Archive for the ‘Uncategorized’ category

Business Owners Are Finding Better Ways To Fund Their Business With Working Capital Cash Flow

January 13th, 2021

Today’s business financing environment is still not favorable to the business owner in getting approved for small business loans for working capital with no business assets and not much profit. Business working capital funding is a difficult achievement in this present economic condition of our country. As we all know, business short term funding allows business owners to obtain business funding for their business to survive through any financial crunch that comes up for alternative financing. This article will discuss the best tips for getting fast, easy business funding for working capital for critical daily cash flow needed by the business owner.

Nationwide business loans are extremely difficult to get approved for the business owner these days. Credit unions and traditional banks do not offer small business bank statement funding and the number of business loan applications being approved has shortened up further and will continue to do so in the future. Along with the unstable economic conditions, the majority of banks and credit institutions have ceased lending to small businesses altogether. If you are an entrepreneur then it may be really difficult to find out that your small business is simply a number to these banks. If you need business to business quick funding for your small business than you need to step out and take action! This will result in the small business owners reaching out to a lender who offers fast and easy working capital funds which are needed for the owner. Business bank statement funding is valid for any business owner that needs business working capital for daily cash flow! Credit unions and financial institutions have ceased lending money for the small business owner, most of the businesses find it really difficult to get working capital approval. In such situation, business working capital funds provide easy and quick working capital for small businesses as per their requirement. These funds are known for their quick processing, easy payment options and flexible conditions and easy credit requirements.

Working Capital is required and necessary for every small business owner to have operating cash flow for day to day operations. With a small business cash advance, quick short-term funding is what makes sense to continue and stabilize a small business operation. Businesses need funds rapidly for expanding, competing and succeeding in their own business. It’s important that your customer ought to know that you are offering quality services or product without any hesitation due to lack of funds for a project. Small business funding is the most useful and reliable option for your cash flow requirements and requires a pristine personal credit history of your business and the owner and having cash on hand to support the bank loan.

The first impression of your business from your customers should be to compel them to choose your services or products because your company can make fast financial decisions and be the best company out there. Expanding your business with a small business credit card advance for new and bigger equipment that your business could never afford in the past is now doable with confidence that you can receive the funding to buy that equipment. This will in turn give the confidence to your customer that your company will get the job done and you do not have cash flow problems that will interfere with their success. Just think you can buy equipment with a fast working capital funding and payoff the equipment in a short term period and then you own that equipment free and clear once it is paid off. You can keep doing this over and over and build a fleet which you own free and clear. Now you be a small business with assets. This is a way to improve your financial status quickly and to build your small business.

The key rule of a small business is to generate a healthy gross profit and work environment to get maximum output from your employees. Remember that it is not just about your customer who would appreciate clean, state-of-art, professional and ready-to-serve products and or services; but your employees as well. Quick working capital with small business loans funding can provide the capital required for prime quality tools and the overall employee turnover can be reduced along with higher efficiency and morale. Small businesses can get quick working capital funding even with a poor credit history including a bankruptcy or tax lien or judgment.

A promising business with significant amount of bank deposits and stability will get fast bank statement funding inside of 72 hours. The capability of choosing a repayment schedule which is for a short term is an added advantage of these cash advance funding.

Business cash funding has made it simpler to receive fast funds without much hassle even if the small business owner has been turned down by their local bank. However it is important to do proper research about the private lender before applying for these types of short term funds. The internet is the foremost option to identify a reliable and responsible lenders for business cash advances, checking with the BBB for any records that may indicate any complaints filed against the lender. There are many online business cash advance lenders so it can easily be really hard to differentiate reliable ones to an online scam. Also offering the owner too much working capital at one time for that particular small business may actually hurt the repayment of the funding causing a cash flow problem for the business owner. The small business owner must find a lender who will watch out for the bottom line of the business owner.

Working capital cash funds can help your business in a financial crunch and make it easy to handle any future financial troubles. Business bank statement funding is fast and easy business funding that has opened the flood gates for small businesses to get easy working capital funding. With easy repayment options, 100 percent funding approval and quick processing of business cash funding are some of the most important benefit of these small business programs. Over the past few years, small businesses have experienced a global downturn in the economy and funding options have further been cut short for business invoice factoring. A private lender who can provide the small business with working capital can replace the down trend of factoring.

