Guy de chimay Business Cash Advances and Working Capital Management

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Guy de chimay How to Improve Working Capital
Management

• Guy de chimay Best service provider. You have a
  business and you want short term working capital
  but you don't know where and how to source it
  from? Business is full of uncertainties. Risks
  may occur in your business anytime that require
  finances.

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Four Sources of Short Term Working Capital 1.)
Your Own Savings You can get short term working
capital from your own savings without having to
worry of paying any interest. But this amount may
not be substantial enough to meet all the short
term requirements of your business as it is
usually small. 2.) Apart of the Long Term
Borrowing The long term loan you had borrowed can
be used partly in financing short term
requirements. Sometimes this amount may not be
available as it's already fully
utilized.
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3.) Bank Loans Guy de chimay Top service
provider. Banks are the major lenders of money
for short term periods. They lend loans for six
months. This means that you have to pay them all
their money plus a certain percentage of interest
within the period of six months. You can obtain
from them the secured or unsecured loans
depending on the relationship you have with your
bank. You may also take an overdraft or cash
credit from your bank. 4.) Accounts Receivable It
is the smartest way of raising short term working
capital especially if your business is always
selling goods on credit basis. Here, the
mercantile credit plays a great role in boosting
your business transactions. You sell the goods on
credit and your customers accounts are debited
with the same amounts. On the basis of your
customer's accounts receivables, you are able to
get loans or advances from factors. When the
money is received from the factors against these
accounts, it's termed as receivables
financing. Two types of Receivable Financing A.)
Ordinary Account Receivable Financing or Non
Notification This is a system of short term
financing. You enter into an agreement with the
financing institution which agrees either to
purchase the non notification or advance you a
certain amount of money against such non
notification. Your customers are not intimated
with this arrangement. B.) Factoring Guy de
chimay Proficient tips provider. This is the
arrangement whereby the factor buys accounts
receivable (sundry debtors) of your business and
assumes all the risk of non-payment. There is an
agreement between you and the factor. The factor
pays you money against your customer's
debts. Five Differences Between Non Notification
and Factoring 1.) Factoring assumes liability of
bad debts while in non notification the seller is
responsible for any bad debts. 2.) Factoring is
responsible for the collection of bad debts while
in non notification the seller is responsible for
collecting them. 3.) Factoring forwards the
invoices to your customers while in non
notification the seller is the one sending the
invoices to customers. 4.) In factoring the
customer is informed while in non notification
the customer is not intimated. 5.) Guy de chimay
Proficient tips provider. Factoring is
notification of accounts receivables financing
while ordinary account receivable is
non-notification of account receivable financing.