4 Tips for Managing Your Cash Flow

Learning to effectively manage your cash flow is the first lesson most entrepreneurs learn after they put their business plan in place and open the doors to their business. In the article, “How to Better Manage Your Cash Flow”, written for Entrepreneur.com, you learn that, “the lag time between the time you have to pay your suppliers and employees and the time you collect from your customers is the problem, and the solution is cash flow management.” If you follow some basic, common sense tips, you'll find that you can better manage your cash flow and meet your financial obligations in a timely fashion.


By considering recruitment factoring as a solution to your cash flow problems your business can continue to operate on a normal basis.

Tip #1-Try to measure your cash flow to prepare for the upcoming period. You’ll need to consider a variety of factors that contribute to your company’s income. Think about what you have on hand, your client’s payment history, any upcoming costs that you know you’ll have, and the amount of outlays that are coming up in your budget. This includes rent, payroll, benefits, any equipment that you need to buy, utility and fuel bills, and any loans that you have to make payment on. This is not an easy task and requires careful thought and planning but it must be done to run a successful business.

Tip #2-Try to create a plan to improve your receivables. This can include offering a discount to clients who meet their financial obligations to you quickly, asking for a deposit on orders made, and developing a cash-on-delivery plan for customers who don’t pay in a timely fashion. You’ll want your staff to issue invoices promptly and note on the documentation that payment is expected upon receipt of this bill. Another way to avoid problems with your account receivable clients is to do a credit check on them before merchandise is exchanged.

Tip #3-You need to effectively manage your payables. Don’t allow your expenses to expand faster than your sales; you must watch your expenses so that you don’t mismanage the funds that you have coming into your company. Use a variety of means to work with your vendors so that you can take advantage of discounts, flexible terms, and electronic payments that can be made on the final day that they are due.

Tip #4-You must manage your shortfalls quickly and efficiently. The wise entrepreneur will be aware of the shortfall early and take steps to remedy the situation. Whether you approach a bank, your suppliers, or a recruitment factoring programme for assistance, you will have a plan in place to help meet your financial obligations and preserve your company’s good credit rating and reputation. If you have experienced this shortfall in funds because of poor planning, you should obtain help with managing your cash flow so that you won’t have this experience in the future.

Keeping your business reputation and honouring your financial obligations are two of the most important aspects of running a successful company.

   

The Easiest And Fastest Way to Collect Medical Debts

Are you at the point where your accounts receivables have taken over your business? Using a medical collection company may be the answer. While you are attending your clients and bringing in more business, let a collection company step in to handle collecting unpaid bills. It is a fact of business that you will encounter patients who never pay their bills, or who are late paying their bills. It can become a cumbersome business to maintain awareness of your overdue accounts. 

That’s where a medical collection company can intervene and help. First, they can focus on your accounts receivables only. That is their business, and it does not interfere with the daily routine of running your company. Second, they understand it is important they maintain your reputation and your relationship with your patients while recovering your unpaid accounts. Third, having a company deal with your outstanding accounts sends a message to your clients and patients that you are serious about your unpaid balances. It sets a precedent for future balances owed.

When attempting to collect unpaid accounts, time and resources are spent focusing on collection of outstanding balances. Hiring a collection company to recover these unpaid medical bills frees you up to generate more income and divert resources to another part of your business. A collection company can give you a guide on how and when to collect on unpaid balances. This means there is a set time to collect, which will take the guesswork out of when to go after your outstanding bills.

There are also a variety of other collection services available to you, such as commercial collections, consumer collections and judgment collections. Commercial collection services offer businesses outside the medical industry solutions to their aging account receivables problems. These services can work alongside your in-house collections department or can be used as an outsourced solution. Consumer collections are services through which unpaid accounts can be managed by an outside agency to collect unpaid balances from individual consumers. Judgment collection services assist to enforce judgment collections. While judicial judgments are assumed automatically collected, it is not always true.

When you have reached a point in your business growth where a large percentage of it is spent chasing after clients who have not paid their balances, a collection company may be the solution you need. Their services will save you time, resources and manpower and allow you to make additional revenue and promote growth for your business. Let a medical collection company assist you so you can start focusing your attention where it is needed – on your business!

Author Bio:Debbie Trandell blogs about the debt recovery industry and the prevalence of debts going unpaid in the medical world. Through research and personal experiences, Debbie highly recommends the services of the Summit Account Resolution collection agency that can be found at www.summitcollects.com/medical-collections. 

How Do You Know If Factoring Receivables is a Good Option for Your Company?

Factoring receivables is something small or mid-sized businesses often use when they are in need of cash flows. This is nothing but selling your purchase orders to someone else and getting cash earlier, and then it is the factor or the purchaser of your orders who collects the amount from your customers. Whenever a firm decides to make use of factoring receivables they sell off their purchase orders to a factor for eighty or sometimes even ninety percent of the value of the orders. Then it is the responsibility of the collector to get the cash from the customers on behalf of the company. After the receivables are received by the factor, they give an amount to the seller. This amount is the total value of the orders minus the advance the factor paid up front.

What’s the Catch?

The factors deduct around two to three percent from this amount as their fee towards offering factoring service. This is two to three percent of the amount that the factor has to receive or has received from the customers. Let us now try to understand if factoring is good for your business or it is not.

It’s Another Form of Loan

It is important to understand that factoring is just another glorified name of borrowing money and money should not be borrowed under ideal circumstances. In simple words, factoring services should not be availed if there is no need for it. Consider this, with one to three percent that you pay every month towards the services you get your annual fee can be anywhere between twelve to even thirty six percent, which is pretty big. This is too big a fee to pay for just getting a lump sum one month in advance. The businesses can be better off making use of the local banks to borrow the money they need as they offer at much lower interest rates compared to factoring service providers. This would also be a much more cost effective option considering the long run.

It Makes a Great Practical Choice to Maintain Cash-Flow

That being said, the practicality of factoring services can’t be overruled completely. There are cases where this is the only option in front of you. If yours is a small company or business, which has either poor, limited or no credit at all and you need some cash urgently, factoring can be the only option that you may have to resort to. For example, one of the leading trucking factoring companies in USA, Pay4Freight has helped many companies in crunching times. You can learn about Pay4Freight's factoring service by visiting their official website. Similarly, there are many such companies that help small businesses every now and then.

The Best Bet for Small Businesses

Small companies are often unstable and not well established to be self-sustained for all kinds of projects. Then often need one cash injection to get their dices rolling and that is when they approach these factoring companies. With one push of a lump sum they manage to finish some of their initial projects and generate revenue. They don’t necessarily have to do it over and again. As long as these factoring services are availed in a smart way, they can be leveraged to your advantage. But, make sure that you don’t become dependent on these services for your monthly cash requirements.

Author Bio - Robert Beard works for a factoring agency called Pay4Freight and offers his services to leading trucking companies in and around the United States of America.