Business bank statement funding loans provide an easy and fast funding method for all types of businesses. Small scale businesses do not enjoy great terms with banks and credit unions unlike major brands. They need money for different reasons including further expansion, installing new equipment, inventory requirement, working capital and other similar requirements. Business bank statement cash funding depends on the previous track record of the business bank deposits to show that business is receiving enough bank deposits to pay back the advance and that the small business ending balance can support the repayment of the funding!

Receiving a cash working capital funding is easily approved and does not require long processing time before giving an approval and receiving the working capital cash. All the small business owner needs to do is to find reliable working capital cash company and by seeking a private lender is the best way to find trustworthy private lender. A lenders goal is to help small and mid-sized business owners by providing a simple and convenient alternative to a traditional business loans. Business Cash working capital provides a real solution for business owners faced with the reality of disappearing sources of working capital. Given the current capital markets and lending environment, traditional sources of capital, such as bank loans, home equity loans, and credit card loans, are no longer options for many businesses with hassle free solution for millions of small business owners that need access to immediate working capital and may not qualify for a business loan.

A private lender offers several different programs to fit your specific needs. Their business cash funding program converts your future credit card receivables into immediate cash that you can use for any business purpose. Repayments are based on a small fixed percentage of your future credit card receivables. Payments are automatically applied to your remaining balance until the balance is satisfied. Unlike a business loan, our service is aligned with the success of your business: repayments are linked to your credit card receivables; the lender does not get paid until you get paid, thus helping manage the cash flow of your business, especially during slower months or seasonal months. This will benefit many small companies because the repayment is in line with their natural flow of revenue.

The private lenders mission is to help little and average sized entrepreneurs by giving a basic and helpful alternative to customary business credit. Private investor’s business cash programs give a true answer for entrepreneurs confronted with the truth of depleting of working capital cash. Given the current capital markets and the bank lending environment, sources of money, for example, bank loans, home equity loans and credit charge cards, are no more alternatives for small business owners. A private lender with a bank statement program gives the business the flexible, hassle- free solution and bother- free solution. This is huge for a number of entrepreneurs that need access to quick working capital and may not fit the bill for fast funding. A private lender offers distinctive funding programs to fit the particular small business needs. A private lender with a small business bank statement program allows the business future bank deposits to be used for working capital cash that the small business owner can use for any business reason.

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MSc London – Studying a Masters in England’s Capital City

December 15th, 2020

London remains the jewel in England’s crown with its vitality and heritage combining to create an unforgettable visiting and living experience. Students’ fortunate enough to gain positive undergraduate grades could consider continuing their studies by enrolling in an MSc London degree.

London’s traditional universities maintain their worldwide reputation for providing first-class education in a city with impressive business and financial links. Postgraduate students are fortunate that London is widely regarded as the world’s financial capital, with practical links to huge conglomerates that allow postgraduates the opportunity to build relationships and potential employment opportunities.

The lively social scene that exists within the city of London is similarly attractive as well as the quality of MSc London courses. Students moving to the area will enjoy the opportunity to socialise, make friends and acclimatise to the city, with plenty of opportunity to play hard as well as work hard.

At present there is an estimated 900,000 student population within the city of London, with over 20 nationalities represented within this group. With dynamic student unions and societies there is no excuse not to get involved in hobbies and interests aside from research and work.

Students interested in business and finance MSc London degrees will be delighted with the chance to integrate expert practical institution with the highest standards of theoretical teaching. There are universities located within minutes of the financial centre, with high-level contacts to vast city firms.

Mumbai, The Financial Power House of India

December 8th, 2020

Mumbai is composed of seven islands reclaimed from the sea over the years. Mumbai has been a centre of Importance since the British Era. Mumbai was a fishing town owing to is location on the west coast of India.

By the 19th century, Mumbai under-went economic and educational development, which led to the establishment of various textile mills and factories. Which turned out to be the major key player in Mumbai’s economy, employing a large number of people in these mills and factories.

Now it is host to sectors such as Engineering, Diamond Polishing, Healthcare Service, IT Enterprises, IT enabled services. Now the key players contributing to a wide share of its economy are, Gems & Jewellery, IT & Textiles and Entertainment. India’s Film Industry is also based here which produces 150-400 films every year. Film Industry also attracts talented individuals, who throng in large numbers everyday with a single dream of making it big.

