Monthly Archives: September 2017

Business Finance Software

Business finance software is fast gaining popularity, especially in computerized financial planning systems. At the heart of a computerized financial planning system is a model that specifies the relationships relevant to the firm. A computerized financial planning system helps in preparing proforma financial statements, estimating the requirement of external funds, and calculating a variety of ratios. Such a system naturally offers a number of advantages. Once the model has been developed, the tedium of manual computations is eliminated with the help of business finance software. The circularity problem is easily tackled as the computer can quickly perform the required iterations. Finally, business finance software can be employed very conveniently to perform sensitivity analysis.

Thanks to the above advantages, the computerized financial planning system strengthens the firm’s planning ability. However, there is a potential disadvantage associated with it that may be overlooked. The ease that computations can be performed with the help of business finance software and forecasts generated may result in misdirected efforts. A large quantity of low-quality predictions may be churned out creating confusion and on the part of management. Quality may be sacrificed to quantity. To guard against this danger, greater thought should be given to the scenarios evaluated and the quality of analysis when using business finance software.

With electronic data processing, it is possible to handle large amounts of data and to make information available to a large number of people. Thus, one can obtain, analyze and organize timely data quite inexpensively by using business finance software. But it must never be forgotten that data is not necessarily information. Information must inform someone. With the help of business finance software, you can use computer graphics. It can inform visuallyScience Articles, displaying important company information. Managers can now quickly display a colored map showing their competitive picture instead of computer printouts for information.

How To Finance A Business

Getting money for your company does not have to be a complicated procedure. If you have all of the basics in place, including a business plan, tax and business identification numbers, business bank account and other basic fundamentals, then you are ready to pick the type of financing you want to seek.

For most small businesses just getting started it can seem like an uphill battle. Unless you use your personal credit to back a loan many lenders baulk at helping to finance a business just starting out. There are ways to increase your chances even at the beginning. First have a killer business plan set up, then look for ways to improve your cash flow without loans. Business credit cards and vendor accounts are a great way to do that.

You can also look for private financing from vendor capitalists. If your business idea is something that might boom and take off fast many will be anxious to back you in exchange for a percentage of ownership rather than traditional loan payments. The great part about vendor capital is that you don’t have any monthly payments and you don’t incur interest. If the business doesn’t do as well as hoped or even if it fails, you don’t owe anyone anything. That’s part of the risk of venture capital and why those types of lenders look for unique and inventive ideas that will likely burst out onto the scene.

The downside to venture capital is that you will then have a business partner. In some cases they are silent partners that won’t interfere with your business. In others you may want them to help out, especially if they have contacts and experience in your field. You also have to pay them their percentage of the businesses profits until the day you close the business or they sell their percentage back to you. If you decide to go with venture capital don’t ask for a small loan. You will be paying for it for the life of your business, so make it worth the money you will be spending in the long run.

Lessons For Making Money

You might think that used car finance simple involves a dealer, a bank or other lender, and a down payment on the part of the buyer. That is how it works in some cases, but it gets much more creative than that. Let’s look at a real life example, and see what lessons can be learned to apply to making money in other businesses.

A friend of mine used to have a used car lot. He teamed up with a creative used car finance company to sell cars to people who had trouble getting traditional loans. I don’t recall the name of the company, and I may get a few figures wrong, but I remember the principles very clearly.

A typical deal might have started with the dealer taking a trip to the auction. He would buy a car there for $1,200 (wholesale) which might have had a retail value of about $2,200. But because he is making it easy for somebody to buy the car, he can sell it for perhaps $3,000 after cleaning it up.

How does he make it easy to sell at a high price? By arranging financing for the buyer, who typically cannot get a bank loan. How does he do that? With a very creative finance company that rarely refuses to make a loan.

How can they make loans to people who are a terrible credit risk? By putting much of the risk onto the dealer and charging outrageous interest rates. Specifically, in this case, they would finance the $3,000 car at say 20% annual interest. But they also would only forward half of the loan amount to the dealer. The rest would be paid only when and if the payments from the buyer came in.

In this example, then, the buyer might have to pay a $600 down payment. A young couple can put together a couple paychecks to afford this. Payments on the $2,400 loan arranged by the dealer might be $200 per month. As I recall, weekly payment plans might have been available as well, to make budgeting easier for those with weekly or biweekly paychecks.

