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31 Oct
How to Create a Rainy Day Fund for Your Small Business

Piggy bank with umbrella concept for rainy day fundHow to Create a Rainy Day Fund for Your Small Business

As a small business owner, one of the best pieces of advice you’ll ever get is to never get too comfortable when things are running smooth.

In the same way traffic accidents occur unexpectedly and natural disasters occur without notice, your business can also suffer painful emergencies. When it does, you need to be in a position to protect your business and keep it running.

Having a healthy “rainy day fund” can help you get through those unexpected bumps in the road.  Here’s how to get started

Start saving today

Whenever you’re in a position to stash away extra money, you should do it. Even small contributions, made on a regular basis will add up over time.  Create a solid savings plan that will act as a reliable backup in times of emergencies. The best way to do this is to set up a savings account and keep it separate from your other business and personal accounts.

Cut costs

Avoid unnecessary and extravagant cash outlays, even when your business is solidly in the black. There’s nothing wrong with rewarding yourself and your employees once in a while, just do not make a habit of it. For your rainy day fund to grow, you will have to avoid any needless spending. Remain disciplined and focused on growing the account and you’ll be glad you did when the need arises.

Consider supplementing your income

Any wise entrepreneur knows that it’s important to diversify their investments. Don’t be afraid to try out other business ideas that you believe can bear fruit. It does not always have to be your own business; you can invest in other successful companies to grow your money. You might also look for ancillary services that complement your main business.

Make the most of the up times

It’s normal for any business to experience highs and lows. Some months you’ll generate more income, and in others, you may have a very profit margin. During the slow times, it might be impossible to make any contributions to your rainy day fund. So it’s a good idea to make larger deposits when your cash flow situation improves.

Save your tax refund

Finally, you may be lucky enough to receive a tax refund from time to time. The best way to use that money is to channel it directly to your rainy day fund.

Consider alternative funding methods

Before raiding your rainy day fund, ask yourself whether the need for extra cash is a temporary or long-term one.  If cash flow issues are an ongoing problem, a revolving line of credit or business factoring may be a better solution.

Give us a call at 1-800-297-6652 or visit us online at www.americanreceivable.com to learn more about our accounts receivable factoring solutions and whether they’re a good fit for your cash flow needs.

31 Oct
8 Small Business Finance Tips

company cash flow statements folderBusiness Finance Tips

Running a small business can be tough, frustrating, and requires most owners to wear multiple hats.

While most owners are comfortable being involved in sales, marketing, production and even HR, many feel completely out of their element when it comes to financing.  While this is an area that’s typically better left to those with the necessary training and experience there are some basic things that every startup business owner should do in order to keep their company in the black.

Use dedicated business accounts

For your small business to thrive, it’s essential that you’re able to accurately track all of your business income and expenditures. To help you do this, you need to set up dedicated banking and credit card accounts for your small business and ensures there is no overlap between them and your personal accounts.

Have a budget and stick to it

You probably already have a personal budget. Keeping one helps you to prioritize expenses by separating needs from the wants. The same applies to your small business. Having a formal budget helps you prioritize your spending.

Prepare for big expenses

Don’t wait to be taken by surprise just because you underestimated your expenses. When creating your budget, it’s always best to overestimate your expenses a little in order to cover any unexpected cost increases and incidentals.

Be prepared for downturns and bottlenecks

Every small business has its ups and downs.  For some, the reason is seasonal factors that influence their market.  For others, slow-paying customers can have a negative impact on cash flow.  While seasonal fluctuations are easy to anticipate, cash flow problems can arise quickly and unexpectedly.  When they do, having an established relationship with a lender can be a lifesaver.  If borrowing from a traditional lender isn’t an option, you might consider invoice factoring to get the cash you need to meet your daily operating expenses during the slow times and to invest in new equipment, warehouse space or personnel.

Ask for professional help

Sometimes managing big numbers, accounts and cash flow can be overwhelming. Don’t be afraid to ask for help. Trying to muddle through can be disastrous for your business.

Have alternative investments

Don’t put all your eggs in one basket. Diversifying your investments will boost your savings plan while at the same time providing you with something to fall back on.

Manage your time

You’ve no doubt heard the saying “time is money”. The amount of time you put into your small business is directly proportional to how well and how quickly it will succeed.