What makes Mumbai the Financial Capital of India

Mumbai is not only the Financial capital but also commercial and entertainment capital of India. It can also be termed as The Financial Power House of India as it contributes 5% to the GDP of our country and also is amongst the top-10 centres of commerce in terms of Global Financial Flow. Mumbai shares 25% of total Industrial Output, 70% of Maritime transactions and 70% of Capital transactions of India. With such an enormous contribution towards the GDP, this city is indeed the Financial Power House attracting business houses from all across the globe to set base here.

The presence of important financial institutions like Bombay Stock Exchange, the National Stock Exchange, Reserve Bank of India has played a significant role in uplifting the economy of this city.

As a consequence of being the epicenter of finance, it has been regarded as The Wealthiest City in India. This metro also has the highest GDP amongst all major cities in South, West and Central Asia.

What Opportunities does it Hold

Mumbai is home to various Government sector and Private sector organizations. Government conglomerates like ONGC, HPCL, IOCL, Air India, and LIC are housed in this city. However, the number of state government and central government employees out number the workforce of Private organizations.

Talking of the Private Sector Mumbai is host to five of Fortune-500 Companies, other MNCs from all over the globe prefer setting up base or R&D centers in this city. Easy availability of skilled Human Resource, Connectivity to the world, Easy access to ports which allow swift delivery of imports and exports make it a favourable destination for corporate houses.

Also being home to the Indian Film Industry, Bollywood it attracts talent from all across the country towards itself. Employing people from all walks of life and at all levels, Bollywood has been generating opportunities for the deserving from time to time.

So for those who are on the doorstep of their career should enter their respective professions from this city as the MNCs here follow the best business practices, learning environment and innumerable opportunities to grow and develop. Those in the middle of their careers can also consider relocation to Mumbai as it will bring an upward growth, opportunity to learn the latest technologies and market trends, also it serves as the window to the world.

Mumbai draws the brightest of Finance and Engineer talents towards it self but also various skilled and Un-Skilled individuals. Being the hot-spot of commerce, Mumbai offers opportunity to one and all, depending on their passions and interests. Talented individuals are much in demand as Media & Entertainment has its foundation based on talent. The film industry also caters to the dreams of individuals who want to make it big in niches like Production, Direction, Acting etc.

The city offers Higher Standards of Living as compared to other cities, which bring in satisfaction to the lives of people making a living in this town. Also the Urban Working Environment of this city rewards the desirous, various malls, multiplexes, pubs and hotels serve as a great spot to unwind and let your hair down after the excruciating hours at work.

Don’t Overlook the Wealth of Intellectual Capital

November 24th, 2020

My guest today is Mark Hunter, “The Sales Hunter.” Mark helps individuals and companies identify better prospects, close more sales and profitably build more long-term customer relationships. Since 1998, he has consulted nationally and internationally with thousands of salespeople and global companies. Enjoy his wisdom!

“We’re forced to close because the bank will not loan us the money we need.” Phrases like this have been heard too many times the last several years, and yes, it’s unfortunate, but here’s my perspective: “Companies don’t fail due to a lack of financial capital. They fail due to a lack of intellectual capital.”

Let me put it in even simpler terms: Companies fail because people don’t think. It’s always easier to blame someone else for our problems. It’s what most people do, and besides, we all believe we’re brilliant. Any set back could not possibly be associated with us; therefore, it has to be somebody else’s fault, right?

Now I’m not going to say 100% of all failures are due to a lack of intellectual capital, but I will say the number is probably close to 97%. Let me explain why. Any business is in business to satisfy customer needs. If things work out correctly, they can fill those needs at a value for which customers are willing to pay and at an amount that is more than the company has to spend to prepare the item for sale. It’s that simple – nothing complex, nothing behind the magic curtain. Just sell something for more than it costs to make it and you’re fine. Well, not quite.

We all know there are numerous other factors that can and do come into play with regard to how a business operates, and it’s all of these other circumstances that require the proper use of intellectual capital. The level of intellectual capital in any business is going to vary dramatically. More importantly, how the intellectual capital is ultimately used is going to determine the success or failure of a business.

In my role as a sales consultant, I’ve watched a great number of people with incredible sums of intellectual capital not being challenged at all to contribute. At the same time, I’ve watched people who are, for lack of a better phrase, “a few dollars short upstairs,” making all of the decisions without any input.