Finance Government Contracts and Projects

Selling products and services to the US government can be a very profitable enterprise. The US government can be one of the best customers your business can get. They buy almost any product and service that exists. By law, they are structured to help small business owners succeed. And, unlike most commercial customers, they pay their invoices quickly. If you work with government projects you know that you need to treat this customer very well and be sure that you always deliver what you promised – on time and at the right cost.

So, what happens if you bid for a government contract, win it, and realize that you don’t have the capital to deliver? One alternative is to try and go to an institution to get business financing. Many institutions will provide a business loan (or similar financing) to government contractors. But as you know, qualifying for business loans can be very difficult, especially for startups. Institutions will review your business plan, along with your company’s financial statements, management team and track record. Because of this, many startup companies find that obtaining financing can be very challenging.

This problem is particularly challenging for product re-sellers. Most product re-sellers that work with the government need to pay their suppliers before they get paid by the government. Because of this, they can only compete for certain bids since their capital limits the size of the projects that they can pursue. Some resellers are able to negotiate better terms with their suppliers, basically enabling them to wait until the government pays them first.

There are two other alternatives that can help you grow. They are invoice factoring and po financing. Both are alternative sources of financing and can be ideal for government suppliers.

Let’s looks at two examples to see how invoice factoring and po funding can help your company grow. Let’s say that you have a government purchase order that you have completed and will get paid in 30 days. Let’s also say that your supplier needs to be paid in 10 days. The problem could easily be fixed if you could get an advance payment on your government invoice. That is exactly what accounts receivable factoring can do for you. It provides you with an advance on your invoice that enables you to pay your supplier on time. This enables you to maximize the use of your supplier’s payment terms to your advantage, helping you grow your company.

The benefits of auto finance software in business

A business majorly deals with the expenditure and earnings that it holds. At the end of the year, it focuses on the projects that are completed and also focuses on the projects that are yet to complete. A business is the construction of the services that are provided by any company either in local, regional, national or in the global range. The main objective of any business is to lead in the field, they are concerned with. That includes the promotion of the trade in a larger scale. Financing is the main thing a business has to deal with in every aspect, whether in promotion, branding, reputation or anything else.

A newly launched trading company always wants to make the business huge and to showcase their services and products to the customers in an excessive scale. In doing so, it needs money, which comes as the outcome of the profit and loss that the trade has dealt for a long period of time. The revenue it earns has many projective benefits as it decides the further pecuniary proceedings of the company.

Finance plays a huge and very important role in any business. Handling the economic details of a company in a proper way is quite a necessity. That is why, there is a huge demand of accountant in the field of business and trade. But, execution of the works manually may incur problems and faults. Excessive work load and pressure can lead to such a blunder which cannot be corrected. That is why, it is important to be accurate in this aspect. It is almost impossible to `do so if anyone hires a manual assistance, but the rock bottom can be achieved with the help of an accounting software. The benefits of this kind of software are that it is entirely computer based and so, it averts many errors.

Access to Personal Finance

Unfortunately due to the effects of the credit crunch, personal credit is now becoming much harder to obtain. As has been widely reported, lenders are being more careful when considering what and to whom to lend thus affecting the availability of both secured and unsecured loans. In addition, despite interest rates being their lowest since records began, the interest being charged by banks for personal loans is now higher than any point in the last 5 years at between 8-9% APR. This increase means that even if money is available, it is more expensive to repay.

With personal borrowing more difficult to come by, small business owners are less likely to be able to get access to funds. As a result, the life blood of their business dries up and all too often the business is unable to continue to operate. More and more businesses are therefore failing and jobs being lost.

In my view, this situation goes hand in hand with the problem of personal insolvency that we are currently experiencing in the UK. The Times on Sunday reported on the 23rd May 2009 a suggestion from the Citizens Advice Bureau that there may be many more people who are suffering personal insolvency in the UK than the official figures show. I believe that this analysis is absolutely correct. According to insolvency statistics published by the Insolvency Service, in the first quarter of 2009, just under 30,000 individuals were declared personally insolvent.

However, these figures only include formal insolvencies – i.e. people who have declared bankruptcy or entered into an Individual Voluntary Arrangement (IVA). I believe a conservative estimate would be that for every person declaring formal insolvency, there are at least another two who are insolvent but dealing with the problem by using an informal Debt Management Plan (DMP). A Debt Management Plan is simply a gentleman’s agreement between an individual and their creditors to reduce monthly debt repayments to fit within an affordable budget. There is no formal register of these plans and therefore no way currently to accurately measure the number of people who enter into them. If my estimation is correct, this would mean that an additional 60,000 individuals would have become insolvent in the first quarter, of 2009 totalling 90,000 all together.