Create a savings plan

Finally, the joy of every business owner is when you start making a profit out of your hard work. Being able to constantly and progressively save up is proof that your business is not hopeless after all. What’s more, savings are like water you store to be used in times of drought. A healthy savings account can get your small business through economic downturns, the loss of clients and other unexpected events.

Call American Receivable at about invoice factoring 1-800-297-6652 or visit us online at www.americanreceivable.com to learn more about invoice factoring and whether it’s the right solution for your cash flow needs.

17 Oct
ARC Continuing Relief Efforts

ARC Continuing Relief Efforts

American Receivable Corporation is continuing relief efforts by offering special rates to businesses affected by Hurricane Harvey and extending those rates to those affected by Hurricane Irma. American Receivable has already aided eight Houston area small businesses in their recovery efforts in the last month with hopes to grow that number as it extends to Florida. Discounted rates start as low as .8% with up to 90% funding in 24 hours.

People helping people is what keeps America strong. Call us today and let us help Texas and Florida rebuild.

More About the Harsh Effects Of Tropical Storms Over the Years

Sea tempests are the most harming of cataclysmic events. A Category 4 or 5 tempest can bring down U.S. generation and increment joblessness. Enormous typhoons discourage the securities exchange and other budgetary markets.

The United States is powerless against tropical storm harm. Waterfront shoreline regions make 40% of America's occupations. They are in charge of 46% of its total national output.

Tropical storm Damage

The Congressional Budget Office appraises that 1.2 million Americans live in beachfront zones that are in danger of considerable harm from storms.

The CBO characterizes considerable harm as at any rate 5% of normal salary. A large portion of these thickly populated territories lie under 10 feet above ocean level, as indicated by the National Hurricane Center.

It additionally assesses that administration costs for sea tempest harm are $28 billion every year. Florida contributes 55% of that, and Texas and Louisiana include 13% and 9% separately.

These normal yearly harm costs will increment to $39 billion by 2075. Practically a large portion of that addition will originate from expanded improvement along U.S. coastlines. The other half will be because of environmental change.

A dangerous atmospheric devation implies higher sea temperatures at more profound profundities to bolster sea tempest quality. It likewise makes greater stickiness noticeable all around and less breezes around the tempest. M.I.T. models foresee that there will be more sea tempests all in all by 2035 and that 11% of these will be Category 3, 4, and 5 classes. It anticipated 32 super-outrageous tempests with winds over 190 miles for every hour.

From travels to day trips and everything in the middle of, a vehicle is your ticket to living on your terms. Here are the tips, traps and counsel you have to guarantee that your bases are secured.

To ensure yourself (and your vehicle), ensure that you get protection inclusion that matches your identity and how you drive.

Who Pays for All This Damage?

The national government pays for 60% of sea tempest harm, and a large portion of that cash originates from three offices. The Federal Emergency Management Agency pays right around 66% of the administration's bill. The Department of Housing and Urban Development and the U.S. Armed force Corps of Engineers on the whole pay somewhat more than a third.

State and nearby governments, protection, and private people pay the rest.

FEMA has paid out $81 billion to state, regional, and nearby governments because of cataclysmic events since 1992. In any case, a New York Times investigation of government information found that numerous structures were remade set up. The new structures are similarly as unprotected as the old ones against the following tempest subsequently.

The 2019 Hurricane Season

The National Oceanic Atmospheric Administration predicts a normal tropical storm season in the Atlantic of four to eight typhoons. Somewhere in the range of two and four will progress toward becoming Category 3 storms or higher. NOAA expects that the current year's El Nino will make up for the higher sea temperatures brought about by a worldwide temperature alteration.

CoreLogic says that puts 7.3 million homes in danger of tempest flood. Reproduction cost is nearly $1.8 trillion. The most serious hazard is New York City and Miami, Florida. Potential harm to the New York territory is $330 billion. That is practically twofold the potential expense to Miami of $166 billion.

For the eastern and focal Pacific, the NOAA predicts a better than expected season. It anticipates that eight should 13 storms, of which four to eight will wind up major.

The 2018 Hurricane Season

NOAA said that the 2018 season will be recollected most for Hurricanes Florence and Michael.

There were 15 named tempests, eight tropical storms, and two above Category 3. A normal season has 12 named tempests, six typhoons, and three noteworthy tropical storms.

