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6 Ways to Manage and Improve Your Business Working Capital

Working capital will represent the money your business has in order to meet its daily operational expenses. It is otherwise known as the amount of cash you have in your firm’s pocket. To ensure that your enterprise will meet its obligations and evade bankruptcy, effective working capital management is crucial.

Too much working capital may lead to decreased shareholder value and profits, while too little working capital can lead to bankruptcy. Financial experts share some ways to manage as well as to improve your working capital.

1. Reduce Fixed Costs

Examine all your fixed costs, including utilities, rent, employee costs, and office supplies. By doing this regularly, you will most likely find areas where you can lower costs. If you lower fixed costs, you will have an increase in your working capital.

For instance, you should keep the heat down by several degrees in the winter or keep fewer office supplies on hand.

2. Enhance Accounts Receivable Collections

You need to make sure that accounts receivables are being collected on time. By offering fast payment incentives, you can actually encourage your clients to pay early or on time. If you have a collections team, you can motivate them with internal programs offering incentives to collect invoices within the outstanding invoice payment terms.

3. Boost Accounts Payable

You must negotiate better payment terms with distributors and materials suppliers. If it’s non-negotiable, consider replacing them with new distributors and suppliers. Moreover, you have to enhance the management of the payment process. Review the payment terms on your accounts payable and accounts receivable. It is vital for you to balance these terms to make sure that your company has the most favorable cash flow position.

4. Analyze for Credit Risk

It is crucial for you to analyze your customers and separate them by their likelihood to repay you on time. This can reduce collections as well as improve your cash flow.

You must also do this analysis for your distributors. By adjusting credit profiles and terms or perhaps adding incentives or penalties, credit risks can significantly be reduced.

5. Introduce Corporate Credit Card Payment Options

Though you may need to pay a certain percentage to the credit card company, using a corporate credit card will help your business gain a working capital faster. Before applying for it, you must weigh the pros of having easier and faster working capital against the cons of paying a certain fee for the privilege.

The right credit card will make all the difference to a profitable business. It allows you to manage costs with just a single statement, regardless of how many cardholders there are. Also, it is easier to set limits on spending so you will have more control if you are planning a budget.

Moreover, the use of a reliable corporate credit card will give you breathing space to plan new business enterprises, pay suppliers on time, and meet unexpected costs that come inevitably as you engage in new markets.

Some cards also offer special features and rewards. Thus, make sure that you choose a credit card that has the right supporting tools for your business. Speak with the best business bank about which credit card is right for your company.

6. Consider Alternative Financing Methods

Today, most businesses are looking into alternative financing and using them to improve their cash flow. Below are some of the best alternative financing methods you can use as well.

Invoice Factoring

Invoice factoring is the selling of invoices to a third party company in order to improve your cash flow and minimize bad debt. If you choose to use invoice factoring, you will benefit from an instant boost to your cash flow. At the same time, the need to process invoices will be eliminated.

Bank Guarantee

A bank guarantee is a promise from lending institutions like banks that when a certain borrower defaults on a loan, the financial institution will cover the loss. It allows your company to make purchases that you normally can’t make, and serves to expand and heighten business activity.

Letter of Credit

A letter of credit is a document issued by a bank guaranteeing that the buyer will pay the seller fully on time. If the buyer was not able to make the payment, the bank is required to cover the remaining or full amount of the purchase. The use of this alternative financing method has become a crucial aspect of international trade because of the nature of international dealings.

Working capital is the backbone of any business type. Thus, learning how to maintain and improve more cash in your business is crucial for success. Keeping enough working capital on hand is challenging so you need to know the basics. Make sure that your company gets paid for the products or services you provide. Also, consider the different options above and put your business finances to good use.

January 18, 2018
Let Your Kids Realize Their Dreams with Life Insurance for Children

Children in the family are as important as any other member and thus it becomes critical to ensure their financial security. Different insurance companies are providing insurance plans to help children make their dreams a reality. Learn about the available insurance plan benefits and choose the most suitable insurance plan for your child.

Every parent wants their child to better in life and they try doing everything to ensure the same. Along with providing a good lifestyle while growing, they try to ensure that their future is equally secure should the unthinkable happens. Life insurance policies for children are designed to provide the required financial security to the kids that are vital for a successful parenting. Every child has their own dream and the parents are supposed to help their kids realizing their dreams in an easy way. Considering the rising cost of education and the uncertainty of life, it becomes vital to have a financial security to realize the plans even in the odd situations.

There are insurance providers offering dedicated life insurance quotes for children that cover them for accidents and injuries in future. That means if your child gets injured any time after receiving an insurance, the insurance provider will pay for the treatment expenses. Generally, it’s not considered necessary to have an insurance plan for the child in the family, but this is very important as you never know when what can happen tomorrow. It has been found that older parents or grandparents in the family buy a life insurance plan for them as they understand the importance of having a life insurance policy in place. Also, there are plans that take care of child’s educational expenses in case the parent passes away. There are multiple benefits that a child can receive from a life insurance policy that we are going to mention below.