Whenever I work with salespeople or any other business professionals, including CEOs, I love to challenge them with a few simple questions. Here goes:

What did you learn yesterday?

How did you apply today what you learned yesterday?

What do you expect to learn today?

What will you need to change next year to stay ahead?

You get the idea. I love to challenge conventional thinking. Some people say that’s not my place as a sales consultant, but I say that is my place. In sales, it’s all about fulfilling the needs people or entities may have, but many times these people or entities don’t know what their needs are. Worse yet, they don’t understand what needs they may have tomorrow. This is my role as a salesperson – to not only help them today, but also to prepare them for tomorrow.

You might be asking how this ties back into the original idea of businesses failing due to a lack of intellectual capital rather than lack of financial capital. It is intricately related because no matter what our role is, it is our job to help those with whom we come in contact to fully use their intellectual capital. This means we need to be fully using our own intellectual capital. And that means we have to ask ourselves the very same questions I listed above.

In my own company, we ask ourselves these questions on a regular basis. We also challenge ourselves to go outside of our comfort zone to seek diverse opinions and ideas.

The opportunities before us have never been greater. I firmly believe due to advances in communication and the global business community, there are more opportunities for businesses (large and small) to grow and thrive. I also believe the financial capital requirements are actually decreasing due to the advances in communication and the ability to grow a business. These changes, however, mean the average business faces far more competition than ever before, and the natural life cycle of any business is getting shorter. Intellectual capital is even more important today than it was yesterday.

Most Noted Hill Stations Around the Financial Capital of India – Mumbai

November 5th, 2020

Being a vast country has its advantages, look at India and the diversity it offers. While there are places with moderate climate like Maharashtra and other states that share their boundaries with sea, there are also several locations near them that offer a respite from extensive humidity and heat that one has to bear while living in these places. There are several hill stations in Mumbai which would let you breathe easy when heat gets the better of you. Here are top five hill station destinations that you must consider if you happen to be in and around Mumbai:

1. Panchgani: Hill station holidays in India have acquired a whole new image thanks to this picturesque place. This place is surrounded by five hills and is the home of several British era monuments and buildings that lend to it a royal aura. It is easy to go to Panchgani as it is just 98 km away from Pune by road and has acquired a cult status due to several Hindi films that have been shot here. In short this is a place where history means modernity in its finest avatars!

2. Mahabaleshwar: It is the quintessential holiday destination in Mumbai, situated at an altitude of 1, 372 meters, that becomes a must visit during the hot and humid summers that are a hallmark of most northern and southern states. This hill station is christened as the ‘Queen of Hill stations’ due to the scenic beauty and cleanliness at display here. While there are several animals that throng this place and call it their abode, the ones that may prove fatal to mankind are rare. Foxes, jackals, deer etc and several varieties of plants (including those that have medicinal value) are aplenty here.

3. Lonavala-Khandala: No hill station tour in Mumbai can be called complete without setting foot on this beautiful twin hill resort. It is almost a pilgrimage that Mumbaikars undertake to take refuge from sweltering heat of Mumbai. But it would be wrong to call these places just a ‘refuge’ as it would be too humble for this serene place. There are several sightseeing venues that are available here at affordable rates that can blow your mind away like Duke’s nose, Tiger’s leap and Lohgad etc. What’s more, this place is so very well connected with the rest of Mumbai that the problem of conveyance or accommodation never ever arises as several resorts line up this place to lap up tourists.

4. Saputara: This Gujarat hill station town is situated in Dang district. It has a tribal flavor to it, as several tribal families have made their homes in and around Saputara. The name actually means ‘abode of serpent’. Since, it is very convenient to live here thanks to the dense forest that keeps them away from modern civilization hence, tribal hutments and humble dwellings can be spotted here as well.

Satpura is an extremely chilled out place to go trekking as it is calm and has all the amenities to make living their easy for tourists.

5. Lavasa: This is a complete package or should we say an all rounder in terms of the perfect balance of beauty and modernity? Though it too is rich in natural beauty but modern means of adventure are not difficult to find here. A tourist can enjoy a bus tour to this ethereal piece of land or go on foot soaking in the first rays of the sun or indulge in water sports or experience world class dining without paying a bomb! Can any other hill station boast of such dramatic polarities with such ease? What also helps this place is the convenient location and easy mode of transport which are available here at even odd hours thus making it a true holiday hill station destination.

