Working capital is something every business needs in order to maintain growth and remain profitable. When a company’s cash flow starts to become unreliable however, they are forced to go to great lengths to reach a comfortable margin for operating, at prices that are difficult to justify. Most commonly, they apply for a bank loan but even if they should be approved, there are high interest rates to contend with. Eventually, some enterprises find that financing their business through loans does them more harm than good, and ends up costing more in the long term. There are ways to run a lucrative business and save money by avoiding money borrowing altogether, so long as there is consistent work. Invoice factoring helps you meet all of your payroll, tax, raw material, and supply costs and helps you cover critical expenses in order to keep your business functioning in a number of key ways, without the hurdles that come with costly loans.

Improved cash flow

Instead of waiting for your customers to pay their outstanding invoices, freight factoring allows you to access immediate cash that you can use to achieve your business objectives instead of waiting 30, 60 or even 90 days to get paid on your outstanding invoices.

Freedom to seize new opportunities

Because cash flow is directly tied to your invoices, factoring allows a third-party company like Accutrac Capital to worry about collecting invoices on your behalf, while you take advantage of new opportunities for growth. Whether it’s new sales and marketing initiatives, new equipment for expansion, or the ability to secure new accounts, factoring frees up your time and labor to focus on growing your business.

A better alternative to bank loans

Many lenders and banks avoid lending to invoice-reliant companies, and often place unrealistic hurdles between you and the money you need to operate. Freight bill factoring offers you the ability to maintain working capital for your business while a third party takes care of the outstanding invoices you are owed. Relying on a factoring company for trucking industry needs is now a commonplace practice, and makes up part of many businesses’ financing strategies.

Additionally, factoring companies offer discounted rates on fuel and currency exchange for clients who take on jobs across the border. They even offer equipment financing for those who wants to grow their fleets but who do not have sufficient enough collateral to be approved by the bank. Partnering with a factoring company allows businesses, and especially start ups, to create positive cash flow when first getting themselves off the ground. They also provide funding for clients where they would not otherwise be eligible, as qualification is based on the credit worthiness of the client’s customers.

The best way to improve cash flow is to choose invoice financing or factoring as an alternative to a commercial line of credit. Paying a small percentage to have outstanding invoices taken care of is worth the opportunities that acquiring your sums upfront can give you. Finally, it alleviates the frustration of dealing with tardy customers, or waiting to get paid (or paying your workers!) and having that be out of your control.

James Hendrickson

James Hendrickson is an internet entrepreneur, blogging junky, hunter and personal finance geek. When he’s not lurking in coffee shops in Portland, Oregon, you’ll find him in the Pacific Northwest’s great outdoors. James has a masters degree in Sociology from the University of Maryland at College Park and a Bachelors degree on Sociology from Earlham College. He loves individual stocks, bonds and precious metals.

www.dinksfinance.com

Just because you’re a small business doesn’t mean that you can’t have a lot of the same advantages of big businesses. Even SMBs today can do business internationally, and that means using a lot of the same tools as a multinational. Learn why even small companies need video conferencing, and why you shouldn’t believe the myths.

Sticker Shock

The biggest shocker about videoconferencing is how much it doesn’t cost. Back in the earliest days of videoconferencing, the equipment was expensive, just the same way it was expensive in the mid-90s to buy a new computer. With most mobile phones and tablets having a better capacity than those early computers, why do you think the same doesn’t apply to videoconferencing? The technology has come a very long way from requiring its own server and a dedicated member of the IT department to operate it.

In fact, one of the advantages of Bluejeans videoconferencing is that you can even videoconference from your mobile phone or your tablet. No extra equipment is required, though if you are using videoconferencing frequently you may eventually wish to invest in better lighting, cameras, and sound equipment.

Another Sticker Shock

Do you have any idea how much meetings cost? Verizon white paper hard and soft costs of meetings. For instance, a five-person meeting lasting two hours with four people traveling to attend assigned an approximate cost of 3300 pounds. This includes over 53 hours for preparation and travel. A videoconference means that there are no travel expenses, and prep time is cut to roughly 16 ½ hours. The total cost to have a five-person videoconference comes out to just 1100 pounds.

Redefining Flexibility

Another advantage to using videoconferencing is the ability to have a truly flexible workforce. Whether at home, at the office, or even on a job site the ability to reach someone for a face-to-face conversation is priceless. A recent Gigaom study points out that 87 percent of off-site feel more connected when using videoconferencing, and that cloud-based apps great way engagement and productivity. In addition, cloud-based tools are often easier to use faces, and less expensive than traditional videoconferencing solutions. Off-site workers can join from their desktops, laptops, tablets, or even their smart phones. From the main office to a home office, to a café or airport waiting lounge, the conference can be wherever you are.

Re-engaging the Workforce

According to a Gallup poll, managers handle at least 70 percent of variances in employee engagement. A staggeringly low 13 percent of workers worldwide are engaged and involved in their workplaces and jobs. In the past 12 years, these numbers have made the most boring roller coaster in the world. Part of the problem can be the lack of consistency and absence of communication in which most employees operate. Great managers are consistent and communicate in a highly effective manner. The variation in all of these groups depends almost exclusively on how the workers are managed by their immediate superior and upper management.