Receiving A Planned Corpus

Under a cheap life insurance plan for children, you will receive a planned corpus as the plan matures. This corpus ensures that your child’s education will never get interrupted due to lack of money as the insurance provider will provide financial assistance in such instances. Moreover, it saves the insured from unnecessary complications while going for a claim.

Securing the Well-Being

When properly structured, these insurance policies ensure the well-being of the children in the families and lessen the financial burden on the family to take care of educational as well as medical expenses. Through their various plans, several companies provide immediate compensation to the beneficiary in the event of loss of income. Some companies provide an accumulated cash amount equal to the life cover to the beneficiary in the event of the parent meeting an accident or passing away. Generally, the life cover is at least 105% of the premiums paid till date but insurance buyers aging 45 or more have a unique option to choose the life cover seven times bigger of the annualized premium. All future insurance premiums are waived off and are fully paid by the insurance provider. Moreover, the policy remains in effect without paying any single premium and the beneficiary will receive the fund value as the policy matures. This fund value is calculated as the unit price on the date of maturity multiplied by the number of units.

Risk-Return Preferences

There are insurance policies that provide risk-return preference in the same. That means you can invest a portion of the premiums into the market and can receive attractive returns on the same. Insurance companies have a group of experienced professionals that advise where to invest the money that can receive more and more benefits. This can provide an additional income other than the promised accumulated cash amount help your child fly higher to realize their dreams. Moreover, some companies allow you to add a surplus amount to the policy to further increase the benefits. However, it’s not applicable in the last five years of the policy.

Flexible Premium Payment Period

Most of the insurance companies take care of insured’s comfort and provide different options to help them pay their premiums. They are providing flexible premium periods to choose when the customers feel more comfortable to make the premium payments. Insured can choose whether they want to make the premium payments monthly, half-yearly or annually. You can get in touch with an insurance expert to understand the various policy details and receive top life insurance policy quotes for the same. Moreover, they can choose a suitable premium payment period such as a 10-year insurance policy with a premium payment period of 5 years or a 25-year insurance policy with a premium payment period of 10 years. Whenever you complete the 10th, 15th or 20th year of the policy, the companies reward you with their loyalty benefits. This benefit is calculated as 2 percent of fund value of current added with the fund value of previous year divided by two. Moreover, these policies enable you to receive tax benefits on the premiums you pay and help you save big every year.

Author Bio:

Anil Kumar is the owner of Optinsure.com and has been providing insurance-related support and services to help customers make their most crucial financial decisions.

January 18, 2018
Six ways to earn money online

Nobody does not like an extra income. And thanks to the internet, the ways to obtain it are abundant and increasingly secure. That’s why we present you with six ways you can earn money online with your skills, work or even good luck. Know them. (If you are interested in this topic, you can also consult two other notes we have to earn money online: How to make money blogging)

Play online poker

One of the most risky but most lucrative ways to make money online is online poker. There are several sites on the internet that offer their services for our country. However, we recommend using some of the best known, such as PokerStars.

There are also ways to protect your personal information and secure your payments. If you do it through a service like Skrillz, you can put your credit card and then send the money to the poker site you choose, without you having to be involved in the transaction.

Although poker is a good strategy, it is also very risky. However, there are different ways to mitigate the risk. First, you can practice with ‘lying’ money while you get used to it and know the ins and outs of the game. You can also go climbing the limits. You can start betting pennies and when you feel more comfortable, you can increase your bets.

Poker is a risky bet, but it can become a profession. And he does not have to leave the house.

Work ‘freelance’ from your home

You can invest part of your time ‘freelancing’ from your home.

If you have a little time, you can work from home and have an internet connection, it is possible that someone is looking for you. In the network there are several specialized sites to contact people who work freelance with employers that demand that kind of talent.

Some of them are Nubelo or Freelance.com. The transaction is guaranteed by the sites, so the money only moves if both the worker and the client are satisfied.

According to IDC, in 2015 1,300 million people will work in this way, which will represent 37.2% of the world’s active population.

Only in Nubelo there are 10,000 freelancers registered in the country, and the market grows day by day. Therefore, if you need extra money, you could try to offer your skills online. Surely someone is in need of them.

Create your own online store

Do you have something to sell? Do it online.

One of the best ways to make money online is by creating your own online business. Currently the conditions are given for small and large businessmen to take risks and start using the internet as a business channel in which they can publicize their products and get more customers.
Be a teacher in Google Helpouts

Google Helpouts can be an extra source for teachers. Screenshot.

