Category: Invoice Factoring

Manufacturing Industry Overview 2019

Lathe Operators Concentrated on Work

The manufacturing industry is made up of a variety of companies. There is major competition within the industry that has made it a breeding ground for financial issues. There are a number of challenges that the industry faces today and in order to overcome them successfully, it’s important to have insight into all the possibilities included.

So if you too are looking to explore the manufacturing industry and know about all its challenges, here’s your chance. Read on and get enlightened!

 

Competitive Landscape

The manufacturing industry has further branches, and that’s the reason the competitive landscape varies from time to time. The demand in the industry depends on consumer spending, and that decides the profitability of each sector. Large corporations have a high profit market and with marketing potential, they tend to earn a huge chunk of the industry’s revenue. Compare it to small corporations who compete in the market with specialized products.

 

Skilled Labor

The baby boomers are at the age where they’re retiring, and that has caused a huge gap in skilled labor. The looming labor shortage is about to get even worse. By 2025, there will be around 3.5 million unfilled manufacturing jobs. The technology has advanced and the industry is in need of skilled labor that is able to keep up with the changing technology and is proficient in mathematics. Skilled labor that possesses an analytical mind is also in huge demand. The high tech skills required in the market is gradually, but surely, shifting the paradigm of the industry.

And once again, it’s the advanced technology in the industry that has come to save the day. Training for jobs has become easier with the help of augmented reality and virtual reality. People don’t have to be on the job to learn it. These tools have enabled the manufacturing industry to train their employees and hence, create a force of skilled labor that’ll help to fill the looming shortage.

 

Self Service

This is the digital age, and customers expect the best from the corporations in the industry. But in the race to maximize their profits, many corporations are leaving this factor behind. They are more concerned about their profits, which has made them incapable of fulfilling this dire need of customers. Even in this day and age, customers who are seeking information have to pick up their phones because there is a severe shortage of self service applications. It’s true that the industry has started working on this aspect, but it still has a long way to go.

Since manufacturing companies tend to deal with an array of customers, they are faced with different needs. Such companies sometimes deal with the end customer or directly with the contractor. As their direct customer changes, so do their requirements. So it’s fair to say that serving them all equally is a great challenge for all the industry players.

With self-service applications provided by each company, it’s not only possible to deal with the customers and their demand, but it’s also possible to retain loyal customers. These systems need to be automated, containing all the information that the customers potentially need. When timely and detailed information is available for all customers in a digital format, it’ll be easier for companies to serve their clients to the best of their abilities.

 

Project Management

The stressful timelines that manufacturing companies need to follow are essential if they need to increase their business. The cost and quality of the products and processes have to be controlled to ultimately increase the profits of the industry as a whole. And so, it all comes down to project management. If manufacturers miss important deadlines, they can incur losses that amount to millions of dollars. In such cases, having a grip on reality comes in handy.

As the project progresses, the manufacturing company must be able to make adjustments whenever required. If the processes are flexible, it’s possible to complete the project on time and not be confined by deadline constraints.

 

Conclusion

The overview of the industry can help you get great insights and hence help with your investment portfolio. Just by taking a look at the progress of the industry and the challenges it has to face, it’s possible to ascertain the growth potential. There have been many challenges for the market. Some of them have been overcome successfully, while there are many others that need to be addressed soon.

Most of the challenges the industry faces can be resolved with the help of a large fund. With capital on their side, it’s possible for companies and factories to fund an increasing number of projects in the future. All the manufacturing companies that are in dire need of funds can now finally have some relief. There are several non-bank lending institutes that provide easy loans on great terms.

But the best option that the market has to offer currently is invoice factoring. The easy terms put out by factoring companies have been helping the manufacturing industries face the challenges bravely.

Want to know more? Contact Mazon Associates!

How to Improve Bad Business Credit

Excited caucasian woman, looking at her bank balance

Most small business financing options require a good credit score and businesses that can’t offer that may feel like they are fighting a losing battle. Banks rarely approve small businesses loans, and statistics have proven that over 90% of such cases are rejected. With only 10% of the requests approved, the pressure this financial challenge can have on an entrepreneur, and ultimately a business, is extensive. But the tension is tenfold for businesses that experience bad credit. It may seem like the world is ending, but it’s important to remember that bad credit scores won’t last forever. Entrepreneurs need to know how to improve bad business credit, and that’s exactly what this article is all about.

So let’s get started and see how you can improve your credit scores.

 

Paying Bills on Time

If you have been missing deadlines and have failed to pay your bills on time, it can have a severe effect on your credit scores. Late payments would cause a downward spiral for your scores, especially if the creditor decided to report your tardiness.  In an attempt to improve the score and gain back some worth for your business, it’s essential that you start paying your bills on time. This will help to improve the scores and enable you to build trusting relationships with your creditors.

