Speedy Cash Online Payday Loan -Iscfccn.Org / Thu, 04 Apr 2019 08:32:23 +0000 en-US hourly 1 https://wordpress.org/?v=5.6.1 Payday Loan Have Lower Interest Rates /payday-loan-have-lower-interest-rates/ /payday-loan-have-lower-interest-rates/#respond Thu, 04 Apr 2019 08:32:23 +0000 http://www.iscfccn.org/payday-loan-have-lower-interest-rates/

 

 Published in September 27, 2018 November 27, 2018 Tags: retirees , contract , payroll deductible loan , INSS benefit discount , discount on paycheck , payroll loan , pensioners , civil servants , interest rate

Payroll-deductible loans have been one of the most accessed credit modalities in Brazil. Those who are entitled to the credit assignment already know this loan and know that the interest rates are lower .

Several are the reasons that lead to these lower rates. The method of payment is the main reason for such an advantage. If compared to other credits or personal lines, the payroll is up to ten times cheaper.

It is worth noting that the payroll loan interest rates are determined by law . That is, there is a collection limit that should always be respected, even though banks can set their own rates.

Want to find out why the payday loan has the lowest interest rates? Find out now which features of this line of credit make it so advantageous.

What is the interest rate of the Payroll Loan?

What is the interest rate of the Payroll Loan?

It is worth noting that only persons with fixed and guaranteed income are entitled to the consigned loan. These prerequisites include the beneficiaries of the INSS, Public and Military Officers of the Armed Forces .

Some private companies also have agreements with banks and allow their employees to make payroll deductible loans. The difference, in this case, is that the interest rates charged are slightly above the conventional – but still, cheaper than the others.

Currently, the maximum nominal interest rate charged for Retirees and Pensioners is 2.08% per month. Public, Federal, State and Municipal servers pay 2.05% per month .

The average rates charged for Military and Workers CLT are around 2.50% per month – and may vary from bank to bank.

Therefore, a loan of the same value in different modes and banks, may suffer changes in values.

Learn the main reasons why payday loans have lower interest rates.

5 Reasons for the Payday Loan to have lower interest rates

5 Reasons for the Payday Loan to have lower interest rates

With various credit options available in the market, consumers need to understand what their main differences are.

Whether it is for a lower-value loan, financing a home, or borrowing larger amounts, there is certainly at least one more appropriate line for each case.

And, the care to not be indebted is to take credit only when necessary, thus avoiding a new debt.

One of the criteria for evaluating a loan may be its interest rate – which usually varies greatly from one mode to another. So it’s worth researching and comparing before closing any deal .

Find out now why the payday loan has lower interest rates.

1 – Automatic form of payment

1 - Automatic form of payment

The main feature of payroll loan is your form of payment . That is because, the monthly installments are always discounted from the payment of the debtor.

That is, when hiring a payroll deductible loan the client allows the value of the monthly payments to be deducted from his salary or benefit. Therefore, the paying agency debits payments before making the amount due.

In this way, the bank has guaranteed the full or partial payment of the installments. The same applies to paycheck-deductible credit cards , where part of the invoice is automatically withdrawn.

2 – Reduced risk of default

2 - Reduced risk of default

Since the payment is automatic, there is no way to delay or fail to pay a payroll loan monthly. Therefore, the risk of default is minimal.

Therefore, financial institutions consider this a low risk operation . This is another situation that gives rise to lower interest rates.

Besides the banks do not run the risk of getting without receiving, the automatic debit of the monthly payments is interesting also for the contractors of the loan.

With the payment scheduled there is no way to delay a parcel, by forgetting, for example, and there are no fees or extra fees for this.

3 – Use of the assignable margin

3 - Use of the assignable margin

The assignable margin is the monthly limit that can be committed from salary or benefit to pay off payroll loans.

This amount was stipulated to prevent the interested parties from incurring debt . Thus, there is no way to contract credit greater than the allowable amount.

Thus, every interested party must respect a monthly ceiling of what can be spent with payroll deductible loans. Namely, each person can commit up to 35% of their net pay .

That is, after payroll deductions such as taxes, for example, one can spend 35% of what is received every month. This limit is easy to calculate, simply multiply the salary or net benefit by 0.35.

The assignable margin stipulates yet another rule, which refers to the use of the limit. The borrower can use 30% of his loan repayment. The other 5% are for the exclusive contracting of payroll-deductible credit card.

Such a margin, therefore, limits what each person spends per month. With this the risk of indebtedness is lower and banks may charge lower interest rates.

4 – Types of agreements served

4 - Types of agreements served

As has already been said, it is not any person who is entitled to contracted payroll loan. This credit is available to those who have a guaranteed payment at the end of the month.

This criterion for the release of credit allows the payment to always be automatic, a characteristic of the payroll loan. And with this guarantee of discharge, banks charge lower interest rates, giving this option as a benefit.

5 – Exemption from the collection of additional interest rates

The payroll loan does not provide for the collection of any additional interest rate . This, because, there are no fines or fees due to late or non-payment (which is done automatically).

For those cases where the CLT worker is disconnected from the company, the CLT must fully assume the discharge of his debt with the financial institution. The conditions for payment must be confirmed directly with the bank.

It is worth mentioning that the interest rate is one of the components of Total Effective Cost (CET). That is, how much a loan actually costs. Thus, with lower interest rates, the CET also tends to be lower.

That credit, therefore, ends up weighing less in the pocket and ultimately.

What to Consider When Hiring a Payday Loan?

What to Consider When <a href=Hiring a Payday Loan?” />

 

 

 

Just like any loan, the payroll also has some conditions that can vary between one bank and another. This is due to the credit policy of each institution.

Therefore, when considering contracting a payroll loan , you must be able to:

Total Effective Cost (CET)

Total Effective Cost (CET)

The Total Effective Cost is the amount that refers to how much, in fact, a credit operation costs. Therefore, when it comes to taking out a loan, it is important to look at the CET, not just interest.

A bank’s lower interest rates do not guarantee that it will offer the most financially advantageous loan. You must compare the Total Effective Cost of each transaction .

The CET takes into account, in addition to interest rates, the opening rate of credit, the IOF and the maintenance fees for registration. There are also other administrative fees that may vary from bank to bank.

Deadline for payment

Deadline for payment

The term of payment also interferes with the cost of a loan. That is because, the faster a bank gets back the value it borrowed, the lower the total debt value.

That is, the longer payment periods have higher interest rates. Just as the shorter deadlines have lower interest rates. Depending on the assignable margin, it is only possible to contract the loans with shorter payment terms.

Learn how to simulate, compare and hire your payroll loan. Guarantee the best options of interest rates, terms and conditions for payment.

How to simulate, compare and contract loan with lower interest rates?

How to simulate, compare and contract loan with lower interest rates?

 

 

 

The online credit simulation allows the interested party to compare different types of loans in various banking institutions.

Thus, it is possible to search with practicality what is the most interesting loan, for each type of need and pocket.

As seen, the payroll loan has its own characteristics that make it an exclusive line. Your payment method and legal rules ensure good opportunities for those who are entitled to the credit assignment. So before closing any deal, evaluate that option!

Do you want to find the lowest interest rate loan on the market right now? Use the online credit simulator to search and compare.

