Improve Cash Flow Using Restaurant Finance Advances

There isn’t much out of the ordinary about a merchant coming across unforeseen operating expenditures. In the restaurant industry, Restaurant Loans assist in keeping the restaurant open while giving the necessary working capital for improvements, new supplies or growth, without the difficulty of trying to get a conventional bank loan.

Normal bank loans simply do not quench the desires of every merchant. For young businesses, entrepreneurs with less than excellent credit marks and those merchants that require a quick approval and payout, conventional bank loans aren’t the most suitable options. In the times subsequent to the sub-prime home loan collapse, few lending institutions are eager to loan working to any merchants, even if they are perfect candidates for a loan. Fortunately, restaurant finance providers are stepping in to bridge the gap left by normal lenders.

Restaurant finance isn’t really a loan in the least bit. Rather, it is a type of credit card factoring, where one business owner gives a piece of their future credit card revenues in exchange for fast access to funds. As long as the merchant can verify a history of several months where they transact a reasonable sum of credit card revenues – typically between $2000 and $2500 per month at the very minimum – a credit card factoring contract can be reached.

The funding company is likely to request the merchant to replace their credit card terminals so they can track revenues, but that is a little burden when compared to the capacity to get necessary cash fast. It is advisable that the merchant make sure that the provider with which he does business with adheres to “best practices” guidelines prior to getting into contract. A large number of working capital agents have appeared recently in response to the present financial situation so it is best to be sure you do not work with those that are simply in the market to take advantage of an expanding business.

Restaurant finance from a merchant account can be utilized to fund any item an entrepreneur requires. It is speedily obtained and with a loose payback schedule it can make the difference between meeting your goals and closing your business for good.

Beat the Credit Squeeze With Flexible Business Finance

The credit squeeze is a fact of business life and is not just about money but confidence in the market too.

There are always winners and losers in every business situation and confidence and business finance can beat the credit crunch.

1. Ensure the bookkeeping and financial accounts of the business are up to date.

Keeping the accounting records up to date is an essential first step to ensuring the business owner knows exactly where the business stands. Reviewing recent financial performance and taking positive action to increase sales and margins where possible and control costs by eliminating waste protects the business from surprises and downturns.

By having available the recent costs, views and action can be taken to reduce those costs and in some circumstances to increase business costs where the profit potential is highest. For example a detailed examination of advertising and promotion costs may indicate some campaigns should be reduced while the money saved invested in better performing areas.

Not all sales produce the same profit for the business. By concentrating efforts on the highest profit margin products and services the effect on working capital can be reduced which can take the pressure off working capital funding.

2. Preparing a realistic business plan can help the business plan ahead.

Many small businesses prepare a business plan when starting up especially if government grants or business finance is to be applied for. Failing to prepare an updated business plan during a credit squeeze can be a plan to fail.

During a credit squeeze a business can find itself operating in an unstable market where the rules and actions of the past might not be evident in the future. Banks increase the cost of borrowing, customers save money by leaving the market and sometimes failing to pay or at least taking longer. Suppliers tighten their grip by increasing prices and demanding tighter payment periods.

Business takes steps to protect income, cash flow, liquidity and in extreme cases survival. That is why failing to meet these new challenges is a plan to fail.

Prepare a business plan on the basis of the recent history and extend the financial results forward following the recent trends. Input into the financial forecast the opportunities that can be exploited to increase business and take a realistic view of the potential negative factors that may be suffered.

The business plan should include both a written view of the next twelve months ahead and include a profit and loss account reflecting the optimistic view and the most negative view with contingency plans should the worse scenario become a fact. A cash flow statement calculated from the business plan to show the effects on liquidity is a vital tool.

3. Improve financial flexibility to increase the business finance options.

Arrange the business finances with more than one bank and increase the number of financing options. A single bank may not offer the size of overdraft or loan facilities or the competitive rates the business requires. View the financial market as a competition between suppliers for your business finance and utilise several to spread the finance between them.