 

Limited Credit Transactions

Until your credit scores regain their former glory, it’s important to keep credit transactions at a minimum. Your business may not be in the condition to bear this new change, but if you are adamant about improving your credit scores, this is a sacrifice you should be willing to make. It’s important to keep any revolving debts to the least possible level. Once you keep your debts low, it’ll give you a great chance to get your credit ratings high in due time. You may have to make a few sacrifices to achieve this, but the step will provide you with financial freedom that’s hard to get in the stated circumstances. The credit scores you gain will be worth all the trouble you go through, so don’t worry and stay determined.

 

Refrain from Closing Accounts

The first thing most people do when they have bad credit is close their accounts. This may be the biggest mistake you can make when it comes to improving your credit scores. You may think that removing them from your credit report may tone down the damage done by these accounts, but it’ll just bring about some new problems for you. Some entrepreneurs make this decision in an attempt to curb down their future spending, but all it’ll do is limit your credit. It can also have an adverse effect on your business credit, so avoid closing any accounts.

 

Get Professional Help

Getting professional credit counselling can help you get the credit scores that spell fortune for you. There are numerous services available that can assist you in making the right decisions and improve your credit score. If you have been facing problems while making payments, it’s time you get professional help to alleviate this problem.

 

Don’t Apply For a New Credit Card

Entrepreneurs who’ve made a mistake of applying for a new credit card during this challenge will gladly tell you that this is the worst step you can take during the credit repair mode. The biggest effect this will have on your business credit report is that it will lower the average credit age. You may be in need of instant funds to fuel your business, but this tactic will only hurt your credit scores further. So refrain from doing so and you’ll have a good chance of availing other financing opportunities.

There are many other lending institutions that don’t care about credit scores. They have different criteria for judging the best candidate, so your bad credit scores wouldn’t be able to harm your chances of securing the required funds.

 

Conclusion

These are just some of the ways you can improve the bad credit of your business. Just remember that this process isn’t a quick one. It’ll take time for you to improve the condition of your credit report, so don’t be disheartened by the slow process. Think of it more as a marathon and be delighted that at last you’ll have a business you’ll be proud of.

Learning how to improve bad business credit can be a saving grace process for any entrepreneur. Once you have a clear understanding of your current credit score, you can get assess your financial situation. With a good credit report backing up your business decisions, it’s easier to avail the opportunities that come your way.

Until the day your business credit scores get back on track, you may find small business financing a challenge. That’s the reality for most entrepreneurs, but don’t let it get you down. You can always opt for factoring companies and go to them for a viable financing option. This is one way you can leave your financial difficulties behind and focus on growing your business.

Want to know more? Contact Mazon Associates!

How To Leverage Social Media For Profits

Young man and woman working on laptop and using mobile phone relax in business office

Creating a sustainable social media campaign doesn’t come with a guide and the promise of results. It’s just recently that marketers have realized the importance of including social media as a part of their marketing mix. Social media sites such as Facebook and Twitter have proved their worth in the market, and organizations just can’t get enough of the convenience they provide. Facts state that over 55% of customers who engage with brands on social media are prompted to take further action.

So there’s no denying the power of social media as the ultimate tool that can help businesses. So if you are a small business looking to leverage social media, you’re going to need some help.

 

Increase the Reach

You need to reach more customers if you wish to leverage social media to grow your business. If you wish to maximize your social media presence, this is a necessary step towards your ultimate goal. This way, you’ll have a better opportunity to reach customers and spread your content straight to where it counts the most. You can do this in a number of ways,  but the easiest way is by redirecting your website traffic to your social media pages. Doesn’t it sound easy enough? All you need to do is add your social media follow buttons on your website. If the placement is right, you wouldn’t need to put in so much effort to turn your website users into your social media followers. Even including sharing buttons to your content can help you reach potential customers and increase your outreach.

 

Email and Social Media Marketing

Email marketing is an important part of the marketing mix and you can use it to extend the reach of your business. By including social sharing and follow buttons to your emails, it’s possible to not only reach potential clients but also help your business grow.

 

Lead Management

You need to be aware of your leads and to gather all the intelligence, you need to invest in a lead management software. Marketing automation tools can help you produce a good mix of content so that your social media updates don’t bore your clients.

 

Sales Prospecting Chances

Even your sales team can reap the benefits of social media leads. If you wish to explore the area further and empower your sales team, provide them some basic training on how they can use social media as an important part of the process. Once they learn how to identify valuable information that is available via social media, it’ll help them engage with leads, which will ultimately lead to more sales each day.