Receive personalized offers, hire and simulate without leaving home, but with the same safety as anyone who goes to a bank.

 

Do you want to make a payday loan?

Do you want to make a payday loan?

 

 

 

Bxblue can help you hire the payroll you need! Compare payday loan proposals from different banks and choose the best one for you.

 

 

]]>
/payday-loan-have-lower-interest-rates/feed/ 0
How to control your company’s cash flow? /how-to-control-your-companys-cash-flow/ /how-to-control-your-companys-cash-flow/#respond Wed, 27 Mar 2019 04:39:52 +0000 http://www.iscfccn.org/how-to-control-your-companys-cash-flow/

 

When we talk about financial control of any business, one of the first concepts that needs to be understood and applied is cash flow . This is because, in addition to being an extra useful tool for efficient business management, it also directly influences decision making that can determine the direction of the enterprise. see http://wendyfoundation.org for more notes

As we have already mentioned in our blog , the success of a company, be it small, medium or large, depends entirely on the planning and predictability of its managers. Thinking about a well-structured mathematics that encompasses all the entry and exit of money from the company is essential.

In this article you will understand what the concept of cash flow is, why it is so important, what are the main mistakes made by entrepreneurs, and especially how to control and manage the cash flow of your business in the right way. Keep reading this content and get all your questions answered!

What is Cash Flow?

What is Cash Flow?

Cash flow represents the entire movement of money in and out of a business. Therefore, to apply it, you need to record in detail all the gains and expenses that your business has been having.

Through daily, weekly or monthly surveys of this information, which also include available account balances and short-term applications, you create a solid and reasoned database to make the decisions that will guide your business from So.

In addition, it is possible to take a more critical and accurate look at the financial momentum by which your business is going.

What are the most common mistakes when managing your company’s Cash Flow?

What are the most common mistakes when managing your company

Although it is a fundamental tool for the sustainability of any company, many entrepreneurs end up applying the cash flow in the wrong way. Whether due to lack of experience or lack of knowledge, this can impact the results and financial health of that business.

See below for the most common errors:

 

  • Mixing Personal Expenses with Company Expenses: When the owner or partners mix personal finances with company finances, it is not possible to establish with certainty which are the input and output values ​​of each, causing a disorganization of the flow Of box;
  • Consider values ​​that have not yet been received: When you consider values ​​that are not actually available for use, such as pre-dated or credited checks, you end up harming your cash flow control;
  • Do not organize by categories: you must be aware of the main expenses of the company. Understanding where your money is going helps you control it and make cuts when necessary;
  • Stop updating daily: Outdated cash flow is useless. Including the new releases in the system is a practice that should be done every day and be part of the business routine.

 

5 Tips to Organize, Track and Maintain Your Cash Flow

5 Tips to Organize, Track and Maintain Your Cash Flow

More important than understanding the amount that comes in or out of your company, cash flow is a tool that helps you design the need for working capital in the future .

Nowadays, there are many management softwares on the market that help you with this account. But even so, it is important to keep in mind some attitudes that should come from those in charge of the company. Check out our guidelines:

Tip01: Monitor cash flow every day

As we talked about in the previous topic, keeping outdated cash flow is one of the worst mistakes you can make. Therefore, it is very important to monitor and update every day.

If it is not possible to do this daily, it is up to the administrator, who already knows the finances and the routine of the business, to determine a frequency for this (per week, per fortnight or per month).

Tip2: Control accounts payable and receivable

In addition to the money that has already come in or out of the box, you also need to chart a forecast of accounts payable and accounts receivable. This will make it easier to set up your cash flow.

Here we can also include the question of the categorization of revenue and expenditure. Administrative, productive or marketing costs? Revenues that came from the main activity of the company or from parallel investments? Understanding where and where money is going is essential.

Tip03: Make a forecast for the short and long term

With the implementation of the cash flow it is possible to stipulate a short or long term projection. From there, the entrepreneur can evaluate possible scenarios and prepare for the adversities that may arise along the way.

At the end of the period, compare what was planned with what actually happened, analyze the unexpected expenses, and try to avoid them later.

Tip04: Have a stock planning

Planning your inventory helps you understand the quantity and timing of a new order. This is important since the stock represents an immobilized capital, that is, it does not generate revenue or interest.

By making the correct forecast of your inventory, you can invest money that would stand for a while at other more advantageous opportunities.

Tip05: Make an assessment of your working capital

Do you know the relationship between cash flow and working capital ? Both are fully connected and influence each other.

Tracking cash flow as you measure working capital allows you to check if the return on your sales is in line with what was planned. The larger the cash flow, the lower your company’s working capital needs.

 

Now that you know the right way to manage your cash flow, it’s time to put your hand in the dough!

 

So, did you like this article? We at BizCapital are here to help business owners who want to see their business take off! Keep an eye on our blog and check out other tips on the world of entrepreneurship.

 

]]>
/how-to-control-your-companys-cash-flow/feed/ 0
The Best Debt Loan | Payday Loans /the-best-debt-loan-payday-loans/ /the-best-debt-loan-payday-loans/#respond Sat, 23 Mar 2019 08:22:42 +0000 http://www.iscfccn.org/the-best-debt-loan-payday-loans/ Zaplo loan for debt relief. Consolidation of pay-offs up to 10,000 for a period of 36 months. Change the payday loans to one installment.

Consolidation loan to pay off their payday loans

Consolidation loan to pay off their payday loans

If the informal leader among payday loans is VIVUS , then the Zaplo loan should be the leader among debt products for repayment of short-term liabilities. This is how the logic suggests – after all, Zaplo and VIVUS belong to one capital group, have one seat and are simply products from “one womb”.
Is Zaplo really as highly rated as VIVUS? Is it worth taking a loan at Zaplo and consolidating all the loans by turning them into a debt loan?

Consolidation of payday loans with one installment?

Consolidation of payday loans with one installment?

Zaplo loan as a payday consolidator works better than perfect. Provided that the sum of pay-offs for consolidation does not exceed PLN 10,000. That is the upper limit of the Zaplo loan and this amount of payday loans can be consolidated into one installment.

With such a loan, one joint installment will be less than PLN 820 . That’s a lot, let’s admit, but we’re talking about consolidating payday loans with a total value of 10,000. In this case, the installment of up to PLN 815.62 may turn out to be a salvation. Of course, there are people whose income does not allow for debts to be forgone by consolidation with the Zaplo loan. For them, we described other solutions to the problem called: how to pay off payday loans and have one installment (tip: loans for payday consolidation )

Does ZAPLO loan check BIK?

In this respect, the lender leaves no shadow of illusions. The Zaplo loan regulations clearly state that borrowed money can only be paid to the one who

[… received a positive assessment of credit on the basis of the information provided or the lender or credit intermediary Intermediary by the Borrower and the information obtained from the Offices of Economic Information, Credit Information Bureau of …]

Regulations Zaplo does not specify whether the lender checks the customer in each BIG or only in selected ones. There is a general statement about Economic Information Bureaus. And these are defined as all existing BIGs. It remains a matter of imagination and common sense whether Zaplo checks all databases (including, for example, KBIG) or only selected ones.

