Reasons For Fast Growing Service Industry

Service industry has gained a widespread momentum along with development in the business sector. Many service companies have joined the service industry in recent past. The overall development of service sector has made the business sector transactions really easy and convenient.
Many service companies India initiated the affordable ventures to facilitate the small scale businesses. Even big companies also search for these affordable companies as they provide quality work in lower rates. This ultimately helps in reducing their cost.
Companies with great service support can do work faster and in better way than the one with weak service backup. There are many types of services that a business might need like SEO and Web Design, Insurance, Finance, Dating, Industrial Good and Services, Computer Software etc.
For each kind of service you may need a different service provider. But companies like www.indianbusinesswork.com has changed this algorithm. Companies like indiabusinesswork.com and similar has gained widespread recognition in providing expert services of all kinds in really affordable rates. So it is not always necessary to hire different companies for different services when companies with more options are available.
Internet is considered to the best source of getting the best service company India. Some services like finance are inevitable to businesses whether they are small or big, whether a manufacturing concern or any other type of business. Do you know how many finance business companies are available online? Well the number is increasing at the rate of 15%. This tremendous growth of service companies in India and all over the world is due to the reason that today world has realized the importance of service sector.
There are some absolutely great online India business companies which many people do not know about. These companies are expert in providing services like SEO or search engine optimization and web design services. SEO is a technique by which you increase the page rank of your website. It basically deals with the optimization of your websites keywords to place the website in a better position.
No business can survive well without services. Services are no more a internal part of business sector, infact it has become a separate field of knowledge

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All You Need To Know About Premium Financing

Premium financing is a process wherein the permanent life insurance policy premiums are being paid by some of the third parties or third party lenders and it is an excellent marketing idea. In other words it can also be put forward as premium financing is a process which aims to increase your insurance needs by the method of financing the insurance. Thus premium financing enables individuals, business firms and the large companies to purchase the insurance without having to sell or lock up the various assets.

The working of the premium financing works in the following way consider for example you are owning an insurance policy worth X amount of dollars and you can use the value of your insurance policy as a mode of collateral security which will enable you to finance other insurance policies. Thus in this way premium financing allows you with a wide range of insurance options open to you. There is no doubt that premium financing is very much cost effective. It is a very favorable financing option as you can secure a huge loan amount against the life insurance policy. It is quite important to understand that you are going to get a much better option or in other words you will get much better rate of interest and the term of loan for the secured and the unsecured financing. However it is important that before getting a premium financing option you need to have a look at your financial needs and get proper advice before you go on with a financing option. There is this one question which many people have as to will it be required for them to purchase a new insurance policy or can they get the service of premium financing on their existing insurance policies. Well the answer to this simple question would be that at the time the practice of premium financing came into existence it was a requirement that you will have to purchase new insurance policies, but now this is not the case as you can get this option of premium financing on your existing insurance policy and there is no requirement for you to take the strain of going for a new insurance policy. This will again provide you with a very much better option that would not ask for your valuable possessions to be given as collateral security.

Some other people who really take the benefit of premium financing are the wealthy investors or the business owners. It is an extremely good option for the companies that do not want to tie up their assets to purchase the large amount of insurance policies. It is also a technique which is offered for the employees to be offered as a part of their wages. It allows the firms to attract new employees and help them retain their valuable employees. Premium financing is also used as a technique for estate planning, company expansion, attracting new employees and retaining their valuable employees.

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Your Side Of The Deal In Development Finance Uk

There are many things to consider in choosing the right development finance UK and it is definitely not just about the services that the companies provide. Aside from the trusts, building relationships and personal satisfaction as a basis to evaluate the services of the companies in development finance UK, you also have to consider your own capability. For one thing, you need to determine how much you can borrow; and this includes establishing the amount of monthly payment that you can afford. By knowing this, you can choose development finance UK that will be flexible with your financial capability. Flexibility to the borrower’s needs is a strong factor when choosing development finance providers.

Another consideration to choose the company for development finance UK is the company’s ability to update and respond to loan application. It is imperative to choose companies in development finance UK that assess and approve your loan quickly. Time is of the essence in starting out projects and this includes applying for funds and those who respond quickly is an advantage. The good development finance UK company should know and understand how and when the lenders can provide such funding arrangement. In other words, they should be able to give you feedback as soon as possible. To make this happen, though, you have to give the complete information about your loan request and investment with your development finance company. For example, provide the land value and what the value is expected to be upon completion, or purposes of commercial development finance or other information relevant to what lenders require. If you are aware that incomplete data is the common reason why there is delay, you would definitely complete the data beforehand to ensure that the company will not get back to you for lacking information.