 

Unique Hashtag

Yes, it’s true that hashtags run social media, so if you want to stand out from the rest of your competitors, you’ll need a creative hashtag to help you scale that path. Your hashtag must be unique yet simple enough for your potential customers to understand. You can go for the most common hashtags and include a few unique ones in between to gain more traction along the way.

 

Create and Share Exciting Stories

People are always on the lookout for quick news, and by sharing your stories on Facebook, you can help your customers get that information they are looking for. When your viewers have the option to share your story, it’ll help your business. When users share your story with their networks, you stand to gain more customers, who inspired by your stories, want to become a part of your loyal clientele. Highlight your stories and use them to inform your customers about your business.

 

Conclusion

With the help of these tips and some much needed guidance, it’s possible for businesses to achieve their desired level of success. After all, this is the digital era and working in coherence with the industry standards is what will eventually pay off. As long as you follow the given directions and make them a vital part of your social media marketing strategy, you can reap the advantages they have to offer.

These are just a few ideas to get you started. Since everyone is already following the conventional social media marketing tactics, you can fare well with a unique approach. The individual websites may provide the most benefits, but it’s important for businesses to understand that there’s a whole world outside these walls.

In spite of these tactics, small businesses may find it hard to leverage social media. Why, you ask? There may be other reasons for this shortcoming, but the most significant one is lack of capital. With small business facing such a challenge with banks, it’s up to the non-bank lenders to save the day. Invoice factoring companies are providing the opportunity for businesses to flourish.

Want to know more? Contact Mazon Associates!

Small Business Trends For Success in 2019

Group of diverse business people discussing charts with quartal sales growth in office interior

Most businesses have to face challenges at the initial stage, but the path to success is even more difficult for small businesses that aim to make it big in the market. What they need is a guide that describes the ways to become successful. With this aiding resource in their hand, it’s possible for entrepreneurs to take their small businesses to new heights of success.

The technological world is changing at a fast pace and it has affected all the industries. The huge impact of technology means that there are several external factors that are affecting the internal operations of businesses. So if entrepreneurs want to keep pace with the current market, they have to stay up-to-date with new trends and follow small business trends of 2019.

 

Adapting to the Needs of a Modern Customer

Businesses need to keep up with the changing technology because now customers are also changing. Their buying behaviors and their satisfaction level have also been altered, which makes it even more important for businesses to tailor their services likewise. Markets are saturated, which means that customers have a plethora of options now. They can easily switch to your competitors if they don’t get the service level they desire. Any of your competitors that are fast and provide a seamless customer experience will be great contenders.

What businesses can do in this dynamic marketplace is provide unique and exceptional user experiences. As long as the customer feels appreciated, they will refrain from switching brands, and you will have a loyal customer for life.

 

Alternative Lending Is Gaining Traction

This may be the best small business trend of 2019! Entrepreneurs who have been through the process may be well aware of how difficult it is to secure small business financing. This difficulty can be gauged from the fact that banks reject over 80% of small business loan applications. Unless you are among the lucky 20%, you’ll need to borrow money from non-bank lending institutes. Now that the trend is slowly shifting from bank loans, small businesses will finally get some relief.

Now small businesses have alternative lenders that are willing to provide them the financial stability they need at very reasonable terms. One such alternative that’s helping small businesses flourish is invoice factoring companies that provide businesses loans in exchange for their accounts receivable.

 

Socially Responsible Businesses will Thrive

In the recent year, people have become more environmentally conscious, and with more businesses engaging in sustainable practices, that’s the expected standard now. People want all industries to follow suit and be socially responsible too. This may be the most beneficial small business trend of 2019 because this means businesses have to take responsibility, not only for their actions but also for society.

Small businesses need to take into account this trend and make sure that they also play their part in the betterment of society. If you don’t know where to start, you can always take inspiration from the great examples around you. Some significant ways your business can carry out its social responsibility is through employee volunteerism, opting for socially responsible suppliers or starting grants for a greener and cleaner Earth. The possibilities are endless. As long as you are determined to take advantage of these small business trends 2019, you can overcome the challenges in your way.

 

Connecting With People

There’s no doubt that technology has taken over our lives, but in spite of that, people crave human connections. Technology may be improving day by day, but customers still yearn for human connection. With AI gradually taking over many aspects of our life, many businesses fear that the need for human touch may soon become redundant.

The good news is that it’s unlikely to happen anytime soon. The takeaway lesson from this is that small businesses must make technology an important part of their business model but never forget the importance of human connection. Give your customers the opportunity to make that connection and see how it benefits your business.