One thing is certain: Zaplo checks BIK . And it is not a loan without verification of databases. For those who are looking for something else, we recommend a set of 7 loans without checking BIK ( loans for people in BIK )

Is it worth taking a loan at Zaplo?

If in the portfolio of the “crush” of a payday with a repayable repayment date, and buying loan renewals has become a killing for your wallet – you should think about consolidation. Consolidation of payday loans into one loan is possible when someone offers a product for an amount not higher than the value of temporary liabilities.

Zaplo loan as an option for consolidation of small loans – payday loans solves the problem of people for whom debt relief is in the range of PLN 10,000.

Debt relief by a one-off repayment will allow you to exit the debt loop and stay with one Zaplo loan for PLN 10,000 to be repaid over two years.

Such consolidation will save more than one family from bankruptcy, loss of income (seizure) and many nerves. The Zaplo loan used as a debt consolidation is undoubtedly the solution for many only.

Credit holidays in Zaplo

Since the process of taking over the role of banks in front of the largest players in the loan market has been visible for many months, it should come as no surprise that they adjust their services to banking standards.

One of the elements taken over from banks are credit holidays in the case of debt loans for a longer period of time. Zaplo offers its clients the opportunity to take credit holidays. In practice, this means that you can postpone your installment payment once every six months. Thanks to such facilities, consolidation of payday loans and then paying off one installment becomes easier and safer.

ZAPLO loan – what is the installment made of?

Zaplo loan is intended for borrowers outside the banking system. As every loan of this type is burdened with much greater than average risk and it must necessarily have this impact on costs.

How much does the Zaplo loan cost and how much – using it for consolidation – will it cost to pay off the debts?

With a maximum loan amount of PLN 10,000 for a period of 24 months, the repayment will be almost twice as much. PLN 19574.80 – this will have to be paid back within 2 years. Therefore, the cost of consolidation of payday loans will amount to PLN 9574,80.

By paying a monthly installment in Zaplo, we will repay real money borrowed (ie capital) and other components (ie costs). The proportions will be as follows:

Zaplo loan: data and contact

Representative example for a loan not covered by the promotion: Actual annual interest rate (APRC) is 78.6%; total loan amount (excluding credited costs) PLN 5,000; variable interest rate of 10%, total loan cost PLN 5,898.24 (including: commission PLN 5,000, interest PLN 808.24); total amount to be paid PLN 10,808.24, payable in 36 monthly installments (35 installments PLN 300.23 and last installments 36 installments: 300.19). Calculation as at 01/10/2017. Granting a loan and postponing the repayment date depends on the applicant’s previous assessment of the applicant’s creditworthiness. Registration fee (refundable): 1 gr. www.zaplo.pl

]]>
/the-best-debt-loan-payday-loans/feed/ 0
Credit Co-Debtor – Easy and Fast Loans /credit-co-debtor-easy-and-fast-loans/ /credit-co-debtor-easy-and-fast-loans/#respond Wed, 13 Mar 2019 07:42:21 +0000 http://www.iscfccn.org/credit-co-debtor-easy-and-fast-loans/

 

In order to ensure the payment of the loans granted, banks and financial companies require different collateral. The conditions imposed by credit institutions are related to a compulsory translation of the bank’s salary, a pledge on cash or future receivables and receipts, a mortgage on movable and immovable property, the provision of guarantors, guarantors, co-borrower, and others.

The guarantors assume responsibility to the creditor to be responsible for the debtor’s obligations. Endorsers must meet certain requirements with respect to an open-ended employment contract, net income, credit history, and so on.

The guarantor is aware of the provisions of the credit agreement, has signed it, knows that if the borrower does not pay, banks and financial companies may request the full amount of it, together with interest, fees and other costs, and may condemn it.

The guarantor owes the loan in the same amount and under the same conditions. If the borrower has paid some portion of the loan, the guarantor repays to the amount of the remaining amount.

If the guarantor repays the loan, he may sue the borrower for having paid his debt, that is, the guarantor becomes the creditor of the borrower-borrower. In practice, recovering money is difficult and slow, but it is not impossible.

Guarantor and co-debater – these are two close concepts with a slight difference between them. Equally, they both assume credit repayments, ensure that the creditor will recover the money, but there is a difference in liability, solidarity with regard to the return of the loan.

If there is a co-debtor in the credit agreement, he is the second borrower. This is a rather marital form / marital cohabitation / for drawing a large consumer or mortgage loan. A debtor is usually a husband or wife and the other is a co-debtor.

The debtor’s obligation is on the loan and, if the principal debtor stops paying, the loan is borne by the co-debtor, but the main difference from the guarantor is that the co-debtor can not claim the debtor and take legal action to return the money to him.

In the case of business loans to legal persons – the owners of the companies and the managers become co-debtors. It is difficult to find a credit guarantor, for a number of reasons, we do not always want to engage the person with us to become a co-debtor.

We will look at loans from banks with the explicit requirement to have a co-borrower on credit and those for which it is not needed, not a guarantor.

1. DSK – Standard Consumer Credit

 

 

  • Insufficient income may be associated with a solvent co-debtor.
  • Currency BGN or Euro, amounting to BGN 500 / EUR 250 / up to BGN 35 000 / EUR 17 500 /, repayment term from 18 months to 10 years.
  • You can negotiate a grace period of 6 months.
  • It does not track what the money on credit is spent on.
  • There is no age restriction when applying for a loan.
  • You will not present a certificate of income if you receive your salary in the bank.
  • Variable rate. Additional interest rate rebate on DSK Plus Partners.
  • There is a fee for reviewing and approving credit and a monthly fee for using a payment package.
  • Collateral – from 1 to 3 guarantors, depending on the amount of the required amount or a solvent co-debtor.
  • Ask online, arrange a convenient meeting with a credit inspector at a bank office for detailed information.

2. First Investment Bank – Super Credit Turnover

2. First Investment Bank - Super Credit Turnover

  • Purpose: To have additional funds, credit for a house or for current needs or to develop your business.
  • Currency BGN or Euro, amount depending on needs and collateral, repayment term up to 60 months.
  • Collateral: for legal entities – the owners and managers are co-debtors, for natural persons – the owners of the collateral are co-debtors; pledge on FTA and mortgage on residential, administrative, commercial, production, warehouse, agricultural land, regulated land plots.
  • You get an individual offer depending on your business, credit history and business principles.
  • It is initially provided in the form of an overdraft to pay interest only on the subscribed portion and re-withdraw the repaid portion of the loan.
  • Super-advantageous annual interest, consisting of SBA and surplus.
  • Grace period up to 36 months.
  • No repayment schedule within 3 years.
  • No fee for early repayment after the expiration of the 3 years.
  • You can request by e-mail, contact by phone, arrange a meeting in a convenient office of the bank for more details and clarification of the required documents.

