Archive for the ‘Finance’ Category
January 5th, 2010 | 
Author: 
Kris Koonar By:
Growing and emerging companies require immediate capital in order to facilitate their successful ventures. These start up companies often face a deficit of working capital needed for the smooth functioning of their daily operations as most of their capital is blocked in accounts receivables. In layman’s terms it means that the growing company performs the service or delivers the product to the client, and then bills them.
However as per business norms the payment is usually held up and cleared after about 30 to 60 days. This held up or to be cleared amount is the accounts receivable of the company rendering a service or selling a product. Since capital is blocked in accounts receivables, these companies have to look for alternative sources to secure continuous cash flow to meet their daily operational needs. Accounts receivable financing is fast emerging as one of the best funding options that emerging companies are choosing to solve their cash deficit problems.
Accounts receivable financing is the process of selling off the accounts receivable bills of the company to an accounts receivable finance company to secure immediate capital. The accounts receivable financing company provides funding to the service or product selling companies against their accounts receivables which act as collaterals. This process is relatively simple, requires no other collaterals and does not take much time for releasing funds.
The financing firm usually disburses the funds a range of up to 60% to 90% of the amount receivable for a fee that could range from 1% to 5% depending upon a certain criteria set by the financing companies for each company they are funding. These companies are the clients for the financing companies. So in case the company wants a funding for their accounts receivables from the accounts receivable financing company certain criteria have to be looked at while approaching them.
Accounts receivable financing companies look at the creditworthiness of the client’s debtors. Their debt records and performance records are taken into account. The age of the receivable is a consideration while determining the fundability of the client company, in case the receivable bill is as old as 90 days or more then no accounts receivable financing company will finance it. The client company also will not qualify to secure funds on their accounts receivables, if there is already loan secured on the same accounts receivable from a banking institution, unless the bank is willing to release its security interest on the receivable held by them.
The client company’s customer’s average repayment cycles, the factoring volume and the size of the invoices are also few more determinants an accounts receivable financing company will take into account while releasing the funds. Based on this, the financing company will give the client company 60% to 95% amount of the total face value of the receivable. The balance amount would be released after the invoice is cleared.
This type of financing can prove advantageous as the service rendering or product selling companies can free up their tied up capital and use it to maximize their growth and concentrate on business development activities rather than worry about collections and rising debts.
Growing and emerging companies require immediate capital in order to facilitate their successful ventures. These start up companies often face a deficit of working capital needed for the smooth functioning of their daily operations as most of their capital is blocked in accounts receivables. In layman’s terms it means that the growing company performs the service or delivers the product to the client, and then bills them.
However as per business norms the payment is usually held up and cleared after about 30 to 60 days. This held up or to be cleared amount is the accounts receivable of the company rendering a service or selling a product. Since capital is blocked in accounts receivables, these companies have to look for alternative sources to secure continuous cash flow to meet their daily operational needs. Accounts receivable financing is fast emerging as one of the best funding options that emerging companies are choosing to solve their cash deficit problems.
Accounts receivable financing is the process of selling off the accounts receivable bills of the company to an accounts receivable finance company to secure immediate capital. The accounts receivable financing company provides funding to the service or product selling companies against their accounts receivables which act as collaterals. This process is relatively simple, requires no other collaterals and does not take much time for releasing funds.
The financing firm usually disburses the funds a range of up to 60% to 90% of the amount receivable for a fee that could range from 1% to 5% depending upon a certain criteria set by the financing companies for each company they are funding. These companies are the clients for the financing companies. So in case the company wants a funding for their accounts receivables from the accounts receivable financing company certain criteria have to be looked at while approaching them.
Accounts receivable financing companies look at the creditworthiness of the client’s debtors. Their debt records and performance records are taken into account. The age of the receivable is a consideration while determining the fundability of the client company, in case the receivable bill is as old as 90 days or more then no accounts receivable financing company will finance it. The client company also will not qualify to secure funds on their accounts receivables, if there is already loan secured on the same accounts receivable from a banking institution, unless the bank is willing to release its security interest on the receivable held by them.
