Business & Finance Online Expert

Archive for August, 2009

Most sales to commercial clients usually carry 30 to 60 day payment terms. This means that as a supplier, you must deliver your products or services now. However, your client has between 30 to 60 days to pay you.

This creates a significant challenge for owners of small and midsize businesses. The problem is simple. Your clients want to pay you in 30 to 60 days, but you must pay rent, payroll and your suppliers now. As you can see, the math does not work. Unless you have a substantial bank account, this leads to an almost impossible situation.

If you are in this situation, it is also very likely that the bank will not be able to help you. As you well know, banks only lend to businesses that have three years of profitable operations and significant hard collateral. If you do not qualify for bank financing, your best bet may be to consider factoring.

Factoring is a business financing tool that helps business owners who cannot afford to wait 30 to 60 days to get paid by their commercial customers. Factoring provides you with the necessary funds to meet payroll, make rent and pay your suppliers on time.

As opposed to bank financing, factoring is easy to qualify for. The main requirements are that you have a profitable business with a strong roster of commercial clients. For the factoring company, your best collateral is the invoices from your strong customers.

Have you been given the job of organising a fundraising event and are stuck for ideas?  Here’s seven great and <I>simple</I> ideas that you can organise:-

<b>Cookie Dough fundraisers</b>

This is an ideal fundraiser for all times of the year.  Just take orders and sell tubs of delicious cookie dough to your group.  Profit margins 30-50%.

<b>Fundraising Cookbooks</b>

Often described as a recipe for fundraising success (groan!) – creating a personalized cookbook is ideal for groups such as churches, schools, charities and hospitals.  New publishing techniques make it easy to profit from selling just a few or even hundreds of cookbooks.  Profit per book from $3-$10.

<b>Pizza Fundraiser cards</b>

People will be happy to pay for these cards which entitle them to free pizzas.  If your group is spread out geographically, this may be ideal.  Ideal for small groups due to small minimum order requirements.  Profit margins 70-90%.

<b>Scratch card fundraising</b>

Easy to order and can be printed to link to your group e.g. basketball, baseball, high school, etc.  Each person in your group begins fundraising with 1 scratch card. They simply approach friends, family, and neighbors and ask them to scratch too!  Profit ranges from 90% upwards.

<b>Fundraiser candles</b>

Everyone loves candles and especially scented candles!  Simply take orders from friends and families – these items are especially good for Christmas fundraising.  Profit margin 50%

<b>Candy fundraising</b>

Ideal for easter or summer fundraising events – sales of candy can be profitable.   You can sell the chocolate at school, pep rallies, sports events, businesses or just person to person.  Profit margin 50-60%.