PediaWorld

If you were to dissect the culture of a business, and you ask various people in an organization what the real roles of each department are, you’ll find the well-known dichotomy between “front office” and “back office” operations.

Front office staff are the people who deal with customers. They might be the customer service department, the sales department, and sometimes the marketing department (depending on how involved the marketing department is in the sales cycle). Back office staff are usually the admin assistants, HR, and the killjoy of all businesses – the Finance department.

In businesses I’ve observed, Finance departments often face silent derision or disrespect. Part of it is an us-versus-them mentality that comes out of the front office staff who feel their jobs are more difficult because they deal with customers (compared to Finance, who deal with numbers). And no one from the front office sends memos to the back office saying “please spend less time crunching the numbers” but it can feel like the back office is constantly memo-ing the front office with “watch this expenditure” or “spend less on client lunches”.

Unfortunately, this view is supported by management at all levels that give Finance the nasty job of accounts receivable, the inputting-heavy job of accounts payable, and the dull job of budget forecasting. Compared to the highly creative marketing department and the edge-of-the-seat, in-the-trenches feeling of the sales department, finance is like the broccoli side dish on a plate of steak and fries.

But it doesn’t have to be this way! Finance departments shouldn’t be relegated to the back office in the hopes that their sharp pencils won’t poke a customer in the eye! Finance departments can and should play a far more important role in the organization. Here are some ideas:

• POSSIBILITY 1: Finance should be more about business strategy than number prophecy. When the Finance department hounds the sales managers to get in their budgets and then turns them around for a final target budget for the year, their role is reduced to mere numerical interpreter. But what if Finance sat down with sales and talked to them about how their numbers connected to expected outcomes? And then, what if Finance sat down with the executives of the company and actually worked out a forecast that was tied to what the market was anticipating! Imagine a world where Finance’s numbers were more than just a spreadsheet that gets pulled out at every quarterly review.
• POSSIBILITY 2: Finance should be more about opportunity. Many sales managers have some limited view into which customers are sending business. But the view isn’t always perfect. Or complete. Finance should get involved to show how a customer is really impacting the business’ bottom line. If Finance and Sales talked to each other, Sales might be shocked to discover that their biggest client is actually less valuable than expected because of the amount of work involved in keeping them as clients, or they might discover that a seemingly profitable client isn’t profitable at all because their receivables get very, very old. Imagine a world where the Finance department can relate true business impacting information to Sales to tell them which opportunities are truly the most profitable.
• POSSIBILITY 3: Finance should be selling, too. When Finance gets the job of following up on accounts receivables, they can potentially do more harm than good. Finance people are highly skilled at numbers, and they might be good “people-oriented” staff, but they are rarely trained in the art of sales. However, when a Finance person, tasked with accounts receivables, gets adequate training in receivables AND customer service AND sales, their success rate at getting the receivables paid can increase, but so will their success rate at winning more business.

There are so many more opportunities, too. Businesses should be using their accounts payable list as a prospecting list. They should be temporarily swapping roles between Finance and Sales for brief “see-how-the-other-side-does-it” days to enable new appreciation and new connections. Finance should sit in on sales calls to see why Sales sometimes feels like they need to bend the rules to close the deal (and Sales should shadow the work of Finance so they know what work needs to happen at the back-end if they don’t assess risk adequately during the sale).The bottom line for businesses should not be derived from a cloistered Finance department. Instead, a business can uncover new and exciting opportunities when it makes its Finance department an integral part of the entire business.

Two types of alternative business financing that often get confused with one another are Accounts Receivable Financing and Purchase Order Financing. It’s understandable that they sometimes get confused, however, they are two very different types of alternative business financing that serve two very different purposes.

Accounts Receivable Financing is used when you have outstanding invoices on your aging report and want to access that cash now instead of waiting to be paid at a later date.  NOTE:  To qualify for Accounts Receivable Financing, your product or service must have been delivered and invoiced; otherwise there are no Accounts Receivable invoices to use as collateral.

