehicle (car, truck, motorcycle, big rig, etc), it is one thing to buy or own an automobile but it is the another to make that vehicle go down the road – getting you from point “A” to point “B”. To do this, you need a form of fuel – gas, diesel, electricity, bio-fuels, etc. Without that fuel, your vehicle will just sit around collecting dust.

In business, in order to make your company operate efficiently, you also have to add fuel to it – in the form of working capital – to get it from point “A” to point “B” or from start up to growth or growth to expansion or expansion to success.

Working capital can come in many forms from acquiring (financing or obtaining) inventory or raw materials to obtaining or having the cash on hand to pay needed labor, utilities and even rent.

Image a franchise (let’s call it “Any Time Tools and Machines”) lands a new, big customer that wants to buy $1 million dollars worth of the services it offers (providing tools and machines for huge construction projects) – but it doesn’t have enough of those tools and machines on hand for this job and cannot afford to get more right now to complete that job – which would take some $100,000 in additional rented or leases equipment. The franchise cannot consciously agree to that job and thus that customer takes that $1 million elsewhere.

Or, a residential blinds installation franchise gets a contract to install blinds and shades in a newly constructed apartment complex that needs to be completed in the next 30 days but will not get paid for the job for another 60 days when the apartment complex does its final closing. However, the franchise has to turn down this $250,000 job because it does not have or cannot afford the labor needed to complete the installation in the next 30 days (because that new labor will need – by law – to be paid before the 60 day apartment closing and subsequent payment for the franchise’s services).

Since the beginning of time, businesses have faced working capital short-falls that have essentially destroyed their companies. These businesses have done everything correctly up to that fatal point. They have driven customers to their companies and provided the products or services those consumers wanted. Yet, because of poor working capital management, they get more customers than the have the capital on had to service and are forced to turn those patrons away – not only losing that business but creating a negative impression in the community that keeps other, new customers at bay (not to mention the business that agrees to a job or order and cannot fulfill it and consequently gets sued to death for it).

How Franchisees Finance Their Working Capital Needs

1) Traditional Business Loans. Banks have great financing program for franchise businesses. But, when it comes to working capital, the best product they offer is their revolving lines of credit – either secured by the financial assets of the business like accounts receivables or inventory or unsecured focused only on the business’s revenue or cash flow.

Either way, these commercial lines of credit work just like big credit cards (without the super high interest rates). Thus, your business can establish a line of credit that it can draw on when needed, satisfy its working capital needs to complete a job or sale, then with the proceeds from that order, pay back the line and do it all over again when needed – the key here with lines of credit is that you only have to use it when you want to use it and only pay (interest) on what you do use (besides the annual fee).

If your franchise can qualify, a bank line of credit is your best working capital option today.

According to the SBA’s Office of Advocacy;

“How are franchises financed?

Existing employer franchises finance expansion using the same financial tools as other businesses, but startup franchises are more likely to use a commercial bank loan. (37.8 percent of franchises versus 23.1 percent of all employer startups used a bank loan.)”

And, it is not just banks that provide these working capital choices as some credit unions do as well as the Small Business Administration (SBA) who can guarantee these credit lines under their 7(a) loan program.

2) Alternative Business Lenders. Working capital is what the bulk of the alternative lenders do – all to provide your franchise with the operating capital it needs from inventory, materials, labor or whatever operating need is required.

There are essentially 3 types of alternative loans for working capital:

Factoring Receivables: Many times, businesses that invoice their customers for payment have to wait for those customers to pay – sometime 30 days, 60 days or more. But, those same businesses face their own capital challenges like having to pay employees, buy additional inventory or supplies or starting the next job or order – yet not have the money on hand to do so until those invoiced customers pay.

However, accounts receivable factoring companies will advance up to 90% of those outstanding invoice amounts so that your business can move forward. Then, when your customers do pay, you pay back the advance, keeping the remaining 10% – less a factoring fee.

Purchase Order Financing: Remember our “Any Time Tools and Machines” franchise that needed capital to get – say on loan or lease – machines to complete a huge $1 million dollar job but did not have any way of doing so.

Well, that franchise could have still signed that job order then taken that order to a purchase order financing company and received the needed $100,000 – the full 100% of what it needed to complete that job.

Then, when the job was completed and the franchise got paid, it could repay the financing company the $100,000 advance and a small financing fee and not have lost out on that highly profitable job.

Cash Advances: Let’s say that a retail franchise operation has already purchased the inventory it will sell over the upcoming summer season – it submitted and paid for these orders months ago to ensure that it would get its orders fulfilled by its suppliers in time.