The client company’s customer’s average repayment cycles, the factoring volume and the size of the invoices are also few more determinants an accounts receivable financing company will take into account while releasing the funds. Based on this, the financing company will give the client company 60% to 95% amount of the total face value of the receivable. The balance amount would be released after the invoice is cleared.
This type of financing can prove advantageous as the service rendering or product selling companies can free up their tied up capital and use it to maximize their growth and concentrate on business development activities rather than worry about collections and rising debts.
Kris Koonar By:
Finance is the basic requirement of any business- be it a small business or large. There are banks, private financial firms that provide finance to a business. Accounts receivable financing is a kind of safety loan where the company that supplies the material to the clients remains satisfied as it has accounts receivable. Accounts receivable is such a case where a client owes the company whatever material he or she gets from the company, and accounts payable is a reverse case of it where a company owes the money. Accounts receivable financing is the other name of factoring and is considered to be the safest way of dealing with clients and vice versa. Accounts receivable comes in the form of cash or goods or in the form of some services.
Accounts receivable financing has the risk-avoiding factor where a company can receive its finances back in case the clients’ business slows down. Accounts receivable can be sold and company can collect the money through it – this happens in case the business of the borrower shows signs of collapsing. That is why it is called the safety loan. It is seen as a quick financing as in some companies having financial crisis, and, in order to get over this crisis, they might make some policies to sale their resources for attractive (outstanding) invoicing. In quick financing, companies instantly sell out the accounts receivable to manage the monetary issues. There are schemes many accounts receivable schemes in the finance market today.
The age of the accounts receivable is considered as essential factor; fresh invoicing will pay more while the older ones are less paid- so older the invoice less the value. It is usually based on the short-term period and the borrower has to return the amount in staggered time. Accounts receivables can be sold where it has more value. This way company can make profits through it. Accounts receivable come under the title of asset on the balance sheet of a public company as clients have a legal obligation to pay the debts; it is totally a risk free business.
Accounts receivable are not area-specific, i.e. not specific to businesses; even individuals can have them for examples checks given by the employer- company owes them for services provided in advance. For accounts receivable financing a company should have the best invoices. It is quite obvious that accounts receiving have its positive sides like it comes to the help of a company, which is on the verge of collapse for the lack of resources; these facilities can be provided in the form of invoices (and that is why outstanding quality is expected from the invoices) on a discounted price. This amount (cash) in turn helps your business. It is always advisable before getting into the accounts receivable financing; the company should check its status whether it really needs money for its business, and whether it really wants to expand its business.
Accounts receivable, while appearing very profitable outwardly, has to always take the company reviews and work on bargaining for discounts.
Finance is the basic requirement of any business- be it a small business or large. There are banks, private financial firms that provide finance to a business. Accounts receivable financing is a kind of safety loan where the company that supplies the material to the clients remains satisfied as it has accounts receivable. Accounts receivable is such a case where a client owes the company whatever material he or she gets from the company, and accounts payable is a reverse case of it where a company owes the money. Accounts receivable financing is the other name of factoring and is considered to be the safest way of dealing with clients and vice versa. Accounts receivable comes in the form of cash or goods or in the form of some services.
Accounts receivable financing has the risk-avoiding factor where a company can receive its finances back in case the clients’ business slows down. Accounts receivable can be sold and company can collect the money through it – this happens in case the business of the borrower shows signs of collapsing. That is why it is called the safety loan. It is seen as a quick financing as in some companies having financial crisis, and, in order to get over this crisis, they might make some policies to sale their resources for attractive (outstanding) invoicing. In quick financing, companies instantly sell out the accounts receivable to manage the monetary issues. There are schemes many accounts receivable schemes in the finance market today.
The age of the accounts receivable is considered as essential factor; fresh invoicing will pay more while the older ones are less paid- so older the invoice less the value. It is usually based on the short-term period and the borrower has to return the amount in staggered time. Accounts receivables can be sold where it has more value. This way company can make profits through it. Accounts receivable come under the title of asset on the balance sheet of a public company as clients have a legal obligation to pay the debts; it is totally a risk free business.
