The Workplace Basics You May Be Forgetting

Sometimes when we change occupations or even if we have been in the same position for an extended period of time we can often forget about essential components of our jobs and workplace basics that make us a valuable member to our employer. This can cause us to be passed over for promotions or even laid off when workforce reductions may be necessary for a variety of reasons.

Here are several workplace basics you will want to keep in mind that not only help you enhance your value but also impress your employer with your dedication and job loyalty.

    Effective Communication Skills. You must be able to communicate effectively with everyone you come in contact with at work from the janitor to the CEO.

    Problem Solving Skills. Employers want employees who can take initiative and reach solutions without being held by the hand.

    Attention to Detail. The devil truly is in the details and minor omissions or mistakes can be extremely costly for your employer.

    Adaptability. Change happens often in the workplace especially with technology and you must be able to roll with the punches and welcome changes as they come along.

    Team Player Attitude. Renegades and lone wolves may be appealing in the movies but not in the workplace. Employers want their staff to be able to work productively both alone and in a team environment.

    Confidence. A high level of self-esteem goes a long way toward impressing employers with your ability to handle anything they throw at you.

Make sure you develop each of these workplace basics in your occupational repertoire. Your ability to present the total package as an employee to your supervisors will definitely make an impression that gets remembered.

About PBCC

Pacific Business Capital Corporation is an accounts receivable financing company based in Costa Mesa, CA. The company provides fast and efficient receivable factoring and other asset based lending programs to many clients across the United States.

Stimulate-Your-Cash-Flow-by-Selling-Accounts-Receivable


Business financing requires more options, not fewer. However, if you have a start-up or newer business that requires a cash infusion it is unlikely that traditional lending services will help you. The difficulty is compounded if you cannot provide a strong personal guarantee due to less-than-optimal personal credit history or lack of assets.

There is another option for a cash hungry business, finance your accounts receivables.

The financing or purchase of accounts receivable is performed by a factoring company who assesses the value of the accounts. After the assessment, an advance amount or a purchase price is determined. Rather than wait for your clients to pay your invoices, you receive the money within 24 to 48 hours to cover business expenses, replenish inventory, invest in a new market or simply make payroll.

Qualification is based upon the strength of your customers, their credit-worthiness, including their satisfaction with your company, and the success of your product or services. Your company’s credit history or financial strength is not the underwriting focus, which can be an advantage if your company is small or new.

If you have capital, cash, or payroll needs and want to explore this option further, consider a few essential elements before starting this process:

  • Amount of cash needed;
  • Initial cost or fees associates with the financing or sale; and
  • How long will the accounts receivable be outstanding.

Considering these factors will help you determine whether accounts receivable financing or sale is the right decision for your business cash flow needs.

About PBCC

Pacific Business Capital Corporation is an accounts receivable financing company based in Costa Mesa, CA. The company provides fast and efficient receivable factoring and other asset based lending programs to many clients across the United States.

Due Invoices? 5 Ways to Help Ensure Payment

Wimpy J. Wellington’s famous quotation – “I’ll gladly repay you Tuesday for a hamburger today.”

The best way to ensure your business receives needed revenue is to institute good procedures regarding accounts receivable management and collection. Following these tips will encourage timely payment and good communication with your customers.

  1. Know who to talk to regarding accounts receivable matters.
    After starting a relationship with a customer, get the name and contact information for their primary payables contact. If there is confusion about an invoice or slow payment, it is always easier to deal with one person than it is to navigate a system of people who may not be knowledgeable or responsible.

    Putting a billing contact on an invoice also helps make sure the invoice is routed to the right department for payment.

  2. Have a consistent billing procedure.
    Have a procedure for providing invoices and the required backup to every customer. Send invoices the same day of the month. Follow up with customers about three days later to verify receipt and expected payment dates for current invoices.

    If payment has not been received by the due date on prior invoices, this is a good time to review payment states on older invoices. Check in with the customer about every five days if the payment continues to remain past due.

