While studies show that technology spending is once again on the rise, there's a reason you haven't heard a collective sigh of relief from the software industry. While many budgets are once again allowing for the purchase of enterprise software, hardware and peripherals, there's no question that today's purchasers are smarter, savvier and more selective than ever.
Even though the purse strings have loosened, competition is at an all-time high. It's no longer enough to provide a software solution that meets the potential customer's needs, or even to provide it at the best price. Today, smart vendors are constantly looking for ways to stay one step ahead of the competition.
While increasing sales is always part of a competitive business strategy, software development companies often overlook a simple method of accomplishing this objective - making it easier for customers to buy.
One option increasing in popularity among software vendors is to establish a customized finance program that provides no-hassle financing solutions for your prospective clients. In addition to "one-stop shopping," your customers can reap the other benefits of financing that make it easier for them to commit to technology purchases, including:
100 percent financing -- Many finance companies offer 100 percent financing for the cost of software and maintenance contracts, which requires no down payment. Because customers don't have to come up with a down payment, they can make a purchase immediately, rather than hold up the sale with a "wait and see" mentality that often accompanies a dip into cash reserves. It also allows your customers to invest more capital in revenue-generating activities.
Improved cash flow management - With software financing, your customers can conserve capital for reinvesting in their business and improve budgeting accuracy through fixed monthly payments. Financing also makes it easy for customers to access multiple-year budgets by paying for the benefit of your software over its useful life.
Flexible payment structures - Customers can optimize project budgets by taking advantage of the flexible payment structures available through financing to maximize the return on their investment. For example, with software financing, customers can ramp up payments to match the revenue generation of a new technology project that is utilizing the software being financed.
While financing provides a clear advantage for the buyer, when a program is well planned, the list of advantages for software developers, distributors and resellers can be even more beneficial.
Monday, November 24, 2014
Saturday, November 22, 2014
Positioning Your Company for Debt Financing
Positioning Your Company for Debt Financing:
There was a time in the old days when going to the bank was the only way to get outside capital for your business. These days with the explosion of raising equity investment, many of the guidelines for running a company have been revolutionized. Unfortunately this new phenomenon is only true for companies with super "star power", because these companies have potential to create sky-rocket return earnings.
For everyone else, sticking to fundamentals is where it's at. Building your company incrementally, following a pre-prepared business plan, watching expenses, and increasing sales. When your company moves beyond its launch, it begins to operate much like a bank. On the financial side you will be making credit decisions
involving your customers. Some will have to pay C.O.D., some you will extend net 30 day terms. In this sense you are now becoming a banker for your customers.
Without getting into how inexpensive debt financing ultimately is compared to equity (try 20% annualized interest versus 20% ownership lock stock and barrel), in certain situations the time honored tradition of borrowing money can be the best solution for increasing growth or starting a company.
By knowing what commercial finance companies look for, you will become a much more attractive prospect.
1. Concentration - This means putting all your eggs in one basket. Avoid going out and making a large sale to a customer and then not continuing your sales effort to find more customers. The risk of a problem developing with your main customer, or for whatever reason they are no longer buying from you can obviously be detrimental to your success. Finance companies look for incoming revenue to be spread evenly over a number of customers.
2. Creditworthiness - Who are you lending your hard earned assets to? What kind of due diligence do you perform on new customers? The challenge here is whether to accept a lucrative sale with a company that could never get credit from any type of finance company. You are essentially telling yourself that you know better than the banker about loaning money. Finance companies will respect a business owner that has a thorough credit checking process and a number of stable credit worthy customers.
3. Book keeping - While some businesses send out all their accounting to outside agencies, it is helpful to have a qualified book keeper on staff. When it comes time to seek financing, being able to produce an instant fiscal snapshot of your company will show the sophistication of your operation. Finance companies appreciate businesses that keep a close eye on their books.
4. Taxes - Pay them. Using the Internal Revenue Service as your funder becomes expensive. Whenever you work with a finance company, you will be pledging assets as collateral, thus the nature of debt financing. When you fail to make tax payments, the government steps in and places a lien against those same assets essentially stepping into first position. This leaves the finance company with money outstanding to your business and no collateral to back it up. This places your entire relationship in default. When going to closing on financing expect to sign a form that allows the finance company to receive duplicate correspondence from the IRS. This is standard procedure to track tax problems. Owing taxes does not mean you cannot get financing. It is entirely possible to receive a subordinated debt agreement from the IRS which allows the finance company to work with you unencumbered.
5. Bankruptcy - If you have ever entered into a bankruptcy proceeding whether personal or business, own up to it right away. It will come out, and being up front about the circumstances will enhance the necessity to overlook the past difficulties.
6. Applications - Finance companies ask for a variety of information when performing their due diligence. Do not be alarmed, they are not trying to steal your secrets. They need to feel comfortable with you and your company. Each company has its own threshold for fact checking. Invariably the finance companies that do the most thorough job are the most reliable and safest to do business with. Finance companies like working with a business that takes the time to put a loan package together in advance of asking for financing. Typically you can start with; Interim Balance & Income Statement, Interim Profit & Loss Statement, Last Year End Statements, Accounts Payables Aging Report, Accounts Receivables Aging Report, and of course Tax Returns.
There was a time in the old days when going to the bank was the only way to get outside capital for your business. These days with the explosion of raising equity investment, many of the guidelines for running a company have been revolutionized. Unfortunately this new phenomenon is only true for companies with super "star power", because these companies have potential to create sky-rocket return earnings.