By maximising financial flexibility options for bank accounts, loans and overdrafts and financing asset purchases the effect on business progress can be minimised. Consider leasing agreements, invoice factoring and other specialist financial institutions in addition to the main bank account provider. Cash flow and working capital requirements are crucial.

4. Go out and get more sales.

When sales go down it is easy to become depressed. Fight it and remember how the business obtained new sales channels and customers in the past and exploit the opportunities in the future. Focus on the unique selling points of the business and its products and revitalise campaigns to increase sales.

Consider sales and product diversification into both related and other areas. There are always new opportunities including new products and markets, selling existing products to a wider audience including increased geographical presence. It may help to list all sales activities in sales channels and look for more sales channels in which they company can operate.

5. Ask for professional advice and assistance.

Increase the level of communication with each professional advisor including accountants, financial advisors, solicitors, bank managers and business advisors and any managers of financial institutions. The more the merrier and by keeping in touch more opportunities and more favourable responses will be possible.

There is no such thing as a silly question when the future of the business and its employees are at risk. Discussing options with a variety of professional advisors increases those options and if increased business finance is required for growth or survival in the future, the higher level of personal dialogue will ease that route forward.

Electronic Trading Solutions to Improve Business Opportunities

Digitization of trade finances is touted to provide significant benefits for trading partners and corporate banks. The other major benefits of digitizing trade finances are the reduced costs and the risks of international trade.

The connected networks and connections have improved visibility and transparency that makes the entire process smooth and easy. The ability to make electronic trading solutions digital requires time because of the increased stiff global competition.

Corporate organizations have their own reasons to go digital when it comes to the trading solutions. The reasons to go digital are many and the biggest reason being reduced costs with a steady increase in efficiency. Going digital also improves the payment processes at a quicker pace which in turn enhances transactions. Corporate companies collaborating together for the common cause of work also shows an improvement in monetary transactions. When companies adopt the electronic trading solutions, the increase in visibility while tracking and auditing transactions reduces all sorts of risks associated with fraud and non-compliance. Digital trading solutions are considered to be effective since it increases opportunities for quick and easy access to finances.

If you had thought that corporate was the only industry that benefited from this, you were wrong because banks and financial institutions experience efficiency because of this digital solution. We all know that there is an increase in efficiency and reduction in fraud activities because of electronic trading solutions. However, the exposure and visibility of the financial institutions also increase because the financial supply chain provides value added services for client benefit.

In order to enjoy the benefits that electronic trading solutions provide, both the financial institutions and the corporate organizations need to come together to establish potential changes. These changes are sure to add value and make the flow of work smooth and easy. Thankfully, these changes have gradually begun to outweigh the challenges organizations were experiencing.

Corporate Digitization

The last decade has seen a significant change in the international trade industry because of the competitive pressure from trading partners. It is time for banks and corporate enterprises to respond quickly to the new opportunities. The commercial decisions also need to be quick on the basis of the financial agreements and the payment types. These trends have expanded the market for alternative funding. Fluctuating prices have forced organizers to explore newer ways of optimizing transaction costs in all aspects of their trade cycle.

Operational Efficiency through Auditable Process

There has been an increased focus on maintaining documentation processes to keep a constant check on the regular flow of work. Documentation is an established process which is also an old school approach to work. The growing competition has made the market conditions pretty tough and it is important for banks and financial institutions to become more agile and responsive while handling client requirements. This transition by banks is easily possible with the help of the electronic trading solution. The electronic documentation process minimizes human errors and is extremely accurate.

Transformation in Global Trade

Electronic trading solutions lead to easy handling of trade and finances which further help companies to run an end-to-end process successfully. Digitization helps in keeping the work related processes on the right track because relevant documents are in place. This entire process acts like an instant authorization which further helps in keeping the pace of work fast and effective. It is important to stay ahead in business and that is possible only when you adopt new technological trends that help in easing the global trade transaction processes. These processes play a critical role in developing and improving corporate relationships through efficient work management systems.

