Cash Flow Tips

A healthy cash flow is essential for growing your company and keeping your business operating smoothly. Following these tips will help you manage your cash flow effectively:

Monitor Accounts Receivable – Always keep a watchful eye on which customers owe you money. A weekly review of your account receivables will ensure that no overdue bills escape your notice. Don’t let your business be burdened by a slow-paying customer.

Don’t Pay Until You Need To – A good strategy to manage your outward cash flow is to delay paying your vendors until you need to. If they are not offering you a discount for paying early then wait until your bills are due. Having a few more days with extra cash on hand can make all the difference when money is tight.

Prepare For The Unexpected – The first rule of war is that nothing goes according to plan. The prototypical hockey stick chart of skyrocketing revenue rarely ever happens. Be sure to have enough cash stored away for when your business hits an unexpected speed bump.

Find Alternative Sources – When banks aren’t lending, small business owners are increasingly turning to alternative options to keep their businesses viable. Global Leasing & Finance Group offers cash flow solutions to manufacturers, dealers, equipment repairers and owner operators.  We provide account receivable funding, purchase order financing, equipment repair loans and specialty financing for seasonal or non-traditional needs. We help your business finance your business!

Purchase Order Financing Helps Small Businesses Grow

Purchase Order Financing is a non-traditional form of business financing that has been gaining traction in recent years. It is becoming one of the best means for a small business to get a business loan and business credit in the current economic climate. A P.O. Financing company like ours helps businesses by offering to guarantee their purchase orders from a buyer that is committed to purchasing a product from the company.

Banks offer lower rates when lending money to businesses, but that option is not always available, especially since the Global Financial Crisis. Even if your business has seen its credit rating cut in recent years, a purchase order lender will often still be able to give you financing. That’s because in P.O. Finance deals, the lender evaluates the credit rating of your customer as well as your company. If the customer has a track record as a reliable and prompt payer then the lender will often be willing to finance your transaction.

In order to qualify for P.O. Financing, you need to prove that you are able to complete the work required, which is easy if you have experience in building your product. Your customer must be financially capable of paying their bill or at least be protected by some form of financial guarantee. You also should be paid within 30 to 90 days as purchase order financing is not ideal for longer-term contracts.

The transaction structure for P.O. Financing is simple:
1. You provide the non-cancellable P.O. to the lending company
2. The lending company pays you the cash needed to complete your build
3. You invoice the client
4. The client pays the invoice and the PO Financing is settled prior to delivery

Purchase Order Financing is an attractive option that can keep your business growing when you need it most.  Global Leasing & Finance Group helping your business finance your business!

Click here to read the article.


Creative Ways To Finance Your Business

Ever since the Global Financial Crisis in 2008, banks have become more stringent about lending money. This has led to a credit crunch that negatively affects small business owners around the world. With traditional financing sources drying up, entrepreneurs are now seeking creative ways to finance their business.

1) Venture Capital. Seeking an investment from an angel investor or a VC is a popular option for entrepreneurs, but there are many downsides that are often overlooked. Giving up a sizeable percentage of ownership of your company is an undesirable option for many. Also, some VC firms look at upwards of 200 possible investments per month but will only close deals for as few as five per year. The odds of receiving this type of investment are not in the entrepreneur’s favour.

2) Crowdfunding. This is a new type of cash infusion being led by the likes of Kickstarter, Indiegogo, and new platforms popping up everyday. If you can make a compelling pitch about why your company should be funded, then thousands of individuals will give you small donations which can quickly add up. However, each website has different requirements about which type of companies can apply and there is no guarantee that your business will reach its funding goal.

3) Family and Friends. This can be a quick way to secure some cash for when starting up a business without needing to go through lengthy contract negotiations. However, it’s not a sustainable income plan and you risk causing irreparable harm to personal relationships if things turn sour.

4) Purchase Order Financing. The most common scaling problem faced by startups is the inability to accept a large new order, since they don’t have the cash to build and deliver the product.  This option allows you to borrow money in order to pay your suppliers immediately without forcing you to use your own company’s cash reserves. Funding is based on the security of your purchase order and a credit analysis of your business and your customer purchasing the finished product.

5) Account Receivable Funding. This form of business financing liquidates the receivables that are currently on your books and then on a daily basis turns yesterday’s invoices into cash today. If a business is looking for working capital, this is one of the easiest and most cost effective ways of getting it quickly – all without hidden fees. The benefits of this option is you receive cash fast, there are no long term contracts or credit limits, you get to choose which invoices to receive funding and it is easily available for new businesses.

Global Leasing & Finance Group offers businesses both of the last options.  This is our way of helping your business finance your business with key solutions to free up cash flow and manage your receivables.

Read more about creative ways to finance your startup from Forbes.