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27 Mar
American Receivables - Financing vs Funding
Financing vs Funding for Small Business

Financing vs Funding for Small Business

Financing a business can be a challenge.  The old tradition of walking into the bank to get a loan has become more complicated.  You can no longer get a loan on a handshake.  As a small business owner, you may find that you do not qualify for a bank loan.  Banks require good credit and personal guarantees, which put you at risk if your business fails.   Banks usually require a proven track record of up to 3 years or more.   These criteria are impossible to meet when starting a new business.   This can be discouraging, because financing is crucial to any business.

Cash flow is the life blood to a business.  Operating expenses such as payroll, rent, office equipment, inventory, marketing, and the list can go on, require a business to have cash on hand to cover these expenses.  How you finance your business and the cost of the financing affects your bottom line and your ability to grow your business.

Family and friends are one source for getting cash and are a popular strategy for start-ups. You should present them with a strong business plan in place, as well as some incentive for them to take the risk.    Consider if it will be a loan, or if you will offer equity in the company.  It is also important to provide solid projections to indicate when they might get their investment back. However, if you run into problems with cash flow, or needing more capital, you may have to find new options.  The downside is that however you work it out, if the business fails, you may lose or damage the relationships.

Using a business credit card to finance your business can be helpful in emergency situations when you need cash, but using it for full time capital can be dangerous.  The interest rates are usually very high and if you only make minimum payments you will never be out of debt.   Falling behind on a credit card payment will put the business further behind and will damage the credit score of the owner. You can use it in temporary situations when your cash flow is problematic, but it will still be costly.

These are just a few of the options available in today’s market.  As a business owner, consider “funding” your business rather than financing your business.     Factoring or invoice factoring, has become more popular over the decades.  This method of funding allows you to use your receivables to fund your business and better manage cash flow.   Factoring is not a loan.  You, the business owner, sell your receivables (invoices) to the factoring company.  They in turn, give you a percentage usually within 24 hours and they wait for your customers to pay.  This is especially helpful with slow-paying customers. The factoring company waits for the payment and then returns the balance to you, less fees previously agreed upon.  Selling your invoices for cash, allows you to keep a positive cash flow for the needs of your business. Not all factoring companies are the same, do your homework. There are good companies in the marketplace, however some require long-term contracts and may require you to sell them all of your receivables.

American Receivable has been helping small business owners with funding and cash flow for 40 years. We work individually with each business owner to find the right solutions for their specific industry and needs.  American Receivable is ranked #1 Nationally among factoring companies by multiple ranking agencies.  We pride ourselves on excellent customer service, tenured and experienced account managers, and value our clients as our greatest assets.  We are owned and managed by the original managing partners.  Call American Receivable today and find out how we can benefit your business and save you time to manage and grow your business without the worry of cash flow and funding.

19 Mar
Use Your Business Corporate Culture to Improve Employee Retention

Group of business partners explaining ideas at meeting in office

Use Your Business Corporate Culture to Improve Employee Retention

In today’s business world, it can be challenging to attract talented and qualified employees. Even more difficult is employee retention: keeping team members happy, productive and engaged. When employees are not happy with the company work environment, and other jobs are available, they are likely to leave for greener pastures. Losing employees costs a small business time and affects cash flow, so finding ways to retain qualified workers is preferable to turnover. This article discusses how a positive corporate culture can help a small business retain employees and keep the team motivated.

What is Corporate Culture?

Corporate culture encapsulates the rules, values and behaviors that outline how employees behave and are expected to act in a workplace. For example, is the culture in your company to work overtime every day or have a work-life balance? How do managers approach conflict and disputes? Do employees work independently or collaboratively? Are upper-level employees approachable by all? Do you offer fair benefits or any extra perks? What is the expected attire? Does your business have employee retention programs in place?

Positive Corporate Culture = Employee Retention

Positive corporate cultures are sought after by talent. You will likely achieve higher employee retention if your business reflects the workplace values of your employees. It is important that the behaviors, rules and values on paper are reflected in actual practice. If you say that your culture is to encourage creativity through down time and respite, but then you don’t approve any requested vacation time, you are sending the wrong message and can alienate employees. It is best to lead by example and display the values and behaviors you want to be reflected as part of your culture.

A positive corporate culture will have employees feeling that they are an asset to the company. They will feel respected, cared about, and an important part of the team. The office atmosphere will be energized and encouraging. Happier employees will work harder and tend to be more productive, which is always good for the growth, profits and cash flow of a business.

Negative Corporate Culture = Losing Employees

If your small business has a negative corporate culture, you risk losing talented workers who want to seek greater job satisfaction, ultimately hurting your bottom line and cash flow. If you are losing a lot of employees, or you see that employees are not working well together, it is an indication that your corporate culture needs some reviewing. What behaviors do you want to see and how can they be achieved? For example, does management dictate a “yes, sir/yes, ma’am” attitude or do you want team members to be able to voice opinions and concerns? Be honest with your corporate culture’s faults and brainstorm ways to improve morale.