3. BNP Paribas Personal Finance – Branch of the French Bank “Personall Finance” EAD

 

  • Easy online loans up to 80 000 BGN for all your plans, repayment term from 6 to 96 months.
  • No guarantors or co-debtors are required.
  • Credit without guarantor and without transfer of salary to the bank.
  • Fixed interest for the entire loan period.
  • There are no hidden fees and commissions.
  • There is a commitment fee in% to the amount of the loan.
  • Use an online calculator to calculate interest, installment installments, and the total amount due by playing different options.
  • The Bank’s opinion is received within 1 hour after the request is sent and the requested information is provided, after signing the contract at the office, you will receive the money on a bank account within 24 hours.
  • Repayment through equal monthly installments.
  • Payment Methods – Free with Cash Terminal, with ePay, via ATM, at Easybank, at partner banks.
  • You can make a “Protection of Payments” insurance for greater security under unfavorable circumstances.
]]>
/credit-co-debtor-easy-and-fast-loans/feed/ 0
Refinancing; Cheapest Payday Loan Providers /refinancing-cheapest-payday-loan-providers/ /refinancing-cheapest-payday-loan-providers/#respond Wed, 27 Feb 2019 09:10:36 +0000 http://www.iscfccn.org/refinancing-cheapest-payday-loan-providers/

 

 

 

Sms Loans are modern loan products for today’s people, a learning center directly on their website. If you need a loan to finance unexpected expenses, you need to trust your SMS loan provider. When sms loans are in refinancing; most advantageous to lend to high-speed borrowers, not to count on additional interest and interest and to send reminders to the debtor. Sms loans know Good to know Lease applicant lån til kortfristet brug.

The company’s shares are listed in London for buying and renting. Comments 0 1 Mailis 03-02-2016 2043 Servi-Staar-Tiina made it possible for our stable income to change our lives by refreshing the comment listRSS sms loans for comments on this article. Sms loans can correct errors on their own initiative 21. Kreutzwaldi 4, 10120 Tallinn Quick menu Real estate loan refinancing for application and.

 

LOANS FROM THE INTERNET: 

LOANS FROM THE INTERNET:&nbsp;

 

Photo: The first loan is a bargain If you have no income and you want a loan without a bank statement, if Moody’s is going to be cheap. LOANS FROM THE INTERNET: The need for quick loans often arises from money shortages, ie loans are taken to cover daily expenses. Infortar men led by Ain Hanschmidt to lower final loan costs and make an affordable payment schedule. For example, you may need money for an unemployed person at the time, that you have previously registered with the loan provider and have identified your person. How To Manage Their Aristical Motivation, Real Estate Loan. Member of the Management Board of Atria Eesti AS and Meelis Laande. On the contrary, if someone interested, preferably find the most favorable loan offer.

Liviko’s leader: in construction and productive production, the income went to the manor. Gold egg 2014Foto: That is why financial experts call the credit crunch an invaluable lifeline for solving a critical situation. Real Estate Loan always helps and advises you on finding the most sensible solution. Instead of the expected growth of 15% excise duty on alcohol, the 4.9 percent less excise tax arrears than in 2014, 10 pounds remain unpaid, the big companies ranking has been topped up – see, So you can save time on the trip The Bank Quickly Knows, Recurring SMS SMS Loan and Personal Loan Account, Compared to 2013. The loan can be repaid without fines also early.

]]>
/refinancing-cheapest-payday-loan-providers/feed/ 0
Financial Organization Can Help You Manage Your Company | Payday Loans /financial-organization-can-help-you-manage-your-company-payday-loans/ /financial-organization-can-help-you-manage-your-company-payday-loans/#respond Tue, 26 Feb 2019 09:04:44 +0000 http://www.iscfccn.org/financial-organization-can-help-you-manage-your-company-payday-loans/

 

 

 

According to Sebrae, the mortality rate of small and medium-sized enterprises in Brazil is more than 40%. These are data that consider the first 2 years after the opening of the firm. A significant part of the bankruptcies is due to the lack of financial organization and the poor management of the company’s money. See lostnomad.org for an illustration

It is very common for small and medium-sized enterprises to be created in situations of need, being conducted by inexperienced and untrained managers. In addition, there is a lot of informality in management, with the accounts of the owners constantly mixing with those of the business. In this way, one can directly link the lack of financial organization to the mismanagement of these companies.

In this article we will deal specifically with the financial organization . How to deal well with company money? How to create simple and useful controls to keep the business reins? This is the theme of this text. Check out the unmissable content contained in the following topics.

The principles of financial organization

The principles of financial organization

Before we work on the topic, we need to highlight some principles of financial organization. These principles should guide all actions, so we should only act in line with such rules. Come on:

Profit and cash are different things

 

Yes, many entrepreneurs understand that profit and cash are the same. However, such an understanding can not be more wrong. Profit is the economic result of the company’s wealth generation in one period. Cash is the amount of financial resources extracted from the organization’s operation.

Imagine that a store sold $ 50,000 in a given month, having made $ 30,000 in payments over the same period. At first glance, we understand that there was R $ 20,000 in profit, but we did not consider the outstanding accounts, nor the expenses that do not influence the cash, such as depreciation.

In order to obtain the profit value, it is essential to observe the DRE (statement of income for the year) . For the measurement of the cash, the DFC (cash flow statement) must be observed. Without these tools, the entrepreneur can pick up the cashier and simply put it in his pocket, damaging the company in future periods.

Personal accounts can not mix with company accounts

 

Another common problem seen in small and medium businesses is the use of resources for personal purposes. There are even cases of large, often family-owned companies in which cash resources are used for personal purposes. There is nothing illegal about this, the problem is the disorganization generated by the practice, as well as the deficit in the firm’s operating accounts.

The money of the company must be the money of the company, the needs of the partners must be recorded as withdrawals or payment of dividends. If there are bills on the pay list such as household food, school fees, and the like, the company may become loss-making. It is therefore important that the members’ accounts are not mixed with those of the firm.

Working capital should not be mixed with capital for investments

 

A very common problem to be encountered in small and medium-sized companies is the short-term decapitalization. When business is booming, many entrepreneurs are thrilled and realize expanding investments. These investments are very important for the growth of the firm, but can not be made using working capital.

When the company assumes costs of reforms, new machines, investment in technology, etc. they need to be sure that working capital will not be consumed. As the name already says, working capital needs to spin. The term of return of this capital to the company’s cash should occur in the short term, usually 30, 60 or 90 days.

Investment capital will take a longer time to return. It will make profits rise, but this will only happen in the medium to long term. Until then, the company needs to keep its working capital preserved. If the company decapitalizes to finance the investments, it can become insolvent and until it reaches the break.

 

Before granting deadlines, the availability of working capital should be

 

Commercial expansion policies can be promoted through price discounts or granting of credit. When there are market pressures to get better prices and deadlines, many companies end up giving in before assessing the circumstances. In general, giving more time seems to be less damaging to the firm than giving discounts, but in many cases, the opposite is true.

Imagine a clothing store that works with an average gross margin of 45%. She has the option to give 10% discount in cash or install the purchase 2 times. When the installment occurs, the credit card discount is 3% and the money takes 45 days [(30d + 60d) / 2] to return to the cashier. If the company’s capital costs 5% per month, the expenditure on the term will be 7.63% (capital) + 3% (card fee), or 10.63%.

In the previous case, it would be more interesting to grant cash discounts than to give customers more time. But even if the cost of the term were less, it would be necessary to think twice before granting it. This is because the emptying of the cash can leave the company without the capacity to honor with its commitments.