How To Improve Import Finance Strategies

Importing and exporting are only some of the duties business owners make to gain better reputation and finances.

However, some business owners wish to improve their safety by opting for financial solutions such as import finance strategies. This option offers numerous features, but there are still ways to improve such service. Below are some of the following.

Know import rules and regulations

In order to improve import finance strategies, business owners need to mindful about import rules and regulations of countries. Of course, there are cases when businesses have overseas clients. Therefore, you need to have sufficient knowledge about import rules and regulations. This is important to avoid delays. In addition, having sufficient knowledge about shipping regulations will help make ventures better and more efficient for both buyer and seller.

Opt for the right payment method

The next way business owners need to do in order to improve their import finance strategies is by opting for the right payment method. As of now, business owners can opt for numerous payment options for their import finance solutions such as bills of exchange arrangement, letter of credit and open account. These options can provide the best features that can help make transactions safer and more effective. However, you need to be aware about charges and hidden fees from such options.

Be cautious in choosing the financial institution to work with

Another option that business owners can do to improve their import finance strategies is to be cautious in choosing financial institutions to work with. Of course, there are numerous financial institutions that offer such services. However, not all institutions can provide you the right service that can match your needs. So, it is best for business owners to spend time determining their service to help them assess if they can gain wonderful benefits.

Find alternatives

Finally, it is also best for business owners to find alternatives. Surely, import finance solutions from reliable financial institutions are very effective. Not to mention, this service can secure both buyers and sellers. But, there are still cases when issues can affect such strategy. Therefore, finding alternatives can be a good plan. For instance, you can choose to pay for your orders in advance, but make sure to pay for low value shipments only. Or perhaps, when paying a foreign supplier, you can send payments electronically. And, you can also open an account with suppliers if you are working with them for a long time.

How To Improve Your Import Finance Tactics

All businesses rely on their cash funds to operate. Although most businesses typically depend on a steady cash flow to sustain their venture, unfortunately, importing companies usually do not enjoy such liberties. This is mainly because import companies have long cash flow cycles.

Businesses in the import industry will therefore need to have and use the right financing strategies in place so that their venture won’t go under. In addition, owners of import businesses shouldn’t be complacent with the financing strategies they have; they should find ways to improve them.

Below are some tips for businesses on improving their finance strategies:

Be mindful and keep track of all relevant rules and regulations of import. To effectively import finance strategies, owners of importing businesses need to be aware of the regulations and rules set by the different countries for import. Being knowledgeable of all applicable rules and regulations of import finance strategies is important to keep things fast. In addition, knowing the key shipping details and rules is crucial because this helps increase understanding of the whole business.

Select the most suitable payment method. Choosing the right payment method is another important step business owners need to improve their import finance strategies. The most common payment methods import business owners can choose from include Letters of Credit or LOC, bills of exchange arrangement, and open account. According to finance experts, these options are considered the best in the import and export industry since they make transactions easier. If you are still in the process of selecting your payment method, make sure that you know the transaction fees and hidden charges before making your final decision.

Choose a good and reliable financial institution to work with. Selecting a trustworthy financing partner is also crucial in improving your finance strategies. Although there are numerous of these institutions today, not all these establishments can fit your business needs. Take the time to do sufficient research on these institutions and check their services so that you can make a choice that can promise the best returns.

Have contingencies in place. Finally, make sure you have substitutes. Various financing institutions offer solutions that can help secure the interests of both the sellers and buyers. However, a few issues may arise that can have a long-lasting impact on your company’s import finance strategies. Because of this, it is important to search for substitutes. For instance, if you choose to pay for your order beforehand, do this only for low value shipments. With long-term business partners, consider opening an account with them. This strategy can help you to be secure and have a more profitable business.