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Forbes.com Article Endorses Factoring

A recent Forbes.com article has some excellent tips for small businesses about managing cash flow through factoring.

URL: https://www.forbes.com/2009/01/29/finance-factoring-debt-entrepreneurs-finance_0129_finance.html

The article concedes that factoring is a great way for some businesses to get immediate cash without going into debt. What most concerns factors is the credit worthiness of the end customer, not the business or its owners.

The reason many businesses make this move is to ensure the continuous flow of cash to the business. Essentially, businesses who use factoring are focusing on having most of the money now rather than all of it later. It can take time to collect on an invoice, so when a company finances its accounts receivable, they are getting their money faster and without the hassle of the collection process.

It’s even more important for small businesses to free up working capital through factoring. The money can be invested into new equipment, used to pay bills, or used toward payroll. Of course, the alternative is to chase the customer for the invoice payment and defer everything else while the money is tied up in the collection process.

Charter Capital Develops Strategic Alliance with Profit Tools, Inc. to Provide Software Service With Accounts Receivable Financing

Trucking companies benefit from increased cash flow with invoice factoring from Charter plus the added benefit of trucking software by Profit Tools, Inc.

Houston, TX, November 14, 2008 — Charter Capital, recognized as one of the hardest working independent providers of asset based financial services for small to mid-sized businesses, and Profit Tools, Inc, a leading provider of business automation software for the trucking industry, have teamed together to offer their respective services to the trucking industry. When Profit Tools refers a trucking company Charter Capital for factoring services, then the trucking company gains the opportunity to automate its trucking business by acquiring fleet management software at little or no additional cost.

This strategic alliance gives trucking companies the tools they need to strengthen their business and weather tough economic times. Factoring with Charter Capital turns accounts receivable into immediate cash flow to accelerate business growth and insulate operations from lengthening customer payment cycles. Profit Tools trucking software provides business automation solutions to further increase cash flow, speed billing and dispatch processes, and improve overall efficiency. Profit Tools has modules that give trucking companies the ability to automate almost every part of their business, including mobile communications, document imaging, EDI Direct and container tracking and tracing.

“Together with Profit Tools, Charter Capital is poised to assist every size trucking business with the tools they need for success” said Keith Mabe, Director of Operations at Charter Capital.

“Trucking companies we refer to Charter Capital can get the benefits of a market competitive factoring rate and the use of the Profit Tools system,” said Brian Widell, President of Profit Tools, Inc.

Join us at the National Industrial Transportation League (NITL) TransComp Exhibition. This important freight transportation event is being held at the Greater Ft. Lauderdale / Broward County Convention Center in Ft. Lauderdale (Florida) between November 16-18, 2008. Come and talk to ProfitTools and Charter Capital’s transportation experts!

A major part of the program is the trade show, the TransComp Exhibition, which is co-located with the Intermodal Association of North America’s (IANA’s) Intermodal Expo. No other freight transportation event offers you more.

About Charter Capital.
Charter Capital is a specialized finance company structured to provide funding and accounts receivable management that is an alternative to conventional bank lending of working capital funds. Charter capital turns accounts receivable into immediate cash flow for companies to run their business. For more information please visit https://www.chartercapitalusa.com.

About Profit Tools, Inc.
Profit Tools, Inc. is a leading provider of software and business automation for small- and medium-sized Intermodal and Multimode trucking companies. Profit Tools solves key issues of growing companies, using industry-leading software and backed by a superior and reliable training and implementation team. Profit Tools is headquartered in Lee, New Hampshire, and can be found online at www.ProfitTools.NET.

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Charter Capital Offers Loan Alternative for Small Business Bankers

In the face of constrained lending by many banks today, Charter Capital announces increased capacity to assist bankers with funding options for small businesses (PRWEB)

Since many small business owners are overextended on credit lines that are often based on home equity, small businesses are having greater difficulty managing their debt in the face of declining sales. Because of the constraints placed on small business bankers, they have been pressured to tighten credit standards because of continued uncertainties in a slowing economy. Because of this, many small businesses have welcomed the concept of obtaining funding from alternative sources like Charter Capital.

Small business bankers may be interested in the additional opportunities to be gained by referring “difficult to qualify” borrowers to Charter Capital for funding and related factoring services. With Charter Capital’s ability to provide the business with vital funding through invoice factoring, the business is given incentives to maintain its checking and depository accounts at the referring bank.

Although Charter Capital is not a bank, it is a specialized finance company designed to provide invoice factoring and accounts receivable management services to its clients. Our services are geared to help small businesses that have difficulty qualifying for commercial bank loans.

Survival Instincts: American Small Businesses Doing What It Takes

For all businesses, being resourceful is essential when costs rise. With the current economic conditions, many companies are finding creative ways to deal with rising costs. At the top of this list is the cost of energy and fuel. In an April survey, American Express found that 86 percent of small-business owners are feeling the effects of higher energy and gas costs.