Until a good capital reserve is made, it is often better to sacrifice a little profitability than to empty the cash and run the risk of insolvency. Therefore, the deadlines policy should be very well thought out by entrepreneurs of all branches.Controlling working capital

If it were to elect the best advice for small and medium-sized financial organization, it would be: control working capital . Not by chance, this is the greatest difficulty of Brazilian business. There are extremely competitive companies with great products, but they end up breaking down due to failures in working capital management.

But what would be the control of working capital? Well, it can be said that a company that manages to pay all its current accounts using only operational resources is correctly managing working capital. In order to measure the amount of working capital necessary for the operation of the company, appropriate financial metrics should be used.

The financial organization of the company basically depends on 3 metrics, they are:

  • PMP – average payment term
  • PMR – average repayment term
  • SME – average storage time

The average payment term (PMP) can be obtained from the policy of deadlines practiced by the company’s suppliers. Imagine a firm that has the following purchasing structure:

  • 30% of purchases are made in cash
  • 45% of purchases are paid in 30 days
  • 25% of purchases are paid in 45 days.

The PMP, the average payment term , will be the weighted sum of all the maturities, ie: (0.3 × 0) + (0.45 × 30) + (0.25 × 45) = 24.75, or simply 24 days on average (round down).

The PMR is the average term of receipt , which is calculated using the same PMP methodology. The only difference is that it is used as data source, the deadlines granted to the company’s customers. The SME in turn, is measured from the firm’s inventory data, its calculation takes place as follows:

The average stock is obtained by dividing the inventory change by 2. Thus: (stock year B – stock year A) / 2.

After obtaining the average stock, simply divide the result by the average cost value of the goods. Thus, if the average stock is 300 and the average cost is 10. The SME will be 300/10, that is, 30 days.

Once the value of the three financial variables has been obtained, the following account should be made: PME + PMR – PMP. The result of the account reveals the financial cycle of the company. Let’s say in our example, the PMR is 45 days. The financial cycle will then be (30 + 45 – 24) = 51. That is, the company must maintain a working capital equivalent to 51 days of operation.

 

Tips for small business financial control and organization software

Tips for small business financial control and organization software

Doing all the financial organization work manually can end up making things very difficult. That’s why there are already specific softwares that help companies control their accounts in a practical and simple way. Let’s list below some examples of programs that are succeeding among small and medium businesses.

Blue bill

 

The Blue Account is probably the largest financial management software for small businesses in Brazil. The system runs online and is paid via monthly subscription. Among its functions are the automatic control of accounts payable, issue of tickets and various reports.

QuikBooks

 

QuikBooks has the same purposes as the Blue Account, but also has some more advanced options and more complete reports. The user can choose between a simpler and cheaper version and other more complex and also more expensive.

Granatum

 

Granatum is one of the most customizable systems in the market, since it offers several modules in a single way. Thus, one can buy the financial control, of stocks, of clients, etc.

 

Xero

 

Xero is quite simple and easy to handle, but the lack of a nationalized version makes life difficult for Brazilian users.

MarketUP

MarketUP is a management and sales system totally free for micro and small entrepreneurs. With several functionalities, this software allows the issuance of fiscal documents, offline POS, reports, control of accounts payable and receivable and much more.

 

Indicators to keep an eye on

Indicators to keep an eye on

In addition to the cyclical indicators we mentioned (PME, PMR, PMP), the entrepreneur should also keep an eye on some other very important ones:

Current liquidity ( current assets / current liabilities) – current liquidity measures the degree of coverage of operating liabilities for the company’s short-term assets.

General Indebtedness (Asset / Liability) – General indebtedness measures the level of risk of the company and its ability to honor its debts as a whole.

Immediate liquidity (cash / current liabilities) – measures the company’s ability to respond to emergencies by having enough money to settle short-term accounts

There are a multitude of other indicators to evaluate. But if these we quote are well managed, the company will probably be in good condition.

Monitor delinquency

 

Another very important factor for the financial organization of the company is the control of delinquency . It’s no use having a good deadline policy if customers do not pay on the combined date. Therefore, an acceptable level of default should be maintained. If the default reaches the tolerable limit, the supply of credit to doubtful customers should be interrupted.

The general default indicator is obtained by dividing receivables in arrears by the total of accounts receivable (receivables in arrears / accounts receivable). The result is given in percentage terms.

The importance of reconciling payment dates

 

Another important tip for good financial organization is the alignment of payment dates. Often, there is no need for a negotiation effort to align the payment dates of the accounts with the deadlines for receiving customers. If the payment dates are synchronized with the payment dates, the company will reduce its need for working capital.

Conduct bank reconciliation regularly

 

The financial statements tell us almost everything we need to know, but their fidelity is only proven by bank reconciliation. Bank reconciliation is the act of validating the records of the statements through bank statements and company cash. Cases of divergence between company statements and bank details are not uncommon.

Often this can be caused by unknown fees, unregistered expenses and other unplanned accounts. Responsible companies conduct bank reconciliation at least once a month. This is essential for the smooth running of the business.

Beware of expensive credit

Beware of expensive credit

Many companies manage their working capital through bank lines of credit . Short-term categories generally do not provide interest rates, in addition to disposing of the firm’s receivables. Therefore, having a simplified credit modality such as those of Biz Capital is a must. In this type of modality, one can contract credit at interesting rates and without many complications, raising the company’s competitiveness.

It is important that the financial organization is done on the basis of indicators, and recorded simply and objectively. With these tips, your company will hardly go into insolvency and have long years of solid profits.

 

 

]]>
/financial-organization-can-help-you-manage-your-company-payday-loans/feed/ 0
How to Increase Revenue by Borrowing Credit the Right Way? /how-to-increase-revenue-by-borrowing-credit-the-right-way/ /how-to-increase-revenue-by-borrowing-credit-the-right-way/#respond Mon, 25 Feb 2019 05:34:30 +0000 http://www.iscfccn.org/how-to-increase-revenue-by-borrowing-credit-the-right-way/

 

Whether as working capital to leverage the business or as an alternative to repay small debts, it is common that, at some point, a company managers see the need to increase revenue by applying for a loan. Among so many doubts that may arise at this time, one of the most common is: how to get credit in the right way for my company? See vazlda.com

Contrary to what many entrepreneurs think, not always the loan is something negative. When done right, with planning and organization, it can contribute to raising the institution’s revenue in a healthy and sustainable way.

To know the answer to the question we asked in the first paragraph, keep following this post and check out our tips and guidelines that will help your company prepare to apply for a loan in the right way.

Does your business need a loan?

Does your business need a loan?

The first step is to know if your business really is in need of a loan and if the same is feasible for the reality in which you find yourself. For example, for a company that is already heavily indebted, borrowing to pay off debt can turn everything into a snowball, further aggravating the situation and compromising your financial health.

The ideal is to respect your possibilities for the moment, taking into account a well-structured financial planning.

 

When is the right time to apply for a loan?

When is the right time to apply for a loan?

We have already talked here on our blog about the best time to make a loan . When done at the wrong time, it can disrupt the entire financial structure of your business and generate many problems.

Therefore, well defined goal, well-planned planning and organization of cash flow are some of the points that should be considered before choosing to make or not to apply for a loan.