By seeking out and giving employees collaborative tools, you’re giving them the chance to engage with each other as well as their immediate superior by getting everyone to work together on their assigned projects. It’s possible that you will see your staff shine, and may also discover if perhaps someone else light make a more effective and less of obstructionist manager. Great managers will create the correct environment for employees to feel trusted and respected, and rely less on office politics and manipulation to keep control of their workgroups.

Even When You’re Little, Think Big

One big mistake that any small business owner can make is not to plan for growth. While you don’t want to get too big of a head, you need to look ahead and reasonably decide how much growth will be ahead of you in the next five years. If you don’t plan to grow, will be like a plant in a too-small pot, so tangled up in your own roots that you can easily choke to death. By making use of inexpensive collaborative tools that are available without much startup cost, you can have much more flexibility than if you invested in heavy and expensive infrastructure that you will not need.

The beauty of cloud-based applications like videoconferencing is that they are far more scalable than the old model of off-the-shelf software and expensive hardware. By learning how to budget wisely you can get your small business on a healthy footing right out of the gate. You can have a custom fit, instead of a one size fits all that fits nobody, and does not fulfill your immediate business needs. These collaborative tools may well be the best thing that your workforce and balance sheet has ever seen.

Kathleen Celmins

Kathleen Celmins is a marketing expert who works with small to medium-sized businesses to help them scale their revenue, especially in the products they create around their own intellectual property.   In addition to decades of marketing and leadership experience, she holds a BA from Pacific University.  In her spare time, she enjoys parenting, entrepreneurship, and monetizing content.

Not so long ago, every business was tightening its belt to get through one of the toughest financial storms the world has seen in a while. It seemed like every market was affected by this financial maelstrom. Spending habits appear to be on the mend, so now is the time to take advantage. Knowing the best way to benefit from the switch in spending habits allows you to make the most of a good situation. Here are a few ideas that can help you to get the most out of this new dawn in consumer spending.

Learn Where People are Spending Their Money

Consumer spending has recently grown by as much as 7 percent in one month. This is the highest growth in a decade which doesn’t appears to be slowing down. But you need to know where people spend their money to take advantage of the trend. Even though the Internet is a prime location for spending, many people still prefer to shop in person. They get to pick up the items they’re looking at rather than simply reading about them. As a business owner, you need a good barcode printer from a  premium company like Shopify so you can put price tags on everything in your store.

Don’t stop with selling in your store. Since so many people prefer to buy both in brick and mortar stores and online, you can take advantage of this by linking the two (check out our post “Starting Something New: How Online Commerce is Changing the Modern Retail Store“). Realize that many people will check out your store in person and then purchase online. By making your products available in both locations, it’s possible for you to double down on the opportunity to sell. The people who prefer to purchase online can look at the products in the store and still purchase online. Take advantage of this by moving items you no longer want on your store floor to your website.

Offer As Much Information as Possible

Your goal is to market to those with disposable income, which means you have to be smart in how you target them. The wealthiest individuals are not as prone to make impulse purchases, so selling to them with forcible techniques may backfire, as reported by Bank Rate. Giving your customers the hard sell will cause them to turn away from your products instead of getting them to take action. A better plan is to provide as much information as possible so customers can make their own decisions about making a purchase. When you provide information, be cognizant that the act of buying something is really a search for a solution to a problem. If you present your products as an intelligent solution to a problem, customers will be more likely to make a purchase. The information you present should be both in the store as well as online. In fact, many business owners have taken the approach of providing kiosks within their stores that are equipped with a computer connected with the website. This bridges the gap for interested buyers, and they can continue to learn and buy even after leaving the store.

Utilize QR Codes to Capture the Growing eCommerce Market

The eCommerce market is at an all-time high in terms of popularity. Mobile eCommerce sales will top $638 billion in 2018, according to a report from Goldman Sachs as recently reported in Business Insider. This massive growth is something you can take part of when you take advantage of such technology as QR codes. Your customers can scan the codes using their smartphones and instantly see your site and everything you have to offer. By allowing your customers to discover your website through their smartphones, you encourage buying even after they leave the store. If you have a responsive site, they’ll be even more likely to keep using it on their phone, because they will have all the access they would have if they were using a desktop.

Advertising through Social Media to Increase Sales Online and in the Store

Social media is one of the most important marketing tools any business can utilize. Facebook alone commands attention from more than half a million people. If you set up a social media presence and connect it to your website as well as your regular store, you’re more likely to take advantage of the massive growth in online sales, according to CNBC. The trick is to not present your social media as an advertisement. Remember that everyone on social media is there to have fun. If you make sure your social media site has a personal feel, customers are more likely to trust your company and want to do business with you. Create posts providing information about your business, your products and anything interesting related to your industry. If you create posts that connect with the individual’s preferences, your sales and your financial stability will grow.

Joe Saul-Sehy

Joe is a former financial advisor and media representative for American Express and Ameriprise. He was the “Money Man” at Detroit television WXYZ-TV, appearing twice weekly. He’s also appeared in Bride, Best Life, and Child magazines, the Los Angeles Times, Chicago Sun-Times, Detroit News and Baltimore Sun newspapers and numerous other media outlets.  Joe holds B.A Degrees from The Citadel and Michigan State University.

joesaulsehy.com/