Businesses Go To Suppliers For Funding Via Invoice Factoring Solutions

        In today's times of tightened credit, small businesses are not only looking to financial institutions, but also to their suppliers, as sources of funds. Recently a Small Business Association (SBA) Office of Advocacy study documents trade credit as almost as pervasive as bank credit in both incidence and volume. The study looks at how small businesses' use bank credit or loans, versus trade credit, also known as supplier credit.

 Invoice factoring allows a company to provide credit to its customers while at the same time obtaining cash for business operations and growth.

 This research compares firms that use credit - leveraged - with anyone who does not use credit - unleveraged and which kind of credit leveraged firms use. For example they could use bank credit, which includes loans or lines of credit, or trade credit from suppliers, or both. According to the research bank and trade credit are often used simultaneously by smaller businesses. Trade credit is used by three-fifths of the small firms that use credit.

 Our economic times are challenging, and as policymakers continue to focus on how to get banks to increase lending to small businesses, it may very well be in everyone's best interest if they also addressed the equally important trade credit channel of funding.

 While the study provides a better understanding of the credit used by small business, alternative forms of financing such as invoice factoring allow a business to provide credit to its customers while at the same time obtaining cash for important business operations and growth.

 During normal operations of businesses every day, companies of all sizes extend credit to one another in the form of accounts receivables. For instance, a business might submit an invoice with the terms of trade being "2/10 net 30" meaning that a two percent discount would be given for payments made within 10 days or the full amount is due in 30 days. Trade credit is an instrumental business financing tool.

 Invoice factoring benefits businesses that do not get paid for 30 to 60 or 90 days by advancing up to 90 percent against invoices. Bank loans involve two parties, while invoice factoring involves three parties, and while banks base their decisions on a company's credit worthiness, factoring is based on the value of the company's receivables. Invoice factoring is not a loan - it is the purchase of financial assets.

 Some of the more popular types of factoring solutions include export factoring, providing factoring services for companies who export from the United States and Canada; P.O. funding to finance purchase orders when a company receives a purchase order and needs to purchase supplies before they can begin to complete an order; and inventory financing, a solution promoting a company's growth by funding them when they must expand and purchase inventory.

 Invoice factoring has been around for thousands of years. It starts with due diligence that typically takes one to two business days, and after this has been completed the client is at liberty to offer invoices to a factoring company for purchase.

 What's more, most factors do not expect to buy 100 percent of a company's receivables, and there are no minimum or maximum sales volume requirements. Upon receipt of invoices, the factoring company checks the credit of the debtor named on the invoice and makes sure that the sale represented has been satisfactorily completed. Once this is done the debtor is advised of the purchase by the factor, at which time the client receives their money.

 Most factor's professional rates are competitive because each client's circumstances vary, which may have an impact on the fees charged. This allows choices of invoices to be factored, enabling customers to retain most of their money, while spending the minimum in fees.

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Car Price Negotiations

       When negotiating the price of a car, it is important to start from a position of power. That means knowing the tricks of the trade and being prepared to use them.

 The first trick to know when preparing for car price negotiations is to know the starting price of the car. Initially, this means doing some research in the manufacturer's suggested retail price of the car.

 It is also important for car price negotiations to know what the car is selling for in your region. For example, several years ago, when the Toyota Prius was new to the American market, the suggested retail price of the car had nothing to do with its actual selling price.

 Because the car was in high demand and low supply, dealers were able to negotiate prices much higher than the standard asking price. The smart car price negotiator will be aware of these trends and either accepts that added cost of the car or opt for a car in lower demand.

 The second trick to know is that you should also have the invoice price of the car in hand when begging your car price negotiations. A smart negotiator will know that the invoice price is not what the dealer paid for it; invoices reflect the price the dealer would have paid if not for incentives, rebates and factory deals for the dealership.

