The Five C's Of A Business's Credit Worthiness

The Five C’s Of Building A Business’s Creditworthiness

Most small business owners work hard to keep their businesses running smoothly by cutting corners, reducing unwanted expenses and making smart business move. But in all their hard work, most often they forget and undermine the importance of taking care of their business’s credit rating. Creditworthiness plays a big role when you need to look for financing options through business loans or alternative financing sources such as KredX’s invoice discounting services to support or grow your business. In simple terms, a business’s creditworthiness is a valuation performed by these lenders to determine if they are a good fit to be given money to and won’t default any debt. It usually takes factors such as repayment history and credit score into consideration.

Why Having A Credit Control Is Vital To Every Small Business

Why Having Effective Credit Control Is Vital To Every Small Business

Every small business owner would be familiar with the panic associated with customers paying late. It wrecks havoc with your business operations, your planning and regular payments to employees and other operational charges. In fact, it has been found that over 55% of the total value of B2B invoices in India were reported to be paid late according to a 2016 report by Atradius. This causes problems for the business and in turn, the other businesses it works with, thereby causing a negative cascading effect. To counter this, most businesses have in place a process called credit control. In simple words, it is a practice followed by businesses to ensure that customers don’t take too long to pay you by following up through emails or calls.

Invoice Discounting vs. Business Loan

Invoice Discounting vs. Business Loans: A Quick Guide

Most businesses inevitably face a cash crunch or two during their lifespan. To tide over such lean periods, a business can opt for financing options available in the market, the most obvious of which is a business loan or alternative financing solutions such as invoice discounting. How is invoice discounting different from a business loan? What are the advantages of it over a regular business loan? Here’s how!

How To Take Your Small Business To The Next Level

Infographic: How To Take Your Small Business To The Next Level

Setting up a business and running it successfully is not a simple task. If you’ve made it this far, you’ve won half the battle but you’re stuck in a rut and you’re wondering what’s next. How do you take your business to the next level? Taking it there requires a lot of work and getting through some challenging times while still keeping your business running and profitable. The first step you need to take is to ascertain if your product or service has enough scope for you to consider expansion. Can the demand for your company’s product sustain its growth? If you just answered yes and if you’re prepared to put in the work and dedication your small business requires to up its game, here are some simple steps you can follow to take your business to the next level.

Common cash flow mistakes

Common Cash Flow Mistakes Most Small Business Owners Make

Every business no matter how good the product may be, or how much funding they have are bound to have some trouble if their cash flow management is off. A company’s cash flow is dependent on timely invoice payments from their customers. A 2016 survey by Atradius on B2B Payments in APAC showed that Indian businesses face a delay of 65 days on an average to receive payments from the day of invoicing. The business struggles to stay afloat when these payments are delayed. This is one crucial aspect of any business that can spell success or doom for them. Here we outline some of the most common cash flow mistakes small business owners should stay clear of to avoid jeopardising their survival.

How to read your company's cash flow statement

What Is A Cash Flow Statement And How To Read It

Understanding your company’s cash flow statement is indispensable to getting your company finances in order. It tells you how much money goes in and out of your business. Your company’s cash flow statement, the balance sheet and the income statement together will give you a holistic view of your company’s financial profile. A cash flow statement is a report of sorts that tells you how much money your company has in hand or its liquidity.