Cashflow Blog

By Marco Terry

The biggest challenges that many import companies have is finding a way to pay suppliers when a customer places a large order. As is common in import transactions, you must pay your suppliers using a letter of credit and then wait until the goods are delivered to your customer before your customer pays you. This creates a window of time, sometimes as long as 90 days, between the time that you pay your suppliers and the time that your customers pay you.

But what happens if you don’t have the funds to obtain a letter of credit? Or, if you can’t wait for a long time to get paid? Do you pass on the order? Well, you don’t have to. Not if you decide to use purchase order finance.

Purchase order financing is a tool that allows you to easily make large orders – even if you don’t have the money to pay suppliers and if your company is new. It provides you with up to 100% of the funds needed to pay your foreign suppliers, enabling you fulfill your large orders and grow your company. And it works for almost all companies because of a unique feature. Almost any company can qualify, provided you have a purchase order from a government agency or a strong commercial customer. Indeed, your collateral for the transaction is the reliability of your customer. This make po financing a very unique tool for importers that are buying goods from China, Taiwan, Brazil, Russia or almost any country in the world.

Purchase order financing easily integrates to your company and is easy to use. Here is a sample transaction:

1. Your commercial or government customer places a purchase order with you

2. Your company places an order with your local or foreign supplier

3. The purchase order finance company provides a letter of credit to pay your supplier

4. Your supplier delivers the goods to your customer 5. The transaction is settled once your customer pays for the goods

As you can see, this transaction is completed with little if any of your own funds and the financing company covers most costs. This is ideal for new companies or companies that have exhausted their capital.

Many times, a customer may take up to 60 days to pay for the goods. This is especially true if you are selling goods to large companies that demand payment terms. In that case, you may need to also use factoring financing. Combining invoice factoring, which costs less than po financing, with po funding enables you to lower the total transaction cost.

Your transaction cost will vary based on a number of variables such as size and credit worthiness of the buyer. Generally speaking, larger orders from credit worthy customer (or government agencies) will have the lowest costs.

Both factoring and purchase order financing are offered by factoring companies, although not every factoring company offers both.

About Commercial Capital LLC

Need [http://www.ccapital.net/html/purchase_order_financing.html]purchase order funding? We can provide you with [http://www.ccapital.net/html/purchase_order_financing.html]po financing and [http://www.ccapital.net/html/purchase_order_financing.html]po funding at affordable rates. Call (866) 730 1922 for more information.

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How Import Companies Can Benefit from Purchase Order Financing

I know its been a ling time coming but my switch to WordPress is almost complete. I will pretty up the look of the blog soon. Come see me at In Cash Flow We Trust.

In Cash Flow We Trust

This is a video clip on Rich Dad Poor Dad - How to Make Money? by Robert Kiyosaki which I think is good and useful for both entrepreneurs and wannabe entrepreneurs.

Robert Kiyosaki: Rich Dad Poor Dad talk on “How to Make Money?”
Broke is Temporary and Poor is Eternal.  Don’t work for money but let money work for you.

Which one are you?

Continued here:
Robert Kiyosaki: How to Make Money?

1. Don’t Buy What You Can’t Afford

We all want that designer sweater, leather handbag, or cute sports car, but most of us just can’t afford to make the purchases. There’s a simple solution to this dilemma. If you can’t afford it, don’t buy it. This is often the easiest point to understand, but it is one of the hardest to implement when all those goodies are staring you in the face and all your credit companies are telling you it’s OK.

2. If You Can’t Pay Cash, You Probably Can’t Afford It

In our credit crazy world, amassing debt no longer carries a social stigma. Everybody has a car payment, a house payment and credit card payments. Well, remember what your mother said about everybody jumping off of a bridge? Just because “everybody” is doing it, doesn’t make it a good idea.

Buying something you can’t afford now, especially when the economy is unsettled, can double the pain of paying later. For example, if you purchase a $450,000 home today and the market goes into a slump and devalues your home by $200,000, you will be paying the bank twice what the home has come to be worth. Just because it was easy to get the credit to buy that home, doesn’t mean it was the right time for you to buy in.

