A financial crisis is not a reasonable entity. It can’t be rationalised with. There are no negotiation tactics available that can put a financial crisis to bed. Saving your business from debt would take a tremendous amount of effort. There just aren’t any soft answers when it comes down to a financial crisis. It is…
A Cash Flow Statement provides an overview of a company’s revenues and expenses. Cash flow statements are used to get an aggregate of a company’s revenue streams as well as expenses.
There is a stigma attached to Chartered Accountants. They get a bad reputation because there is a common perception out there that Chartered Accountants just file tax returns and maintain balance sheets. Not only is this false, but if you actually believe this, there is a significant profit margin you could be missing out on…
The Ministry of Micro Small and Medium Enterprises (MSME) was set up in the late 1940s as a vocational training center. The primary function then was to provide a means of employment for people who were displaced because of the partition. Later, the Micro Small and Medium Development (MSMED) Act came into being in 2006…
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.
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.
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!
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.
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.
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.