7 Methods to finance your company

Métodos financiar empresa Every entrepreneur or financial manager of a company has the responsibility to make the financial decisions that best suit the situation of the same or the project that is intended to develop.

There are many reasons why a company has financing needs. For each one of them, it will be necessary to evaluate the different funding sources to which one can choose. In this article, we tell you about payday loan consolidation https://consolidationnow.com/.

 

The choice of method to finance your company

The choice of method to finance your company

It is very important to have your financing needs clearly defined since applying for financing generates a cost, which will depend on the selected method and other factors that we detail below. Therefore, it is advisable to specify these needs as much as possible based on the analysis prior to the decision of the method.

Once the situations or projects to which to allocate the funding have been directed, it is assessed which method to choose, fundamentally, based on three factors:

  • Amount: The purpose for which the financing is destined will determine the estimate of the amount I need to cover it.
  • Term: It refers to the period of time in which I need to cover my needs and, on the other hand, we must also take into account the period over which I have the ability to return the money they lend me.
  • Interest rate: Refers to the price of money. It is calculated according to the term, quantity, and risk.

These three factors are closely linked to the choice of method. There are many methods subject to different terms and interest rates that will vary, also depending on the amount.

Now let’s see some of the most used methods …

 

Methods to finance your company

Methods to finance your company

Whatever the size of your company, you can obtain financing through different channels. The three factors above are going to play a decisive role in the choice of method, so you have to take them into account.

Some of these different methods that can be chosen to obtain financing are:

Commercial advances

The advance of commercial loans is that operation that allows your company to finance short-term anticipating the right to collect commercial credits or invoices for operations of the company’s commercial activity.

The amount is anticipated until expiration although the date can be adjusted, most entities accept certain flexibility depending on the needs of the company.

Discount lines or promissory notes

The discount lines allow you the amount of a credit or title can be disposed of before expiration. To this amount, you will be deducted a certain amount that will go depending on the period you have left for your term (less time-less discount, and vice versa, the longer period-greater discount rate).

It is one of the largest sources of financing of working capital of companies in the short term to provide liquidity to companies through this discount of commercial effects.

Confirming

The confirming or management of payments to suppliers is an operation offered by financial entities in which a contract is agreed on the extended payment terms on the date on which the invoice is issued.

It is a payment tool that allows the supplier to have the collection of invoices before the expiration date that had been previously stipulated with the company, with the discount of interest that will be based on the time in advance.

Factoring

Factoring is a financial operation that is responsible for managing the collection of your client portfolio in whole or in part. The idea is focused on providing your company with the money from these invoices without having to wait for the original expiration.

The interest charged for this operation will be based on the advance term and also, if the invoice is returned by your client, the main and total amount of the invoice will be charged with the corresponding return expenses.

It allows the company to have immediate liquidity that does not generate debt because it is a real exchange of collection rights.

Renting

The renting can be considered a source of business financing if it is taken from the perspective that the renting, is intended to finance 100% of an investment not being circulating as such.

It is a lease on any type of movable or immovable property that includes maintenance, tax, insurance, and revisions. Generally, it is done on computer equipment, office machinery … It is a very comfortable method since it makes an uncertain cost of an investment, a fixed and constant cost.

Accounting does not affect the financial structure or balance so many companies benefit from it to pay less in the Corporation Tax. Be careful with the clauses that are set in the contract because if they are exceeded, the commissions can be very high.

Credits

Credits are financial transactions through which a company applies to an entity, an amount of money subject to a fixed limit. The customer is not given the amount 100% at the beginning of the credit but will be using it according to their needs without having the obligation to use it in full. The interest charged is calculated on the balance actually arranged together with a commission on the unpaid balance.

As you go back, you can get more. In addition, at the end of the credit can be renewed or extended.

Loans

In the lender (person or entity that delivers the money requested) delivers a fixed amount to the borrower (person or company that receives the amount) at the beginning of the operation with the condition that it is returned within a period and together with the agreed interest s about the total amount.

The return of the entire amount delivered (or amortization of the loan) will be made through regular installments throughout the period of time before its expiration.

Unlike credit, the loan has a fixed life.

Alternative routes

Due to the financing needs of companies and especially by small and medium enterprises, new modalities arise, such as the one we, MytripleA, provide to the entrepreneur.

Through MytripleA SMEs, self-employed and entrepreneurs get alternative financing to banking through crowdlending. Crowdlending is a financial activity in which a company obtains financing through loans that are financed entirely by private investors. It’s simple if you want to know more about the crowdlending click here.

 

The importance of training in financing methods for companies

The importance of training in financing methods for companies

Finutive has created a free online course for SMEs on financial administration in which we collaborate. If you sign up you will receive free lessons in your email, so you can enjoy this content forever. Sign up for free here.

Finutive is a tool for SMEs to manage their finances and treasury in a simple way. It allows you to connect your banks and your invoice information to receive an automatic and automated analysis of your bank positions and your positions with clients and suppliers. This allows Finutive to advise you on the current situation of your business, forecast your future cash situation projecting your cash flow and finally advise you on financial products for your business.