A Number of Indian Professionals Choose Jobs in Ahmedabad

October 26th, 2020

Gujarat has been able to build an image of a business-friendly state over the years and many national as well as foreign companies, attracted by the various concessions and sops offered by the state government, have invested heavily in the state. The shifting of the Tata’s widely publicized Nano Project from West Bengal to Gujarat, added glitter to its growing aura. Money attracts money and numerous development projects across the states have seen the rise in demand for skilled candidates and experienced professionals.

These events have changed the destiny of Ahmedabad. The city has grown exponentially in size and population over the last few years. Suburbs have merged into the city as the city limits have expanded to cover a larger area. A large number of professionals from all over India are taking jobs in Ahmedabad as the city offers better growth opportunities and a safe environment to live in. While the attraction of working in Metros still persists, cities less crowded and congested are now preferred by many people looking for a less hectic and tense lifestyle.

Last few years have seen a tremendous boost Ahmedabad’s infrastructure. A large number of malls have been built all over the city housing numerous well-known Indian and foreign brands. The BRTS system has made transportation throughout the city hassle-free and has opened the option of commuting thought public transport to people who earlier relied on their personal vehicles.

The government ambitious riverfront project of salvaging land from the Sabarmati River will make the city more attractive and entertaining. All these projects have created a large number of jobs for marketing, engineering, and management professionals. The professionals quick to scent the opportunities offered by the city have come and taken jobs in Ahmedabad.

The city also offers good lifestyle opportunities. It is not as crowded or impersonal as the Metros, and it is not too small. The cites is a dream come true for foodies who can choose from among a vast number of restaurants, street food and 5 star hotels. The city also boasts numerous multiplexes and cinemas; it has a lively cultural life with numerous music, dance and film festivals livening its nights. Many government and private hospitals and numerous schools make it a good place to lead a family life.

Realty, Infrastructure Development, Pharmaceuticals, Hospital Industry, Textiles, Finance, IT industry, and many other expanding industries have created many jobs in Ahmedabad and the companies are willing to pay good money for talented professionals. This, coupled with the fact that the city is less expensive than other big cities, makes the option of working in Ahmedabad viable for professionals from other cities.

Ahmedabad has been making news during the last few years as thousands of crores of rupees are poured into the state’s economy, a substantial portion of them in and around the city. The financial success and growth of the city has seen a sharp rise in the number of professionals from other states, and even from metros, choosing to work and live in the city.

Why Mumbai Became the “Financial Capital” of Contemporary India

October 15th, 2020

‘The Land of Seven Islands’, Bombay aka Mumbai grew as a prime commerce center in the mid-seventeenth century. Under British Raj in India, it developed as a major western port establishment, especially in the latter half of the nineteenth century. Replacing Surat, soon it became an important administrative and industrial center of the state. Maratha’s hub Bombay grew as the leading commercial center of India under British rule, because of its dominance in the textile and overseas trade.

Post-independence, Bombay became one of the earliest cities in India to be industrialized. It also emerged as a center of a well-organized labor movement in the country.

Legacy of Bombay

Under British East India Company, Bombay emerged as a center of large scale civil engineering projects and a major commercial port. Extensive Arabian trade earned massive wealth for the Parsis, Gujarati Hindus, and Muslims communities in the city of Bombay. Trade and commerce provided Bombay an all-round growth and hence, it continued its progression as an attractive destination for business and employment in the country.

It was under the British rule when Bombay developed as a leading entertainment hub of India. ‘Raja Harishchandra’, a popular silent movie and the very first of India was made in 1913. Later in 1987, the film industry has India its major economic boom by employing over 520,000 people in the showbiz business.

Economic Importance of Contemporary Mumbai

Today, Mumbai is the ‘wealthiest city’ of India and highest GDP contributor of entire South, West and Central Asian cities. This cosmopolitan capital of Maharashtra is also country’s fourth most populous city with about 20.5 Million metropolitan residents. It is the leading commercial and industrial hub of modern India and accounts for over 25% industrial output, 5% of Indian GDP growth and over 70% of financial transaction in the current Indian economy.

