Banking Finance

Wondering whether you’ll be able to get a loan for your business? Getting a business loan is one of the toughest tasks to accomplish for a company owner. Although banks represent a very cost effective source of funds, they are very selective about the customers they take. This is especially true nowadays were commercial credit at banks is very tight. Most banks will only provide business loans to companies that have a solid track record and substantial assets. But, what if your company does not meet the banks criteria? What is you are a startup or if your company does not have traditional assets such as real estate? One business financing alternative that has been recently gaining traction could be the right solution for you. It’s called accounts receivable financing.

Accounts receivable financing, commonly called factoring, is a type of financing that helps companies that need to wait 30 to 60 days to get their invoices paid. It provides funds to pay employees and suppliers while you wait to get paid by your commercial clients. Accounts receivable factoring is different than a business loan because the factoring company does not lend you money. Rather, the factoring company advances you money based on your open invoices and gets paid once your customer pays.

A typical transaction would work as follows. Once you deliver your product and send the invoice to the client, you submit a copy of the invoice for financing. Within one to two business days, the factoring company advances you about 80% of the invoice. Once your client submits the payment in full for the invoice, you get the remaining 20% less a small fee charged for the service. Costs are usually determined based on the size of the financing line and can go from 2% to 5% for 30 days depending on the specific details of the transaction.

One of the major benefits of receivables factoring is the flexibility that it provides. Your maximum financing line is determined by the invoices you submit and is tied directly to your monthly sales. This means that your financing line increases dynamically, as your business grows. This provides the liquidity you need to stay current on your obligations and enables you to maximize sales opportunities.

Another benefit of factoring invoices is that it’s relatively easy to obtain. The biggest requirement is that you do business with reliable companies (or government agencies) that pay in 30 to 60 days. This is critical because your invoice is the collateral, for lack of a better term, that the factoring company is financing. Aside from that, your business needs to be properly organized and well managed.

Invoice factoring has been around for quite a while and has been gaining traction in recent times as a flexible solution to finance business growth. Due to its structure it’s the ideal source of financing for startup and growing companies alike.

For the growth of your business or to meet the cash flow shortages, you have to struggle to attain capital. But, for small business houses, if the loan and credit are limited, then you can opt for accounts receivable financing. Account receivable financing is selling your invoices at a discount to a factoring company, which is prepared to take risks on the receivables and offers instant cash.

Extending payment terms is quite common in the business world. Your company is bound to run in problems, unless you have sufficient cash for business expenses such as rent, salaries and suppliers. The ultimate result would be, either you will settle for low pay orders to conserve cash or delay the payments of your staff and key suppliers.

Obtaining a business loan from bank is quite difficult, unless you have a good record and substantial assets. Banks only lend to organizations, which can provide a profitable operations for many years and a detailed financial statement. Apart from the loan, there would also be a fixed amount. For additional expenses, again you may have to go through the same process.

So the best option would be going for accounts receivable financing also known as factoring, which will pay you immediately to meet your business expenses. Moreover accounts receivable financing can be easily obtained than a bank loan. The work process of receivable factoring is quite simple. It gives you an advance payment, which ranges from 80 to 90% of the invoice depending upon the kind of industry and your clients. Now this advance helps you to pay the current expenses rather than waiting for the delayed payments from the clients. The remaining transaction that is 10 to 20% with a deduction of factoring fee is settled as soon as your client pays the open invoice.

Factoring fees are determined by the amount of financing you receive and on the payment reliability of customers. The monthly cost may vary from 1.5% to 3.5%. Accounts receivable is a cost effective solution and a best tool to make financing and sales grow in your organization. This accounts receivable will also help you to go for better pay orders too.

One of the major benefits of accounts receivable financing is the flexibility. The financing lines of your organization by the invoices you submit are tied directly to your monthly sales. This means that as your financing line increases your business grows. This will provide you cash and enables you to maximize the sales opportunities. Accounts receivable financing helps you to maintain a steady cash flow in your organization. It increases working capital of your business.