 

Conclusion

These small business trends provide all the guidance you need to ensure success for your brainchild in 2019. As long as you follow these trends and make them an important part of your daily operations, it’s possible to achieve the goals you have been planning for.

The most important part here is that you need to reflect on the past year and take lessons from the mistakes you made. In order to rectify them, it’s essential you have the necessary financial funds. With that stability backing up your business decisions, it’s easier to take advantage of all the opportunities that come your way.

The harsh reality is that for many entrepreneurs, small business financing can be a difficult path to tread. However, if you are really determined and need a way out of your debt, there’s a viable option that offers just benefits. Opt for invoice factoring and leave your financial difficulties behind.

Want to know more? Contact Mazon Associates!

Reasons Why Small Businesses Fail

A engineer man stressed , unhappy sad , Background at working site

Small businesses have their fair share of hurdles but when lack of funds is the main problem, it’s apparent that the business is in dire need of help. The Small Business Administration (SBA) published data in 2018 with findings that about one fifth of business startups tend to fail in the first year.

There are many reasons for this statistic, and this post will discuss the major reasons. The main focus of this post is to familiarize readers with the difficulties of small business financing and ways to reach a viable solution.

 

Capital Problems

A common mistake that small business owners are guilty of is investing all their capital in production without putting aside sufficient funds for operating expenses. Most relatively new entrepreneurs don’t understand the cash flow cycle and under-estimate the funds required for a smooth running business. Their unrealistic expectations can cause capital problems, which if not handled efficiently, can ultimately lead to business failure.

That’s why it’s imperative for businesses to come up with a rough cost estimate for their business and ensure the availability of funds beforehand. With the idea that most businesses need a year or two to become self sufficient, an entrepreneur should arrange enough funds to cover business expenses for the time period.

That’s where small business financing institutes come in. With a viable funding option available, it’ll be easier for them to overcome any deficit and fulfill their business goals without any hassle. Where bank financing fails many small business entrepreneurs, you can always contact a good Dallas factoring company to help meet your capital requirements.

 

Inadequate Marketing

In order to get a business going, it’s important to spread the word around and let people know that there is a new player in the market. There’s no way a business can get customers unless they spend time and money on marketing. An effective marketing strategy can help a business reach its goals faster and achieve each milestone. Since startups are still at an early age, marketing strategies become a crucial element of their success.

With realistic projections in mind, a small business can set attainable goals and set objectives to reach their ultimate destination. It’s important to remember that marketing is at the core of it all, and businesses that don’t tap into the available potential are most likely to fail.

 

Lack of Business Planning

Effective business planning can help resolve a plethora of issues that arise within the first couple of years. The main focus of a business plan is to describe the first crucial steps of running a business and hence help the entrepreneur establish a sound business. A well-laid out plan can help the business tap into the potential of the industry, avoid the threats that the market poses and eventually reap the benefits of a well laid out plan.

Unfortunately, many small businesses underestimate the importance of a detailed business plan and hence set themselves up for failure. The challenges they come across in the industry are enough to ruin them because they are not prepared for such obstacles. Since they are not prepared to adapt to the changing dynamics of the industry, they receive the brunt of this mistake.

In order to remedy this issue, it’s important that a business engages in detailed business planning before starting operations. One of the many benefits of a sound business plan includes becoming eligible for a business loan.

Financial institutes dealing in small business financing prefer to work with entrepreneurs who have a detailed business plan highlighting what they plan to achieve. However, businesses that don’t have a sound business plan but need urgent funds can always consider the option of invoice factoring to finance their business.

 

Poor Management Skills

In order to run a business successfully, it’s important to know all the ins and outs of the niche market. People with experience in the industry are more likely to succeed than entrepreneurs who have just stepped into the market. And with lack of experience comes poor management skills too.

Such neglect can lead to a company’s downfall and unless proper measures are taken, the small business doesn’t stand a chance to compete with the key players of the market. There are ways to remedy this problem and that involves hiring skilled employees.

 

Conclusion

These common mistakes are enough to cause business failure. To mitigate industry specific risks and turn your business in a direction that leads to success, it’s important to have a sound financial resource. Many of the business woes can be resolved as long as there is enough capital.

Unfortunately, small business financing can be a difficult path to tread. However, there’s still hope for entrepreneurs who are determined. With the help of invoice factoring, financial difficulties of a business can be easily resolved.

Want to know more? Contact Mazon Associates!