These storms included:

Tropical storm Lane: Hurricane Lane dropped a record 52.2 creeps of downpour on the Big Island of Hawaii. The Category 3 tempest struck on Aug. 24, 2018.

Typhoon Florence: Hurricane Florence hit North Carolina on Sept. 14, 2018. It was a Category 1 storm when it made landfall. Precipitation was 35.93 inches, the fourth most noticeably terrible in the United States and a 1-in-1,000-year occasion. There were 39 fatalities in the state as of Oct. 4. At any rate 340,000 individuals lost power, 10,000 went to covers, and 1,500 streets were shut down. As indicated by reinsurance firm Munich Re, property harm totaled $14 billion. North Carolina's representative marked a $50 million alleviation bundle. The legislative leader of South Carolina requested the departure of 1 million individuals. Sea tempest Florence was extremely amazing for four reasons. In the first place, it hit North Carolina's coast dead on, heaping up water before the tempest. Second, the counterclockwise turn of the tempest encouraged water into the middle. Third, North Carolina's Outer Banks developed tides as opposed to giving the water a chance to escape out to ocean. Lastly, the sea was one to two degrees hotter than typical.

Typhoon Walaka: Hurricane Walaka was a class 5 beast that obliterated the East Island of Hawaii on Oct. 1, 2018. This island, which is presently submerged, was a basic living space for imperiled Hawaiian priest seals and ocean turtles.

Typhoon Michael: Hurricane Michael was a Category 4 storm that hit the Florida Panhandle on Oct. 10, 2018. The loss of life achieved 39 by Oct. 22. It brought a 7.7-foot tempest flood in certain zones. There somewhere in the range of $3 and $5 billion in wind and flood harm. As indicated by Munich Re, the absolute expense was $16 billion. More than 1 million clients lost power. The sea tempest hit Georgia as a Category 3 tempest, and it was the primary tropical storm of that quality since the Georgia Hurricane of 1898. The tempest had enough forward energy to dump 4 to 6 creeps of downpour on the Carolinas in regions still hadn't recouped from Hurricane Florence.

Storm Yutu: Tropical tornados are called typhoons on the off chance that they start in the North Atlantic, focal North Pacific, or eastern North Pacific. They're called tropical storms in the event that they begin in the Northwest Pacific. Tropical storm Yutu was a Category 5 storm when it hit the U.S. Mariana Islands on Oct. 15, 2018. Its 180 miles for every hour winds made it the most dominant violent wind to hit any piece of the U.S. since 1935. It was the fifth Category 4 or more tempest to hit U.S. soil in 14 months. That hadn't occurred in written history.

The 2017 Hurricane Season

The 2017 sea tempest season was especially brutal. A high-weight framework kept the upper east in summery temperatures through September. It additionally kept cooler breezes from Canada out of the district. Those breezes ordinarily drive storms out to ocean. Another high-weight framework created around Bermuda. That sent tropical storms directly into Florida and the U.S. east coast.

A portion of the most exceedingly terrible tropical storms in 2017 included:

Typhoon Maria: Hurricane Maria was a Category 5 storm when it hit Dominica on Sept. 18, 2017. Around 30% of the populace lost power. It crushed Puerto Rico on Sept. 20, home to 3.5 million Americans. It cost $90 billion in harms there despite the fact that it had been downsized to a Category 4 storm when it hit. The loss of life was 2,975. Another 4,645 individuals kicked the bucket after the tempest thumped out power, phone towers, and transportation. Maria debilitated a dam, constraining 70,000 individuals to empty. Around 15,000 individuals were constrained into government covers. Senator Ricardo Rossello requested $94 billion in government help. Starting at 2018, Congress dispensed $41 billion. It's evaluated the island will get another $50 billion in FEMA installments. Safety net providers evaluated their expenses to be $85 billion.

Sea tempest Irma: Hurricane Irma was the most dominant Atlantic tropical storm in written history. The harm was $50 billion. Accuweather evaluated that the all out expense to the economy was $100 billion. It was a Category 5 storm when it made landfall on Barbuda on Sept. 6, 2017. Its breezes were 185 miles for each hour for 37 hours, another record. Irma was minimized to a Category 4 tropical storm before it hit the Florida Keys on Sept. 10. That was the first run through in 100 years that two tempests Category 4 or bigger hit the U.S. terrain around the same time. President Trump announced crises in Florida, Puerto Rico, and the U.S. Virgin Islands. Congress appropriated $35.5 billion in crisis subsidizing. Of that, $16 billion was obligation pardoning given by the National Flood Insurance Program.