 

Organizing Your Cash Flow

Organizing Your Cash Flow

Having an organized cash flow represents a greater control over the financial movement of your company. Revenues, accounts receivable, expenses, income, valuation or devaluation of investments and any other entry or exit of money must be included in this registry.

However, to be effective, you need to keep your cash flow current. Here are 5 tips that will help you with this:

Set a control period

Daily, weekly, fortnightly or monthly. You need to determine the period of monitoring of your cash flow according to your company’s demand. The point is that this interval is not too long. So you do not run the risk of losing control.

Make a survey of your fixed expenses

By listing all your company’s monthly fixed expenses, you can determine which minimum billing you need to keep your business running.

 

Record accounts payable and accounts receivable

Make a forecast that includes your accounts payable as well as your accounts receivable. In this way, in addition to the current consolidated balance, it is possible to determine the future balance provisioned.

Separate your income and expenses by categories

Consumer accounts, internet, inputs, services, employee pay, among others. In addition to identifying different colors – for example, blue for recipes and red for expenses – another tip is to sort them by categories.

Plan for the short term

Having all of the records listed and visible, you can have greater control over your finances and thus carry out more effective planning that encourages the performance of your company.

 

How to arrange to apply for the loan

How to arrange to apply for the loan

Knowing that the loan is the best option and with your cash flow on schedule, it’s time to analyze the credit possibilities. Reflect on everything that will come with it – installments, interest, deadlines – and choose the option that works best for your current reality. Research well, have a critical eye, and compare the alternatives.

Remember to take into account the activities and size of your company. This is because the agencies can offer special conditions according to their segment.

 

Online loans simplify and debure bureaucracy for corporate credit

Online loans simplify and debure bureaucracy for corporate credit

A very efficient alternative to simplify and reduce bureaucracy the credit contraction are fintechs .

When compared to traditional loans – those made directly to banks – online loans present many facilities for your company. Understand what they are:

  • Everything from the internet: from the offer request to the signing of the contract, EVERYTHING is done online through your mobile phone, tablet or computer. You save time, money and do not need to move to the bank;
  • Transparency: when doing a simulation you are already informed about all rates, interest, value of the parcels and Total Effective Cost (CET);
  • Lower fees: As everything is done over the internet, consequently, operating costs are lower. There is also no charge of any advanced value;
  • More agility: with less bureaucracy, your credit request is answered quickly and you receive the requested money in less time.

 

So, did you like this article? We at BizCapital are here to help business owners who want to see their business take off! Keep an eye on our blog and check out other tips on the world of entrepreneurship.

 

]]>
/how-to-increase-revenue-by-borrowing-credit-the-right-way/feed/ 0
What is Profit and How to Calculate Correctly? /what-is-profit-and-how-to-calculate-correctly/ /what-is-profit-and-how-to-calculate-correctly/#respond Mon, 11 Feb 2019 05:40:36 +0000 http://www.iscfccn.org/what-is-profit-and-how-to-calculate-correctly/

 

Profit in business is the great dream of any entrepreneur who is starting. That’s because when that financial return finally happens, it means that the company is thriving and will have real chances of surviving and growing healthily in the market. elevagemettey.com has examples

Knowing what profit is and how to calculate it is very important and is part of the efficient management of any business. But still there are many entrepreneurs who confuse concepts related to profit, such as margin, gross profit, operating profit, presumed profit, among others. That’s why we created this content!

In the next few paragraphs you will find valuable definitions and tips that will help you maximize your company’s results. Continue reading and get out all your questions!

What is Profit?

What is Profit?

We can understand the definition of profit as the amount that results from the difference between the revenue generated by the sale of some product – or service – and the value of the cost of producing it. It is the amount that remains for the owner of the company at the end of a stipulated period, that is, the return on what was invested.

If this calculation results in a negative value, it means that the company had a loss with that operation.

What is the profit of a company?

What is the profit of a company?

Knowing the profit of your enterprise is essential not only for the company, but also for the national economy. This is because this value represents a generation of wealth, besides serving to benefit government revenue, the growth of the country and also the generation of jobs.

How can Profit be calculated?

How can Profit be calculated?

Although it is a theoretically simple concept, applying it in practice may not be as easy. So, let’s give you all the tips to do it the right way.

Because it is the difference between the sales price and the cost of production, the profit can be represented by the following formula:

INCOME (L) = REVENUE (R) – COST (C)

It could be that simple, could not it? But there is still one important factor that needs to be considered when calculating profit. This factor is the time that, here, can be called exercise . The exercise represents the interval between different calculations of the results of the business.

The maximum period considered by most organizations is one year, but there are companies that conduct this analysis every six months or even quarterly, depending on the amount of movement in the cashier. With this, it is possible to understand and visualize the amount of wealth that has been generated or destroyed by the enterprise.

Although cash flow needs to be taken into account, the amount of the profit is not necessarily the amount left in your cash at the end of the year. The ideal is to determine the change in the value of goods and services.

It is also important to note that each business or branch of the market has a different percentage of profit. Understand and analyze the competition, in addition to knowing very well the whole dynamics of the process.

Other concepts that involve Profit

Other concepts that involve Profit

In addition to the definition of profit itself, some other concepts linked to profit also need to be understood. We select the most relevant below:

Profit margin:

Profit margin:

Profit Margin represents the percentage value that must be added to the total costs of a product or service. That is, it is the final price by which the same item will be sold.

This percentage, which must be predefined on the basis of costs, time of exercise and other factors, fully influences the final value of the products and the profitability generated by the company.

Therefore, the profit margin is based on 3 main points:

  • Cost of production: amount invested in the production or purchase of the item that is sold by the company. They can be considered expenses with raw material, taxes, freight, among others;
  • Sales value: The price at which the product or service will be sold determines the success or the loss in the market. It must be fair and at the same time cover production costs and generate a certain percentage of profit. For both sides to win, it is necessary to analyze the cost of production and understand how much the consumer is available to pay for that item;
  • Earned Profit: The profit itself is also important in this math, mainly because it will determine the profit margin.

Accounting Profit or Gross Profit:

Accounting Profit or Gross Profit:

Accounting Gains, or simply Gross Profits, represent the value obtained from the sale of a product or services after deducting the explicit costs used to produce or purchase the same. It may be represented by the following formula:

ACCOUNTING PROFIT = REVENUE – EXPLICIT PRODUCTION COSTS

For example, if a cakes house sold $ 50,000 in sweets within the previously stipulated exercise, but had a cost of $ 10,000.00 to produce them, the gross profit of that business was $ 40,000.00 .

Economic Profit or Net Income or Operating Profit:

Economic Profit or Net Income or Operating Profit:

Already in the Economic Profit, also known as Net Profit or Operating Profit, in addition to the discounts of the production or purchase, are also deducted the implicit operational, financial and administrative expenses that the company had, such as employee salary, rent, equipment, among others. See the formula below:

ECONOMIC PROFIT = TOTAL REVENUE – (EXPLICIT PRODUCTION COSTS + IMPLIED PRODUCTION COSTS)

Thus, if the same bakery had a further expense of R $ 15,000.00 with these expenses “indirectly” linked to the product, the net profit it had was R $ 25,000.00.

