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Finance Your Invoices, or Finance Your Purchase Orders?

Finance Your Invoices, or Finance Your Purchase Orders?

Finding the working capital you need to take on challenging orders can be tough, but there are options that you can tap into your business assets. This sidesteps the lengthy approval processes for traditional loans and in some cases, the cash advance does not even appear on a credit report. For businesses that use purchase orders and invoice billing, the question of which asset to finance often comes up. Understanding when each one is best used will help you to get the most out of purchase order financing.

Consider Your Capital Needs

If you need general operating capital to meet your regular obligations, you might want to lean toward AR financing. By sending out all your invoices at once, you stand to get a larger advance than if you finance all your purchase orders, at least in most cases. If you do not have a lot of unpaid invoices but have recently gotten a lot of orders, then the situation is reversed and you’re going to want to finance those orders.

When you need money to take on the orders themselves without disrupting your other cash flow obligations, that is generally when purchase order financing works best. You can finance a large rush order with its own value, allowing you to isolate its costs and profits from the general flow of business. The result is a windfall opportunity that does not disrupt your regular processes.

In some cases, you may even want to finance both purchase orders and invoices to raise as much capital as possible at once. You would need to apply for each separately, but nothing stops you from using both if you qualify.

Who Can Use Purchase Order Financing?

Invoice financing is the more popular choice in large part because it is accessible to a wider range of companies. Almost every company that uses purchase orders also uses invoice billing for at least some of its transactions. Only a fraction of the companies that use invoice billing use purchase orders, however. That asset tends to be limited to manufacturing and import trade companies, with a few rare exceptions in other areas.

Make the Most of Your Business Assets

The best cash management solutions are the ones that make use of all the available tools at your disposal. That means you should work out a strategy for financing your working capital needs with options for everyday cash management, rush orders, repair and maintenance emergencies, and industry-specific key need categories. That way, you’ll know exactly when to use purchase order financing and when to opt into another financial product.

3 Differences Between MCAs and Business Loans

3 Differences Between MCAs and Business Loans

If your business relies on credit and debit transactions for a lot of its income, you probably already know you can finance your merchant account income to access a cash advance when you need working capital. The big question is, how is that more useful than a traditional business loan, and under what circumstances does the MCA work better than business loans?

1. MCA Payments Flex With Your Income

Business loans generally come in one of two formats. Either the loan amortizes over its repayment term or there are interest-only payments with a principal payoff at the end of the term. Some banks and other lenders create niche loans beyond these formats, but most loans fit one or the other. The only way those loans have variable payments would be if the interest rate fluctuates. By contrast, a merchant cash advance payment agreement sets the payment at a percentage of your income, so if you make more money, you repay the advance faster.

2. Approvals Take a Fraction of the Time

Banks tend to make business loan approval a lengthy process because they weigh a lot of factors. It makes sense when you consider most bank loans are designed to be repaid over the course of years. In the case of some asset purchase loans, it could even be a decades-long debt, lenders naturally want to take care of. Since the merchant cash advance is designed to be repaid in just a few months, the risks to the lender and the timeline for approval are much shorter. Many businesses see the cash in as little as five business days from the date of application.

3. MCA Limits Grow With Your Income

Most business loans are tied to the value of an asset, which is how their interest rates are controlled. Short-term financing like your MCA gets based on your income, so as long as you can afford to repay the advance, you are likely to get what you need when you apply. That also means when your business grows, the size of the cash advance you can access grows too. For that reason, many retail businesses use a merchant cash advance to finance seasonal remodeling and inventory restocking processes a couple of times a year.

When Is the MCA More Efficient Than a Loan?

If you foresee an upturn in your company’s regular demand cycle or you need cash quickly to deal with a short-term emergency when you are busy, then the MCA is going to work better than a loan. Not only will you get approved faster, but paying the advance down quickly minimizes the finance charges.

Stuck in the Web

Stuck in the Web

As technology advances, changes in everyone’s work environments are inevitable. Cars aren’t manufactured the same way they were when Henry Ford started his assembly line and phones have progressed well beyond Thomas Edison’s first call. The same has to be true for careers in web development, right? Since the internet has been around so long, the careers that it first spawned are no longer relevant, right? Not really. A job in web development is still a viable path towards both career stability and financial security.

To-Do List

What does a web developer do, anyway? Simply put, a web developer designs and builds websites. That’s deceptively simple, though, because a lot more goes into it. Think about all the components of a site you’ve recently visited. Did the pages load correctly? How about graphics? Were those relevant, eye-catching and informative? Also, consider how easy it was to find what you needed on the site. It’s the web developers who ensure that those pages load correctly. They also pick the graphics and design the layout. If your site had a shopping option, the web developers have to tie that into not only the website, but also the store’s actual inventory program and shipping procedures.

