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!

Specialty Financing Solution Creates New Buyers

Tesla Motors Unveils Revolutionary Financing Plan to Make Electric Cars Affordable

Tesla has taken the automotive world by storm. The Silicon Valley-based company was founded in 2003 by Elon Musk amidst much skepticism. A decade later, Tesla has proven that electric vehicles can be beautifully designed, have impressive performance and be affordable for the consumer. Tesla’s new Model S was recently awarded the prestigious Motor Trend “Car of the Year” for 2013.

Perhaps even more innovative than Tesla’s technology is the company’s recently unveiled financing plan. By working with US banks, the company has been able to create a new kind of financing product that combines the security and comfort of ownership with all the advantages of a traditional lease.

One disadvantage of electric vehicles often cited by critics is the higher price compared to traditional cars. Depending on the model, customers can expect to pay from $70,000 up to $100,000 for a new Model S. To overcome this obstacle, US Bank and Wells Fargo have agreed to provide 10 percent down financing on the purchase of a Model S. This 10% down payment is covered by federal and state tax credits ranging from $7,500 to $15,000. After 3 years, Tesla customers can sell their Model S back to the company at a guaranteed minimum resale value, the same residual value as a Mercedes S Class car. If that’s not enough to win customers’ trust, Musk has even guaranteed the deal by wagering his personal multi-billion dollar fortune.

“Our goal is to make the best financing product,” Musk said in an interview with Bloomberg News. “It’s not like a lease per se, it’s financing a car over three years and a loan you can collapse and be done with it.”

It’s a smart move by the company. The low monthly payment eliminates the barrier of entry for people who couldn’t buy a Model S upfront but can afford one through financing. The high sticker price of electric vehicles can scare off many potential customers before they really look at the math. Government tax credits, a high resale value, and never paying to fill up with gas (it’s free to recharge at Tesla Supercharger stations) reduces the price of Tesla cars to nearly the same amount as competing vehicles.  By lowering the cost of the vehicle over time through a creative financing plan, Tesla can win over a new market of price-sensitive consumers and help drive the adoption of electric vehicles over the long term.

Read more about Tesla’s creative financing plan to make luxury electric vehicles more affordable.