Construction Industry Overview 2019

boss and worker checking results on the tablet

The construction industry has been faring well these past few years, and that has positively changed the economy. At times, the overall picture seemed bleak. But with technology advancements and a booming economy, the industry has thrived in recent years. As the world’s largest construction industry, the U.S. boasts annual construction expenditures over $1 trillion.

The construction industry employs over 10 million workers, so it’s no surprise that even the slightest change in the industry can spell trouble for the whole economy. Fortunately, the current prospects look promising and the industry’s outlook looks positive.

 

Recent Growth

In 2018, the industry expanded and it appeared the industry was again headed higher in 2019. However, industry analysts warn that growth compared to 2017/2018, won’t be as strong this year. The increase in federal and state funding in recent years is what fueled the expansion. The government provided infrastructure spending to create this growth.

It’s important to understand the growth in federal spending to realize the true transformation taking place here. The data provided by the U.S. Bureau of Economics clearly shows that the government’s impact to the industry as a whole has contributed significantly to construction over the past decade. Government spending for infrastructure has increased 21% since 2011.

The government’s contribution to the U.S. infrastructure in 2018 amounted to $650 billion. This was a significant milestone for the construction industry, because it’s the first time since 2008 that the industry has been able to achieve such growth.

 

Industry Challenges

Let’s look at some of the challenges that the industry has faced and might come across in the near future. It’s expected that the construction industry might experience a decrease in growth. As a consequence of the recent expenditures, there are a few hurdles that the industry has yet to face. 2019 has been a good year so far, but it hasn’t been without its drawbacks.

 

Operations Technology

Technology has helped expand the industry and been a deciding factor in its development on site, but there are still a few things that are needed offsite. With the help of technology advancement, project management will see a new dawn. However, the industry still has a long way to go. The main issue that companies experience is integrating the right technology into their operations. As long as the offsite operations are not optimized, there’s a limit to the growth that onsite technological advancements can achieve.

 

Labor Shortages

The industry is growing rapidly, and so is the need for skilled labor. There are over 250 million construction jobs that still need to be filled. Unfortunately, the industry will face the challenge of skilled labor shortage as the number of jobs keep on increasing. There’s a serious lack of labor supply in the industry and with no clear hope in sight, the industry is set to suffer.

The increasing number of retiring baby boomers isn’t going to help the problem. The industry has to increase incentives for the jobs or take advantage of the increasing immigrant situation in the country. Legal immigration has always been a strong supply of construction laborers.

 

Going Green

A healthy environment has suddenly become the main focus of the general public, and the shifting demographic toward a younger population has become a challenge for the industry. Some companies see this as an opportunity to adopt more sustainable practices, while some see it as a disadvantage. However, it’s true that 2019 has been all about sustainability and going green.

Many companies are focused on decreasing the carbon footprint of their operations, and they are playing a part in safeguarding the environment. Companies looking to follow in the same footsteps will need to use their resources efficiently and take up practices that will help them preserve the environment.

 

Conclusion

The overview has been helpful in determining the current state of the construction industry and its progress over the past year. While the construction industry has overcome most of the challenges that it faced, it still has to address a few of them.

If the industry has so many obstacles, it needs ways to fund an increasing number of projects that are in demand. Many construction companies have difficulty acquiring working capital to keep their businesses operating efficiently. Factoring companies can fill that need, so that funding is available when traditional sources of financing aren’t available.

Want to know more? Contact Mazon Associates!

Personal Liability for a Commercial Bank Loan

Closeup of a Person Filling a Track Record

Commercial bank loans can be a life-saver for most businesses that are in need of working capital. Borrowed funds can provide the necessary cash for business growth or cash flow shortages. Banks and other financial lenders provide useful commercial loans, but owners must be aware of the personal legal implications in case of bankruptcy or insolvency.

Most commercial loans are obtained in the name of your company, but there’s still some ambiguity about the personal liability for all the parties involved. There’s a difference between debts that you owe as a personal owner and those your company is liable for.

Many business owners worry that the bank might see them as personally liable, which might be a deal breaker for them. Personal risk can keep small business owners from getting a loan. If you’re a business owner looking for a commercial bank loan, you need to know the personal liability these loans pose.

If you are personally liable, the creditors can often sue you in case of default. Most banks and financial lenders only loan funds to an entrepreneur if they provide a personal guarantee. The personal guarantee clause means that in case your business fails to cover the debts of the creditors, you as a guarantor, would be liable to cover those expenses. This simply means that the creditors can sue you to get the money that is owed to them by your company.

 

Limited Liability Corporation

If you are a business owner and need cash for your business, it’s likely you’re considering getting a commercial bank loan. The entity that you state as the one obtaining the loan can make a huge difference to what happens in case of any future default payments. If you take a loan in the name of a limited liability corporation (LLC), your personal assets are safer than if you borrowed in your own personal name.