Save money by changing your insurance policy

Berlin – Many consumers are insured far too expensive. They spend more than 1,000 euros too much for their insurance coverage. But there are insurances that are just too important for the right insurance portfolio to just give up. As an alternative, a change of insurance offers to providers who often offer comparable services at a much lower price.

 

Picture: Diagram in the business section 

The liability insurance, for example, is a must-have policy that can save a lot. A good liability insurance costs for a family with sufficient sum insured and bad debt coverage only about 60 euros per year. But comparable protection can certainly cost up to 150 euros per year. A change often not only saves money, but the insurance cover can also be adjusted if, for example, new risks such as a heating oil tank or a photovoltaic system have been added.

Even with the household insurance, money is given away. The rule is that favorable protection is good protection. A 100-square-meter apartment in a large city with a sum insured of 65,000 euros can already be insured for just under 73 euros annual subscription – or even more than 250 euros. When switching, however, it is important to pay attention to the fact that elemental damage is included. Especially in endangered areas such as floodplains, it could be difficult to get new protection on favorable terms. Next is to cancel the old insurance until the new contract is ready.

You can also save on term life insurance. The premium differences are immense. In a low-priced provider such as the Ergo Direkt insurance group pays a 30-year-old non-smoker for 150,000 euros insured per year about 87 euros insurance premium. On the other hand, this can amount to much more than 200 euros for the most expensive providers. Especially younger people without pre-existing conditions should quickly switch to one of the top providers with low premiums, because over the years, the premium benefits can add up quickly to some 1,000 euros.

You can also save by a building insurance comparison. In a new building or purchase, banks often cheat customers on expensive insurance because they benefit from it and get commissions. So you can sufficiently insure a ten-year-old house in a big city for just under 200 euros a year – or at the expensive provider for more than 600 euros. Here, too, the benefits of switching over the years add up to several thousand euros.

 

 

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How do you expose power guzzlers in the household?

 

Picture: Electricity - light bulb 

Not every consumer can call an intelligent electricity meter own and track power consumption in real time. Anyone who has a conventional electricity meter and still wants to keep track of the power consumption of household appliances, can fall back on various tools on the Internet. This way, power guzzlers can be traced and money saved.

Which devices consume the most power?

The biggest power guzzler is often not noticed: the heating pump. It pumps the hot water into the radiator and requires electricity for it. If the heating pump is out of date or installed incorrectly, it can unnecessarily consume more than 400 kWh of electricity. Therefore it is recommended to check the heating pump.

For heating pump check

Online current check of the dena

With the online household household check, consumers can check on the Internet how much power their own TV or computer wastes in stand-by mode. This informs the Initiative Energie-Effizienz of the German Energy Agency (dena) in Berlin, which runs the online check. There you can find out which device in the household in the standby state is to be regarded as power guzzler, what costs arise and how the costs can be prevented.

An average household can save around € 70 a year if power consumption is reduced. The website displays devices such as TVs, DVD players, receivers and game consoles. In a mask, visitors to the homepage can specify the type of device – for example, tube, plasma or LCD TVs – as well as the duration and frequency of use. According to dena then the personal power consumption is calculated. If the secret power guzzlers are exposed, the website gives tips on how to reduce power consumption.

Check power consumption

If you suspect a particular household appliance to consume a lot of electricity, you should think about purchasing a power meter. These are available in the hardware store from about 20 euros. With the help of such an ammeter, one can not only control the consumption of individual suspected power guzzlers. It can also be used to at least partially check the accuracy of the electricity meter.

For the fridge, measure for 24 hours

Who wants to check the power consumption of electrical appliances should consider special peculiarities of these devices. For example, a refrigerator is opened several times a day or repeatedly filled with uncooled food, which temporarily increases energy consumption. This must be included in the measurement with the help of special equipment. The Hausgeräte + initiative therefore recommends measuring for refrigerators for 24 hours. For other devices, however, a period of one hour is enough.

The operating costs of washing machine, tumble dryer and dishwasher differ depending on which program is selected and how full the equipment is loaded. Here, optimally, the power consumption of each variant should be measured individually to obtain an overall view of the electricity costs.

Who has older devices, should also record the consumption in stand-by mode, the experts recommend. Because before 2010, the power consumption was not legally limited.

Power meters are plugged like extension cords between the device under test and the power outlet. According to the Household Appliances initiative, most utilities lend their equipment to their customers.

Electricity price comparison Your postal code Number of persons or kWh / year kWh / year Compare now!