However, a few days before the summer season kicks off – after the company has already spent its current allotment of working capital on its inventory but before it could sell any of those products for revenue – a new fade (for its market) becomes a national frenzy – forcing its competitions to scramble to get products for his new fade.

Yet, without additional working capital or a way to get it, this business will lose out on this fade and the profits that come with the high impulse and emotional consumer buying that follow these frenzies.

Now, this franchise does not have accounts receivables to factor nor does it have purchase orders on hand as its consumers do not make large advanced purchases.

But, since the business does earn revenue month after month – it can receive a cash advance against future sales – then use that advance to buy the new fade products.

Then, as it sells those products over the next few months, the financing company will simply take micro payments – usually daily – from those sales until the advance is paid in full – plus a small fee.

Here, the franchise could receive an advance against the amount of average monthly sales its earns via customer’s credit and debit card purchases (called Business or Merchant Cash Advances) or could receive an advance against its entire monthly revenue averages (called Bank Statement Loans or Revenue Based Loans) – essentially solving this franchises working capital problem in a matter of days.

3) Plow Back. Now, if your only option is to use outside financing for your business, then bank lines of credit or alternative financing are your best options.

However, you can – and should – manage your operations and your revenue in such a way that you can internally finance your own working capital requirements.

It simply works this way: Your franchise earns say $20,000 top line revenue per month. However, after paying direct costs as well as overhead expenses for salaries, marketing and general administration costs, it has net operating income (after taxes and interest) of say $7,000 – $7,000 that it would either use to pay down debt, pay back investors or simply take out of the company.

But, if you also know that your business needs an additional $5,000 per month to handle its future monthly working capital or operational capital needs – then why not hold back that amount from the $7,000 net income and plow it back into the business. Much cheaper to do it this way – using your own money – then to face the added expense of financing your business’s working capital needs.

Did the Bank Bailout Help Small Businesses?

Just as owning a home was assumed to be a positive financial strategy for individuals, small companies owning commercial real estate was typically seen as a routine and constructive piece of their commercial financing during the period leading up to the most recent financial crisis. Both of these assumptions start to fall apart very quickly when it is difficult or impossible to obtain the underlying real estate loans from banks. Real estate continues to be a major component of the overall economy, and ongoing difficulties involving either obtaining or refinancing commercial mortgage loans presents severe problems for both societal economics in general and small business economics in particular.

Did the Bank Bailout Help Small Businesses?

One of the primary arguments made in favor of bailing out banks in 2008 was that it would permit the restoration of “normal financing” to businesses of all sizes everywhere. Seven years later most small businesses are still waiting for bailout funding to “trickle down” to them. Working capital loans and commercial mortgages are missing in action for many commercial borrowers.

Real estate has regularly been in economic news for both good reasons and bad reasons during the past several decades. Starting around 2005, concerns began appearing about the financial health of both real estate and the overall economy. What we did not know at the time was that banks began making speculative investments in financial derivatives tied to real property at about the same time. Some of these investment practices produced massive losses that precipitated the public banking crisis emerging in 2007 and resulting in a widespread bank bailout program in 2008. Even the few instances in which these derivatives produced profits for the banks proved to be controversial because the profitable investing was frequently at the expense of banking customers.

Zombie Banks and Troubled Banks

Here are two of the real estate and banking problems that are still very actively impairing the small business economy:

Zombie Banks are still operating – a Zombie Bank is one with a negative net worth (liabilities exceeding assets).
The FDIC (Federal Deposit Insurance Corporation) Troubled Banks List still has more than 200 banking institutions on the list.

It is worth noting that the FDIC does not publicize the problem bank list or name specific banks on the list – probably fearing a “run on the banks” if they did so. The recent “bank holiday” in Greece illustrates how quickly bank depositors can lose confidence in banking institutions. But the FDIC does release the number of banks on their troubled bank list on a quarterly basis. For example, the March 2015 total of problem banks as defined by the FDIC was 253. In comparison, the total was more than 850 banks at the peak of the recent financial crisis – but there were less than 50 troubled banks before the 2008 bank bailouts.

What to Do When Banks Say No

Small business owners must draw their own conclusions about the current financial health of banks, but it seems unlikely that a “Troubled Bank” will be able to make a “normal” level of small business loans. If banks are still saying “No” to routine commercial financing for creditworthy small businesses, what is the recommended response? Small business owners should actively review alternatives that include non-bank financing, reducing business debt and increasing sales with cost-effective solutions such as business proposal writing. At some point the practical need to fire their bank and banker will by necessity become one of the realistic actions by a commercial borrower in need of business financing but unable to obtain it from their current banking institution. In such a scenario, “You’re fired” can quickly become another example of life imitating art.