Pursuing the Path

If you’re thinking about a career in web development, you’ll need to know how to pursue that for yourself. The job outlook for someone who trains in web development is higher than average. These skills continue to be in demand and will be for the foreseeable future. You can typically enter the job market for web careers after completing just your Associate’s Degree. Double-check, though. Some jobs only require a high school diploma and other employers look for Bachelor’s degrees.

Work It

You’ll have a variety of places where you can find a job with web development training, too. Think about all the places that have websites. They each need a qualified professional to maintain those. You can choose to work in a field like publishing, advertising or consulting. Companies who perform those services need capable and reliable web developers because frequently their internet presence forms the backbone of their business. If you’re not excited about branching out, many web developers stay in computer-related fields. Still others branch out into self-employment. This allows you flexibility in where you choose to live, also, because web professionals are in demand everywhere.

A career in web development can carve you a path towards the life you’ve dreamed of living.

Prioritize These 3 Digital Marketing Tactics for Business Success

Prioritize These 3 Digital Marketing Tactics for Business Success

If you’re not taking advantage of online marketing in the year 2022, it’s time to start incorporating this highly lucrative tool into your business plan for your company’s success. However, it can be difficult to know where to start with such a wide array of choices, especially when it comes to determining the best methods for getting ample return on your investment. Thankfully, there are myriad avenues for getting a head start on your digital marketing strategy. Prioritizing these three tactics is the ideal way to begin creating your online presence and gathering a wealth of new customers for long-term prosperity. 

1. Share Persuasive Content Through Video Marketing

Customers love visual imagery. Beyond looking at high-res images and modern logo designs on your website (which are also very important!), you should invest your time and money into developing video content that’s easily shareable on social media pages. Most customers are prone to seeing advertisements on their mobile smartphones these days, and trying to read long-form emails or excessive blog posts isn’t ideal for such small-screen platforms. Therefore, stunningly visual videos that aim to intrigue and convince viewers into buying from your business can go a long way in promoting your brand’s product or service to the public.

2. Trust in Influencer Marketing to Gain a Bigger Audience

Anyone who uses social media knows that there are plenty of influencers who have amassed huge followings, and these individuals are perfect for improving your digital marketing strategy. Influencers have learned not only how to market themselves and earn the trust of their followers, but they engage their audience regularly, which is essential for trying to make consistent sales. Hire a social media influencer to promote your brand, and you can see a large uptick in traffic to your company website in no time.

3. Personalize Your Content to Build Customer Relationships

When you’re looking to improve visibility for your business online, you need to stand out from your competitors. Develop and share content like personalized emails instead of releasing one mass email without any emotional punch. Send out ads to specific groups of customers with suggestions for new products based on past purchases. These personal touches give your followers a reason to feel more important to your brand and therefore leave a more lasting impression that gains trust and loyalty. 

Overall, there are dozens of digital marketing techniques you can apply to your company’s marketing strategy. However, these three tactics have proven to be extremely effective for long-term success, giving you plenty of reason to test out their viability. Contact WHW Capital to learn more about how to effectively implement digital marketing tactics to boost your business.

Should You Invest in a Hotel?

Should You Invest in a Hotel?

There are several business ventures you can try and succeed in the corporate world. One thing that brings people close is food and drink. That is why the number of hotel businesses has incredibly risen over the last few years, even in rural and remote areas. Understanding why the number of such enterprises has increased and why you should consider hotel investment as your primary entrepreneurial undertaking is essential. These reasons are explained below.

Easy Financing

Opening a hotel is similar to starting any other business – you need money. Fortunately, many lenders, especially alternative lenders, are willing to fund a hotel investment because the chances of the business failing are pretty minimal. The lender is sure that they will not lose their money.

Value Addition Levers

You can increase your hotel investment value through many channels. Operations are the key drivers of value in such a business, but other levers enhance its value. These include property renovation to attract more clients, capitalization, and sales and service contracts.

Enjoy Tax Benefits

Running a hotel is a real estate investment. Growing your equity, and enjoying the tax-free exchange, and depreciation are some incredible benefits you can enjoy with a hotel investment. All these advantages apply to all real estate investments, but a hotel takes them to a new and higher level.

Easy Expense Tracking

One of the critical reasons to consider hotel investment is the ease of following up with your business expenses. Expenditures in a hotel enterprise are divided into three categories;

Undistributed expenses – the total operational costs, including management, sales-related costs, and property maintenance.
Departmental – the total cost of the products you sell in your hotels, such as food and beverages.
Fixed – the expenses you incur regardless of revenue flow or hotel occupancy.

Enhanced CSR

Giving back to the community is essential in running a successful business. Employing people from the community in your hotel is a positive gesture and a material contribution to your enterprise’s corporate social responsibility.

The benefits and reasons above show why you should consider investing in the hotel business. You will need the proper funding to ensure the enterprise takes off. It is advisable to contact WHW Capital today for the best financial assistance to open and run a successful hotel.