If you obtain a loan solely as a legal corporation, it’s understood that the company and its owners are separate legal entities. Corporate shareholders are not liable for those debts that the company incurs. Creditors won’t be able to sue you personally for company debts. This remains true in the cases where corporations aren’t able to pay the money back. Even if the corporation fails to cover the cost of their debts, shareholders are safe from any form of legal action. Only the corporation is liable to pay the damages.

For most small businesses, getting a commercial bank loan is difficult. The business might not be stable enough to warrant a safe risk for the bank, and hence the loan request is declined. Some banks have strict lending policies that require a history of profits and a strong balance sheet. For these reasons, many small businesses don’t qualify for a traditional bank loan.

 

Personal Guarantee

If your company doesn’t meet loan requirements on its own, banks may require you sign a personal guarantee to use your personal property as additional collateral for the loan. A personal guarantee makes the owner of the business personally liable for unpaid debts of the company. It gives the bank claims on personal property such as bank accounts and real estate.

The bank can recover personal assets as a form of payment in a bankruptcy. If your company fails to comply with the conditions of your contract, these items would legally belong to the bank. The lender and other creditors can sue you and the collateral item would be foreclosed to repay the debts.

There are some private money lenders that will grant a business loan without a personal guarantee. However, there is a catch there. They might be able to provide you with the money, but they tend to charge more interest. Since an integral part of the contract is missing, most private lenders can help businesses in need and provide the funds they need, but the higher interest cost might discourage some business owners.

Now that you know about the clauses of the contracts and the personal liability that comes with it, it’s also important to know what will happen in case you lie. It’s important to proceed with complete honesty when you apply for a loan because in case you are caught lying or deliberately misleading the financial institution, you will be liable to pay for the debts of the company and you can be charged with fraud.

 

Conclusion

There’s a high risk of personal liability when it comes to small business bank loans. That’s the reason businesses turn to factoring companies for working capital. Want to know more? Contact Mazon Associates!

Oil and Gas Industry Overview 2019

In the evening of oilfield derrick

2019 is halfway through, and it is quite evident that the industry is experiencing high returns and is now stronger than ever before. This year has proved to be a great year for the industry so far and there is a high chance that the prosperity of the industry will continue for the remainder of the year too.

However, things haven’t always been this good. The price collapse that occurred during 2014 -2017 was a devastating event for the industry. It’s true that the country wasn’t prepared for the consequences, and that’s why it hit so hard. The industry was forced to cut costs and even the survival was at stake. Numerous E&P firms went bankrupt during the time and things were hard for a while. Things looked bleak for a long time, but it was also an opportunity.

The setback enabled the United States to take a look at their existing policies and work for technological advancements in the industry. With the transformation, the prosperity of the industry was also enabled.

 

United States Oil and Gas Exports

Zeroing in on the progress of the industry in the United States will make it clear that the stats are looking good so far, and the prospects are looking good for the next few years too. With a growth in supply, it’s fair to say that the industry is going through a highly planned revolution. The rapid transformation of the global oil markets is set to dissolve the closed competition in the industry, and a new player will be competing in the top ranks.

With the growth in their reserves, the United States oil industry is all set to surpass the oil export figures of Russia. Now the United States yields 20% more oil than Russia and almost 25% more gas too.

That’s a great feat, but the best is yet to come. If the stats keep up the results they have been showing this year, the coming era is going to be a great one. It’s true that Saudi Arabia has always led the numbers when it comes to oil exports, but with the changes occurring in the industry, the day isn’t far when the United States will close in on the high numbers flaunted by Saudi Arabia.

Considering how long Saudi Arabia has held the position without letting any country nearing the numbers, this is quite a big task, and the United States is all set to achieve this by 2024. Once the United States is able to achieve this goal, it will be recognized for this pivotal milestone.

 

Industry Growth in 2019 and beyond

If we take the figures from 2010, it’s obvious that the United States didn’t stand a chance against the other competing countries. As far as the oil reserves go, the US shale in 2010 amounted to almost nothing just a few years back. But looking at the figures now, it’s evident that the United States has done something right along the way, and we know what it is!

There are other sources of supply, but most of them suffer because of one weakness. In the industry, price signals shift rapidly, which can cause issues for the key players. However, there is a way to ensure that the ever-changing price signals don’t pose a threat to the industry. If the player in the market has the ability to swiftly respond to these changes, they would be able to tap into the potential of the industry. And that’s where the United States is winning!

