What Your Business Is Missing

Trees are magnificent. They root themselves deep in the earth. They grow tall – twenty, thirty, forty, a hundred feet, or even more. And they come from a single seed.

An acorn caught my eye recently. This acorn was usually large and I started thinking.

As I picked it up the first thought that came into my head was that everything an oak tree needed to grow 60-feet tall was in my hand. My thoughts went to the business owners that I work with and how they constantly struggle thinking that they need more to be successful when, like the acorn, they already have what they need.

But is it true? Does the acorn really have everything it needs?

No, it doesn’t and neither do you.

An acorn needs water. It needs soil and nutrients. It needs space to spread its branches and room to grow its roots.

An acorn is resilient yet balance is necessary.

Too much water can drown it. Too much sun or fertilizer will burn it. Lack of soil or space and it will never take root or grow. Too many branches will sap its energy.

As the acorn grows it is continually challenged and must be exposed to risks. It can’t hide from the sun even though it might get burned. It can’t hide from the winds or snows that could tear its branches down.

And what about you?

Wherever you are in your business you already hold the seed to your future.

You already have the potential to grow and develop into whatever you want. Now it’s up to you to decide how you will care for that seed.

How will you care for it? Will you water it or will starve it? Will you give it space to grow or will you ignore it? Will you ask for help when you need it?

The choice is yours.

Finance Solutions For Companies Venturing In The Import Industry

Importing pertains to the process of bringing in goods or services from another country. They come from foreign countries and are usually brought in for resale. Many companies find this type of business quite attractive since the products or services from other countries are really affordable and they can be resold for a nice profit margin.

Although the process of importing and reselling goods seems like a simple concept, entrepreneurs who are considering starting this kind of business will have to overcome various hurdles. One of these is finding the right financing solution.

At present, there are various finance solutions or methods you can choose from. The most recommended one by finance experts are:

Factoring in accounts receivables.

Also known as asset-based loans, this method involves selling your credit accounts or accounts receivable to a bank, lending company, or other financing institution. Accounts receivables are usually sold at a discount, between 80-90% of the face value of your credit accounts. An advance payment will be given to you by the factoring company, about of 2-3%, for the accounts you would normally have to wait on for payment.

Purchase order financing.

This method has similarities with asset-based loans. The main difference with this financing solution is that you take your invoices or purchase orders and assign or sell them to a financing company. This company will then assume the risk and the task of billing and collecting. When the goods are produced, the financing company collects the payment from the customers, takes its cut of the proceeds, and pays you the profit. This option is highly recommended if your profit margin is high enough on the goods you are importing. Having a good and reliable supply chain and creditworthy customers are important factors to consider as well.

Inventory financing.

Although inventory financing is an expensive solution, it is still a highly effective way of financing an importing business. Under this method, you will have to use your present inventory to secure a loan that will permit you to buy the imported goods your customers want or need. Because of this, you can effectively increase your inventory without impacting your cash flow. However, with this option, it is crucial to make sure that you can service or repay your debt. Inventory financing comes in three types: blanket inventory lien, floor planning, and field warehousing. Choose the type that best meets your requirements.