 This is important to know in car price negotiations because some novice negotiators will fall for the ruse that they are getting a good deal since it is close to the invoice price. Remember, the invoice price is not what he paid for it and getting him to sell you the car below invoice does not mean you are driving the dealership into bankruptcy.
 The third trick smart car price negotiators need to know is that they should begin negotiations based on the theory that they will pay cash for the car and that there will be no trade-in. In an era of revolving credit, most car price negotiators do not understand that the trade-in allowance is often figured in by less scrupulous dealers and the base price of the new car is increased.

 In addition, car price negotiators must be aware that some car dealers will also hide increased car prices in the financing. To avoid this, negotiators must be willing to discuss car prices as though financing is not necessary.

 The person negotiating the price of the car must also be able to talk the jargon and be familiar with standard options packages. For example, a dealership might try to charge individual option costs for upgrades including automatic transmission and air conditioning and power windows even though all three are typically packaged together and sold to him at a discounted rate.

 The negotiator should also clarify whether the price he is discussing with the car dealer includes all taxes and fees associated with the closing of the purchase of the car. Many first time new car buyers are surprised by the fees that are added on the car cost after the price has been discussed. Such fees usually not included in the car price negotiations include state sales taxes, license transfer fees, and freight costs.

 Finally, a car price negotiator must understand the fine art of negotiation and the reality of how little negotiation actually takes place. He must be willing to discuss getting adding option without price increases and must also be willing to put his foot down when the salesman tries to increase the cost and value of the car by adding no options that the new owner neither wants or needs.

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Car Buying Faq's

Q: How can a car dealership make a profit if they sell the car close to its invoice cost?

 A:
 Because of rebate given by a car manufacturer.
 Car dealership earns from financing they offer to their clients.
 Car dealership earns from their service, maintenance and repair department.
 Kickbacks from their sales.

 Q: Car dealerships such as a Pontiac dealer sometimes offer 0% financial rates, how is this feasible?

 Answer: It might appear on the surface that there are hidden tricks or fine print but there is none actually. This is the scheme they use to sell cars with very low sales. However, not everyone can avail of this special rate unless:

 You have a high credit rate. Some dealership set a minimum credit rate to avail of this scheme.
 If you cant meet their requirement, a car dealership will offer you a rebate instead. Grab this offer if you are not eligible for a zero financing. Zero financing rates cover only a short period of time or three years the most.

 Just a quick tip, dont be compulsive when buying a car. Rather, wait for some time until the buying mania for a particular brand dies down when the price will soon follow, it will be the perfect time to buy a car.

 Q: I leased a new car, however I cant pay the mortgage anymore. How do I get out of the lease without a great amount of money.

 Ans. There are two best solutions to get out of your lease.

 First option, sell the car. Call or visit the financing company holding your car for the amount of money you need to pay them to get you out of lease. Find someone to buy your car or give you offer you a quantity close to your lease.

 Second option, find someone or a company to buy you out of lease. There are websites that specialize in swapping of car lease or offering solutions to them. You need to understand that getting out of lease is difficult especially if the amount of your lease is higher than the actual cost of your car. Though getting out of lease is indeed tough, many people have successfully got out of it and so can you.

 Q: Im planning to buy a popular car model, what type of negotiations should I expect?

 Answer: The cars price is dependent on supply and demand law. Typically, when the inventory of a particular car model is large then prices go down. Conversely, when the inventory is low and demand is high, the cars prices go up.

 Ask a Pontiac dealer for their inventory of a particular model for example. If theres plenty of that particular model you want in their inventory then you can buy it just a little above its invoice price. However, if there is just a limited number of that type of car then chances are you are looking at an expensive car.

 Q: If youll pay in cash, how much discount can one expect?

 Ans. This will surprise you a bit but sometimes paying cash is a disadvantage. This is because vehicle dealership such as Red Deer Buick dealers earn profit through financing. What will happen is that they will raise the price to earn profit.

 In this case, be straightforward and tell them that you are paying in cash and will buy the car today or right now after they give you their best offer. Let them know that you are giving them a chance for an easy and seamless sale.

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