Accounts receivable are not area-specific, i.e. not specific to businesses; even individuals can have them for examples checks given by the employer- company owes them for services provided in advance. For accounts receivable financing a company should have the best invoices. It is quite obvious that accounts receiving have its positive sides like it comes to the help of a company, which is on the verge of collapse for the lack of resources; these facilities can be provided in the form of invoices (and that is why outstanding quality is expected from the invoices) on a discounted price. This amount (cash) in turn helps your business. It is always advisable before getting into the accounts receivable financing; the company should check its status whether it really needs money for its business, and whether it really wants to expand its business.
Accounts receivable, while appearing very profitable outwardly, has to always take the company reviews and work on bargaining for discounts.
Tax and Cash Flow Benefits of Leasing Medical Equipment
Kent Harlan By:
As medical technology is ever changing and new equipment enhancements are developed, renting equipment is a logical choice for a variety of reasons. Medical equipment leasing can keep their balance sheet intact, as monthly equipment lease payments can be classified as operating expenses. This would also allow the provider to benefit from tax deductibility.
According to industry research, over $3 billion of medical equipment was leased last year in the United States. In its simplest form, the lessor purchases the equipment and then rents it to the lessee. At the end of the lease term, the lessee has the following choices:
Buy the equipment
Re-lease the equipment
Rent new equipment
Return the equipment
The worth of medical equipment does not come from owning it, but rather from the results of its use. With renting, there are no large down payments so the lessee’s capital reserve remains intact. Equipment is also more easily attainable than from bank financing, which requires extensive documentation and even personal guarantees. Most any piece of medical equipment can be leased, including CT scans, surgery tools, lab testing machines, x-ray machines, heart rate monitors, and sonograms.
Other benefits from leasing medical equipment:
Flexibility: As the provider’s practice grows and equipment technology increases, leasing allows for the owner to easily add-on or upgrade their package. It is important to build in upgrade features at the inception of the lease. Also, installation and maintenance, and other services can be added to the lease.
Speed: As opposed to bank financing, leasing can provide the needed equipment in a matter of days. Typically, a one-page lease agreement is executed and approval can occur in a matter of hours. It often takes bank loan committees several weeks to approve an equipment loan.
Tax Advantages: An operating lease (also known as a true lease) generally allows the lessee to write off 100% of lease payments made during the year. The equipment write-off is tied to the lease term, which can be shorter than IRS depreciation schedules, resulting in larger tax deductions each year. The deduction is also the same every year, which simplifies budgeting.
Keeping equipment at a state of the art level: As mentioned previously, structuring an add-on or upgrade provision in the lease is critical due to the ever-changing technological advances in healthcare. Adding these clauses in the lease agreement lessens the peril of being stuck with outdated equipment. Maintains capital reserves: Leasing allows you to buy the equipment and tools you need today while spreading out all the payments over time. This provides you with a cash reserve for day to day expenses. Since a true lease is not a long term obligation, it will not show up on your balance sheet, so the company will be more attractive to a conventional lender when or if one is needed in the future.
A physician starting a practice or even acquiring one can benefit from entering into an equipment lease. Purchasing a medical equipment package can cost several hundred thousand dollars and put the provider behind the eight ball from the very beginning. Not only can medical equipment leasing alleviate that dilemma; it also provides budgetary, tax, cash flow, and upgrade benefits that can allow the provider to flourish for years to come.
As medical technology is ever changing and new equipment enhancements are developed, renting equipment is a logical choice for a variety of reasons. Medical equipment leasing can keep their balance sheet intact, as monthly equipment lease payments can be classified as operating expenses. This would also allow the provider to benefit from tax deductibility.