The two types of Accounts Receivable Financing most commonly used are Asset Based Lending and Factoring:

• Asset Based Lending - You can get traditional bank financing or alternative business financing in the form of asset based lending.  If you qualify for bank financing, go that route first because the cost of capital will always be less than non-traditional asset based lending.  You receive a line of credit from a bank or non-bank lender and use your accounts receivable invoices as collateral for the line.  Each institution has different underwriting standards; however, the important thing to remember is that the strength of your company will still play a role in getting approved.  It will be not be possible to get bank financing if your business is losing money because banks are very conservative…and rightly so; they’re not making much money on your line compared to non-traditional lenders.  These non-traditional lenders will still have to qualify your company in the underwriting process (although less stringent) and have certain covenants tied to the line in order for it to stay open.
• Factoring – This is a form of financing where a 3^rd party purchases your accounts receivable invoices at a discount so you can receive working capital today instead of having to wait 30, 60 or 90 days to be paid.  Factoring is more flexible that asset based lending in the sense that you’re qualified based on the strength of your clients, not your financial strength.

Purchase Order Financing, also known as PO Financing, is used when capital is needed to fulfill an order after receiving a PO.  Smaller companies that start to receive larger orders can turn to this type of alternative financing to help sustain growth.  PO Financing only makes sense when profit margins are large enough to offset the cost of capital.  It can be costly; however, it’s still cheaper than equity.So remember, Purchase Order Financing is used on the front end of a transaction and Accounts Receivable Financing is used on the back-end of a transaction.  If your company needs financing for growth or survival, these two types of financing may be very helpful financing tools.

When it is time to arrange the financing for an acquisition, it is important to be creative. When seeking money to buy a company, you will notice that a number of community banks, typically big funders of certain acquisitions, are encountering difficulty due to their degraded residential (builders) loan portfolio. Creativity can make the difference between accessing capital or canceling the acquisition, especially now when credit markets are tighter.

Here are some options for financing acquisitions:

1. Owner financing / seller financing – Go to the seller first. Who is better prepared to finance the business than the person or company who owned it? They know the business better than anyone and are most familiar with its risks. In the current environment, you should be able to get 40-70% of the business financing via owner financing. You must convince the seller you are a good risk, just as you would have to convince a bank.

2. Supplier or vendor financing – The target company’s suppliers and vendors are a good source of financing. Their business is likely to increase under your new ownership. (i.e., If you do not intend to grow the business, why would you buy it?) Leverage that growth in their business to negotiate for financing from them. If the target company has been a good customer, the supplier is knowledgeable about the business and will understand the inherent risks better than a typical bank. Note that if you are an existing business acquiring another business, you can pursue financing from your suppliers and vendors. The same reasons apply.

3. Mezzanine financing or private equity funding – Mezzanine and private equity funds that serve the small and medium markets raised large sums of money before the market meltdown. They therefore have money to spend and are looking for great opportunities. With fewer people and companies making acquisitions right now even though multiples are very low, now is a great time to obtain mezzanine financing. The target company typically will need revenue of $10 – $20 million and higher and EBITDA of $2 – 3 million and more to be interesting to a mezzanine or private equity fund. Why? These funds have to spend large amounts in a relatively short period of time (5-7 years) so they need larger deals.

4. Bank debt – If the target company has a lot of medium to long-term assets in addition to good cash flow and a strong profit margin, you should have relatively few problems finding bank financing. However, if you want to buy a service company which has a lot of receivables and other short term assets, you may encounter difficulty. Find a bank that has a history of financing the type of company you are buying. Also, talk to the seller’s banker. If the seller has a strong banking relationship, the banker will know the business well, increasing the likelihood that that bank will provide financing in order to retain the relationship and the itinerant deposit accounts.

5. Receivables financing – If you find it difficult to obtain bank financing, pursue account receivables financing firms. They can provide term loans and lines of credits against the receivables. Although the interest rate will be higher, these firms are more familiar with receivables financing and thus often more comfortable with lending against receivables.

6. Pre-paid sales – Approach the target’s customers and ask them to make a bulk purchase or pre-pay for several months’ or a year’s worth of products or services in exchange for a strong discount.

These are some acquisition funding options to stimulate your own creative thinking and approach. There are other alternatives, some of which may be unique to your particular business.