All in all, its not just about how good and beneficial the company for development UK should be to get the right finance for your development project. It also takes your cooperation and consideration to get a company for your needed development finance.

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Support For Business Finance – Where Can You Go?

Doug Richard’s recent report on business support in the UK highlighted that there are 3,000 government agencies and most of them simply direct people to other agencies. This can lead to a never ending cycle of being passed from pillar to post and having to explain yourself over and over again. So if you want help with your business finance, where can you go?

Here are the various options open to SMEs in the UK to help you decide the best route for you.

1. Your Bank

The high street banks (RBS, Barclays, HSBC, Lloyds) can certainly give you advice in terms of loans, overdrafts, invoice finance and they can also give you some guidance on developing cashflows and general business advice. Usually the advice is coming from staff who are well trained internally and have seen lots of businesses from the outside but may not have had the direct operational experience of running a business.

2. Your Accountant

Accountants come in many guises and it’s important that you understand whether you are dealing with an auditor (responsible for verifying your accounts after the year end), a tax advisor (helping you with Tax and VAT issues) or a firm helping with your bookkeeping, management reporting and accounts. Each of these has different specialist skills and you shouldn’t assume that just because someone helps you with your tax, they’ll also be giving you overall business advice. Equally, you’ll find that many firms from the big four (PWC, Deloitte, KPMG, E&Y) , the mid tier (Grant Thornton, BDO, Baker Tilley) and the fast growing newer firms (Tenon, Vantis, Target) can give you good specific advice on business finance issues. However, make sure that you have agreed this specifically in any engagement letter. Otherwise they might think they’re just keeping your books or auditing your company and you might think they’re advising you on how well your business is performing and highlighting any potential finance issues. The gap between these expectations has caused significant problems for many companies.

3. Your own FD or CFO

If you have your own finance staff then make sure you make the best use of them. It’s easy to dismiss the finance team as being too much in the detail and always taking a negative view but they are often highly experienced and well trained professionals who have a very good insight into your business. Listen to what they have to say and don’t just disregard their views because you prefer to hear all the good news that your sales director is telling you. A good FD or CFO will often have experience from other companies that they can bring to bear in your business.

4. Part Time FD Companies

These have been rapidly growing in popularity for SMEs and even some larger corporates and they can provide an excellent source of support and advice. They provide someone in your business on a part time basis who can guide you from their knowledge and experience in a way that’s particularly relevant to your business. When you can’t afford your own full time FD or CFO these companies (FD Solutions, Secantor, Marshall Keen, FDUK, MyFD) can all provide the support and guidance you require for your business finance in a manner that can be very beneficial for your business. Having an FD or CFO in your business, even on a part time basis can give your company a real boost and can give you a trusted advisor to turn to for advice on your company finances.

5. Government Agencies

As the Richards Review highlighted it can easily end up feeling like you’re chasing your tail when you deal with these agencies and sometimes the time and effort you put in can feel wasted when you don’t get anywhere. Business Link, which provides somewhat of a hub, has a variable reputation depending on your local region. Some of the Enterprise Hubs are more supportive and operations like Finance South East have built a good reputation for clear and relevant advice.

6. Corporate Finance Firms

There are many companies competing in the market to help you raise money for your company. These are businesses in their own right who are seeking to make a profit but that shouldn’t put you off. It means they are incentivised to help you succeed. Generally these firms do charge an upfront fee but most of them earn more of their fees from a back-end success component (a percentage of whatever is raised). Charges will range from £2k to £15k upfront and success fees are generally in the region of 5%, although they can go up to 20%. Beware of companies that either offer the service for free (on the basis that you generally get what you pay for) or that charge a very high upfront fee. There are also some who appear to guarantee an investment providing you pay for Due Diligence (DD). You end up paying £40k in advance and they find something in DD that prevents them investing (which they never really intended to do anyway). Make sure you understand and agreements before you enter into them.

7. Your Friends and Family

In reality, this is where many people go for initial advice. Now unless your friends and family happen to fall into any of the previous 6 categories, it’s likely that their advice may be somewhat questionable. If they’ve had actual experience of the same issues and they’ve resolved it then by all means listen to them. However, you should always think about the source of your advice. Where has their knowledge and experience come from?

The key lessons here are to consider where the information is coming from, whether that information is based on real world experience and training and how relevant it is to your particular business.

