Small Business Factoring – Remedy For Cash Flow Problems

When starting out as a business owner, no doubt you considered all the aspects of owning and operating a business. One neglected area of business ownership is cash flow. Neglected that is until the business owner realizes outstanding billed invoices are not being paid in a timely manner and ongoing operations can’t be funded since the necessary cash flow is not coming in as expected. What is the solution for a new business or one that does not have enough established credit to get a line of credit from the bank?

Small business factoring is one solution that offers quick access to cash collateralized by your own accounts receivable or outstanding invoices. First. let’s consider the situation and how cash flow problems came about in the first place. Generally, invoices are sent to customers with Net 30 terms, meaning the balance of the invoice should be paid by the customer within 30 calendar days. As many business owners know, seldom do their customers pay within a 30 day time frame with many going unpaid for sixty days or more. Odds are, your customer is experiencing the same cash flow problems as you, their vendor.

So how can small business factoring be a solution for cash flow problems which plague small and mid-size business? Invoice factoring can provide much needed cash within days rather than weeks for your business. This type of business funding is simple in methodology. For example, once a business supplies goods or a service to a customer and an invoice is generated for the total amount due, rather than sending the invoice to the customer, the invoice is sent to a factoring company.

The factoring company will take the invoice and evaluate the financial worthiness of your customer and if they meet the factoring company’s guidelines, they will send you, the business owner, a check for about eighty percent of the total value of the invoice. The other twenty percent of the outstanding invoice is held in reserve until the invoice is paid in full. Once the invoice is paid, the factoring company will send you another check for the remaining twenty percent less their fee.

The small business owner receives needed cash to operate his business within a few days allowing him to continue operating unencumbered by cash flow shortfalls. The factoring company assumes the risk of collecting the outstanding invoice and collects a fee from the total amount of the invoice. Small business factoring is an excellent solution for cash flow problems affecting your bottom line.

Marketing Ideas For Local Small Business

An essential tool that should be part of the small business marketing concept arsenal is the Internet. Although it can connect and send messages to people from all over the world, the newest trend is concentrating locally using ads and promotions. Some of the numerous local small business marketing ideas being utilized are banner ads with emphasis on the local market. Other methods used to general website traffic is by offering huge discounts or free promo items. A vital factor to follow up on your local small business marketing ideas is to ensure your website has online presence outside of its own domain or URL. In order to guarantee this, you need to get listed in search engines such as Google, Yahoo, MSN, etc. and be sure your contents are optimized to obtain higher page rankings.

A number of factors to take into account when creating a website that has local small business marketing ideas integrated are building SEO (Search Engine Optimization) enriched contents in online article directories like EzineArticles.com, ArticleBase.com, GoArticles.com, ArticleDashboard.com, etc. These websites are where you write articles about a certain product or service you are offering and promoting. It can be of huge advantage and would benefit your business if you expand your coverage in terms of target market trends.

Another thing that you should do is comment on blog posts as well as in forums, chat rooms and discussion boards related to what you are offering. Keep in mind that when creating articles or posting blog comments, make sure to select keywords that would bring up your website in search engines. Furthermore, this can be good for establishing marketing affiliates, which can be an extremely effective technique in local small business marketing ideas.

Those companies which concentrate on the same target market or have the same offerings can promote the other business and receive residual compensation every time a user purchases an item or clicks on the banner ad of the other company.

Internet marketing is a new trend involved in local small business marketing ideas. The promotional campaign must be based on the demographic and local area information of a user. Business owners can avoid costs associated with such advertising, but you need to understand that even if you have the best small business idea, it would be worthless if you do not implement or put it into practice.

ACH Makes Financial Transactions Easier for Small Business Owners

Automated Clearinghouse (ACH) transactions and benefits remain largely unknown and misunderstood for most consumers and businesses. The misunderstanding stems from the fact that the ACH has multiple uses and applications. It can be both a credit and debit transaction. It can be used by both consumers and businesses to pay an obligation (ACH credit transaction). Or, it can be used to receive payment by using an ACH debit instruction.

What is ACH?

The ACH, and the association that set its rules and enforces compliance-The National Association of Automated Clearinghouse (NACHA)- was formed more than 30 years ago as a replacement for the paper check.