Not all businesses have Finance Directors, and there is a common attitude that only large, enterprise level companies need them – and afford them. However, many growth businesses need help from a finance director before reaching enterprise level, understanding the role of a financial director can be the first step towards gaining the expertise of an individual that can literally make the difference between the success or failure of a business.

The primary functions of a financial director can be summed up in six points:

1. Finance Directors are responsible for managing the finance function of the business which would include overseeing such things as transaction recording, cash flow management, internal controls management and statutory reporting, finance department personnel management and development , external auditors and tax advisors.

2. The FD manages the financial and business planning of the business, including budgets, forecasts, strategic business reviews, financial strategy, cash and finance requirements and formal business plans that can be presented to third parties such as potential investors.

3. FDs manage relationships with important external interested parties including funders, bankers, outside investors, solicitors and corporate financiers as well as the aforementioned auditors and tax advisors

4. A finance director with a commercial business background is often able to contribute to and manage functions such as IT systems, legal, HR, property and other facilities. Special projects such as mergers and acquisitions and internal change management are also often handled by the finance director.

5. The FD will be the numbers interpreter and translator. A good Financial Director will not only produce good quality numbers using sound and robust systems and processes but will be able to describe what the numbers mean. Furthermore, this interpretation encompasses not only what has happened but what might happen in the future, using indicators and key metrics. The translation of numbers into facts on the ground is probably the main differentiator that a good Finance Director has over a good financial controller.

6. Finally, but crucially, the FD is perfectly placed to be the business number two to the MD, the ideal business partner, devil’s advocate, conscience, voice of sanity and where occasionally necessary, the brake. A good FD can talk finance to finance people as well as present finance issues affecting the day-to-day running of the business in a clear and concise way to the management team.

It might be logical to conclude that with all of these responsibilities, a Finance Director is a full time role required by bigger companies. However, more and more businesses are discovering that there is a crucial period in the life of a growing business where the skills and experience that can deliver the above services are required, but not on a full-time basis, and that a flexible Finance Director is a low risk, cost-effective bridge between using a bookkeeper/accountant combination and acquiring that first full-time FD.

What is a “flexible” Finance Director?

A flexible, or part-time FD does just about anything one would expect a permanent Finance Director to do, as long as it’s not illegal, unethical or immoral! Some clients have just a bookkeeper, others have a financial controller leading a finance team and the flexible finance director adapts to the resources of the client.

Generally, flexible Finance Directors work on an on-going basis with clients on projects of strategic value but are also happy to oversee the finance function in all its entirety.

Moreover, a flexible FD doesn’t go native as they are not working within the company full time. The main advantage this gives is the ability to retain an external perspective on issues. This can be very important when management teams in SMEs are often very overworked and do not have quality time to stand back from issues to see them in a fresh light.

Lastly, having a flexible FD model enables growing businesses to afford that critical expertise at a fraction of the cost of a full-time Finance Director.

Buying an automobile is such an exhilarating thing. If your budget is limited, there are copious numbers of models and add ons to choose from. Once you decide what you want to buy, the next step is looking at the auto finance options. One of the most expedient and cheapest mode to fulfill the desire of owning an automobile is auto financing. Auto finance means financial assistance given to an individual for buying an automobile like scooter, bike, truck, car, lorry and any other automobile as per desire of the buyer and which is simple to repay till its last installment. Ontario auto finance is combination of these factors: Low rate of interest, long repayment period, Low miscellaneous cost, No hidden cost, Flexible terms and conditions. It is also known as auto loan. Its repayment amount depends upon three factors: Amount financed, loan term and Interest rate. These factors are the core of any financing deal.

Amount financed is the amount financed which will be equal to the difference between the cost of an automobile and the amount which the buyer can arrange himself. Loan term means period of repayment. Generally, the lender offers lower monthly installment when the repayment period is longer. Interest is return to the lender for undertaking risk on providing finance to the buyer and, these can be taken into account as charges for the buyer. Interest rates is decided and settled on the basis of certain factors such as prevailing market, base rate, amount borrowed and credit score of a person. As a result, interest rate differs from person to person. It is also recommended that the buyer must be aware of all terms and conditions of the financing deal. He must make sure that the deal doesn’t compromise of hidden cost, as making such undesirable payments regularly increases the cost of the financing.

