How To Control Spending

It really does not matter whether business is facing financial challenges, growing at a manageable rate, or booming, without oversight a company's spending can easily spiral out of control. Have you established company spending policies? Because if you have not,  it will be difficult to set boundaries, or create controls, let alone enforce spending policies. Anyone who runs a business - whether small or large - has expenses. As a small business matures the need for spending controls is eminent. Here are a couple of strategies to support the process.

One company known as ExpenseWatch.com can help  you control  expenses by offering best-of-breed modules for Expense Reports, Purchasing and AP Invoice Management, which can be subscribed to individually to control specific company spending issues, or as a fully integrated expense control suite. An open expense control platform, companies have the flexibility to integrate spending data with a wide range of business solutions used—travel management tools, accounting/enterprise resource management systems and payroll providers, credit cards, budgeting applications, customer relationship management systems, ecommerce vendors and more.

If your business expenses get out of control thanks to a new product launch, or traveling for trade shows, there is another solution that can help you get funds in the door fast -- factoring.  As you may know, many companies pay their invoices 30/60 or 90 days out. If you have outstanding invoices for a job that you have completed, and are owed apx. $20,000 or more, invoice factoring might just be the solution to get funds in fast to cover outstanding expenses. 

Here's how it works. IFG looks at the creditworthiness your customers and can fund within as little as 24 hours. Most factoring companies do not expect to buy 100 percent of a company’s receivables, and there are no minimum or maximum sales volume requirements. IFG’s professional rates are competitive; each client's circumstances will vary and may have an impact on the fees.

Because IFG offers clients a “use it as you need it” funding option, each invoice purchase is a separate transaction and does not form part of a portfolio lending approach. The transaction is modeled as a buy-sell transaction. IFG first undertakes a due diligence that typically takes one to two business days. Once completed the client is at liberty to offer invoices to IFG for purchase. Upon receipt of invoices, IFG checks the credit of the debtor named on the invoice and makes sure that the sale represented has been satisfactorily completed. Once this is done the debtor is advised of the purchase by IFG and the client receives their funding. At the end of the credit period the debtor pays IFG directly. The transaction is completed.

ACD Financial Services

www.acdfinancial.com