Racing Awards, Medals and Customized Gear for Runners

Running, whether it be a 5k with the family, a 10k for an extra challenge, or a marathon for the elite runners, can be a very exciting and memorable experience. Running is a very personal sport to lots of people, as it can be great exercise and can make you look and feel very refreshed. Tons of awards are given out to winners at races each year. For people organizing these racing events, finding customized and personal running gear can be difficult, as well as finding unique prizes for running champions. When orchestrating a race, you want to have a memorable competition. Medals and unique prizes can help to make the race more exciting. Participants can keep prizes as souvenirs, and remember the experience better because of a keepsake.
The most important souvenir a competitor can take home is a winning medal. Those are worn with pride, and showed to family members and friends. They are often hung on walls, or shown off where they can be seen. Of course, medals need to be personalized, unique, and specific. You cannot award a running champion with a medal that doesn’t recognize what it’s for. It is often a perfect idea to find a company that will provide you with customized prizes for winners. Often, you can ask for customized medals that include the date, the name of the race, and the name of the company sponsoring and orchestrating the event. That way, when people proudly show their winning medal to others, the people who made the event happen will receive the credit and publicity they deserve.

In addition to medals, running apparel and gear can be a great way to make the race more memorable. Unlike medals, gear is commonly worn and would be used often. Passing out swag, such as customized shirts, jackets, hats, and bags can be a great way to add to the excitement of the race. Races with their own gear are viewed as more unique, as they have customized logos and attractive designs. Shirts can be given out to families, and jackets can be sold at the finish line. Hats can be passed out before the race to keep the sun out of the athlete’s eyes. And, of course, bags can be kept forever and used for multiple occasions. Having the name and date of your race on these items can help to increase publicity and help the runners remember what a successful and memorable race it was. Customizing these mementos can help to define a great race, and will definitely help a race to be more exciting and enjoyable.

Gamble on Line – Possess these Various Advantages for your own

There Really are assorted kinds of games and sports which can be found around the world and human beings possess significant interest within them. There’s simply no uncertainty at the simple fact this one among the absolute most essential explanations for why the games and sports really are all important to this public is on account to how those toss some type of troubles .

There Is just 1 particular certain form of video sport which likewise causes it to be into this set of their treasured games which people are able to playwith. And it’s also not any aside from betting. Betting fulfilling the exact same and is exactly about challenges. There are areas. But once again if it regards betting on line the huge benefits really are far a great deal greater than that which it’s possible to see right now.

Now you Must definitely make certain which you’re choosing the optimal/optimally internet web sites as a way to acquire through together using the practice of betting absolutely. And this is what’s going to offer a great deal of benefits to you.

A Variety of Benefits of gaming Internet:

After Would be the numerous benefits of betting on line that individuals have to be mindful of:

· Convenience:

Comfort Is decidedly among the greatest explanations. Here really is some thing which functions being a boon because you aren’t going to need to go everywhere whatsoever.

· Engage in every time you enjoy:

This Is another benefit that is important you have to know of. The internet singapore casino has ever let exactly the exact same as properly. You may be certain you are surely becoming to engage in midnight or sunrise much.

? Perform from anyplace:

Now you Maybe in almost also you also may adore the access to the games online and virtually any nation.

Each of In making certain you’re receiving through, These items can help you With the consequences for on line.

Coloring Pages Growing Horizons Of Kids

Children are amazing. They know whatever they are taught. If You wish to enhance the horizon of one’s children, and it’s time to get them participated together with coloring pages. Yes, even they all are on line pages that offer many different ways to bring the hidden talent in your kids. These coloring pages comprises of exceptional lessons that are conveyed at a manner that is fundamental to enable kids to grasp.

Coloring Pages – Benefitting Childrem

Worrying concerning the cost in Association? Chill, as they truly have been available at no price tag. Furthermore, you need to stay away from the stress of shopping for exceptionally costly gadgets that are educational. Everything you will need to have is your distribution for your own printer. It can open the pathway for both kiddies to take high benefits in association with internet colouring pages.

You must be wondering why children Have to Be included in coloring. The main reason is that coloring an image will absolutely control the entire attention of one’s kid. They is going to be in a favorable position to concentrate regarding completing their work followed closely by presenting the most useful finished merchandise.

