Posts Tagged ‘Consultant’

Who is Andy Buyting? Andy has been working in business since he was six years old. Andy now applies his entrepreneurial knowhow and business experience to help his clients achieve success through his Hiring Right Recruiting System as well as a Gazelles International Executive Coach.

by thekylem2

Business Finance Consultant: Factoring and Accounts Receivable

Factoring, also known as “cash for receivables,” is the conversion of a business accounts receivables into immediate cash by the outright purchase of its receivables, at a discount by a factor.

Factoring is not a loan and is not based on a business ability to repay the money advances. The length of time in business is NOT a consideration. The debt to equity ratio is NOT a consideration. Instead, it is based on the ability of your customers to pay what they owe.

Once a factor purchases the receivable invoice, they assume the responsibility for its collection. The factor is also responsible for accounts receivable management functions, such as credit investigation, accounting and bookkeeping. As compensation for these activities, the factor purchases the receivables at a discount.

The discount fee is usually dependent on the amount purchased, the credit worthiness of the debtors, and the turn around time. Fees can vary substantially but are usually less than most business owners expect.

Frequently, a commercial bank cannot provide all the loan funds a growing company needs. A balance sheet is not liquid enough, or it can’t clear off the bank debt every 6 or 12 months. A factor can provide funds to clear off bank loans periodically or make additional bank credit possible by guaranteeing accounts or replacing accounts receivables with cash.

Once a factoring contract is entered into, you will submit orders to the factor for credit approval before shipping. The factor’s credit department becomes your credit department. When the order is approved, you will receive up to 80% of the proceeds with the remainder retained by the factor as a reserve against loss from complaints and returns. This is withheld to protect against credit losses, since the factor purchases the accounts without recourse. Usually the factor will settle the account each month and pay the proceeds due, less cash discount.

One of the biggest advantages of factoring is that businesses get immediate cash (from 70 -80% of the face value of the invoices) within 24-48 hours, which means you can accelerate your cash flow by speeding up payment of the receivables. You will have an immediate source of funds for operating expenses and future growth. You will be able to use your own, hard earned cash without having to wait 30, 60, 90 or 120 days to collect from customers. Additionally, since only receivables are used as collateral for the cash advance, other assets (such as real estate and equipment) can be used for future borrowing.

Cash flow is probably the most important element in the success of a business. Accounts receivables may be the biggest asset on a company’s balance sheet. They also represent the business best source of operating capital that is in permanent disuse. Factoring improves cash flow. A business can use cash currently tied up in receivables to increase sales and take advantage of supplier discounts. Factoring accelerates cash flow by eliminating the time lag between the delivery of goods or the performance of a service and the payment for it. Most businesses have to pay their expenses before they can collect their receivables, disrupting cash flow.

A Business Finance Consultant can help you determine if factoring your company’s accounts receivable is the right option for you. Once you have come to a decision to factor, your Business Finance Consultant will package the transaction in accordance with the factors requirements. The Business Finance Consultant will select from a wide variety of investors to find the right match for your company. Whether your company is in the start-up phase or you have out grown your cash flow, a Business Finance Consultant can help factor your invoices and get the cash you need.

by Public Domain Photos

Business Finance Consultant: Points and Interest Rates

Even the most experienced business owners have difficulty understanding the relationship between the interest rate and the points or fees associated with their loans. The reality is that the two are directly related in that “points” are nothing more than interest that is charged up front.

The actual rate and number of points a borrower pays is largely dictated by the quality of the borrowers credit. As the credit quality decreases, the interest rate, points and fees increase. This is because these loans are more difficult to fund and pose a greater risk of default to the lender.
Here are some issues to consider;

Often the price of a business loan is stated in terms of an interest rate, points and other fees. A point is a fee that equals 1 percent of the loan amount. Points are usually paid to the lender, Business Finance Consultant, or both, at the settlement. Often, you can pay fewer points in exchange for a higher interest rate or more points for a lower rate. Ask your Business Finance Consultant about points and other fees.

