Getting the best from your efforts is important as funds come into your business. This means finding ways to maximize the cash flow in your business’s interest. Besides using accounts receivable to maintain proper cash flow, learning other tips can help you achieve this objective. This guide explains the best ways to maximize cash in your business.
Sell Your Invoice
Selling or factoring in your invoices is among the best ways to improve and maximize cash in your business. Understand that as you keep your accounts receivable for a long time, the waiting can prove inconvenient in the end. By selling your invoices, you get cash and use it in other aspects of your business for a profit.
Manage Your Inventory
An inventory control system will help you identify mistakes that might compromise your efforts. A well-managed inventory is more productive and functional, making it easy to use the cash for the intended reasons. You can also trim the inventory to make your finances sustainable and maximize the cash.
Buy Fixed Assets
You find it easy to maximize cash by investing in fixed assets. Every business needs proper tools and equipment to function and maintain higher productivity levels. As you work on your accounts receivable to generate the income your business needs, be keen on the fixed assets you can add. With fixed assets, you cut the expenses and increase cash inflow.
Plan Your Payments
Misusing funds for other reasons and failing to achieve your objectives is possible. Plan your payments to avoid mistakes that might cost your business a lot in the end. Know where your cash goes and what it does. Understand that having a plan ensures you achieve business objectives and maintain proper cash flow.
Automate Your Payments
You will maximize cash in your business by automating payments. You avoid errors that might disrupt your financial plan through payment automation. Besides maximizing cash, automation helps you keep up with your accounts receivable. You save time and increase productivity by using automation solutions.
As you work on your accounts receivable, it is important to find ways to maximize cash in your business. Learning the different tips is therefore beneficial. At WHW Capital, we help you understand ways to achieve this. Contact us today.
Industry-specific loans provide business owners with the required working capital. These loans are usually designed to cater to unique needs depending on your industry. There are, however, high chances of being turned down when applying for these loans. Below is a list of guidelines and tips to ensure success.
Offer a Collateral
When you apply for industry-specific loans, you can improve the chance of success by having collateral. The collateral may be equipment and personal assets. Such loans require clients to put up collateral relevant to the industry. You may use a trademark as collateral if you own a software business. A general lender may fail to understand the value of such assets, but industry specialists may use such niche items to act as collateral.
Do Comparison Shopping
There is a lot of competition even in industry-specific loans, and you must do comparison shopping to secure the best products that suit your needs. Assess the overall cost of the loan in terms of fees and interest and evaluate the application process. Consider the loan’s duration and the ease of navigating the application process. You may apply for multiple loans and choose the lender with the best term options.
Share Your Company Data
Most industry-specific lenders use different criteria when evaluating the creditworthiness of clients. You only need to share your personal or company finances. The data varies from one lender to the other and is affected by the programs or apps you use and your personal preferences. Always consider sharing data unique to the industry when applying for industry-specific loans. For instance, if you have a service-oriented company, you may share data regarding consumer reviews as they are indicators of your business success.
Write a Business Plan
Compose an industry-oriented business plan to allow the loan officer to understand the industry inside out. A business plan for general bankers with minimal knowledge of the industry jargon will not be fruitful as most will only understand the overarching themes. Applying for industry-specific loans is, however, different, and composing a business plan detailing your goals and how they fit into the industry boosts the chances of approval.
Establish How Much You Require
Even though the lender may not require a business plan, you must compose one yourself. It should detail what you wish to purchase and how such investments will affect your revenue and long-term sales. Try to be detailed when outlining financial needs. You may fail to secure enough industry-specific loans when you forget necessary expenses.
Industry-specific loans provide your business with working capital when need be. These loans have a streamlined application process, and you can contact us at WHW Capital to secure better rates and loans that suit your needs.
A social media presence is crucial to running a successful business in this day and age. Adding a strategic marketing approach that includes quality content creation as well as content curation can help effectively reach the target audience and ultimately drive profits. Two different frameworks exist for balancing social media content and building trust with customers.
Creating content such as writing and publishing blogs is a vital part of content marketing, but sharing content is also important. People look to companies to help them understand problems and help solve them with their services or products. Producing original content can be costly in terms of knowledge and time. However, sharing content is relatively easy and can help get original content noticed.