According to industry research, over $3 billion of medical equipment was leased last year in the United States. In its simplest form, the lessor purchases the equipment and then rents it to the lessee. At the end of the lease term, the lessee has the following choices:
Buy the equipment
Re-lease the equipment
Rent new equipment
Return the equipment
The worth of medical equipment does not come from owning it, but rather from the results of its use. With renting, there are no large down payments so the lessee’s capital reserve remains intact. Equipment is also more easily attainable than from bank financing, which requires extensive documentation and even personal guarantees. Most any piece of medical equipment can be leased, including CT scans, surgery tools, lab testing machines, x-ray machines, heart rate monitors, and sonograms.
Other benefits from leasing medical equipment:
Flexibility: As the provider’s practice grows and equipment technology increases, leasing allows for the owner to easily add-on or upgrade their package. It is important to build in upgrade features at the inception of the lease. Also, installation and maintenance, and other services can be added to the lease.
Speed: As opposed to bank financing, leasing can provide the needed equipment in a matter of days. Typically, a one-page lease agreement is executed and approval can occur in a matter of hours. It often takes bank loan committees several weeks to approve an equipment loan.
Tax Advantages: An operating lease (also known as a true lease) generally allows the lessee to write off 100% of lease payments made during the year. The equipment write-off is tied to the lease term, which can be shorter than IRS depreciation schedules, resulting in larger tax deductions each year. The deduction is also the same every year, which simplifies budgeting.
Keeping equipment at a state of the art level: As mentioned previously, structuring an add-on or upgrade provision in the lease is critical due to the ever-changing technological advances in healthcare. Adding these clauses in the lease agreement lessens the peril of being stuck with outdated equipment. Maintains capital reserves: Leasing allows you to buy the equipment and tools you need today while spreading out all the payments over time. This provides you with a cash reserve for day to day expenses. Since a true lease is not a long term obligation, it will not show up on your balance sheet, so the company will be more attractive to a conventional lender when or if one is needed in the future.
A physician starting a practice or even acquiring one can benefit from entering into an equipment lease. Purchasing a medical equipment package can cost several hundred thousand dollars and put the provider behind the eight ball from the very beginning. Not only can medical equipment leasing alleviate that dilemma; it also provides budgetary, tax, cash flow, and upgrade benefits that can allow the provider to flourish for years to come.
Gregg Elberg By:
There is a reason why accounts receivable financing is a four thousand year old financing technique: it works. Accounts receivable financing, factoring, and asset based financing all mean the same thing as related to asset based lending- invoices are sold or pledged to a third party, usually a commercial finance company (sometimes a bank) to accelerate cash flow.
In simple terms, the process follows these steps. A business sells and delivers a product or service to another business. The customer receives an invoice. The business requests funding from the financing entity and a percentage of the invoice (usually 80% to 90%) is transferred to the business by the financing entity. The customer pays the invoice directly to the financing entity. The agreed upon fees are deducted and the remainder is rebated to the business by the financing entity.
How does the customer know to pay the financing entity instead of the business they are receiving goods or services from? The legal term is called “notification”. The financing entity informs the customer in writing of the financing agreement and the customer must agree in writing to this arrangement. In general, if the customer refuses to agree in writing to pay the lender instead of the business providing the goods or services, the financing entity will decline to advance funds.
Why? The main security for the financing entity to be repaid is the creditworthiness of the customer paying the invoice. Before funds are advanced to the business there is a second step called “verification”. The finance entity verifies with the customer that the goods have been received or the services were performed satisfactorily. There being no dispute, it is reasonable for the financing entity to assume that the invoice will be paid; therefore funds are advanced. This is a general view of how the accounts receivable financing process works.
Non-notification accounts receivable financing is a type of confidential factoring where the customers are not notified of the business’ financing arrangement with the financing entity. One typical situation involves a business that sells inexpensive items to thousands of customers; the cost of notification and verification is excessive compared to the risk of nonpayment by an individual customer. It simply may not make economic sense for the financing entity to have several employees contacting hundreds of customers for one financing customer’s transactions on a daily basis.
Non-notification factoring may require additional collateral requirements such as real estate; superior credit of the borrowing business may also be required with personal guarantees from the owners. It is more difficult to obtain non-notification factoring than the normal accounts receivable financing with notification and verification provisions.