You now have control on your money, even if your clients pay after 30 or 60 days. Your running expenses can be easily taken care of. Due to this increased working capital, the factoring financing availability grows automatically. Unlike banks, you don’t need approval every year for additional funding and have a 30 day rest period every year, before drawing on a line. Moreover, you don’t have to pay any kind of monthly loan payments. You can take advantage of trade discounts, which are offered by the suppliers. Now you can concentrate more on the company’s growth than on managing your receivables. This will lead you on the road of success.

State Bank of India – Alternative Energy – Deals and Alliances Profile

Summary

State Bank of India – Alternative Energy – Deals and Alliances Profile is an essential source for company data and information. The profile examines the company’s key business structure and operations, history and products, and provides summary analysis of its key revenue lines and strategy as well as highlighting the company’s major recent financial deals.

State Bank of India (SBI), along with its subsidiaries, is engaged in providing a wide range of financial services including life insurance, merchant banking, mutual funds, credit card and factoring, security trading and primary dealership in the money market. The bank is engaged in providing trading services, international banking and traditional banking and treasury operations. These products and services are offered through its internet banking services in more than 2100 branches. As of 31 March, 2009, SBI operates a network of more than 11300 ATMs. It also has 33 Multi Currency Module enabled ATMs at 19 foreign centers in 6 countries. As of March 2009, the bank had 92 foreign branches.

And More inside the report…

Recent Developments

Jan 25, 2010: SBI Eyes South-East Asia For Expansion
Jan 04, 2010: SBI To Establish 1.5 Lakh PoS Terminals
Dec 26, 2009: SBI To Set Up Wind Power Projects With Total Capacity Of 15.5 MW In India

Scope

– Provides key company information for business intelligence needs
– Gives information on the company’s major recent financial deals including mergers & acquisitions, financing of new and acquired assets, PE/VC deals, equity offerings, debt offerings and partnerships.
– Data is supplemented with details on the company’s history, key executives, business description, locations and subsidiaries as well as a list of products and services and the latest available company statement.

For more information, please visit:

http://www.aarkstore.com/reports/State-Bank-of-India-Alternative-Energy-Deals-and-Alliances-Profile-39827.html

Or email us at press@aarkstore.com or call +919272852585

Aarkstore Enterprise

Tel : +912227453309

Mobile No: +919272852585

Email : contact@aarkstore.com

Website : http://www.aarkstore.com

Blog: http://blogs.aarkstore.com/

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Are you a student with plans of pursuing a masters or undergraduate degree in the United Kingdom or any part of the world in the September admission window? Then perhaps you should pay a visit to the nearest branch of Bank PHB as the bank is  offering an optional route to finance your dream using the Bank PHB UK educational loan.

Parents and Guardians facing the strains of the current global financial crunch may find the Bank PHB education finance opportunity quite attractive. The loan provides the opportunity for sponsors or guardians to give their love ones quality education abroad by contributing a fraction of the cost of the programme (20% equity contribution) while Bank PHB provides the balance (80% contribution).

The Bank PHB educational loan is offering sponsors, parents or guardians the option of not of sourcing for the total cost of study in the UK. With the UK educational loan, parents can invest the funds that could have been used in educating their child in other productive ventures that will generate more income, while Bank PHB cater for  80 percent of the cost of study.

The Bank PHB UK educational loan covers the tuition, accommodation, living expense and return ticket to the UK or any other part of the world.

The advantages that come with the Bank PHB educational loan is that it reduces the pressure on the sponsor’s or the guardian’s cash flow as it allows the customer to make repayment conveniently over an agreed period of time.

It also gives parents or guardians the opportunity to save for their children’s education in the future, through education target savings account. This account attracts higher interest on deposits than the normal savings account.

There are two versions of Bank PHB educational finance facility. There is the Bank PHB educational loan and the Bank PHB UK educational loan.  The PHB|UK Education Loan support postgraduate programmes only, in the UK, while PHB Education loan supports pre-university, undergraduate and postgraduate programmes as well as professional exams anywhere in the world.

However both variants of the Bank PHB education loan come with, flexible repayment options, tailored along the sponsor’s income pattern and provide funds to cover tuition, accommodation, and living expenses and return ticket up to a maximum of N5million.

The tuition fee and accommodation which is optional will be remitted to the school by the bank, while the living expense will be transferred to the student’s bank account in the country of study.