The online help tool from Google is a platform where users from all over the world can share their knowledge on topics such as cooking, languages, health, fashion, computers, mathematics or even gardening.

Through ‘hangouts’. People can offer their knowledge in online courses through a live video from a computer or a mobile device. While there are free courses on the platform, many people can make money online by creating an online course and pricing it. Students will pay to access it and the money stays in the teacher’s pocket.

Payments are made through Google Wallet, a secure online payment service from Google itself, so there is no risk of money falling by the wayside.
Come to the power of the masses with ‘crowdfunding’

The power of the masses to finance innovative ideas.

The Internet has opened a way for entrepreneurs who consider that they have an idea that can attract many people: crowdfunding.

Although Kickstarter is the most important site of this type, there are many that you can consider taking into account the way you want to finance your project.

For example, you can make a campaign that allows you to keep what you can collect, or one that returns the money to the donors in case you fail to reach the goal that was proposed (as in the case of Kickstarter and Indiegogo). There are even solutions aimed at the Latin American market, such as Idea.me.

Therefore, there is an excellent site called CrowdsUnite that allows you to choose the most appropriate option when deciding where you want to put your project.

Sell your creations
A source of income for photographers and professionals.

Those engaged in jobs such as photography and graphic design can take advantage of the banks of photos and vectors. Services like Fotolia, Shuterstock, Gettyimages, iStock and Vectorstock offer the possibility of selling images and vectors at a price that increases the more it is used. The creator receives a higher percentage of profits depending on the popularity of his files and the needs of the companies.

Among the most popular searches of these sites are logos, portraits and photo compositions of different situations; So take out all your creative potential and receive money for it.

January 6, 2018
How To Take All The Crucial Financial Decisions Of Your Company
You must have heard the very famous quote which says that “The Best Source of Knowledge Is Experience.” So, it is clear that no one can take the decisions better than the ones who have years of experience of working in a particular area. If you are a newbie in the field of business and always confused about the decisions to be taken regarding your company or venture, then here’s a fantastic solution for you. Take the advice and proper guidance by the business experts and analytics working as consultants in the Best Financial Advisory Firms.

Your friend like advisor is now 24/7 available for your help:

These firms explore hundreds of investment opportunities and provide a wide range of advice and solutions that help you to transform your business and take it to a higher level. The information they will give you will always be backed by a complete understanding of the aim of your business and the issues and challenges that may come on your road to success and achievements.

Digitalization has made everything easier:

These financial advisors are also available online on several portals such as BEE- Business Engineering Experts. These consultants of financial issues also give the Company Valuation Services to their clients. In this manner, they help their customers to know the value of their assets. They put huge efforts to examine and analyze every aspect of the assignment related to your business.

The Financial Advisory Firms are right beside you to find the best solutions:
- They provide the best possible valuation services to their clients.
- They guide about various methods of along time and short time investments for the welfare of the company.
- They take care of the background check and analyze all the factors causing risk later or any other hidden pitfalls.
- Regulatory and Accounting services are also given.
- Accurate estimation of the value is being done based on the research on various parameters.
- They avoid all kinds of security fraud and help to ensure the safety of all the investment processes.
- They provide their clients, the assurance that any personal information of detail provided by them will be kept strictly confidential and will not be passed to any unauthorized third party.
The online firms providing their clients with Company Valuation Services are trustworthy,and they offer the most reliable services.

You can hire your own consultant from the Best Financial Advisory Firms that will work with you and for you. Taking guidance from these firms will lead to the profitability of your organization. They will also help you in enhancing your practical knowledge in this highly competitive business world. So, if you want to take your business to another level and gain the maximum profit out of it, then without thinking about it twice, you can surely go for the best financial advisory firms!
January 5, 2018
Bank loan in Dubai – amazing offers by top banks of Dubai

There are different types of loans provided by top banks. It is now a days a need of the day to seek out the future planning’s regarding financial problems and for that bank loan is very necessary for locals as well as for expatriates. It was very much difficult and time taking to proceed your tasks but internet and fast growing technological equipment’s has shifted the paradigm completely to avail the services of a bank either in the form of loan or any other insurance policies. So as the case with banking sector that has developed very much and now contributing a lot in the growing economy by providing the services to its customers. The most amazing feature that has developed recently is best mortgage rates. You should know that repayment and transfer your property for a bank loan in Dubai is not an easy task but not a difficult one at the same time if you proceed with a proper planning. As we are dealing for money so it is a very time taking process and at all it was risky also again because of the burden of the loan. Now mortgage services are a way of life for many people here in the UAE to establish their own house or a commercial property by taking a bank loan in Dubai. There are also many benefits of using bank loan in Dubai services as every time you use the same bank with which you are in contract for loan, the bank provide you many offers on online shopping, ordering food or recharging your phone, you can avail big discounts and many perks.

Why we need a bank loan in Dubai?