Some businesses worry that if their customers learn that a commercial financing entity is factoring their receivables it may hurt their relationship with their customer; perhaps they may loose the customer’s business. What is this worry, why does it exist and is it justified?
The MSN Encarta Dictionary defines the word worry as:
“Worry
verb (past and past participle wor•ried, present participle wor•ry•ing, 3rd person present singular wor•ries)Definition: 1. transitive and intransitive verb be or make anxious: to feel anxious about something unpleasant that may have happened or may happen, or make somebody do this
2. transitive verb annoy somebody: to annoy somebody by making insistent demands or complaints
3. transitive verb try to bite animal: to try to wound or kill an animal by biting it
a dog suspected of worrying sheep
4. transitive verb
Same as worry at
5. intransitive verb proceed despite problems: to proceed persistently despite problems or obstacles
6. transitive verb touch something repeatedly: to touch, move, or interfere with something repeatedly
Stop worrying that button or it’ll come off.
noun (plural wor•ries)Definition: 1. anxiousness: a troubled unsettled feeling
2. cause of anxiety: something that causes anxiety or concern
3. period of anxiety: a period spent feeling anxious or concerned…”
The opposite is:
”not to worry used to tell somebody that something is not important and need not be a cause of concern (informal)
Not to worry. We’ll do better next time.
no worries U.K. Australia New Zealand used to say that something is no trouble or is not worth mentioning (informal)”.
Query: if a business is financing their invoices with accounts receivable financing, is this an indication of financial strength or weakness? Query: from the point of view of the customer, if you are buying goods or services from a business that is factoring their receivables, should you be concerned? Query: is there one answer to these questions that fits all situations?
The answer is it’s a paradox. A paradox is a statement, proposition, or situation that seems to be absurd or contradictory, but in fact is or may be true.
Accounts receivable financing is both a sign of weakness with regard to cash flow and a sign of strength with respect to cash flow. It is a weakness because, prior to financing, funds are not available to provide cash flow to pay for materials, salaries, etc. and it is an indication of strength because, subsequent to funding cash is available to facilitate a business’ needs for cash to grow. It is a paradox. When properly structured as a financing tool for growth at a reasonable cost, it is a beneficial solution to cash flow shortages.
If your entire business depended on one supplier, and you were notified that your supplier was factoring their receivables, you might have a justifiable concern. If your only supplier went out of business, your business could be severely compromised. But this is also true whether or not the supplier is utilizing accounts receivable financing. It’s a paradox. This involves matters of perception, ego and character of the personalities in charge of the business and the supplier.
Every day, every month thousands of customers accept millions of dollars of goods and services in contracts that involve notification, verification and the factoring of receivables. For most customers, “notification” of accounts receivable financing is a non-issue: it is merely a change of the name or addresses of the payee on a check. This is a job for a person in the accounts payable department to make a minor clerical change. It is a mainstream business practice.
Bobby McFerrin wrote and performed a song called “Don’t Worry, Be Happy” for the movie “Cocktails” starring Tom Cruise. The song was a number one U.S. pop hit in 1988 and won the Grammy for Best Song of the Year. Here are the lyrics:
”Here is a little song I wrote
You might want to sing it note for note
Don’t worry be happy
In every life we have some trouble
When you worry you make it double
Don’t worry, be happy……
Ain’t got no place to lay your head
Somebody came and took your bed
Don’t worry, be happy
The land lord say your rent is late
He may have to litigate
Don’t worry, be happy
Look at me I am happy
Don’t worry, be happy
Here I give you my phone number
When you worry call me
I make you happy
Don’t worry, be happy
Ain’t got no cash, ain’t got no style
Ain’t got not girl to make you smile
But don’t worry be happy
Cause when you worry
Your face will frown
And that will bring everybody down
So don’t worry, be happy (now)…..