Ontario auto finance while providing finance for an automobile, the person with poor credit score needs to pay high rate of interest compared the person with good credit score. They are of two types: secured auto financing and unsecured auto financing. Secured auto financing is finance where borrowers offer collateral against the financed amount and in return the lender proffers low rate of interest as he feels secured. Unsecured auto financing is exactly the opposite of secured auto financing. In this financing, the borrower does not offer collateral against the financed amount and in return the lender proffers high rate of interest as he feels unsecured and doubt on creditworthiness of the borrowers. The buyer must look for such a lender which have appropriate match with the financial needs and requirements of him.

We all have a duty of creating value in our lives, financially and otherwise, and when managing personal finances is our business to make thrive or drive to ruin. Not only is managing our personal finances our business, but the secret is to treat our personal finance decisions as a business, the business of ourselves.
Ancient cultural wisdom has passed on this secret of personal finance for countless generations yet many forget its lessons.

Life can be looked at in a way that will make managing your money and your finances easy with this understanding. From birth to passing, you are in business for yourself, the business of you. How you choose to run your business is up to you, but the principles of a successful business will lead to a successful life, both financially with your money and emotionally, let me explain.

A successful business is all about service to your fellow human beings, and providing value to their lives. If you seek to provide as much value to as many human beings in your life, you are sure to be a success, and customers and wealth will flock to your door. So how does this apply to managing personal finances successfully you might ask?

When managing personal finances like a business, it is with the understanding that you are in business for yourself. Your personal finance business is of the utmost importance, and management will lead to additional opportunities and much success in life. Make sure that treat your personal finance business with the importance they deserve as proper managing of said finances will have ramifications that reverberate through all the aspects of your life.

When managing personal finances it is important to search for opportunities to be of greater service and value in the relationships you build. But also to do so with an eye towards avoiding decisions that would lead to bankrupting the business of your finances. Managing your personal finances will give you additional opportunities to help and build wealth for the people around you. It is your duty to grow your personal finance opportunities with sound decision making and investments to grow your ability to help.

A business is always looking for opportunity to expand and to grow, and this principle should be applied towards managing your personal finances as well. Seek greater income opportunities by becoming more integral at your job, or with another company. Develop relationships with the people you meet and discover how your skills can help them. Keep a keen eye towards the growth of your finances. And managing your personal finance business also means watching for opportunities to cut costs or expenses that are unnecessary.

Invest in yourself to develop greater skill sets, position yourself for your future. My point, is managing personal finances like a business is about seizing control of your destiny, both with your finances and your life. Imitate the great business leaders from and attack your future with vigor and enthusiasm. Managing your finances in this way, with boldness, and a belief in their importance can have astounding results. Lead your money with boldness, and like an army your personal finances are sure to follow.

We all have a duty of creating value in our lives, financially and otherwise, and when managing personal finances is our business to make thrive or drive to ruin. Not only is managing our personal finances our business, but the secret is to treat our personal finance decisions as a business, the business of ourselves.
Ancient cultural wisdom has passed on this secret of personal finance for countless generations yet many forget its lessons.

Life can be looked at in a way that will make managing your money and your finances easy with this understanding. From birth to passing, you are in business for yourself, the business of you. How you choose to run your business is up to you, but the principles of a successful business will lead to a successful life, both financially with your money and emotionally, let me explain.

A successful business is all about service to your fellow human beings, and providing value to their lives. If you seek to provide as much value to as many human beings in your life, you are sure to be a success, and customers and wealth will flock to your door. So how does this apply to managing personal finances successfully you might ask?

When managing personal finances like a business, it is with the understanding that you are in business for yourself. Your personal finance business is of the utmost importance, and management will lead to additional opportunities and much success in life. Make sure that treat your personal finance business with the importance they deserve as proper managing of said finances will have ramifications that reverberate through all the aspects of your life.

When managing personal finances it is important to search for opportunities to be of greater service and value in the relationships you build. But also to do so with an eye towards avoiding decisions that would lead to bankrupting the business of your finances. Managing your personal finances will give you additional opportunities to help and build wealth for the people around you. It is your duty to grow your personal finance opportunities with sound decision making and investments to grow your ability to help.