For everyone else, sticking to fundamentals is where it's at. Building your company incrementally, following a pre-prepared business plan, watching expenses, and increasing sales. When your company moves beyond its launch, it begins to operate much like a bank. On the financial side you will be making credit decisions
involving your customers. Some will have to pay C.O.D., some you will extend net 30 day terms. In this sense you are now becoming a banker for your customers.
Without getting into how inexpensive debt financing ultimately is compared to equity (try 20% annualized interest versus 20% ownership lock stock and barrel), in certain situations the time honored tradition of borrowing money can be the best solution for increasing growth or starting a company.
By knowing what commercial finance companies look for, you will become a much more attractive prospect.
1. Concentration - This means putting all your eggs in one basket. Avoid going out and making a large sale to a customer and then not continuing your sales effort to find more customers. The risk of a problem developing with your main customer, or for whatever reason they are no longer buying from you can obviously be detrimental to your success. Finance companies look for incoming revenue to be spread evenly over a number of customers.
2. Creditworthiness - Who are you lending your hard earned assets to? What kind of due diligence do you perform on new customers? The challenge here is whether to accept a lucrative sale with a company that could never get credit from any type of finance company. You are essentially telling yourself that you know better than the banker about loaning money. Finance companies will respect a business owner that has a thorough credit checking process and a number of stable credit worthy customers.
3. Book keeping - While some businesses send out all their accounting to outside agencies, it is helpful to have a qualified book keeper on staff. When it comes time to seek financing, being able to produce an instant fiscal snapshot of your company will show the sophistication of your operation. Finance companies appreciate businesses that keep a close eye on their books.
4. Taxes - Pay them. Using the Internal Revenue Service as your funder becomes expensive. Whenever you work with a finance company, you will be pledging assets as collateral, thus the nature of debt financing. When you fail to make tax payments, the government steps in and places a lien against those same assets essentially stepping into first position. This leaves the finance company with money outstanding to your business and no collateral to back it up. This places your entire relationship in default. When going to closing on financing expect to sign a form that allows the finance company to receive duplicate correspondence from the IRS. This is standard procedure to track tax problems. Owing taxes does not mean you cannot get financing. It is entirely possible to receive a subordinated debt agreement from the IRS which allows the finance company to work with you unencumbered.
5. Bankruptcy - If you have ever entered into a bankruptcy proceeding whether personal or business, own up to it right away. It will come out, and being up front about the circumstances will enhance the necessity to overlook the past difficulties.
6. Applications - Finance companies ask for a variety of information when performing their due diligence. Do not be alarmed, they are not trying to steal your secrets. They need to feel comfortable with you and your company. Each company has its own threshold for fact checking. Invariably the finance companies that do the most thorough job are the most reliable and safest to do business with. Finance companies like working with a business that takes the time to put a loan package together in advance of asking for financing. Typically you can start with; Interim Balance & Income Statement, Interim Profit & Loss Statement, Last Year End Statements, Accounts Payables Aging Report, Accounts Receivables Aging Report, and of course Tax Returns.
Friday, November 7, 2014
How To Get Car Loan with Bad Credit ?
With
no job and a bad credit score it becomes almost impossible for anyone to
even think about taking up a loan. Without a job you may even thing how
to pay off the loan if you take one. The loan companies do not
generally give away car loans to people who do not have a job. However
there is no need to worry about a car loan if you want one.
If you
are facing a bad credit score and you do not have a job then there are
lenders you can contact who are willing to give out car loans for unemployed people. These car loans that are given out for people with bad credit also helps in improving the credit score.
Car loan with bad credit and no job requires
not much paperwork. Subprime lenders give out these loans and you need
to pay off your car loan in easy installments. However you must have
some source of earnings in order to pay off your loan. Subprime lenders
are especially know for giving out loans to people with bad credit
scores and no jobs. If you are intending to find a lender for your car
loan then you must search for more than one lender and compare the rate
of interest they are offering. It always helps to bargain and getting
the lowest rate of interest for your loan.
Car
loan with bad credit and no job is easy to get and you can find many
lenders who are giving out these loans on easy terms and conditions.
If you
are searching for a car loan with your bad credit score then you should
go shopping for it. There are various lenders that provide car loans
with bad credits. You can check out the rate of interest that they are
giving out and compare the best one among them.
Sunday, November 2, 2014
Qualify For Unemployed Auto Loans with Bad Credit
Being
out of work is the nastiest scenario of one’s life, in addition being
labeled together with the bad credit score information worsens the
problem. If borrowers have no employment, he will realize that obtaining
finance for a car could be incredibly difficult.
While
many lenders and financial institutions might not lend him any money,
there is a way that he can get his much needed car because few lenders
might be specializing in providing unemployed car loan with bad credit.
The
reason being no one will provide the borrower school funding as they
consider him as a high risk customer. However, such loans might come
with higher interest rate given that lenders take a risk by providing
car loan to someone without a job. But a number of processes can be
applied to get a better deal.
There’s
no need to pledge the beneficial stability for unemployed auto finance
with bad credit. Apart from, bad credit people may also be entitled
under this kind of loan service. Whatever he just needs to prove his own
paying back ability and the money is his own.
And then
it doesn't matter what kind of credit debtor he is. Also, by making
standard payments he is able to enhance his credit standing as well.
Hence, if the borrower inside eager demand for resources
yet doesn't have any normal income and then think about for the unemployed car loans with bad credit and get fast cash without dealing with any trouble.
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