Business and Law Advocates

Suppose the situation where a client wants us to buy something, but he says that you can only pay us within a month.

Accepting the request of the customer and give credit, may be a way to increase our sales and to create or maintain a business relationship with that customer.

However, accepting credit can give significant problems of liquidity, or the risk that the client does not pay on the agreed date or, even, we get to pay.

In the case of large companies, they have a credit and collections department that allows them to efficiently manage credit and collections thereof.

But in the case of small companies or businesses, the decision to give credit to a customer is not something we can leave it to intuition, but a decision we evaluate well.

Let’s look at some tips that should take before deciding to give credit to a customer:
it is first necessary to assess whether we are able to grant credit. If, for example, recently we have started our company and we are short of cash, may not be very convenient to sell even to credit. Read the rest of this entry »

Sure we really need a loan
The first tips is to make sure we’re really going to need extra money for our business, and that the only way to achieve this is through external funding.

We may need money to increase our working capital to acquire new machines, to open new premises in order to pay off other debts, etc..

We must bear in mind that a loan is a big responsibility, so before applying, make sure that we will be able to pay in due time.

Make sure that we will be able to pay debt
The second tips is to make sure we are able to pay the debt.

To do this we must develop our projected revenues and expenditures, and assess whether the profits earned once used the loan will enable us to pay the fees necessary to cancel the debt.

Read the rest of this entry »

Looking for savings? … Well give guidelines for choosing financial products to help you extend your ability to save.

Payroll accounts
* Choose those entities paid on deposit balances
* Contemplate the online recruitment
* Be free of fees and commissions
* Contemplate the credit and debit cards free of charge indefinitely and, in the case of credit cards that allow interest-free deferred payment as many months. Additionally, opt for entities exempt from fees that leave cash withdrawals at ATMs.

Read the rest of this entry »

Corporate credit can be used in many ways. A company could arrange for credit to cover everything from inventory, unexpected repairs to equipment, or to cover payroll in a slow week. The lack of funds for any one of these expenses in enough to put any company in serious jeopardy. In fact, of all the businesses that do fail in their first year, many fail due to a lack of funding for these types of expenses. So why do so many businesses ignore building credit until it is too late?

It is not that businesses ignore the problem, many business owners do not know how to start building business credit, that is, credit that is completely removed from their personal credit. A new business own may find it easier to use their personal credit to get started, but finds that personal credit lines rarely have enough available credit to sustain a business.

The smart business owner begins building corporate credit before opening the business. When it comes time to expand, the lines of credit are ready and waiting. This is how some business owners seem to be in the right place at the right time. Anyone could take advantage of certain business opportunities, the smart business people are just there with cash in hand, and that makes all the difference.