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How The Staffing Industry Benefits From Factoring Services

Staffing agencies provide an invaluable service to their clients and employees.

Staffing agencies offer employers a wide and diverse range of benefits. Employers do not have to hire a full-time employee, in order to obtain good help. Employers do not have to struggle with the accounting that accompanies regular employees, such as employment taxes, workman’s compensation insurance, etc. Employers can try several people in the process of finding the right people to fill the positions within their company. Employers don’t have to worry about dealing with the emotional issues of layoff. Employers can increase or lower their staff, as the day-to-day fluidity of their business requires.

Employees benefit as well, because they have access to employment that provides flexibility around their personal lives. They can pick up a part-time job and work around school, family and other issues that might direct their lives. They can try out different kinds of jobs to see what kind of work they would be happy to do. They can maintain a certain level of income, while they seek full-time employment elsewhere.

Unique Management Needs of Staffing Agencies

Staffing agencies have their own internal employees, account managers, sales people, bookkeepers, staff liaisons, etc. And then they have their staffers, who have diverse needs, skills and schedules.

The staffing agency, and private security guard companies, are two industries where managers are challenged simply to keep warm bodies in the right places at the right times to ensure that they can satisfy the staffing requirements of their customers.

These two industries are uniquely challenged in that they supply “people” to fill jobs. They need to have people with diverse skills available for employers on a moment’s notice, sometimes a day in advance and sometimes an hour in advance. They must be able to ensure that they have the right people available to fill the right positions, and they must be able to do so consistently enough to ensure that those people will remain available to them.

Good Cash Flow Management Is Essential To The Survival Of Staffing Companies

Employees must be paid on payday, no matter what the business model the employer uses.

While product and service companies can usually get extended terms with their providers, staffing companies do not have that kind of luxury. With staff being their primary cost of doing business, they must establish a more reliable cash flow system.

Staffing and private security companies typically pay their people by the week, so they must have cash on hand to pay their staff on a weekly basis. As such, the terms they offer to their own clients usually do not exceed seven days.

The system works well, when the staffing company’s clients pay on time, but when they do not, these expenses can quickly become a real burden on the company who has to engage in the collections process in order to get paid for their services.

Accounts Receivable Factoring Companies Also Provide An Essential Service

Factoring is a kind of commercial financing that most business managers do not realize is available to them.

Many businesses, staffing and private security firms included, must provide financing to their customers in order to keep their sales steady and consistent. But, anytime a company extends financing to their own customers, they are taking a risk that they may not get paid in a timely manner, if at all.

The factoring service company is a finance company that specializes in financing invoices. The provider of a product or service, and in this case the staffing services, will issue an invoice to their clients and immediately assign the invoice to the factoring company. The factoring service will do an analysis of the credit of the end-customer, and it will advance a percentage of the value of the invoice to the staffing company.

When a service company initially contracts a factoring service, there may be as much as a seven- to ten-day turn-around window, before the factoring service sends the money to the service provider. Once that initial application window has been covered, most invoices will be paid to the provider within 24-72 hours.

The factoring company will advance the provider a percentage of the face value of each invoice, based on the credit history of each of the provider’s customers. Generally, the percentage paid upfront will be in the range of 80%-90%.

This permits the staffing company or private security firm to receive payment for most of the invoice’s value, almost immediately.

The factoring company works to ensure that the invoice will be paid in a timely fashion, and if the invoice remains unpaid for an extended period of time, then the factoring company will serve as the collection agency.

Once the factoring company is paid in full for the amount of the invoice, they will receive the invoice discount rate (their service fee), which is frequently between 2%-5% of the invoice’s value, and they will send the remaining difference to the original service provider.

This means that the staffing agency could receive as little as 80% of the face value of the invoice immediately, and then when the client pays their bill, the staffing agency will receive the remaining money due to them.

Accounts Receivable Financing Supports The Growth Of The Staffing Industry

In today’s modern service economy, the staffing industry is an essential element ensuring that individual companies can meet their production needs on schedule. This is true whether we are talking about private security firms, day labor staffing agencies, medical services staffing, information technology staffing, etc.

As essential to the continued growth of our economy as the staffing industry, is the commercial credit industry. Factoring companies provide the cash that commercial enterprises need to keep paying their own bills on time and growing their business.

If you are involved at some level in the staffing industry, please take as much time as you need to review the factoring services offered by Diversified Financial Services. DFS specializes in helping firms, involved in the staffing industry, to better manage their cash flow needs.

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