  3. Check each invoice for errors.
    Nothing can sour a relationship with a customer quicker than inaccurate invoices, especially if you overcharge. Enact an editing process for invoices to ensure your customers are billed for the correct services and/or products as well as the correct amount. Make sure you have the backup needed to go along with the invoice, insuring prompt payment.
  4. Request cash up front or a deposit.
    Requesting deposits or cash payments can be a policy for all new customers until they prove to be consistent payers. You can also encourage the payment of deposits or cash by offering discounts for customers who will take that option. Do not allow your customer base to turn into a bunch of Wimpy J. Wellingtons.
  5. Consider factoring invoices.
    Sometimes a business has immediate needs that cannot wait until the customer’s payment due date. If this is your case, you can factor your invoices and receive up to 80% of the invoice value within 24 to 48 hours.
  6. About PBCC

    Pacific Business Capital Corporation is an accounts receivable financing company based in Costa Mesa, CA. The company provides fast and efficient receivable factoring and other asset based lending programs to many clients across the United States.

Accounts Receivable Factoring: A Trusted Business Financing Solution

The way the economy has been behaving over the last few years, not everyone has perfect credit anymore. Some people, and some businesses, have taken sustained losses. Unfortunately, in order to take advantage of spot opportunities when they come along, businesses need access to cash.

Small start-ups generally face the same issue. If you own a small start-up and your personal credit is less than perfect now, you may not qualify for traditional bank financing. If this sounds like you, consider factoring your accounts receivable.

Factoring receivables has been around for centuries, and the people that work in this end of financial services understand that you need to have working capital at your disposal for any number of situations that come up last minute. Your business needs may be as simple as paying for inventory stuck in port or making payroll.

If you’re having cash flow financing problems and don’t have the credit to seek traditional bank financing, or you just don’t have the time to wait, you may need a company that can turn your accounts receivable into quick cash.

Accounts receivable factoring can turn your most valuable asset into working capital by simply converting your accounts receivable into cash within forty-eight (48) hours.

Sometimes, other financing options fail, like family and friends or the investor you met a few months back. As your business grows, you need to grow working capital. If you find yourself in the position of needing a quick increase in working capital, turn your accounts receivable into cash so you can manage the day to day cash demands that just seem to get bigger.

About PBCC

Pacific Business Capital Corporation is an accounts receivable financing company based in Costa Mesa, CA. The company provides fast and efficient receivable factoring and other asset based lending programs to many clients across the United States.

Manufacturing Industry: Using a Direct Approach for Cash Flow Statements

Not only is it wise for small business owners to know which advertising campaigns are working and which ones are not, but also to have a comprehensive understanding of what is coming in, and what is going out. That is why cash flow statements are important.

A cash flow statement gives business owners a line-by-line summary of what went out and what came in for the period in question. It includes statistics on company investments, including how much was lost or gained.

There are two types of cash flow statements:

  1. Indirect Approach - Cash flow statements derived using the indirect approach are those in which the starting and ending account balances for a given period are checked against each other to determine cash flow.
  2. Direct Approach - The direct approach pertains namely to operational expenses. With the direct approach, cash flow is recorded dollar by dollar, line by line. This gives business owners a comprehensive understanding of where the money is going and why.

This is particularly important for those in the production industry, as small expenditures can add up quickly if they go unnoticed, or documented using the indirect approach.

Here are the two most important expenditures for an executive in the manufacturing industry to record, opportunities that the indirect approach cannot afford them:

Product
It is important for those in the manufacturing industry to keep track of how much they are spending on raw materials. If you do not have a cash expenses log, determine the cost of goods that you have sold in the given period. Record any changes in inventory from the last period. Then subtract the change in accounts payable for the last period and apply it to the changes in your inventory. If your accounts payable have dropped, you will be subtracting a negative number from them.

Expenses for Operational Activities
The direct method is concerned primarily with operational expenses, and includes administrative overhead costs, selling costs and expenditures for payroll. It also includes liability expenses, insurance premiums, advertising expenses and damages.

About PBCC

Pacific Business Capital Corporation is an accounts receivable financing company based in Costa Mesa, CA. The company provides fast and efficient receivable factoring and other asset based lending programs to many clients across the United States.

Let Factoring Companies Pay For Tomorrow’s Technology Today


Your business will only be as strong as its technology. Network shutdowns, software malfunctions and electronic security breaches severely compromise productivity and innovation.