There is this little song I wrote
I hope you learn it note for note
Like good little children
Don’t worry, be happy
Listen to what I say
In your life expect some trouble
But when you worry
You make it double
Don’t worry, be happy……
Don’t worry don’t do it, be happy
Put a smile on your face
Don’t bring everybody down like this
Don’t worry, it will soon past
Whatever it is
Don’t worry, be happy”
The bottom line: “notification” should not be an issue in most situations involving accounts receivable financing; non-notification factoring is another option that is available for businesses concerned with confidentiality that meet minimum credit standards for asset based lending. Bobby McFerrin was right: “Don’t Worry, Be Happy”.
Copyright © 2007 Gregg Financial Services
www.greggfinancialservices.com
There is a reason why accounts receivable financing is a four thousand year old financing technique: it works. Accounts receivable financing, factoring, and asset based financing all mean the same thing as related to asset based lending- invoices are sold or pledged to a third party, usually a commercial finance company (sometimes a bank) to accelerate cash flow.
In simple terms, the process follows these steps. A business sells and delivers a product or service to another business. The customer receives an invoice. The business requests funding from the financing entity and a percentage of the invoice (usually 80% to 90%) is transferred to the business by the financing entity. The customer pays the invoice directly to the financing entity. The agreed upon fees are deducted and the remainder is rebated to the business by the financing entity.
How does the customer know to pay the financing entity instead of the business they are receiving goods or services from? The legal term is called “notification”. The financing entity informs the customer in writing of the financing agreement and the customer must agree in writing to this arrangement. In general, if the customer refuses to agree in writing to pay the lender instead of the business providing the goods or services, the financing entity will decline to advance funds.
Why? The main security for the financing entity to be repaid is the creditworthiness of the customer paying the invoice. Before funds are advanced to the business there is a second step called “verification”. The finance entity verifies with the customer that the goods have been received or the services were performed satisfactorily. There being no dispute, it is reasonable for the financing entity to assume that the invoice will be paid; therefore funds are advanced. This is a general view of how the accounts receivable financing process works.
Non-notification accounts receivable financing is a type of confidential factoring where the customers are not notified of the business’ financing arrangement with the financing entity. One typical situation involves a business that sells inexpensive items to thousands of customers; the cost of notification and verification is excessive compared to the risk of nonpayment by an individual customer. It simply may not make economic sense for the financing entity to have several employees contacting hundreds of customers for one financing customer’s transactions on a daily basis.
Non-notification factoring may require additional collateral requirements such as real estate; superior credit of the borrowing business may also be required with personal guarantees from the owners. It is more difficult to obtain non-notification factoring than the normal accounts receivable financing with notification and verification provisions.
Some businesses worry that if their customers learn that a commercial financing entity is factoring their receivables it may hurt their relationship with their customer; perhaps they may loose the customer’s business. What is this worry, why does it exist and is it justified?
The MSN Encarta Dictionary defines the word worry as:
“Worry
verb (past and past participle wor•ried, present participle wor•ry•ing, 3rd person present singular wor•ries)Definition: 1. transitive and intransitive verb be or make anxious: to feel anxious about something unpleasant that may have happened or may happen, or make somebody do this
2. transitive verb annoy somebody: to annoy somebody by making insistent demands or complaints
3. transitive verb try to bite animal: to try to wound or kill an animal by biting it
a dog suspected of worrying sheep
4. transitive verb
Same as worry at
5. intransitive verb proceed despite problems: to proceed persistently despite problems or obstacles
6. transitive verb touch something repeatedly: to touch, move, or interfere with something repeatedly
Stop worrying that button or it’ll come off.
noun (plural wor•ries)Definition: 1. anxiousness: a troubled unsettled feeling
2. cause of anxiety: something that causes anxiety or concern
3. period of anxiety: a period spent feeling anxious or concerned…”
The opposite is:
”not to worry used to tell somebody that something is not important and need not be a cause of concern (informal)
Not to worry. We’ll do better next time.
no worries U.K. Australia New Zealand used to say that something is no trouble or is not worth mentioning (informal)”.