Employee retention starts even before the hiring process. How is your company thought of in the industry? Does your business’s reputation reflect having a positive corporate culture or do you have bad press?  Are your company values conveyed to the public accurately? Do you have a lot of negative or questionable reviews? In other words, are highly-qualified employees going to apply for open positions considering your reputation?

During the hiring process, it is important to make sure candidates will fit in with your corporate culture and be productive and satisfied once they encounter the day to day routines and behaviors. Ask pointed questions during the interview and make sure you have a match. This will save having to go through the hiring process again later, which will cost your company money and reduce its cash flow.

Job Satisfaction Improves Bottom Line

In today’s society, employees are putting value on quality of life in both personal lifestyle and in the workplace. A high salary is no longer the greatest incentive when choosing an employer. Employees are looking for companies that share their values, one that will bring job satisfaction, and offer a corporate culture that makes the workday something to look forward to. While most small businesses with smaller cash flow can’t afford catered lunches and weekly massages, there are still a lot of ways your company culture can be a positive one. This will keep your employees happy and productive, and keep you happy by helping your bottom line. Here are a few ideas:

20 Low-Cost Employee Retention Tactics to Try

  1. Give each employee positive feedback on an ongoing basis
  2. Offer a relaxed dress code and special dress-up theme days
  3. Provide continual training for workers, allowing them the opportunity to grow
  4. Determine which employees are looking for more to do, and give them added responsibility periodically
  5. Give your staff extra creative time to brainstorm ideas or work on side projects that interest them
  6. Express your appreciation regularly, even for the little things
  7. Get to know employees better and schedule one-on-one time with them
  8. Have open-ended conversations with employees, welcoming them to discuss what’s on their mind
  9. Evaluate how your work schedule promotes work-life balance
  10. Avoid or minimize sudden changes in the workplace
  11. Arrange for team lunches, dinners and/or social outings
  12. Ask your employees to offer feedback on important projects
  13. Keep the workplace organized, uncluttered, and low-risk from danger or accidents
  14. Empower employees by providing tools to complete their work faster or more effectively
  15. Allow employees to decorate their own work spaces and/or have an office decorating contest
  16. Provide adequate and regular rest periods throughout the day for your employees
  17. Create a comfortable relaxation zone or separate room where staff can re-energize
  18. Arrange for employee discounts at related entities
  19. Offer telecommuting “work from home” day options
  20. Encourage your team to thank one another and/or create a peer-to-peer recognition program

 

American Receivable, with offices in Dallas and Austin, can improve your bottom line and cash flow. We are ranked No. 1 nationally among small-business factoring companies and have a high satisfaction with our long-time staff. We provide small businesses with the financial resources and accounts receivable management strategies they need to improve cash flow, grow, increase inventory, make payroll on time, and effectively compete in the marketplace. American Receivable, helping small businesses since 1979, is the best choice for factoring and accounts receivable management. Call us for a FREE quote today at 1-800-297-6652, or complete the quick quote form below.

13 Mar
American Receivable is celebrating 40 years

We are proud to be rated #1 among factoring companies nationally by multiple rating agencies.

Invoice Factoring Companies

How Does Factoring WorkHow Does Factoring Work

We are proud to be rated #1 among factoring companies nationally by multiple rating agencies.

DALLAS, TX, UNITED STATES, March 13, 2019 /EINPresswire.com/ — American Receivable is celebrating 40 years in the factoringindustry. We are proud to be rated #1 among factoring companies nationally by multiple rating agencies. Since 1979, American Receivable has been working with a diverse group of small business owners helping them manage continuous growth through cash flow solutions. We attribute our continued success to our clients and our exceptional working partnerships within the financial industry. Owned and managed by the original managing partners, American Receivable offers exceptional customer service through a tenured and dedicated accounts management team. We work individually with each client to find the best cash flow solutions for their specific industry and business needs.

American Receivable
American Receivable
+1 800-297-6652
email us here

Invoice Factoring

 

07 Mar
Tax Changes for Business Owners

Tax Changes for Business Owners

The dreaded part of every new year has arrived, and it is called Tax Season! It is not uncommon for business owners, even those with the best record keeping in place, to be recipient of some unexpected surprises when it comes time to send in their taxes.

Tax Reform Legislation was passed in December of 2017. The IRS has published some of the changes that may affect self-employed individuals as well as the bottom line for many small business owners. It is important to be aware of these changes when filing your 2018 business tax returns.

Qualified Business Income Deduction

Owner’s of sole proprietorships, partnerships, trusts and S corporations may deduct 20% of their qualified business income (Section 199A qualified business deduction) for the first time on their 2018 returns.