Statement of Income for the Year:

Statement of Income for the Year:

The Statement of Profit for the Year, abbreviated by the acronym DRE, is a very important tool that allows the calculation of the Accounting and Economic Profits of a company.

Represented by a summary of all revenues and all costs and disbursements of the business, the DRE is one of the main statements to analyze the profitability of the enterprise over a certain period of time.

Presumed Profit vs. Real Profit: What’s the Difference?

Presumed Profit vs. Real Profit: What

There are two other very important concepts about profit that need to be understood by entrepreneurs. In this topic, we will clarify what are the main differences between Presumed Profit and Real Profit. Check out!

Presumed profit:

Presumed profit:

Presumed Profit represents a tax regime that calculates the taxes that must be paid by a company – Corporate Income Tax and Social Contribution, for example – based on its presumed profit, not the actual amount calculated.

This modality will be advantageous if the net profit of that business during the fiscal year is greater than the presumed profit table. Thus, the taxes that are to be paid by the entrepreneur will be lower.

In order to be part of this scheme, it is necessary to comply with the specified rules and, for it to be considered advantageous, the company must have a low operating cost.

Real profit:

Real profit:

In the case of Real Income, taxes and duties – such as Corporate Income Tax and Social Contribution – are collected based on the profit actually recorded by the company.

It may seem simple, but the most appropriate in this case is to have the help of an accountant. This is because, in addition to net income during the period of exercise, some additions, exclusions and comparisons are considered in the Law .

Although not a tax regime that all businesses need to use, in some cases it is mandatory. Among the main examples are companies that:

  • had a total revenue greater than R $ 48 million in the previous year;
  • have incomes from outside;
  • have benefited from some sort of tax advantage, such as tax exemption;
  • opted to make the monthly payment of the Income Tax based on their actual profit;
  • such as factoring, credit, financing or investment companies, commercial, investment or development banks, savings banks, securities brokerage firms, securities and foreign exchange companies, leasing companies, private insurance and capitalization companies, private pension funds private, among others.

8 Tips To Profit More In Your Business!

8 Tips To Profit More In Your Business!

Now that you’ve got the theory, it’s time to put your hand in the dough and work to make your business profit and grow even more! To guide you in the right way, we separate 8 precious tips. See what they are:

1. Pricing your product / service correctly

1. Pricing your product / service correctly

Not knowing what the ideal value to sell your product / service can greatly reduce a company’s profit margin. The first step is to know all your fixed, operational and administrative costs and, from this information, to find out the minimum price that needs to be charged.

Here it is also very important to analyze how much your customer is willing to pay for that item.

2. Study Your Competition

2. Study Your Competition

Studying the competition is a basic task for any entrepreneur who is starting a business. Understanding how the market in which you operate works, the quality of the products or services offered, the minimum and maximum value they are charging, among other things, are essential information to support your operational and financial activities.

3. Seek to know the needs of your client

3. Seek to know the needs of your client

In addition to market research, the entrepreneur must also know his target audience very well. You need to analyze your profile, your needs, your financial conditions and your buying behavior. Only then will it be possible to find out how much the customer will be willing to pay for what you are offering him.

4. Know offer discounts

4. Know offer discounts

Discounts are always well viewed in the eyes of the consumer and, despite the lower value being charged, the volume of sales can grow greatly and provide you with an even higher profit. Enjoy special dates, such as Black Friday , and invest in advantageous promotions for loyal customers .

5. Learn to manage your inventory

5. Learn to manage your inventory

Believing that by increasing the number of sales you need to keep stock crowded can be a big mistake. That is because, in the event of any unforeseen events, the loss may cancel out all the profit you would have with the merchandise.

Performing a correct and balanced management of your company’s stock is a smart decision and decreases the chances of a sudden loss of money.

6. Have a recurring revenue

6. Have a recurring revenue

Reassuring customers and offering them plans or special packages are two great ways to create a recurring revenue for a certain period of time for your company. These practices are very important to supply the periods in which demand is lowest.

7. Organize the financial

7. Organize the financial

Knowing how to organize your business financial is the key to getting your bills up to date and profiting more. Sorting and categorizing expenses, revenues, and investments allows you to visualize whether you’re having overspending in any area of ​​your business. If this is happening, you can organize and devise a plan of action to reverse the situation as soon as possible.

8. Learn to Metric and Evaluate Results

8. Learn to Metric and Evaluate Results

Although they play a key role in any efficient management, many companies still do not use indicators to measure and measure their results. In addition to contributing to decision making, they can serve as a guideline for areas of the company that are directly related to expenses, revenues, and hence profit generation.

 

So, did you like this article? We at BizCapital are here to help business owners who want to see their business take off! Keep an eye on our blog and check out other tips on the world of entrepreneurship.

 

]]>
/what-is-profit-and-how-to-calculate-correctly/feed/ 0
Details of Liquid Capital | Payday Loans /details-of-liquid-capital-payday-loans/ /details-of-liquid-capital-payday-loans/#respond Thu, 31 Jan 2019 05:58:33 +0000 http://www.iscfccn.org/details-of-liquid-capital-payday-loans/

 

 

As we have already emphasized in several posts on this blog, working capital is the magic that makes the company happen. He pays for employees, energy, the internet, rent, and all other short-term bills. Today we are going to talk more specifically about net working capital, which is the running share of total capital. A summay is on combustion-net.com

The importance of working capital

The importance of working capital

 

In almost all companies, the accounts are paid a posteriori , that is, after consumption of the product or service. However, as the final consumer approaches, the delivery deadlines are also stretched. In general, the deadlines granted by manufacturers and distributors are lower than those of retailers.

In practice, most companies need some recourse to cover the difference between payment and receipt terms. This resource is working capital, which can be presented in the form of trade notes, raw materials, inventories or cash.

Without working capital , technology, machines, employees, etc. do not matter. nothing will work and there will be no profit. The short-term resources are those that can transform the inputs into profit, everything else is advisory activity.

What is specifically the net working capital?

What is specifically the net working capital?

 

While total capital is measured by the difference between assets and liabilities, the CGL considers only the circulating shares. The net working capital then comes to be represented by the formula: CGL = AC – PC.

As we know, current assets are all that will be transformed into cash in up to 12 months. The current liabilities are the accounts that must be settled in up to 12 months. In order to know the amount of capital necessary for the operation of the company, it is necessary to use the working capital requirement .

Through the CGL, the company can know the volume of capital necessary to the healthy operation of the business of the firm. The CGL shows the efficiency that the company is having in financing its short-term operations through long-term resources. The larger the CGL, the more liquid the company is, and the smaller the riskier the business.

Calculating CGL in practice

 

Before we perform the calculation of the GLS, it is necessary to differentiate the current assets and liabilities from the non-current assets. Some examples are given below:

  • Current Assets

– cash and banks

– Duplicates to receive

– financial investments

– stocks

  • Current liabilities

– suppliers payable

– taxes to pay

– wages to be paid

– short-term loan

Since it is already known to identify short-term liabilities and assets, it is time to calculate the CGL. Let’s calculate the net working capital of company X. 