We need a bank loan for so many purposes like we have to build our own home or we want to start a small sized industry and now these ideas cannot be fulfilled with the help of investment and loan that can only be possible approaching a bank for a loan in Dubai. Well there is a strong reason also that why we should take a bank loan in Dubai. Suppose you are working in an institution in Dubai as an expat and you live in Dubai and consider it as your home. You have to pay a fixed home rent every month to your land owner and this is due on you for each month and there is no relaxation because your owner is very strict for rent. That rent make a big cut on your monthly salary and you are unable to save money for future purposes and you think that this setup is not giving you anything at the end of your agreement with your land owner. Now what if I told you that if you would take services of a bank for loan you can get your own property by paying easy installment with a very loan interest rate. And most amazing thing is that the installment you will pay to your bank or any lender I mean your financial helper is exactly equal to the amount you will pay for your rent amount. Now if you are a sensible person you will for sure got the idea that why I am paying rent for a building that is not mine and on the other hand top banks provide me with a bank loan in Dubai on easy installment at a very low interest rate and after paying the installments I will be for sure able to get my own home. Now this is the conclusive idea that through bank loan in Dubai you can have your own home that is dream of most of the people in Dubai.

Credit card payment – best facilities from Mashreq bank Dubai

Mashreq bank is considered one of the most reliable bank regarding bank loan in Dubai services. There are different types of package that Mashreq bank is providing to its customers. You can get the most relevant package for a bank loan in Dubai to meet your desires.

Bank loan in Dubai is most appropriate way for expatriates to build their own home or set a business. Mashreq bank of Dubai is best suited for all in this regard.

December 10, 2017
Top things to consider before plunging your start-up!
Starting a business is exciting and at the time, it is scary too. In actual, the facts reveal that three quarters of startups fail within the first three years, and the other after six months. To get the best chance and to survive this teething period, here are the top-most things to consider and research before taking the plunge.
- Sole trader or limited company: What type of company to start you choose will impact directly on the tax you pay and how much legal as well as financial responsibility is laid at your door. As a sole trader, you can take all the post-tax profits, but you are also liable solely for all of your business’ financial dealings.
- Size up the competition: Secondly, you need to study the competition around you and learn from others mistakes and also what sort of things do the potential customers appreciate. In addition to this, you also need to learn how much people are willing to pay for your product or service and alongside the techniques on how you could enhance the current offerings.
- Define your target audience: You need to focus on your target audience from your website to your marketing campaigns. Make sure that you target the right people, speak to your customers through social media and even hold focus groups. You can also strive to involve your target customer in the development of your business and consulting from them will make them feel like they have a voice, thereby breeding loyalty.
- Paying yourself and your business name: You need to think about the payment upfront with the best intentions to plough profits to your business. Cut the irrelevant part of luxuries and figure out what you need to live on and include it in your outgoings. Not only this, think long and hard about your business name. Most importantly, consider what your name needs to say about your business.
- Marketing your business idea and your web presence: Without a big marketing budget, you can start small and focus on building relationships with your customers. Start building reputation with not just customers, but also suppliers, retailers and local businesses. Start thinking about how much more your business could be doing by embracing an online market.
- Funding, business plan and route to the market: In order to launch your new business, in an ideal world you may require enough money to self-fund the launch. You should look into what business grants are available and manage to get one. If you can’t secure the funding, then you need to launch your master plan, start small and prove the business works. Later on; you can go back to the bank or investors with more evidence for funds.
- Finding the best business bank account: Don’t just go straight to the bank, find one that understands your business and who you feel comfortable with. Most banks also offer incentives for new sign-ups and also audit your business plan to figure out what technology will enable you to save time, money, stay in control, increase sales and deliver the best results.
- Take help from professionals: Starting a business should not be an independent journey, no matter how tempting it is. Taking help along the journey will set you up for success. Hire a coach or mentor to help you in providing training and development programs so that you learn what is important for growth. The next person to hire is an accountant as it is nearly impossible for one person to handle every aspect of the company and most important your finances should not be put at risk and a legal advisor as it is important to have assistance on the legal aspects of the business so that you are protected and going about the process in the right way.
Certainly, Adam Radly Robert Bates created the RBI- RADLY BATES INDEX in order to track entrepreneurial activity in the United States. RBI is a part of S7 Group, which is a private investment company and this index measures the percentage self-employed workforce and it is updated every month as the monthly jobs data is released. Furthermore, it is based on the data from the US Bureau of Labor Statistics.

Author’s Bio

Adam Radly, co-founder of Radly Bates Index is passionate about what he does and apart from inventing the index, he also has invented the world’s first open source philosophy while setting up a health center for a village in Mali (West Africa). He also created an event known as World Recognition Day and has donated $1 million to Nelson Mandela’s charity.
December 4, 2017