A document called the Truth in Lending Disclosure Statement will show you the Annual Percentage Rate (APR) and other payment information for the loan you have applied for. The APR takes into account not only the interest rate, but also the points, mortgage broker fees and certain other fees that are associated with your loan. Also, ask if your loan will have a charge or a fee for paying all or part of the loan before payment is due (prepayment penalty).

A lender may require you to obtain certain settlement services, such as a new survey, mortgage insurance or title insurance. It may also order and charge you for other settlement-related services, such as the appraisal or credit report. A lender may also charge other fees, such as fees for loan processing, document preparation, underwriting, flood certification or an application fee. You may wish to ask for an estimate of fees and settlement costs before choosing a lender. Some lenders offer no cost or no point loans but normally cover these fees or costs by charging a higher interest rate.

If you see advertisements for lenders offering extremely low rates, don’t be misled. Most of the time these very low rates refer to the starting rate on an adjustable rate mortgage or graduated payment mortgage. In other cases, the rate advertised may be for a balloon loan. This is a loan where the remaining balance will have to be paid off early. An example of this is called a 30 due in 5. In this type of loan your payments are based on a 30-year term to make them affordable. The remaining balance of the loan however, must be paid off at the end of the 5 th year. This means that you will probably have to refinance the loan or sell the house at the end of 5 years to satisfy the debt. Locking in your rate or point at the time of application or during the processing of your loan will keep the rate and/or points from changing until settlement or closing. Ask if there is a fee to lock-in the rate and whether the fee reduces the amount you have to pay for points. Find out how long the lock-in is good, what happens if it expires and whether the lock-in fee is refundable if your application is rejected.

Finding business financing that you can operate with for the next 30 years is a serious business. Ask about alternative kinds of business loans in your area. Compare rates, down payments, and closing costs among different types of lenders. Here is where a Business Finance Consultant can save you time and money. There is no single nationwide finance rate; interest rates can vary according to the amount of the business loan, the length of the loan and from lender to lender. Look at the entire package that’s being offered, including the fine print about penalties and assumptions. The more knowledgeable you are about the loan process, there will be fewer surprises in store for you at closing.

How much do you think is a reasonable/typical per hour rate for a marketing research consultant? Someone who is mid-level, and could work on anything from task work, to project direction, to report preparation, etc. The work would be done primarily from home.

Hi! My daughter is interested in becoming a sales marketing consultant. At least she thinks she is. She is only 13 right now, and I think she heard the term on a TV show or movie. Since we want her to have the knowledge to achieve any goal she has, we figured we would find out what was involved in becoming a sales marketing consultant so she could be prepared…At least until she changes her mind again…This week its a sales marketing consultant, next week it will be a ballerina!

I am starting up a new healthcare service company and need to develop a thoughtful and executable marketing strategy.

For all you music industry pros,meaning:

-labels
-venues
-bands/artists
-producers
-ect.

What qualities are most important to you when looking for a marketing consultant or agency to work with?

For example
-cost-effective
-quick or easy service
-great customer service experience
-prestige/good reputation or image
-ect..

My business focus is executive coaching, helping companies develop a strategy around organizational culture, training, succession planning, organizational assessment, and leadership development.

will it be a wise decision to be a management cosultant ?
is there good money in this proffession?
degree from branded institution is must?

For more than twenty five years I have been a business director& financial consultant all over the Arab region, and Africa. I have created relationships with many of the business leaders in those communities. During the years I learned much about working with multicultural businesses. I worked for many banks as an independent senior auditor or as financial consultant. I am experienced in Financial Analysis, Business Acquisition, Human Resource Management, Financial and Strategic Planning, Organizational Restructuring, Cost Recovery, Information Systems and Design and Implementation of Financial and Management Audits. I have had many successful experiences with startup businesses. I have worked well as a team leader as well as in a group dynamic. I have a solid record of setting goals and achieving results.

MBA / Major in Finance Corporate Planning, Xavier University. Cincinnati, Ohio 1984
B.A. / Major in Accounting, Ain Shams University, Cairo Egypt 1969