A business is always looking for opportunity to expand and to grow, and this principle should be applied towards managing your personal finances as well. Seek greater income opportunities by becoming more integral at your job, or with another company. Develop relationships with the people you meet and discover how your skills can help them. Keep a keen eye towards the growth of your finances. And managing your personal finance business also means watching for opportunities to cut costs or expenses that are unnecessary.

Invest in yourself to develop greater skill sets, position yourself for your future. My point, is managing personal finances like a business is about seizing control of your destiny, both with your finances and your life. Imitate the great business leaders from and attack your future with vigor and enthusiasm. Managing your finances in this way, with boldness, and a belief in their importance can have astounding results. Lead your money with boldness, and like an army your personal finances are sure to follow.

So you’re considering having some cosmetic surgery done, but your insurance won’t cover it and you don’t have the money to pay for it up front. Believe it or not, there is a way to finance that tummy tuck or eye lift.

What to Consider:

The Cost

Cosmetic surgery is expensive. Procedures cost anywhere from $500-$25,000 depending on the type of procedure being performed. Financing your surgery will only add more to that cost due to interest rates.

As with any type of financing, your interest rate will vary based on your credit history, selected loan term and the loan amount. Available loan terms may include 12, 24, 36 and 48 months or a revolving credit line depending on your credit background. Keep in mind: If it sounds too good to be true, it probably is. Be skeptical of financing companies offering 1% rates, because there is usually a hidden cost behind these offers.

Also keep in mind that you may need to come up with a down payment in order to finance your surgery. Down payment requirements are determined based on your credit history and your health care providers requirements, if any. If you have average or above average credit, you may not be required to put any money down.

As with any type of financing, whether it be a car, a home, or even cosmetic surgery, you should take into account what your current financial situation looks like and determine whether or not you can afford a regular monthly payment for the next 24, 36, 48 or 60 months.

If you have not already done so, figure out your monthly income subtracted by your bills, don’t forget to include miscellaneous items such as groceries, toiletries, gas, household products, pet food, etc. After you have created a monthly budget, you can now determine whether or not you can afford another $100-$200 monthly payment.

The Procedure

Before you begin to get all excited about the prospect of financing your new look, it’s important to understand why you want to have this kind of procedure done. Make sure your expectations are realistic and that you are doing this because you believe there are no other options. Consider both the pros and cons of cosmetic surgery and weigh your other options.

A good rule of thumb for financing cosmetic surgery is to finance only major surgical procedures. If you’re considering Botox, for instance, the prices are reasonable enough, but if you’re financing the injection(s), it will cost you more than it’s worth.

You should also keep in mind that most types of cosmetic surgery need to be maintained on a regular basis, and fighting the aging process completely is futile.

Finding a Surgeon

Although a cosmetic financing company can refer you to a surgeon, it’s best to find one before you contact a financing company. Dr. Steve Fallek, a cosmetic and reconstructive plastic surgeon in New York and Englewood, NJ suggests that a financing company is not going to be able to give you the best plastic surgeon.

You want to go to a board-certified cosmetic surgeon who is reputable, honest and who hopefully you’ve gotten the name from someone who has had plastic surgery from that person. Fallek says patients should ask their surgeon to recommend a finance company.

Financing Companies

Before you chose a financing company, make sure they are reputable. They should have a good track record in financing health care procedures and should work with a network of doctors.

If you have found a surgeon to do your procedure, you may also ask if he/she has financing available. The terms of the financing should be clearly outlined in writing before you apply for any financing, and you should never pay a broker fee.

Most surgeons use the same financing companies, so don’t waste your time looking for surgeons who may have lower rates. Seeing different surgeons takes up time and money.

You may also want to consider using your credit card if the interest rate is lower. Some people also borrow from family or even take out a home equity loan.

The Decision is Made

If you have now decided that you can afford to finance your cosmetic surgery, research your procedure online to find out the benefits and risks. You may also want to discuss your surgery options with your primary physician who may also provide you with a list of surgeons and payment options.