 

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News Winners and losers through changes in social security contributions and taxes 2017

News Winners and losers through changes in social security contributions and taxes 2017

Tuesday, 31.01.17 , written by Bernd Lauberg Some people are currently wondering about their account balance. Because compared to last year, they suddenly have more net left over from the gross. There are several reasons for this. On the one hand, the basic allowance has risen, for example. On the other hand, reducing the so-called cold progression results in tax cuts. But not every employee  

Plötzlich mehr Geld auf dem Konto dank Steueranpassungen 2017

Suddenly more money in the account thanks to tax regulations 2017

Many tax changes this year leave many people with a little more net than gross. However, since at the same time the contribution assessment limits were increased, for example for the statutory health insurance and pension insurance, tax relief for good earners is eaten up by higher social security contributions . In 2017 they will be even more heavily burdened and pay.

All in all, the increase in tax adjustments is low, so that the enjoyment of families and normal earners who benefit from it should be rather restrained. With a simple trick, however, they can get a little more net from their gross income . Because with a change of health insurance can save a few euros. Although employees share the basic contribution for the statutory health insurance with their employees. However, they have to pay the additional contribution on their own. This varies between 0.3 percent and 1.8 percent this year. If the health insurance offers no special benefits, there is little to speak against a change.

Tip: How high the contributions are the health insurance in the respective federal states, shows the reference calculator.

Basic allowance, child benefit and co.: Why is there more net left over from the gross?

At the beginning of the year, the basic tax-free allowance for all citizens increased from 8,652 euros to 8,820 euros. No taxes are paid on this income. In addition, the child benefit and child allowance increase for mothers and fathers. However, the adjustment of the child allowance results in the end only two euros more per month.

In addition, taxpayers are relieved by reducing the cold progression. This refers to the effect that employees after a salary increase sometimes less money than before, because they have to pay more by a higher tax rate to the tax office. Especially if the higher income only inflation is to be compensated, this is annoying. Since 2016, this has been counteracted by adjustments to the tax rate. The tax rate drops slightly.

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Families and normal earners have a few euros more in the account

The tax adjustments leave many people with more net of the gross. But as the contribution to statutory long-term care insurance has increased at the same time, the increase is decreasing a bit . How high it can turn out in the end, shows a sample calculation of ZDF. A single mother with two children, with a gross salary of 2,000 euros, has around four more euros available, at 3,000 euros it is just under € 6.50 per month. Similarly, the values ​​for a single income with the same income, while being relieved slightly higher.

The higher the income, the greater the relief from the 2017 tax changes . A family man with a child saves at a gross salary of 6,000 euros over 25 euros. However, he pays more for pension, health and unemployment insurance due to higher income thresholds. In addition, there is the higher care contribution. The bottom line is a minus of about 18 euros per month.

  • Here are tips and more information about the investment. >
  • Bernd Lauberg
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About Online Auto Title Loans – 5 Points You Must Be Aware Of

Michael owned arriving for a landing room above his garage, which he previously converted into a gym and ran as a side business. One day, the gym floor gave way. Fortunately, no one was hurt but Michael had to obtain the floor fixed soon or he would lose the income his gym made possible. The problem was that he didn’t have the cash for the repairs and his paycheck was still fourteen days away. That’s when his friend Rick told him about auto title financial products. Thanks to auto title loans, Michael was able to acquire the gym repaired soon and continue his business.

Risk of losing the automobile – If you cannot repay the loan, title lenders will take the car market it to get their money back. If you or your members of your family require the auto at all times, think twice before acquiring this method. Such loans are better fitted for people who have two perhaps more cars along with the possible likelihood of losing a vehicular will not affect their lives.

 

Pink Slip Loans could be used as bad-credit instrument that gives instant cash to tackle financial issues. You don’t need go to a pawn shop to become to pawn your motor. You can apply a great auto pawn loan online, get approved within minutes and keep driving your car. The lenders enables you multiple ways products and are payment, even with post-dated tests. If you make your payment on schedule, reported by the strict regulations of loan agreement, it gives a positive impression on credit score score and will even guide you to reestablish your acknowledgement.

The way these loans work is always that you literally sign over your car’s title to the lender. That is why tend to be called title loans. But, when you repay the loan, they will sign the title back over to you have to.

Credit history does not matter individuals getting an automobile title loan by City Loan Long Beach. Most borrowers have bad or no credit standing and as a result reason they are effectively disqualified from getting short term loans or charging legal action to their credit cards or lines of credit from monetary.

If muscular to pawn your car, you can come up from the several options that have been introduced of past. After making your request online, your loans will be accepted in a few steps. Your documentation only involves a few steps to include several documents to prove your residence address, your citizenship and your bank phrases. You need don’t have an a good credit reputation history an individual are applying for auto title loans, rendering it it a considerably easier way to get credit. As the borrowing procedures today are usually more tedious and time taking, could rest assured with auto title loans because have to need to fill up hundreds of forms.

If you fall approximately 30 days behind against your bills, the company involved will often report a person to the major credit credit reporting agencies. As a result, borrowing upgrade . difficult anyone in the future, because credit score will have a nosedive.

You needs to know that tend to be allowed to drive your car the entire time the loan is occupied. As soon just as the lender receives the amount of your auto title loan plus interest, then the deal is over and own full ownership of car. auto title loans would be a fast as well as simple way to obtain the cash that you must.