Many business owners are using this lull in the economy to closely assess their costs and cash flow. In lean times, savvy business owners make management improvements that they have thought about for years. Discipline and resourcefulness established in difficult periods can help give business owners the tools they need to maintain their business over in the long term. Simple, but meaningful, strategies can make a big difference to the bottom line: Reviewing/revising budgets, and sticking to them; Outsourcing (payroll, accounting, HR, IT); Getting receivables in line (Charter Capital can help with that); Cutting postage and overnight fees by sending document via email; Buying used equipment for non-critical tasks.

Since approximately fifty percent of every dollar in the economy is generated by cash-starved small businesses, their effects can be felt throughout the economy. If they are unprepared and their operating expenses go up, they may not be able to pass along these costs quickly enough to keep their cash flow positive. Without proper planning and some outside help, very few small businesses have large enough cash reserves to ride out a recession.

In an increasingly competitive global marketplace, small business owners shouldn’t take anything for granted. Entrepreneurs should always be looking at ways to stay lean and efficient. No matter the size of the company, it should be a part of the “corporate culture.”

Solutions for Small Business Bankers

Charter Capital is a non-bank provider of working capital funds and accounts receivable factoring services to small businesses. Commercial bankers regularly refer to Charter Capital their small businesses customers constrained in their ability to qualify for conventional financing. By employing its factoring services, Charter Capital quickly becomes a predictable source of working capital for many such referrals.

The lending and funding problems that have beset retail banking are spreading into small-business banking as well. Overextended on credit lines that often were based on home equity, small businesses are increasingly hard-pressed to service debt in an atmosphere of slowing sales. Working capital, often held in bank deposits, is coming under strain as well.

Shifting into protective mode, banks are ratcheting up the emphasis on credit quality and core funding in their small-business portfolios. And this has created a particular problem for small-business banking officers, who are being redirected from a former bull market for loans to what increasingly is a bear market for deposits.

Problem Solved – Charter Capital provides incentives to small businesses to maintain their deposit relationship with the referring bank. The banker helps the small business establish an alternative source of funding and preserves the deposit business it would otherwise most certainly lose to the competition.

Weathering the Storm: Banks Continue to Tighten Amid Losses

Unless you live under a rock, you have probably noticed that there is a banking crisis. Banks are continuing to struggle with multibillion-dollar losses in real estate and are continuing to tighten-up on all forms of credit. In a recent New York Times article (‘Worried Banks Sharply Reduce Business Loans’), the Federal Reserve reported that new commercial loans have seen the largest drop since 2001.

This classic “credit crunch” is leaving many businesses with the feeling that they are without a mechanism for growth. What’s more, this could leave already cash strapped businesses out in the cold.

Financial planning in today’s economic climate is the key to ensure your cash flow is healthy. Problems can be avoided with proper planning with your accountant or CPA and implementing an immediate review of internal costs. What savings can be made? Do staff numbers need to be cut? Moreover, run credit checks on customers or clients who may be a bad risk and review whether it’s worth keeping them.

Fore many businesses, the factoring of accounts receivable can be a healthy way to “weather the storm” without incurring debt. The process is simple and straight forward; and in many cases, less expensive than a traditional bank loan.  Click here to find out more about Invoice Factoring

If you run out of cash before you run out of month you’re in trouble; do it month after month and you’re out of business. Remember: Cash is king. The management of it is the secret to success.

Small Business Optimism

If you spend enough time following the news, it’s enough to make you wonder if small business can survive. Granted, things like the falling housing market and soaring gas prices are certainly real problems for everyone.

However, when you hear about some corporate-type whining that they had to give up their Starbucks because the economy’s so bad, the line between real problems and a shortage of common sense becomes pretty blurry. So, is the sky really falling? According to a recent study, small business owners say no.

The study, which surveyed more than 700 small business owners with 100 or fewer employees, found that 90% said they see opportunity under current economic conditions and 75% said they expect their business to grow.

Nearly half of those surveyed said the economy levels the playing field between small business and their corporate counterparts, and 65% said they have had experience leading their business through a tough economy. 63% of those surveyed say it’s about customer retention, and others say it’s maintaining good cash flow, which is a big part of what drives small businesses and allows them to do well in any economy.

Small businesses are able to fair better in an economic downturn because they think fast. They are in a better position to move very quickly in terms of how they align their resources. That’s just the way they’re used to doing it, in good times and bad. It all goes back to the passion they have for their business and their customers.

In spite of where the economy is currently headed, America’s entrepreneurial spirit has never been stronger. People are going to see that, as small businesses continue to grow and are a more important part of the economy, it will boost entrepreneurship even more.

Marketing in a Slow Economy

In tough economic times it is important to think beyond the current downturn and start thinking of creative ways to attract more attention to your company’s products or services.

There seems to be a little less to go around these days as business owners carefully choose where they are spending. This can be an opportunity rather than a problem. Simply do what others won’t. When everyone else in your market is cutting back and expressing their grief over the economy and lagging sales, you should increase your advertising.

Unfortunately, for some business owners, cutting back on advertising dollars is the first knee-jerk reaction that is employed. In difficult economic times, getting your product or service in front of prospective customers becomes increasingly important, if not vital.  Here’s just a few simple things that can have an impact:

Contact all your former customers – Make up any excuse to call them, but call them.  They may not need you now, but they may know someone who does. Ask for referrals.