With its eyes on the price signals, the United States has managed to achieve the position it is in today. But the best news is yet to come. Three is a chance that the United States can achieve much more if the prices continue to rise.

 

What the Future Holds

Based on the current figures, it’s easy to say that the future looks quite promising. People are now more confident about the industry and all that it has to offer. The increased economic growth is something everyone is looking forward to, but there’s also a fear that the global economy can pose some threats to this newfound success.

It’s fair to say that the overall picture looks quite promising and healthy. With the low rate of unemployment and stable prices, all the key players get to enjoy the competition in the market and prosper through and through. The best part is that these figures support growth of about 2.5% – 3% in the coming quadrant. Sustainability has progressed from being a niche issue to being the center of strategies. Now investment decisions are based on the sustainable practices of the industry, thus providing all players a chance to experience success. The United States is working alongside other companies to decrease their carbon footprint and ensure environmental health.

 

Conclusion

Things are looking good for the whole industry, and this is the right time to start investing. If you are an entrepreneur looking for opportunities to advance your business, you have the chance to reap the advantages of this successful industry. Get in contact with factoring companies to acquire funds.

Want to know more? Contact Mazon Associates!

What is Trade Credit?

money background

Businesses looking for short-term finance are often faced with obstacles that restrict them. The funds they require to run their business smoothly are hard to come by, and hence, they need to assess the available options.

If they are fortunate enough, they manage to acquire the required funds, but small business financing can be a difficult road for most businesses. That’s why they need a way to grow their business without the constant demand for money. Such a thing may seem impossible, but there is an opportunity that can help them achieve this goal. Want to know what the secret is?

Two words. Trade Credit!

This is most probably the easiest short term financing option available for businesses. So what does it entail?

Well, the concept of trade credit is simple. The general rules of trade require people to buy goods and services by paying for them. However, trade credit has made things easier for businesses. Now, they have the feasibility of buying goods and services without the need to make any immediate payments. The immediate relief this common business financing method provides to the businesses can make all the difference for them.

Sometimes, the helpful tool is all that businesses need to grow, so there’s no denying the benefits that this resource can provide. Once favorable terms have been arranged with the business’s supplier, the deal is good to go.

 

Understanding the Concept of Trade Credit

Now that you have a basic idea of what trade credit is, it’s time to explore it in detail. If you are a business that requires short term financing, you now know about a viable option. There are a few elements to the concept that you need to understand before you opt for this facility to help run your business.

 

Trade Credit Terms

There’s no strict standard for the terms and duration of trade credit. So it’s fair to say that most businesses create their own terms and conditions. The most common type of trade credit has a duration period of 7 – 120 days. At the discretion of the business, the terms can be managed and extended to suit both the parties.

The credit period is determined after taking into consideration a number of elements. When setting a credit period that benefits both sides, it’s important to reflect on the probability of payment default. If the credit receiving business belongs to a high-risk market, the firm providing the credit is likely to offer terms that are restrictive and a bit stricter than the ones offered to other businesses.

Common credit terms are net-30, net-45 or any other period of days. Net-45 means the payment is due in 45 days after your goods are sold or you’ve rendered services. The 45 days include weekends and holidays. Often, companies offer an early payment discount to encourage their customers to pay early, usually in 15 days or less,  For example, a business might offer a 2% discount if the customer pays within 15 days, rather than waiting the full 45 days. This would be referred to as 2/15 net-45 days terms of credit.

 

Basis for Trade Credit

Another factor that companies evaluate and base their decision on is the amount of the account. Most small accounts are more costly to manage, and so they receive shorter credit periods from a majority of businesses. The larger the account, the longer credit period they get. The last factor that businesses consider before finalizing the trade credit terms is the nature of the products. If the goods are perishable, then a shorter term credit period is preferred. The higher the collateral value of the goods, the higher the credit and the credit period is also longer.

As already mentioned, these described terms are not the set standards of the industry. These terms and conditions vary from business to business, even within the same industry. It’s better to get complete information from the granting firm beforehand to avoid any hassle later on.

 

Terms of the Sale

The terms of the sale define all the set conditions that both parties have decided on mutually. These terms are decided beforehand and discussed thoroughly by both the parties. They mention the period of trade credit. If there are any cash discounts involved in the transaction, they are also included in the terms of the sale. Another important element mentioned in the terms of sale is the credit instrument that is used for the transaction. Once the transaction is complete, the trade credit appears as accounts payable for the receiving firm, while the company that extended their services to provide credit notes down the transaction as accounts receivable.

 

Credit Instrument

In most cases of trade credit, an open account is used as the instrument. The invoice of the delivered goods is the only evidence that is needed for the transaction. There are some cases where the firm may ask for a promissory note to complete the transaction. However, this is only liable in cases where the firm anticipates a problem or the order is quite large.

