|
|
Like this article? PLEASE +1 it! |
|
Your company already has all the cash it needs!
|
| Guest post by: David Banfield |
Article Overview: Unlock assets to finance your business-don't borrow!
![]() |
Free Download - Support the crucial element By David Banfield |
Your company already has all the cash it needs!
Your company already has all the cash it needs!
If as a small business entrepreneur you have just been
rejected by your bank for either a line of credit or an increase then you would
probably argue with the statement above.
In most cases however the statement is probably true. Most
companies usually have sufficient cash assets to meet their daily needs and in
many cases enough to meet their growth needs.
As a manufacturer or service provider once you have
‘delivered’ your product or service you have a significant cash investment in
that transaction. Your investment comes in many different forms such as
inventory, labour costs, packaging, marketing, etc. All of these components
have probably already been paid for by you-especially the labour content.
Regardless of whether you are a manufacturer or service
provider at the point that you issue your invoice you have created an
investment for your business. Unfortunately that investment wont solve next
weeks payroll problem or other accounts payable demands. With a slow economy
your customers are almost certainly taking advantage of your credit terms and
stretching out ‘net 30’ as far as they can. Such action probably forces you to
do the same with your suppliers. Unfortunately where the payroll is concerned there
is no stretching possible.
The invoice that you created is, as we say an investment and
the key is to unlock the value of that investment and turn it into usable cash
flow. If your business was 100% ‘cash on delivery’ you would not have any cash
flow issues-therefore the key to your cash shortage is simple-turn your
business into a ‘c.o.d’ business. Simple-maybe not as it would require all of
your customers to agree and make immediate payment to you.
The solution is to use an intermediary that can turn your
business into a cash business without it having an impact on your customers and
your relationship with them. Through the medium of invoice discounting your
quality, current accounts receivable-those invoices that represent your
investment-can be turned into instant cash.
Invoice discounting is a mature financials service that in
many instances can be geared to the specific needs of smaller growing
companies. You DO have all the cash you need-you just need to know how to
unlock the investment
David Banfield
|
About the Author: David Banfield RSS for David's articles - Visit David's website David Banfield was named President of The Interface Financial Group in 1991. He has played, and continues to play a significant part in the successful development and growth of Interface as a franchise organisation. Interface was a pioneer in terms of successfully taking an established financial service and turning it into an international franchise opportunity. The company currently has operations in the US, Canada, New Zealand, and Australia. Prior to Interface, David held many senior positions in the banking industry both in Europe and North America. Immediately prior to his present involvement with Interface he was Vice-President of Walter E. Heller Financial Corp. taking charge of their national marketing activities throughout Canada. Click here to visit David's website Get Working Capital |
Related Forum Posts
Share this article with your friends. Fund someone's dream.
Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.