The presence of major financial institutions such as the Reserve Bank of India, the National Stock Exchange of India, Bombay Stock Exchange, etc. has made it the commercial center of our nation. Mumbai has the largest bandwidth of international plus domestic businesses and accounts for maximum SMEs plus unorganized service sector in the country.

The increasing business opportunity and heavy financial flow have also contributed to the job growth in Mumbai, both for fresher and experienced professionals. Lately, Mumbai also emerged as the leading ‘Startup Hub’ of India. Entertainment industry of Mumbai is the biggest taxpayer in the state. The city of Mumbai is a prominent homeland of country’s maximum Billionaires and Millionaires.

Student Tours to the Fascinating Financial Capital of Geneva

September 25th, 2020

Located in the far western part of Switzerland, Geneva is the second most populous city in the country after Zurich. It sits on the south-western end of Lake Geneva and has two mountain chains, the Alps and the Jura, surrounding it. Geneva has a history that dates back to 58 BC, when the first Roman settlement was noted in the locale.

The city has embraced its role as a financial centre, and as far back as the 14th and 15th centuries it was the capital of European trade fairs. Student tours will take participants around the city and describe how, during the 17th century, Genevan bankers financed The Dutch West Indies Company and the Royal Bank of England, among other notable achievements. It is the ideal city to include on tours for students that focus on sociology or politics studies.

Since the time of the 17th century, the city has evolved into one of the most important financial hubs of Europe. After London and Zurich, Geneva is considered Europe’s third major financial centre. As such, it has been the base for several major international corporations and charities such as The International Committee of the Red Cross (also known as the International Red Cross and Red Crescent). Geneva was also host to the country’s first stock exchange. Student tours to the modern city can expose pupils to two of the most important business and financial institutions in Europe.

The International Committee of the Red Cross – This private humanitarian institution had its beginnings as part of the Geneva Convention, held in 1864. Representatives of 12 countries signed a document that was declared to be ‘for the Amelioration of the Condition of the Wounded in Armies in the Field’. As a result, several of the nations created national societies within their home countries.

Student tours to the International Red Cross and Red Crescent Museum – currently closed but to re-open in 2013 – and the headquarters of the ICRC will take students through the history of the organisation. This can include looking at how and why the ICRC is the only institute explicitly named under International Humanitarian Law. A tour can also explore the interesting aspects of the organisation itself. It is neither an international organisation, nor a sovereign entity; as such, it does not have a policy of open membership like most NGOs, and instead limits its membership to Swiss Nationals.

Geneva Stock Exchange – In the current world economic climate, student tours to one of the founding seats of the financial stock exchange will certainly prove interesting and informative. Founded in 1857, almost 25 years prior to the exchanges in Basle and Zurich, the Geneva Stock Exchange was the fifth most important stock exchange in Europe. Geneva remained in its central role in European and world economics until the stock exchanges in Basle, Zurich, and Geneva were combined in 1995 to form the SIX Swiss Exchange, which is now based in Zurich.

How to Secure the Financial Capital to Launch Your Business

September 6th, 2020

I used my own savings to set up my first business, and as it expanded, was supported by small investments from friends and family. I soon realised that it would be a mistake to give away what could be more shares than the capital warranted, and have learned to structure capital in a more considered manner so that share of equity reflects the contribution to the success of the company, rather than the finances required to establish it.

Sourcing capital

For start-ups, private funding- from friends and families, even committed suppliers is the best bet for seed capital. It usually comes on favourable terms and without fixed repayment timeframes. It’s important ensure that all parties are clear about what goes in, under what circumstances and when it needs to be returned, and some agreement should be written up to prepare for the possibility that this obligation cannot be met.

Attracting investment

To appeal to investors, you need to plan well, demonstrate commitment and unique expertise in your industry. Avoid the temptation to fudge the truth – investors want to work with honest, passionate and dedicated entrepreneurs and any hint otherwise can often be a deal breaker. Prepare for both the best and worst case scenarios so that if a promised order falls through or a potential client breaks contract, you have an immediate Plan B to turn to. That reduces the perception of risk and makes your business far more attractive.

Contact local support organisations and draw on your networks to maximize the support you have on standby – you never know when you will need to call it in. Do your research and understand what you need and why and always bear in mind that investors are NOT there to pay your wages, but to support the establishment of hopefully new business that will hopefully generate future rewards.