Query: if a business is financing their invoices with accounts receivable financing, is this an indication of financial strength or weakness? Query: from the point of view of the customer, if you are buying goods or services from a business that is factoring their receivables, should you be concerned? Query: is there one answer to these questions that fits all situations?
The answer is it’s a paradox. A paradox is a statement, proposition, or situation that seems to be absurd or contradictory, but in fact is or may be true.
Accounts receivable financing is both a sign of weakness with regard to cash flow and a sign of strength with respect to cash flow. It is a weakness because, prior to financing, funds are not available to provide cash flow to pay for materials, salaries, etc. and it is an indication of strength because, subsequent to funding cash is available to facilitate a business’ needs for cash to grow. It is a paradox. When properly structured as a financing tool for growth at a reasonable cost, it is a beneficial solution to cash flow shortages.
If your entire business depended on one supplier, and you were notified that your supplier was factoring their receivables, you might have a justifiable concern. If your only supplier went out of business, your business could be severely compromised. But this is also true whether or not the supplier is utilizing accounts receivable financing. It’s a paradox. This involves matters of perception, ego and character of the personalities in charge of the business and the supplier.
Every day, every month thousands of customers accept millions of dollars of goods and services in contracts that involve notification, verification and the factoring of receivables. For most customers, “notification” of accounts receivable financing is a non-issue: it is merely a change of the name or addresses of the payee on a check. This is a job for a person in the accounts payable department to make a minor clerical change. It is a mainstream business practice.
Bobby McFerrin wrote and performed a song called “Don’t Worry, Be Happy” for the movie “Cocktails” starring Tom Cruise. The song was a number one U.S. pop hit in 1988 and won the Grammy for Best Song of the Year. Here are the lyrics:
”Here is a little song I wrote
You might want to sing it note for note
Don’t worry be happy
In every life we have some trouble
When you worry you make it double
Don’t worry, be happy……
Ain’t got no place to lay your head
Somebody came and took your bed
Don’t worry, be happy
The land lord say your rent is late
He may have to litigate
Don’t worry, be happy
Look at me I am happy
Don’t worry, be happy
Here I give you my phone number
When you worry call me
I make you happy
Don’t worry, be happy
Ain’t got no cash, ain’t got no style
Ain’t got not girl to make you smile
But don’t worry be happy
Cause when you worry
Your face will frown
And that will bring everybody down
So don’t worry, be happy (now)…..
There is this little song I wrote
I hope you learn it note for note
Like good little children
Don’t worry, be happy
Listen to what I say
In your life expect some trouble
But when you worry
You make it double
Don’t worry, be happy……
Don’t worry don’t do it, be happy
Put a smile on your face
Don’t bring everybody down like this
Don’t worry, it will soon past
Whatever it is
Don’t worry, be happy”
The bottom line: “notification” should not be an issue in most situations involving accounts receivable financing; non-notification factoring is another option that is available for businesses concerned with confidentiality that meet minimum credit standards for asset based lending. Bobby McFerrin was right: “Don’t Worry, Be Happy”.
Copyright © 2007 Gregg Financial Services
www.greggfinancialservices.com
Posted in Finance | 
Tags: Asset Based Financing, Commercial Finance Company, Invoices | 
No Comments »
Kris Koonar By:
The medical industry faces the challenge of keeping their practices or medical institutions functioning smoothly for the need of timely working capital. The health care industry is bogged down by the growing accounts receivables from their patients’ providers of medical insurance carriers. The medical fraternity also faces the difficulty in keeping tracks of invoices and the billing process; this diverts them from their mainstream work of providing medical care to their patients. Accounts receivable financing is fast emerging solution to this specialized sector.
Many accounts receivable financing companies offer services to the medical world, which act as a respite for securing cash to run their daily operations smoothly. These financing companies have customized processes specific to this segment. In simpler terms, medical factoring or medical accounts receivable financing means selling off the accounts receivables accrued by the medical institution to the financing firm. The claim owed to the patients’ medical insurance provider by the patients’ medical insurance carrier is the accounts receivable in this case.