Since there aren’t usually contracts included in the process, a promissory note acts like one. However, there is a problem with this system. Since the note is signed after the delivery of the goods, it can leave the granting firm hanging. A quick fix for this issue is to get a commercial draft.

 

Invoice Factoring

Trade credit is a savior for most businesses, but it can also cause the granting business some trouble. When accounts receivable become outstanding for long periods of time, businesses can run out of cash for operating capital. Trade credit can drain your cash account and create working capital shortages. Fortunately, factoring companies can help you get paid immediately, instead of waiting for your customers to pay. Contact a Texas factoring company and sell your invoices for immediate cash.

Want to know more? Contact Mazon Associates!

Personal Credit Score and Business Loans

Smiling young Asian businessman working alone at his office desk

Establishing a business and then running it smoothly can be a stressful task for entrepreneurs, especially ones who are new to the industry. They may be in need of additional funds, which can be their ticket to establishing a thriving business. Recognizing the need for additional funds may be easy, but acquiring them is a whole other matter. Anyone who has been a part of the industry can vouch that the process of getting these funds is a road that is riddled with obstacles. There’s no way the process can be called simple. There are several requirements that the business and the entrepreneur must meet in order to qualify for the loan. The worst part is that the requirements do not remain the same across the table. There are many factors that can contribute to their changing state. Depending on the loan you want to avail, the requirements will change, and you’ll have to abide by them if you wish to get the funds you need.

Loan eligibility may be determined by a number of factors, but on the top of the list is the credit score.

Invoice Financing vs Bank Financing

 

In the majority of cases, the lender is concerned about the credit score of the borrower. This score is a number that enables lenders to determine the capacity of the borrower to return the money. That’s the reason they become a crucial factor for the loan underwriting process. The number is all the lenders need to determine the trustworthiness of the borrower. The higher the score, the easier it becomes for borrowers to secure the funds they need for their business. On the opposite end of the spectrum, lower scores can lower your chances of acquiring a loan. These low scores certainly make it harder for an entrepreneur to borrow money and may even kill your chances of opting for certain loan types.

So if you are a businessman looking for information about credit score and what role it plays in determining your loan eligibility, here’s everything that you need to know about the process.

 

Credit Score Requirements

Most entrepreneurs who are new to the industry worry about this, and so this is the right time to put your doubts to rest. The first thing you need to know is that there’s technically no minimum credit score for loan eligibility. There are no set of standards that dictate the range of credit scores. Without any hard and fast rule to follow, it all depends on the discretion of the lenders. Most lenders have set a certain criterion that they follow to evaluate each case.

The rules can sometimes change with every case. The lender uses a combination of factors to either approve or deny the borrowers request. Some lenders start by viewing the credit scores. If the scores don’t meet their set standards, the lenders won’t evaluate the rest of the documents. For some lenders, however, the process is different. If the borrower meets their demands, then the lender is lenient enough to lower their set credit score range. As we’ve mentioned before, all cases are different, and the treatment each borrower gets also varies.

In order to make sure your credit scores can help get your loans approved, you need to keep an eye on them. Being an entrepreneur, you’ll need to keep both your personal and business credit scores in check. So you need to know the basics if you intend to build a strong foundation for your business.

 

Personal Credit Score

If you want to showcase your fiscal responsibility, your personal credit score is the best indicator. The score is probably the first factor that lenders consider when gauging your creditworthiness. If you want to know your personal credit score, you’ll need to contact one of the three major credit bureaus that do the job. There are several small companies, too, but the giants in the industry are Experian, Equifax, and TransUnion. They go through your statements and give you the score that can help you secure the much-needed funds. The credit bureaus use the most common method of evaluating credit, which they easily achieve with the help of FICO scores. With their own FICO algorithms to calculate your score, these credit bureaus can help create your credit profile. Since they use their own algorithms, it’s common for the scores to differ slightly. The different scores don’t deviate much and are rarely over the range of a 20 point difference, so there’s no need to worry. Just make sure you provide the credit bureau with your payment history, card utilization history, credit capacity, and a few other necessary documents.

The score ranges from 300 to 850. If you are an entrepreneur seeking a small business loan, then you’ll need a score of at least 550 to qualify. The requirements may differ from lender to lender so make sure you confirm beforehand.

 

Conclusion

If you are an entrepreneur who can’t get their loans approved because of low credit scores, then you need another way out. With the help of factoring companies in your area, you can acquire loans and get monetary help. Research about it and gather information to help advance your business to new heights of success.