Yet many small and new business owners will delay upgrades indefinitely. Often there is a perception that the current systems are “good enough” and malfunctions and shut downs are inevitable impacts of this technology dependent age. The reality is quite different. Well designed systems and software do not suffer constant shutdown and are easy to use. They are the best way to support a productive enterprise.

There are also cost effective options for financing their implementation. Consider factoring when looking to upgrade technological needs.

IT Upgrades: Pricey Yet Priceless
IT is often neglected until there is a serious malfunction or there is cash available to invest in it. When issues arise, their costs manifest as lost work and repair. Less than adequate technology costs much more money than it can save.

However, IT investment is never inexpensive. Retaining an IT professional and purchasing new systems and software causes sticker shock. Although the new capital will pay for itself, the large initial expense intimidates business owners.

Factoring: A Realistic Option for Financing Technology
A new or small business usually requires financing to upgrade technology and end losses incurred from inadequate systems. Traditional financing is difficult to secure as the new or small business may lack the assets or credit for loan approval.

This makes invoice factoring a strong option. Financing actually involves the purchase of existing invoices and consideration of company standing. If you have strong clientele and positive reviews, invoicing factoring can secure the needed funding for technology upgrades.

About PBCC

Pacific Business Capital Corporation is an accounts receivable financing company based in Costa Mesa, CA. The company provides fast and efficient receivable factoring and other asset based lending programs to many clients across the United States.

What You Need to Know About Factoring Contracts

Many small, medium sized and even larger businesses are opting for invoice factoring to keep cash rolling to meet expenses and manage growth. However, before you consider this financing option, you need to consider the lender’s contract. A factoring agreement’s terms and conditions can vary a great deal from lender to lender.

Below are some of the essential terms or conditions you should consider in the factoring contract:

  1. Contract fees
  2. This is the biggest thing you should look at in the contract. Factoring fees vary from lender to lender and may be set based on your type of business. While factors will not primarily look at your credit history to determine whether to finance you, they will look at your customers and total outstanding AR to determine the fees you will pay.

    Most lenders charge a percentage of the total invoice amount they are financing. Some charge between 1 to 3 percent depending on volume and perceived risk. Other lenders charge a prime plus base fee and have other charges that add up quickly. Do the math and see whether the fees you will pay for the financing are acceptable and competitive.

  3. Contract term
  4. Another issue to consider is the term of the contract. This refers to the period over which the contract will be valid. One of the biggest benefits of factoring your invoices is flexibility. The contract will stipulate term; you may need to negotiate with the lender to ensure your interests are taken care of.

  5. Collateral
  6. While invoice financing is given based on the history of your clients honouring their obligation, sometimes lenders will request that you provide additional collateral. This would be the case if you are requesting a higher advance rate against your AR or would like help with trade finance. Some forms of collateral that may be required include a direct pledge of a stock portfolio or real estate.

    The above are some of the things you should consider before you enter into a factoring agreement with a lender. Make sure the terms of the agreement will be favourable to your business.

    About PBCC

    Pacific Business Capital Corporation is an accounts receivable financing company based in Costa Mesa, CA. The company provides fast and efficient receivable factoring and other asset based lending programs to many clients across the United States. By easily obtaining an accounts receivable loan from Pacific Business Capital Corporation, many small businesses and startups are able to maintain a positive cash flow to grow their business.

GUIDE: How to Prevent Common Small Business Cash Flow Issues

Cash flow in a small business can make or break you. While cash comes in, you feel on top of your game, ready to grow and expand. But cash is a fickle mistress, and just as quickly as you’re flush with cash, you could suddenly find yourself with a cash flow shortage and payroll due.

You can take steps to prevent cash flow financing issues before they start with this guide.