The Company’s current assets totaled $ 470, while current liabilities totaled $ 620. In this case the net working capital will be – $ 150, that is, the company is experiencing liquidity difficulties. Financial managers should seek ways to power their box to cover this vacuum.

Generally, increases in cash and cash equivalents solve this problem, which can be done through working capital loans. If the company persists in this situation for long periods, it will surely go into insolvency and go bankrupt.

The effect of the cost of net working capital on the company’s results

 

The net working capital has a cost, which will vary according to the sources of supply of this capital. If the net working capital is from its own sources, its cost will be the interest rate of the economy, but if it comes from third parties, its cost will be that of the interest rate charged by the financial institution. The total cost will always be the weighted average cost and proportion of net working capital.

If the company finances its working capital with loans, its financial result will be adversely affected by the interest rate. However, raising capital via loans can raise revenues, thus increasing profit. It is therefore ideal to finance liquid working capital through simple and inexpensive sources. Good sources are for example, fintechs such as Biz Capital.

Factors affecting net working capital

 

Some factors must be monitored as they significantly affect net working capital. Such changes may be for better or for worse.

  • Affect Positive Way

– Increase in the balance of accounts receivable

– Increases in cash and cash equivalents

– Increase in sight sales

– Reduction of delivery times

– Higher payment deadlines

– Reduction in the balance of accounts payable and taxes to be collected

– Profit Reserve

  • Affect Negatively

– Disproportionate increase in short-term indebtedness

– Emptying the carton

– Increased time limits granted

– Reduction of payment deadlines

 

It is important to understand that net working capital is not the necessary volume of capital to operate. This number is given by the NCG (working capital requirement). The CGL is a liquidity measure, which verifies whether the company is able to finance itself in the short term.

In order to improve the net working capital ratio, the ideal is to increase cash. Specific working capital loans have exactly this function, making it possible to operate the company in the short term.

Conclusion

The net working capital will tell you whether the company is being well-managed or not. Little will advance an organization, have an excellent team, good products and great marketing, if there is no working capital. Without the health of this essential indicator, all technical and administrative effort will be lost.

 

So, did you like this article? We at BizCapital are here to help business owners who want to see their business take off! Keep an eye on our blog and check out other tips on the world of entrepreneurship.

 

]]>
/details-of-liquid-capital-payday-loans/feed/ 0
How to Control Your Company Cash Flow? Cash Credit /how-to-control-your-company-cash-flow-cash-credit/ /how-to-control-your-company-cash-flow-cash-credit/#respond Wed, 23 Jan 2019 05:50:08 +0000 http://www.iscfccn.org/how-to-control-your-company-cash-flow-cash-credit/

 

When we talk about financial control of any business, one of the first concepts that needs to be understood and applied is cash flow . This is because, in addition to being an extra useful tool for efficient business management, it also directly influences decision making that can determine the direction of the enterprise. http://hypnosemontreal.net/bankruptcy-facts-and-faqs/ has details

As we have already mentioned in our blog , the success of a company, be it small, medium or large, depends entirely on the planning and predictability of its managers. Thinking about a well-structured mathematics that encompasses all the entry and exit of money from the company is essential.

In this article you will understand what the concept of cash flow is, why it is so important, what are the main mistakes made by entrepreneurs, and especially how to control and manage the cash flow of your business in the right way. Keep reading this content and get all your questions answered!

What is Cash Flow?

What is Cash Flow?

Cash flow represents the entire movement of money in and out of a business. Therefore, to apply it, you need to record in detail all the gains and expenses that your business has been having.

Through daily, weekly or monthly surveys of this information, which also include available account balances and short-term applications, you create a solid and reasoned database to make the decisions that will guide your business from So.

In addition, it is possible to take a more critical and accurate look at the financial momentum by which your business is going.

What are the most common mistakes when managing your company’s Cash Flow?

What are the most common mistakes when managing your company

Although it is a fundamental tool for the sustainability of any company, many entrepreneurs end up applying the cash flow in the wrong way. Whether due to lack of experience or lack of knowledge, this can impact the results and financial health of that business.

See below for the most common errors:

 

  • Mixing Personal Expenses with Company Expenses: When the owner or partners mix personal finances with company finances, it is not possible to establish with certainty which are the input and output values ​​of each, causing a disorganization of the flow Of box;
  • Consider values ​​that have not yet been received: When you consider values ​​that are not actually available for use, such as pre-dated or credited checks, you end up harming your cash flow control;
  • Do not organize by categories: you must be aware of the main expenses of the company. Understanding where your money is going helps you control it and make cuts when necessary;
  • Stop updating daily: Outdated cash flow is useless. Including the new releases in the system is a practice that should be done every day and be part of the business routine.

 

5 Tips to Organize, Track and Maintain Your Cash Flow

5 Tips to Organize, Track and Maintain Your Cash Flow

More important than understanding the amount that comes in or out of your company, cash flow is a tool that helps you design the need for working capital in the future .

Nowadays, there are many management softwares on the market that help you with this account. But even so, it is important to keep in mind some attitudes that should come from those in charge of the company. Check out our guidelines:

Tip01: Monitor cash flow every day

Tip01: Monitor cash flow every day

As we talked about in the previous topic, keeping outdated cash flow is one of the worst mistakes you can make. Therefore, it is very important to monitor and update every day.

If it is not possible to do this daily, it is up to the administrator, who already knows the finances and the routine of the business, to determine a frequency for this (per week, per fortnight or per month).

Tip2: Control accounts payable and receivable

Tip2: Control accounts payable and receivable

In addition to the money that has already come in or out of the box, you also need to chart a forecast of accounts payable and accounts receivable. This will make it easier to set up your cash flow.

Here we can also include the question of the categorization of revenue and expenditure. Administrative, productive or marketing costs? Revenues that came from the main activity of the company or from parallel investments? Understanding where and where money is going is essential.

Tip03: Make a forecast for the short and long term

Tip03: Make a forecast for the short and long term

With the implementation of the cash flow it is possible to stipulate a short or long term projection. From there, the entrepreneur can evaluate possible scenarios and prepare for the adversities that may arise along the way.

At the end of the period, compare what was planned with what actually happened, analyze the unexpected expenses, and try to avoid them later.

Tip04: Have a stock planning

Tip04: Have a stock planning

Planning your inventory helps you understand the quantity and timing of a new order. This is important since the stock represents an immobilized capital, that is, it does not generate revenue or interest.

By making the correct forecast of your inventory, you can invest money that would stand for a while at other more advantageous opportunities.

Tip05: Make an assessment of your working capital

Tip05: Make an assessment of your working capital

Do you know the relationship between cash flow and working capital ? Both are fully connected and influence each other.

Tracking cash flow as you measure working capital allows you to check if the return on your sales is in line with what was planned. The larger the cash flow, the lower your company’s working capital needs.

 

Now that you know the right way to manage your cash flow, it’s time to put your hand in the dough!

If you liked our tips, follow BizCapital on social networks ( Facebook , Instagram and LinkedIn ) and keep an eye on other content like this!

 

So, did you like this article? We at BizCapital are here to help business owners who want to see their business take off! Keep an eye on our blog and check out other tips on the world of entrepreneurship.

 

]]>
/how-to-control-your-company-cash-flow-cash-credit/feed/ 0