The deduction applies to qualified:

  • Business Income
  • Real estate investment trust dividends
  • Publicly traded partnership income

For more information on this deduction see REG-107892-18 at www.irs.gov.

Temporary 100% Expensing for Certain Business Assets

Business assets with a recovery period of 20 years or less generally qualify. Some real property such as office equipment, machinery, furniture and appliances may also apply.

Fringe Benefits

Fringe benefits cover a broad spectrum. Some of the benefits affected are:

  • Meals and Entertainment. The deduction for entertainment or recreational expenses has been eliminated. Fifty percent of the cost of business meals may be allowed if the business owner or an employee is in attendance and consulting for current or potential clients, or similar business contacts. Other qualifying criteria may be

 

  • Deductions for transportation fringe benefits has been disallowed, as well as benefits associated with commuting. The exception is made when these benefits are in place as a necessity for safety.

 

  • Bicycle Commuting. Qualified bicycle commuting may be deducted as a business expense for 2018-2025. Employers are now required to include these reimbursements in employee

·         Moving Expenses. Moving expenses reimbursed by an employer to an employee are now taxable. Moving expenses for years prior to 2018 are exempt. Payments made by employers to a moving companies in 2018 for a prior year, are also exempt.

 

  • Employee Awards/gifts. Employee awards considered tangible personal property may be excluded from wages. Some of these may be deducted by the employer, subject to New definition of tangible personal property is not inclusive of cash, gift cards or cash equivalents, event tickets, stocks, meals and other like items.

 

For a complete explanation, specifics and FAQ’s go to www.irs.gov.

Any aspect of the Tax Reform may affect your business. Many business owners experience a cash deficit when they have to put available funds toward taxes. American Receivable is here to help! Business owners can sell their outstanding invoices to American Receivable for immediate funding, eliminating a slow- down in business due to lack of cash. Cash is vital for any business to flourish as expenses such as payroll, rent, and other operational costs have to be met. The ability to obtain cash for invoices allows the business owner to put funds where they feel they are most needed to keep their business on track and growing.

Call American Receivable today and let us help you survive tax season!

07 Mar
Tax Changes for Business Owners

Tax Changes for Business Owners

The dreaded part of every new year has arrived, and it is called Tax Season! It is not uncommon for business owners, even those with the best record keeping in place, to be recipient of some unexpected surprises when it comes time to send in their taxes.

Tax Reform Legislation was passed in December of 2017. The IRS has published some of the changes that may affect self-employed individuals as well as the bottom line for many small business owners. It is important to be aware of these changes when filing your 2018 business tax returns.

Qualified Business Income Deduction

Owner’s of sole proprietorships, partnerships, trusts and S corporations may deduct 20% of their qualified business income (Section 199A qualified business deduction) for the first time on their 2018 returns.

The deduction applies to qualified:

  • Business Income
  • Real estate investment trust dividends
  • Publicly traded partnership income

For more information on this deduction see REG-107892-18 at www.irs.gov.

Temporary 100% Expensing for Certain Business Assets

Business assets with a recovery period of 20 years or less generally qualify. Some real property such as office equipment, machinery, furniture and appliances may also apply.

Fringe Benefits

Fringe benefits cover a broad spectrum. Some of the benefits affected are:

  • Meals and Entertainment. The deduction for entertainment or recreational expenses has been eliminated. Fifty percent of the cost of business meals may be allowed if the business owner or an employee is in attendance and consulting for current or potential clients, or similar business contacts. Other qualifying criteria may be

 

  • Deductions for transportation fringe benefits has been disallowed, as well as benefits associated with commuting. The exception is made when these benefits are in place as a necessity for safety.

 

  • Bicycle Commuting. Qualified bicycle commuting may be deducted as a business expense for 2018-2025. Employers are now required to include these reimbursements in employee

·         Moving Expenses. Moving expenses reimbursed by an employer to an employee are now taxable. Moving expenses for years prior to 2018 are exempt. Payments made by employers to a moving companies in 2018 for a prior year, are also exempt.

 

  • Employee Awards/gifts. Employee awards considered tangible personal property may be excluded from wages. Some of these may be deducted by the employer, subject to New definition of tangible personal property is not inclusive of cash, gift cards or cash equivalents, event tickets, stocks, meals and other like items.

 

For a complete explanation, specifics and FAQ’s go to www.irs.gov.

Any aspect of the Tax Reform may affect your business. Many business owners experience a cash deficit when they have to put available funds toward taxes. American Receivable is here to help! Business owners can sell their outstanding invoices to American Receivable for immediate funding, eliminating a slow- down in business due to lack of cash. Cash is vital for any business to flourish as expenses such as payroll, rent, and other operational costs have to be met. The ability to obtain cash for invoices allows the business owner to put funds where they feel they are most needed to keep their business on track and growing.

Call American Receivable today and let us help you survive tax season!

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