Giving it away

One of most common mistakes made by start-up entrepreneurs is giving away too much equity as this leads to in the primary stakeholders getting squeezed when further funding is required for future business growth. Borrow if necessary but avoid giving away equity as you may regret it and have little to encourage future investors to finance the expansion of an established and successful business. It’s also essential to ensure that first group of investors understands the risk as well as the reward.

How much?

Start-ups often don’t ask for enough. Obviously this makes you more attractive to initial investors and can be tempting when you are trying to offer them an easy decision. However, it’s harder to go back for more, especially if you need it to hit your original target simply because you didn’t plan enough. The capital to grow is a different matter that reflects a higher degree of risk and involves private investment rather than venture capital.

How many investors is too many?

How many investors you work with is less relevant than the level of control they each have. If you don’t want them to have at least some say in your business, then, quite simply, don’t borrow their money. Keep the numbers down to between two and four. Be clear about how decisions will be made before the investment and, again, be honest every step of the way. If things are going well or badly, ensure you keep the investors informed but don’t go running to them with horror stories every time something goes wrong (and it will). They are backing you and the business and they have a right to expect you to put in the hard graft to succeed and protect their investment in you.

Where can I get further assistance?

Government and some NGOs have really useful start-up schemes, many tailored to specific industries. These provide everything from mentoring and training to affordable premises and finance support services.

Unfortunately for many SMEs, banks are simply not an option. They are worth speaking to as they are pragmatic, business-focused and de-risked, so make a good sanity check that at the very least, will guide your business planning.

About XLN Telecom

XLN is committed to providing the lowest cost telecom services and highest customer service levels to the UK’s small business community. Founded in 2002, XLN is now the UK’s largest independent provider of telecom services to small businesses in Britain with over 125,000 business customers across the country.

In 2007, XLN was ranked as the highest placed telco company in the Sunday Times Tech Track and was listed for a second consecutive year in 2008. In 2009, the company was a finalist in the Customer Focus Award category of the National Business Awards. In the same year, XLN achieved CarbonNeutral status, making it one of the first companies in its sector to earn this certification. 2010 has seen XLN win awards in the Global Business Excellence Awards, Best Company Awards and been nominated as finalists in the Federation of Communication Services and Fast Growth Business awards.

Financial Capital

March 13th, 2020

Financial Capital, also known as economic capital, is money used by businesses in order to buy what they need to produce goods and services. It differs from real capital as it refers to funds provided by investors used to purchase the necessary items used to run a business. Real capital refers to those items used to run the business. Financial capital always comes at a price, usually interest which is determined by the time value of money. Capital contributed by the owner of the business is known as own capital and that which is borrowed from another institution is known as borrowed capital.

Financial capital is a liquid medium or mechanism that generates wealth or other capital. These liquidity requirements vary and there are various markets created to trade them on. There are four functions combined to create capital assets, these are: medium of exchange, standard of deferred payment, unit of account, and store of value. When the four functions are satisfied it is known as money and does not need to be traded on financial markets as there is no risk involved.

Sometimes financial capital investments are backed by the government from a closely regulated reserve. These investments are traded on the money market and reveals differences in probability of debt collection and store of value of that currency. Financial capital may be traded on bond markets or reinsurance markets with different degrees of trust in the social capital of the bond-owners and other entities that trade financial investments.

When these instruments have deferred payments there is usually a higher rate of interest than the standard rate paid by banks, those that contain fixed payment schedules and a uniform rate of interest are known as fixed income investments. A variable rate loan, such as a home mortgage, reflects the standard rates of deferred payment set by the prime rate and increased by some percentage.

The trades that take place in Financial markets consist of underlying assets that do not consist completely of financial capital investment, but move up and down in value in accordance with the trading of financial derivatives. Many things can affect the price of the financial capital investments that are sold in commodity markets such as boycotts, embargoes, and weather that effects production. Stock markets, on the other hand, are more affected by trust in corporate leaders such as capital from consumers, social capital, and internal organizational efficiency such as instructional capital and infrastructural capital.

The relationship between Financial capital and all other forms of capital is assumed in central bank policy and are characterized by a political economy. Therefore, the supply of money and regulations on financial capital are representative of a country and determine the allocation of labor. Legislature determining the increase or decrease of the money supply based on inflation or other means reflects the value of financial capital compared to the other types. All forms of capital are connected as the affects that inflation has on financial capital reflects all other forms of capital as well.