Sea tempest Harvey: Hurricane Harvey was a Category 4 storm when it hit Texas on Aug. 25, 2017. Texas Governor Greg Abbott at first evaluated the harm at $180 billion, yet the National Hurricane Center said the last figure was nearer to $125 billion. The typhoon influenced 13 million individuals from Texas through Louisiana, Mississippi, Tennessee, and Kentucky, and 88 individuals kicked the bucket from the tempest. Congress appropriated $15 billion for fiasco help. Harvey harmed 200,000 homes, 12,700 of which were totally obliterated. In excess of 500,000 individuals requested government help. The tempest constrained 5% of the country's oil and gas creation to close down. Gas costs ascended from $2.35 a gallon to $2.49 a gallon.

How Hurricanes Cause Damage

Sea tempest harm happens from seven sources. The first is high breezes. The Saffir-Simpson Hurricane Wind Scale puts wind speeds, harm caused, and control blackouts into five classes.

The subsequent source is tempest flood, the ascent in water better than average elevated tide. The storm's high breezes drive the water up onto the shore. At the point when the tempest flood harmonizes with elevated tide, you get tempest tide. That unordinary event made the obliteration during Hurricane Sandy.

12 Oct
Hurricane Harvey
Is Your Business Prepared to Survive a Natural Disaster? 

Is Your Business Prepared to Survive a Natural Disaster?

Natural disasters can happen anywhere and at any time. Over the past several weeks the headlines have been dominated by three monster hurricanes and a 7.1 earthquake in Mexico.  If they’ve taught us anything, it’s that there’s no such thing as being over-prepared, and that goes for your business too.

Hurricane Harvey dumped record rainfall along the Texas and Louisiana coasts and the cleanup is expected to take months.  And the financial impact of the monster storm will undoubtedly be felt for even longer in the greater Houston area.  According to a recent marketwatch.com article, the Small Business Administration’s disaster relief program had received 2,117 applications for assistance from residents and businesses affected by Hurricane Harvey as of September 1.

Unfortunately, the SBA estimates that about 25 percent of small businesses that close due to a natural disaster never reopen.  The Federal Emergency Management Agency (FEMA) puts that number even higher, at around 40 percent. And for businesses that do reopen, the road to recovery is usually long and expensive.  The problem for most is the lack of a disaster plan. Here are three things you can do to make sure your business is able to get up and running again in the event it’s affected by a natural disaster.

Be Proactive Concerning Your Finances

Don’t assume that your bank and credit card companies will know that you’ve been affected by a natural disaster.  Instead, you should contact your lending institution immediately and let them know about the emergency situation. Most lenders will work with you to help you get back on track.  In some cases, they may waive fees or allow you to defer payments.

Low-Interest Disaster Relief Financing

As mentioned earlier, the SBA offers disaster relief for small businesses. One program provides loans to help businesses recover from property damages.  The program offers terms of up to 30 years, and interest rates of 4 percent or lower.  Another SBA program helps businesses recover from economic injury and provides loans of up to $2 million to help with expenses you would have been able to cover had you not been affected by a natural disaster.

Some lenders also offer special programs for new and existing customers affected by natural disasters.  At American Receivable, we’re offering discounted rates to businesses affected by Hurricane Harvey.   Our invoice factoring solutions require no lengthy approval process and funding in as little as 24 hours. Call 1-800-297-6652 or in the Houston area call 281-442-7000 to learn more.  You may also click here for more information.

Prepare for the Unexpected

As the old saying goes, “an ounce of prevention is worth a pound of cure.” Having cash reserves to meet your operating expenses for at least 30 days can help your business survive a natural disaster.

Unfortunately, this is easier said than done for small businesses that operate on tight margins.  If this is true for your business, now is the time to look for ways to pay off your existing debts and reducing your operating costs and put that money in a safe, interest-bearing account so it will be there in the event of a natural disaster.

For more information, check out these helpful disaster checklists and tips.

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