Network – Take advantage of any opportunity to get in front of a group of people to talk about what you do best.  Give your business card to everyone you meet.

Offer specials or generous payment terms – There’s nothing like a discount or extended payment terms to entice customers.  But don’t worry, if you use Charter Capital’s FactorLine, offering generous terms (as long as 60 days) will have little effect on your cash flow.

Re-valuate your current advertising strategy – Make sure you’re reaching your customer base, and don’t underestimate the power of the Internet.  Sometimes a shift from traditional advertising to on-line advertising can have a dramatic effect.

People have a lot of things on their minds these days and it’s possible that your product or service is not among their top concerns right now, whether it should be or not. You should recognize opportunities to place solutions in their paths that will capture their attention, impress them, and bring them to your door.

Small Businesses Can Face Economic Downturns With Confidence

Dealing with an uncertain economy is never easy, especially for small businesses. Unlike their larger counterparts, small businesses rarely have the resources to monitor and take corrective action for every trend and issue. And even those owners who have weathered numerous business cycles may be faced with new circumstances that confound their otherwise successful instincts and knowledge.

While there is no crystal ball that accurately predicts the future, small business owners can take a number of steps that will help their enterprises endure the worst of times, and position them for success when conditions inevitably improve.

In the face of the ongoing credit crunch, consider an alternative to borrowing funds from a commercial bank. – Consider a funding line from Charter Capital, a preferred provider of accounts receivable factoring services. Charter Capital has vast experience in economic cycles, and can advise you on issues specific to your business and industry. It may be helpful to arrange for an invoice factoring or funding line. You may not need it for several months or at all. But if a lag in cash flow occurs, you will have a ready source of bridge money in place.

Make sure you have good relations with your vendors. – You may find it necessary to renegotiate terms, but overdue bills and inconsistent payment practices will not help your position. What’s more, your vendors may be experiencing financial difficulties as well. Any flexibility will hinge on whether they perceive you as a reliable partner, or a risk. A factoring or funding line from Charter Capital will help establish you as a reliable partner.

Similarly, keep a close watch on your receivables. – Follow up with whoever owes your company money and make sure they are meeting their terms. Be firm when dealing problem accounts, but also be willing to negotiate where appropriate. It may take only a matter of months for a struggling customer to become a highly stable source of income. If you can accommodate such situations without adversely affecting your company’s financial position, everybody wins. A factoring or funding line from Charter Capital will give you the freedom to extend even more generous payment terms to your valuable customers.

Step up your marketing efforts. – Many businesses mistakenly see marketing as a luxury when money is tight. The truth is that this is the time you need marketing most. Along with reassuring your current customers that you are still there to serve them, marketing can help you reach new markets that will sustain your business now, and facilitate its growth in the future. A factoring or funding line from Charter Capital will give you peace of mind to accelerate your marketing effort knowing that you have the cash flow to support your increase in sales.

Make sure expenditures can be justified, and that they contribute to the financial health of your business. – You may find it necessary to redirect money to areas that will enhance business performance. If you carry an inventory of products, check the accuracy of your records and procedures to prevent losses. Do not feel pressured to hold down sales for lack of inventory. A factoring or funding line from Charter Capital will give you freedom to invest in even more inventory than you might otherwise be able to afford.

Review your operations and expenses on a regular basis. – If you monitor your profitability on a monthly basis, it’s a good idea to do it weekly or biweekly during slow economic times. Likewise, you should review your business plan more often. Monthly or quarterly reviews will make it easier for you to make adjustments and keep your business on track. A factoring or funding line from Charter Capital will give you a certain amount of flexibility in meeting your cash obligations. Obtain cash to negotiate prompt pay discounts with your vendors. Meeting your payroll and payroll tax obligations on a timely basis will most certainly save you additional expense.

Smaller Lenders Feeling Squeeze Of Credit Crunch

The Wall Street Journal: “Smaller Lenders Feeling Squeeze Of Credit Crunch

Invoice Factoring from Charter Capital is your Alternative when lenders say “No”

As banks continue to “tighten up” their lending practices due to continued pressure from federal and state bank examiners, small business owners are finding in increasingly difficult to secure the financing they need to grow their business.

The Difference Factoring Makes
An increasingly popular way that small business owners secure capital for their growing business is factoring. Invoice factoring (also known as Accounts Receivable Financing) is the practice of selling your accounts receivable (invoices) at a discount to another company like Charter Capital. You immediately get the money from Charter Capital and we collect on the invoices.

It is important for small business owners to know that factoring is not a loan and will not show up as debt on the company’s balance sheet.

With factoring, you are free from many of the restrictions placed upon your business by traditional bank financing such as loans or lines of credit. Most importantly, with factoring, you are free to grow without having to give up equity or control of your business. This is because factoring your Accounts Receivable is technically the sale of an asset, and the funding you receive from us is not debt, but a cash asset.

In today’s competitive marketplace, getting debt-free funding in the form of factoring can give businesses the edge they need to succeed.