  1. Forecast
    On a regular basis, complete a company forecast that considers your current cash, your near term expenses and receivables. Manage you cash and collection activity to this forecast on a daily basis. At first, complete forecasts weekly until a clear cash flow pattern emerges that allows you to go longer between forecasts.
  2. Manage Growth
    Company forecasts can also help you chart growth, which will eventually bring in more cash. However, growth takes cash as well and your forecasts must consider what cash you may need to grow inventory, hire more employees, or invest in additional infrastructure.
  3. Terms of Sale
    New small businesses want to court customers and often offer generous terms of sale. While this can attract new customers, it can also hamper cash flow especially if the terms create gaps between the customer receiving the product and you receiving payment for the product. So either change your terms of sale or forecast for the delay and plan ahead.
  4. Create a Collections Plan
    Many small businesses forget to plan for the collections process. Who wants to be the bad guy, after all? Set up a collections plan right away. Make it clear to your customers that you will be depending on timely payment to continue offering terms. Making the process visible at the outset will make it less difficult to enforce if the time comes.
  5. Make Cash Flow a Company Priority
    A small business is a team with everyone on staff working toward a common goal. That means everyone on the team also has to make cash flow a priority, not just the owner or financial manager. Set goals, create incentives and involve others in the forecast to make clear that cash flow is top priority.
  6. About PBCC

    Pacific Business Capital Corporation is an accounts receivable financing company based in Costa Mesa, CA. The company provides fast and efficient receivable factoring and other asset based lending programs to many clients across the United States.

Business Financing Debate: Invoice Factoring vs. Business Loans

Getting a business loan from a bank can still be tough without real estate to pledge. Many lenders are still retaining tight underwriting requirements on financing, small, medium or even large businesses. When your business has no solid credit or operations history being approved for loan by a traditional financial institution will be difficult at best. However, there is one type of financing that businesses can take advantage of to cover their day to day cash needs: Accounts receivable financing & factoring.

Factoring is a reliable way for a business to increase cash flow financing. Like most commercial loans, factoring lines are offered with various terms and conditions. Depending on who your account debtors are, how much you need to borrow each month, your company’s projected growth and other less financial and more business opportunity information provided, the factor / asset based lender can tailor a program to your needs.

As an example a company with a short operating history, negative net worth and limited profits may still qualify for factoring. The terms of borrowing seem to be more lenient as the focus is on you customer not your balance sheet.

When you contact an asset based lender or factor the first request will be for an AR aging and a payables report. This will answer two business basics. Are your customers paying and is your company paying for the goods or services sold. A bank will be asking for a balance sheet to peg any borrowing to a small percentage of the company’s net worth. The whole process from application to first funding can happen in two weeks with a factor.

What most business owners don’t understand is banks do not like growth. It damages the balance sheet of any company. A factor loves growth, if it is attached to a good customer and decent profit margins. From the time a company submits invoices for financing to a cash transfer into the company’s bank account only 48 hours will have passed. Try to get a line increase at your bank to handle that same growth in 48 hours.

About PBCC

Pacific Business Capital Corporation is an accounts receivable financing company based in Costa Mesa, CA. The company provides fast and efficient receivable factoring and other asset based lending programs to many clients across the United States.

We Factor Almost Everyday and Don’t Even Know It

Factoring is the process of financing an invoice with a factoring company Factoring is the process of financing an invoice with a factoring company instead of waiting for the invoice to be paid by the account debtor. This allows companies to have immediate access to the value of their most valuable asset. More responsive cash flow allows a company to:

  1. Expand your business
  2. Take advantage of cash discounts
  3. Purchase additional inventory
  4. Make payroll
  5. Small companies, or those who have just opened their doors, may not be able to get conventional loans from banks and other lenders. Instead, factoring allows them a viable option that gives them the funds they need for a small percentage of the total invoice price. It also allows them the freedom to grow when it is most needed.

    Lenders, who specialize in factoring, have the resources to carry invoices that may not otherwise be paid for several months. For a fee, they advance against the face amount of the invoice, providing the company with needed cash. As the invoices are paid, the lender will retire the original cash advance and collect its fees. The remaining balance of the payment will be transferred to the company.

    Many companies factor and don’t even realize they are doing it. When you give a customer a 2% cash discount for payment in ten days you are factoring your own invoices. The problem is, most customers take the discount and pay in 45 to 60 days anyway. A company can recapture factoring costs by receiving a discount from its vendors or using the predictable cash flow to pay for its growth in total business.

    Once a business stabilizes at a higher sales level more traditional types of financing can be put in place.

    About PBCC

    Pacific Business Capital Corporation is an accounts receivable financing company based in Costa Mesa, CA. The company provides fast and efficient receivable factoring and other asset based lending programs to many clients across the United States.