3. Paying Interest on Anything Makes Somebody Else Rich

When you pay interest on a purchase, you are overpaying for that item for the luxury of getting to use it now. The simple act of paying interest means that the price you are paying to make the purchase is greater than the sale price of the item. You are giving away even more of your hard-earned money in order to own that item than the manufacturer thought the item was worth.

For example, if you buy a car for $25,000 with a loan at 7% interest for five years, in the end, you will pay almost $30,000 for the car. Once you factor in depreciation, you’re left with a very cheap car that cost you thousands more than it should have.

4. If You Are in Debt, stop Spending Money

Sometimes, such as when purchasing a home, the cost of the item is so great that you simply cannot afford to pay cash. This should be the exception rather than the rule. When it cannot be avoided, you need to close your purse and stop spending.

Getting yourself further it debt doesn’t help your financial situation. Making a realistic budget in this case is the key to success. Once you know how much you’re actually spending on those daily trips to the grocery store and coffee shop, you’ll be able to find room to cut costs realistically.

5. Don’t Count on Somebody Else to Save You

In times of economic uncertainty, people often think the government will be able to help them, but unfortunately this is often the time when the government has the least amount of money and freedom to help its own citizens. In most cases, the government won’t save you, so you’ll have to save yourself.

When the economy is in a downturn, you can’t just look at what you are spending, you also need to look at where the money is coming from. Your employer is facing the same difficulties you are: trying to make bill payments, balancing the flow of capital, all while sales are slowing. Just like you, your employer will be looking to reduce its costs, which could be in the form of layoffs.

You could be in big trouble if you haven’t planned for this possibility. The plan here is to start saving now for that eventual rainy day, and prepare an emergency fund for yourself. If it is too late to start saving and you already need the money, many financial institutions will let you defer a payment or two if you prove you have a smart financial plan to eventually pull through.

Read the rest here:
5 Tips for Surviving Tough Times

  By BRETT ARENDS

You’ve eaten the hot dogs. You’ve watched the fireworks.

Now it’s time to declare another kind of independence — your own. If you’re like most Americans, you haven’t been free in a long, long time.

Instead you’re in chains. You’re manacled to dozens of monthly bills you can’t seem to escape.

Mortgage payments. Car payments. Credit-card payments. Cellphone, landline, cable TV. TiVo. You name it. Thousands of dollars.

Call them tribute. Or tithes.

Who’s really free here?

Our Founding Fathers probably would have thrown their cable boxes into Boston Harbor. But then, they ranked liberty ahead of the pursuit of happiness.

Take a look at the chart. Maybe it should become our new national symbol.

It shows how much more we owe than our parents did.

In 1976, around the time of the bicentennial, the average family of four owed about $56,000. That’s in today’s dollars, after accounting for inflation, and includes mortgage, credit cards, car loans and the like.

The figure now? Oh, about $185,000.

Gosh, it’s just amazing we have a credit crisis, isn’t it?

Of course it must be somebody else’s fault. Insert conspiracy theory here: [   ]

But instead of blaming other people for our problems, or looking to political candidates to solve them for us, maybe we could start by looking a little closer to home.

Do we really need the Super Duper Every Movie Ever Made cable package? All those meals out? The endless trips to the salon? The supersized caramel double iced latte with extra whipped cream every day on the way to work?

Really, how lazy we are. Could there be anything easier in the world to make at home than an iced coffee?

It isn’t just the big bills that are shackling us. It’s all the little ones. They add up. If we cut just one dollar a day from our budgets and saved the money instead, in thirty years we’d have…. about $26,000.

Yep. That’s assuming we earned about 5% after inflation on our investments - a reasonable assumption, but not a heroic one.

Twenty six thousand bucks.That’s in today’s money. If you’re not maxing contributions to your 401(k) plan, it’s even more because of the tax savings. Try $34,300.

That won’t buy complete freedom. But it can’t hurt.

Read the rest here:
How to Declare Financial Independence