Direct deposit of payroll was one of its first payment types and is still one of the most popular (now considered a native ACH payment) types of ACH transactions due to the ease, convenience and safety provided to both employers and employees.

As time marched on, businesses, governments and consumers increasingly embraced ACH payments because they are cost-effective, reliable and efficient to initiate and receive. Federal, state and local authorities’ use of the ACH is evidence of its ever-growing popularity to collect taxes and remit refunds. Online bill payments are predominately accomplished using the ACH network. Consumer-oriented businesses (e.g., credit card and mortgage companies) use the ACH to convert checks to settle consumer debts. Retailers, such as Wal-mart, convert checks written at the point-of-sale to the ACH, often surprising consumers when the cashier actually hands back their voided check.

How can small businesses benefit by using the ACH?

The simplest thing to do is to use direct deposit of payroll to pay employees, be it one employee or more. An abundance of companies exist to service the direct deposit needs of small businesses. Their services include calculating and filing all the tax and withholding obligations associated with payroll. ADP, PayChex and Intuit come to mind first, but there are others.

Accounting software providers, such as Peachtree and QuickBooks, also offer direct deposit of payroll. Often their direct deposit service is an add-on to the basic accounting package or requires use of a premium version (at an additional cost).

Financial institutions also offer direct deposit of payroll that automatically link to accounting software and provide the same electronic payroll services as an ADP or PayChex, often at a reduced cost. Banks also offer other ACH services. Ask your bank if they have an online bill payment tool for small businesses to use the ACH to pay vendors and other obligors electronically. It’s easy to use and, again, integrates with common accounting software packages.

Most online bill payment providers make their services accessible via the mobile phone, in addition to the PC, so it is getting even easier and more convenient to pay bills and employees every day. Intuit, for example, recently announced a mobile app for small businesses.

Make the management of your business simpler by using the ACH payment system. Eliminate the time spent on calculating what is owed to employees and vendors by leveraging the tried and true, safe and sound ACH payment tools available to small businesses today. Then focus on what is really important: making your business successful.

Social Media and Small Business in 2014

Social Media and Small Business in 2014 have a vital relation with each other because social media gives the opportunity to the small businesses to play on the same play ground aside with large brands and organizations. In 2014 it will be a fact that most of the 2013 trends will tend to keep increasing and some will fall but the truth that only matter is about the communication between business and the customers. How you communicate and build relations and trust with the customers will decide which way your business will go.

Businesses are built on the content these days and content play the most important role in success of your business. So there are some trends you should be aware of:

It is quite evident that now mobile are going to go main stream and are going to play a role of most important communicating playground. Now days almost every website is switching to mobile site so it is very important for your business to make the switch to mobile site. It should be your top priority to build responsive design and think how people are going to interact with your business on mobile phone. You should have mobile apps, emails and SMS that the customer could interact on his mobile phone.

Niche sites are going to play an important role in communicating with your customers because now days it is very difficult to get found in the presence of Face book, Google+ and twitter. These sites will get you in front of the customers because of the high target by the customers and these are the best and affordable.

Social Media and Small Business organization relationship is very important and blogs will always outrun every other way of generating business. To generate new business leads you should create better content on regular basis and try to attract more and more traffic to your website. Blogs are also known as the pros of the small business promotions and if don’t have one you should go and start one.

You should communicate and interact with your customers and potential buyers by creating value able and better content because now days spasms could get in your way and can create a little bit of setback for your business.

Social Media and Small Business relationship depends upon success of your business if you are not successful than it means you are not interacting with customers in an appropriate manner. You should try to be friends with every person that like or comment on your post even if he is your competitor because it is your success that your enemies are admiring you and success always leads to more success.

Promoting your business on social media is two way things as if you want your content and product to be promoted by someone else you have to promote their products as well. So try to find potential influential people that can promote your product and you promote their products. It will do you better than the other party.

Create interesting and best content that a customer can’t resist and you get more and more response. You should be socially active and try to reply to every comment that a user is making and try to remove if there is any doubt in his mind. This year is going to be an exciting year and try to remain at the top of the game by using the new trends of the social media.