What Accounts Receivable Financing Is All About

business financingThere are many methods a company can use to finance its operations. Accounts receivable financing is one of the methods.
Companies can secure loans from financial institutions, receive grants from well users and sell some of the assets including the accounts receivables. This article looks at how you can use accounts receivables to finance business operations

Account receivables refers to an arrangement where a company uses the available receivable or the amount owed as a collateral or a security to enables it receive the amount owed less the interest or commission charged. Although this action reduces he amount of money that will finally be received by the company, it is a good source of instant cash required by the company to finance its operations.

The age of the receivable determines the amount of money the company receives. The older the receivable, the less the amount the company expects to get. This method of refinancing the operation of the company is important because it frees up the capital that is stuck in the accounts receivable. More importantly, it transfers the default risk associated with an account receivable to another company, reduces the level of bad debts and shifts focus of collecting debts to an independent company. This service comes with additional expenses.

Steps followed

Accounts receivables can avail short term cash required for the smooth running of the business. This money can be used to meet short term obligations such as payroll needs and recurrent expenditures that keep the business running. However, before a business receives the money, there are things that must be done. Top on the list, you must submit an application form indicating the accounts you wish to factor out. This form will be reviewed by an agency concerned before a list of receivables that have been approved can be disclosed. The agency must conduct a credit audit to establish your credit rating and any other relevant information that may be used including looking into your criminal records.

Once it is accepted, you will be notified of the terms of the loan and the amount of time it will take before it is processed.

In summary, there are plenty of companies that specialize in advancing funds on accounts receivables. You will thus, receive some advance payment on condition that you forfeit the amount owed to you. This method can help you save on time spent on invoicing and following up debtors. All you need to do is to find a company whose core business is accounts receivable financing . Get in touch and get assisted.

Tips For Corporate Event Planning

corporate planningIt can be difficult in this day and age to figure out exactly what to do when you want to book an event for your entire company. You need to make sure the entertainment you book is appropriate to the work culture, you need to make sure they’re not too costly, and you need to make sure it’s not on a day that everyone would normally have taken off. Plain and simple, corporate event planning is difficult, and not everyone can do it.

The first thing you have to do when you’re busy corporate event planning is figure out the time frame. It can be easy and simple to plan your event during a weekend, but that means everyone would have to come in on a weekend. No one who works a nine to five office job wants to come in during the weekend. That’s their time off! But at the same time, you can’t plan your event for the middle of a work day.

Or can you? There are times that are normally business hours, yet are also normally slow on business. Every business has their slow season, after all, and the slow season may be the best time to boost morale with a corporate event! It’s not something you should plan for every time, but having the occasional corporate event during working hours can be a pretty great morale boost. People effectively get a little bit of time off, but they still get paid. Who wouldn’t call that fantastic corporate event planning?

Another thing you should do is make sure the entertainment you book is actually suitable to the company. It can be easy to simply book a comedian and call it done, but not every comedian is actually a good fit for your corporate environment. You need to pay careful attention if you’re going to book a comedian, and make sure their normal act is something that you don’t mind bringing into the work place. The rule of thumb is that if it would bother the HR director, you probably shouldn’t book that act.

Of course, not every corporate event needs to have an act. You can easily have a potluck picnic as a corporate event. Potluck picnics are great to do outside during the summer months, and can really bring a team together. Everyone prepares a dish, and brings it, and then everyone gets something new and interesting. You can also plan for team building exercises, in the form of party games like tug of war and pin the tail on the donkey. It may look like play time, but you’re actually building trust and teamwork!

An indoor banquet might also be a great idea for the right corporate event. Perhaps you’re planning for a holiday luncheon! That sort of thing can be great if you want to essentially buy lunch for everyone in the office, and it works really well. Most people enjoy and appreciate a free meal, and they’ll appreciate it even more if they get to take a nice, long lunch break.

Essentially, you want to look at corporate event planning as a way to build trust, teamwork, and morale. If you’re forcing people to do something they’d rather not do, then you’re not actually building morale, you’re breaking it down. It can be tough to know where that line is, especially since so many people claim to like or dislike things when that’s not the case. Ultimately, it comes down to knowing your co-workers and figuring out what motivates them. But once you do, corporate event planning can be a breeze!