Medical practice provides its service to the patient and the medical insurance company is billed on behalf of the patient, this is the receivable accrued by the medical industry. The medical industry then approaches the accounts receivable financing industry and sells these accounts receivables which in turn releases about 80% to 95% of the net collectible amount for a small fee ranging from as low as 1% to 5%. The funding company assumes the responsibility of collecting the receivable amount from the medical insurance companies and pays up the balance amount once the entire amount is collected from the insurance company.
The medical industry in this way can gain a lot of advantages by selling off their receivables. Most funding companies release funds in about one to two days. The funding companies also provide regular reports to update and enhance the billing process. The ready cash flow also increases the ability of the medical industry to get discounts from their suppliers for regular and timely payments. The capital can be rightly used to enhance services and stimulate growth by attracting and retaining good support staff. The balance sheet will also have a positive effect, as accounts receivable financing is different from a loan. It just advances the cash that will otherwise come in after 30 to 60 days. It is just a conversion of a non-liquid asset, the account receivable into a liquid asset, cash. Thus the debt capacity of the medical institution also remains strong.
Thus, with the help of medical receivable financing the medical practice can reap the benefits of fast and continuous cash flow streaming in to stimulate the growth and expansion of medical facilities. Other benefits also include enhanced business efficiency, by electronic updates on billing, tracking and collections. A wide range of medical industry professionals can get the advantages of this type of hassle free financing. This includes hospitals, nursing homes, surgeons, physicians, osteopaths, oral surgeons, and treatment centers, like rehab, dialysis and surgery centers. Imaging and medical laboratories and even ambulance providers can benefit from this effective funding solution.
The medical industry faces the challenge of keeping their practices or medical institutions functioning smoothly for the need of timely working capital. The health care industry is bogged down by the growing accounts receivables from their patients’ providers of medical insurance carriers. The medical fraternity also faces the difficulty in keeping tracks of invoices and the billing process; this diverts them from their mainstream work of providing medical care to their patients. Accounts receivable financing is fast emerging solution to this specialized sector.
Many accounts receivable financing companies offer services to the medical world, which act as a respite for securing cash to run their daily operations smoothly. These financing companies have customized processes specific to this segment. In simpler terms, medical factoring or medical accounts receivable financing means selling off the accounts receivables accrued by the medical institution to the financing firm. The claim owed to the patients’ medical insurance provider by the patients’ medical insurance carrier is the accounts receivable in this case.
Medical practice provides its service to the patient and the medical insurance company is billed on behalf of the patient, this is the receivable accrued by the medical industry. The medical industry then approaches the accounts receivable financing industry and sells these accounts receivables which in turn releases about 80% to 95% of the net collectible amount for a small fee ranging from as low as 1% to 5%. The funding company assumes the responsibility of collecting the receivable amount from the medical insurance companies and pays up the balance amount once the entire amount is collected from the insurance company.
The medical industry in this way can gain a lot of advantages by selling off their receivables. Most funding companies release funds in about one to two days. The funding companies also provide regular reports to update and enhance the billing process. The ready cash flow also increases the ability of the medical industry to get discounts from their suppliers for regular and timely payments. The capital can be rightly used to enhance services and stimulate growth by attracting and retaining good support staff. The balance sheet will also have a positive effect, as accounts receivable financing is different from a loan. It just advances the cash that will otherwise come in after 30 to 60 days. It is just a conversion of a non-liquid asset, the account receivable into a liquid asset, cash. Thus the debt capacity of the medical institution also remains strong.
Thus, with the help of medical receivable financing the medical practice can reap the benefits of fast and continuous cash flow streaming in to stimulate the growth and expansion of medical facilities. Other benefits also include enhanced business efficiency, by electronic updates on billing, tracking and collections. A wide range of medical industry professionals can get the advantages of this type of hassle free financing. This includes hospitals, nursing homes, surgeons, physicians, osteopaths, oral surgeons, and treatment centers, like rehab, dialysis and surgery centers. Imaging and medical laboratories and even ambulance providers can benefit from this effective funding solution.