Parents Can Be Getting Brief Repite

Additionally, Mom and Dad Will Have the Ability to Acquire short respite as your Children will probably undoubtedly be coloring pages which is really a funny exercise. On the web coloring pages have been well known to give children several of the best educational gains entirely. They is going to soon be memorizing numbers along side titles of veggies as well as creatures.

More vulnerability to coloring, simple will probably be learning methodology. Kiddies will secure a chance to fortify the coordination between eye and hand . Since they’ll be learning to color lines, abilities will grow in a ultimate manner. Psychologists state that coloring offers an insight into emotions of children in an imaginative way.

Which exactly are you thinking? Involve your kids with coloring Pages in the earliest.

Types of Wood Siding Available for Homeowners

When building your home, even the smallest decision could make a world of difference in what it ultimately looks like. This is also true when undertaking an exterior redesign project. Siding, among other key characteristics, is one of those big decisions that could entirely alter your home’s exterior appeal based on your decision.
Although plastic siding has become a popular option in recent years due to pricing, traditional wood siding remains the preference for many homeowners. This is because wood siding offers customers numerous benefits over their plastic counterparts. Benefits include:

• Wood siding is eco-friendlier than plastic

• Wood is more aesthetically appealing

• Many types of wood are naturally resistant to mold, mildew, and rot, which allows the home owner less maintenance

• Wood lasts longer

• …And much more

One of the main benefits is that wood naturally takes to paint, stains, and other decorative options incredibly well. Plastic, on the other hand, often must be crafted in the customer’s color choice – meaning that options are limited. Once decided upon a type of wood siding, however, you can then choose any type of finish. Whether you want to paint your home the colors of the rainbow, or opt for a natural dark wood stain, anything is possible. Below we look at four of the most commonly used types of siding available: board and batten siding, bevel, tongue and groove, and lap siding. Each has their own aesthetic appeal so that there is something for every person’s unique tastes.

Board and Batten Siding

Board and batten siding is a vertical design created by using two different sized boards. The wider boards are set beneath, while the narrower boards are placed atop the joins. These narrower boards are called ‘battens.’ There are no set widths, so homeowners can choose their preference. The most commonly used measurements, however, are 1 inch by 3 inch battens placed over 1 inch by 10 inch boards.

Bevel Siding

Bevel siding is the most commonly used siding. Installed horizontally, boards are cut at an angle so that one side is thicker than the others. This creates a shingle effect, or the appearance that the boards are overlapping one another. Tongue and Groove Siding Tongue and groove siding is incredibly versatile. Available in both rough and smooth board finishes, it is fitted together tightly to give a sleek appearance. It can be installed in any direction, which does not only include horizontal and vertical, but also diagonal.

Lap Siding

Lap Siding is also known as Channel siding. This siding is very versatile, with installation capabilities for any direction (like the above tongue and groove siding). This unique siding features boards which partially overlap one another, and the ultimate results are a rustic appearance like those of a hunting cabin. If you’re interested in learning even more about wood siding -including less commonly used types available – you can contact your local siding specialist or construction expert. They will be able to give you more detailed information, including a price estimate for your area.

The Best Way You Can Double Your Winning Into Sports Betting?

Have You any idea how much cash is used on sports betting? Well, that’s a significant bit. But regrettably, a lot of the cash is equaled broadly speaking by amateurs who lose. Sports gambling isn’t simply a topic of random probability. It is far much more of the competition with experts. In online betting you can’t provide an explanation that you are a newcomer.
Much like The sport is gaining a massive share. In fact, there is a excellent share of people that have intended to change the gambling sports online betting with their whole time source of income.

To be A winner in sport betting, you have to keep aside your emotions and also follow the following strategies:

· It is all about the chances

The First step of sport gambling lies on what club you will invest your dollars. Take aid. He will certainly place his money onto that team that may give the best outcome.

· Guess by Means of Your head and not heart

Even a Because they utilize their core more than their thoughts number of individuals reduction in sports bet. Betting can be a calculative game. So, you have to understand to figure your own risks and dangers in addition to learn how not to collapse into the snare of these kinds.

· Spend Money on everything you know

Never Invest you don’t understand. This advice should also be followed for sport. Persons have a tendency to bet upon high profile matches. However, the facts is that the actual athletics professionals bet upon the people that are most ignored. This yields to raised outcomes compared to people who gamble on top superior matches.

· Acknowledge your losses

No Matter how skilful you are, you should be ready to just accept your reduction with all the Same spirit in that you simply accept the victory. Afterall, it is a game. Winning And losing is now part of each and every game.