For students taking the Bank PHB UK educational loan option, the  bank will offer a “quick turnaround time, upon submission of all relevant documentation while Bank PHB will also provide  a Letter of Financial Guarantee to support Visa application for those applying for the PHB|UK Education Loan.

The Bank PHB Educational finance facility is available in branches of the bank however those desiring to take the loan must open an education target savings account in any branch of Bank PHB and build up or deposit 10 percent of the tuition fee of their proposed course of study.

For those who do not have an account with Bank PHB but desire the Bank PHB Educational loan in a hurry, they will have to open a current account, fill the PHB education loan application form and provide 20 percent equity contribution of the loan amount. The loan applicant will also have to provide a sponsor who must have a regular source of income as well as acceptable collateral which may be a fixed deposit, legal mortgage or domiciliation of salary and terminal benefit of the sponsor.

ICICI Bank Limited – Alternative Energy – Deals and Alliances Profile

Summary

ICICI Bank Limited – Alternative Energy – Deals and Alliances Profile is an essential source for company data and information. The profile examines the company’s key business structure and operations, history and products, and provides summary analysis of its key revenue lines and strategy as well as highlighting the company’s major recent financial deals.

ICICI Bank Limited (ICICI Bank) is an India-based banking company. ICICI Bank provides banking products and financial services in the areas of investment banking, venture capital, life and non-life insurance, and asset management to corporate and retail clients. The bank offers fixed deposits, savings accounts, recurring deposits, security deposits, child education plans, salary accounts, EEFC accounts, and resident foreign currency accounts; and consumer and commercial cards. It also provides home loans, commercial business loans, automobile loans, two wheeler loans, personal loans, and credit cards.

And More inside the report…

Recent Developments

Jan 06, 2010: ICICI Bank, First Data Form Merchant Acquiring Alliance
Dec 24, 2009: ICICI Bank Sells PoS Terminal Network To First Data
Nov 11, 2009: ICICI Bank To Provide Clearing And Settlement Services To SMX

Scope

– Provides key company information for business intelligence needs
– Gives information on the company’s major recent financial deals including mergers & acquisitions, financing of new and acquired assets, PE/VC deals, equity offerings, debt offerings and partnerships.
– Data is supplemented with details on the company’s history, key executives, business description, locations and subsidiaries as well as a list of products and services and the latest available company statement.

For more information, please visit:

http://www.aarkstore.com/reports/ICICI-Bank-Limited-Alternative-Energy-Deals-and-Alliances-Profile-39819.html

Or email us at press@aarkstore.com or call +919272852585

Aarkstore Enterprise

Tel : +912227453309

Mobile No: +919272852585

Email : contact@aarkstore.com

Website : http://www.aarkstore.com

Blog: http://blogs.aarkstore.com/

Follow us on twitter: http://twitter.com/aarkstoredotcom

Managing cash flow is one of the biggest challenges that transportation company owners have today. This applies both to carriers and freight brokers who must balance slow paying clients and suppliers that demand quick payments. It is not uncommon to have clients that pay in 30 to 45 days and drivers and suppliers who want to be paid quickly.

This is particularly challenging for new and growing companies who may not have strong cash positions. Traditionally, business owners deal with this problem by asking clients for quick payments. Sadly, this strategy seldom works as clients, who usually have the upper hand, will insist in paying in 45 days. An alternative that many consider is obtaining business financing through their local institution. However, most will not qualify for a business loans as banks usually have strict lending criteria. So, if a business loan is not an option – what is?

Fortunately there is a solution and it involves factoring your freight bills. This type of financing provides you with the cash flow you need to pay your business expenses and grow your company. Freight bill factoring provides you with a 90% advance (or higher) on your freight bills. Once your client pays the freight bill, you get the remaining 10%, less a small fee.

Factoring has a number of advantages over conventional financing. First, it’s very easy to obtain. The biggest requirement is that you do business with reputable and credit worthy clients. Second, it can be setup quickly, usually in a matter of days. But more importantly, freight factoring is flexible and tied to your sales. This means that your financing levels increase as your sales increase.

Factoring is also cost effective. Costs vary based on a number of parameters, but they range between 1.5% and 3.5% per month. When used properly it can help your company grow dramatically and serve as a crucial stepping stone to eventually obtaining bank financing.