The first framework to help balance content and build trust is known as the 80/20 rule and has a large focus on providing valuable content and driving conversations. The rule says that 80% of all of the content should be genuinely valuable for customers in addition to being attractive for interaction. Only 20% of the information posted should be about the product, service, or brand. This helps show the audience that the site is not solely about the brand but is also about its customers.
The second framework, the Rule of Thirds, is similar to the 80/20 rule in that it separates the majority of content to be focused on audience interactions and content curation. With this rule, a third of the content should be original and encourage a conversation to ultimately drive profits. The next third of the content should be the curation of resources, ideas, and stories from experts in the company’s industry to provide value for the consumer. The final third is all about building relationships with the audience through conversations and personal interactions. The majority of resources are spent on sharing information and interacting with the audience.
These two frameworks do a good job of emphasizing sharing and interacting as part of the social media marketing strategy. Original work is still a very important part of the strategy, but it should be balanced with other information and activities. By varying the information shared on the company’s site, the audience can observe that there is more than just a sales pitch waiting for them. They can get valuable and interesting information while the company can boost credibility and, in the long run, potentially increase profits. For more information on building credibility through content marketing, contact the team at WHW Capital today.
Note that running a business in the construction industry calls for the use of proper tools and equipment to achieve your objectives. As an entrepreneur, it serves your interest to equip your business with the right equipment. The cost can, however, be higher and overwhelming. Learning the alternative construction equipment financing options to embrace is therefore important. This guide explains the options.
Equipment leasing is a financing option you can consider for your needs. This is where you lease the equipment for specific needs and a specified time. Instead of borrowing loans to buy a new one, you use the available equipment at a cost and return it later. Compared to other equipment financing options, leasing is cost-effective.
Under SBA, different types of loans can serve your construction business. You can consider SBA CDC or 504 loans that serve major fixed asset purchases. Unlike other financing options, SBA loans have the federal government’s support, making them suitable for any entrepreneur in the construction business. The repayment periods are flexible, and interest rates are lower, unlike other loans.
Business Term Loans
A business term loan is another financing option for your construction equipment needs. You can access business term loans from both traditional banks and alternative lenders. In most cases, the lenders provide the loans for a specific purpose which in this case it is construction equipment financing. The repayment terms and interest rates depend on the agreement with the lender.
Online Equipment Loans
Besides the traditional lenders and credit unions, you can get the funds for your construction equipment needs from online lenders. Some online lenders specialize in financing construction businesses making it possible to secure the equipment. The lenders offer flexible terms and rates on the loans provided to the borrowers. The application and approval process is also swift.
Using personal loans is another way to finance your construction business needs. You can use funds from a personal loan for equipment financing when other options become hard to get. You can get a personal loan from a traditional bank or alternative lender in your area.
Finding an effective construction equipment financing option for your business is paramount. By learning the options, you save valuable time, fund your business and achieve your objectives. Contact us at WHW Capital for professional guidance.
Small businesses often face problems with cash flow. However, they find it difficult to obtain funding from traditional banks because of the strict eligibility requirements. An effective solution to this dilemma is invoice factoring. Here is some information to help you determine if it is a good fit for your business.
Basics of Invoice Factoring
Owners of small businesses often require cash on hand to meet their expenses as they wait 30 to 90 days for payments for pending accounts receivable. With invoice factoring, you sell those unpaid accounts receivable to a factoring company. The lenders immediately send you 80 to 90 percent of the value of the invoices. You receive the balance after the factoring fee has been deducted when your clients pay in full.
Qualifying for Invoice Factoring
Although factoring companies will check your personal and business credit histories, they are far more concerned with the creditworthiness of your clients. Evaluation of your customers includes assessments of their payment histories, credit scores, and legal or debt issues.
Advantages of Invoice Factoring for Businesses
Invoice factoring offers you the opportunity to obtain the funding you need and at the same time avoid going into debt. You are more likely to be approved for invoice factoring than for a traditional loan, especially if your customers have good credit scores and payment histories. Additionally, the approval process for accounts receivable factoring is much quicker than for traditional loans.
Advantages of Invoice Factoring for Clients
Your clients will benefit from invoice factoring in several ways. First of all, your company will more easily be able to offer 30 to 90-day payment terms while still keeping cash flow strong. Because payment collections are taken over by the factoring company, the process becomes more efficient and streamlined. Your clients are handled with courtesy and respect by experienced professionals. Having sufficient working capital enhances your reputation, ensuring continuing growth.
For more advice on financing your business with invoice factoring, contact WHW Capital.