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You sell a product. The banker sells loans. So you and your banker probably have the same perspective when it comes to business, right? Well, not quite. Selling loans is different than selling a product. Let’s think about it for a minute. How do you work with customers? You deliver the product, they pay...
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     Many business owners find that they require outside capital to finance the startup, ongoing operations and growth of their business. Unfortunately, many don’t know where to go to seek funds, or they don’t realize that there are different types of money sources, each with its own financing criteria. As a result, business owners waste...
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Use A Technique Appropriate to Your Objective      You know that you should obtain a valuation of your company when you decide to sell your business. However, proper financial management dictates that you obtain a valuation of your company at other times as well. For example, you want to get a value when you set...
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Focus On How Your Device Makes Money, Not How It Works      Every day, technology becomes a more integral part of our lives. As the technology gurus find even more ways to automate daily tasks, either with new, compact hardware or a sophisticated software program, I am seeing more requests for funding to develop and...
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Uncollectable Accounts Cost More Than You Think      When you finally decide to write off an uncollectible receivable, what is the total cost to you? If you think it’s just the amount of the invoice, you’d be wrong. To calculate the true impact on your business, you must add in the cost of other important...
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     In an ideal world, businesses would never have to extend credit to their customers. Instead, as soon as a product or service was delivered, the customer would pay immediately in cash.      Of course, we don’t live in an ideal world. Extending credit is just a fact of business life; you must offer credit terms...
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Use Credit to Increase Sales and Profits      It is important to have a written credit policy to ensure that you are consistent in making your credit decisions. However, the credit policy is not just a document that you put on the shelf and refer to on occasion. Instead, it is a process that must...
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Slow Payers Can Be Profitable          It would certainly be a miracle if your marginal customers could become credit-worthy overnight. Don’t hold your breath…it simply won’t happen.      However, the marginal customer can be a profit generator for your business, while at the same time representing increased risk. Regardless of how hard you try...
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        Few companies have the luxury of being able to demand—and receive—cash in advance from their customers. Most businesses must extend credit to their customers to be competitive. Even when competition is not a major concern, a customer may just refuse to buy unless he receives some type of payment terms. Your Credit...
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