January 30, 2018

America is a land of opportunity. According to the United States Census Bureau, recent data indicates over six million new businesses were created in 2003, the latest year for which data is available. It appears that for every business that was created another business met its demise. Does this mean these business enterprises failed?

Not necessarily. The United States Census Bureau records closures of companies with employees, but they do not look further into the specific circumstances for the closure. When a business closes its doors, there can be many reasons for what's statistically a "failure," including a sale or merger, which may actually be a sign of robust financial health or good prospects. When a business closes, it may be because the investors have lost their investments or because they have sold out profitably.

Selling out profitably is known as an exit strategy; it is also known as "cashing out". If you have a business that manufactures or distributes a product that suddenly becomes very popular, you may be presented with a once in a lifetime opportunity. Here are two examples.

An inventor of a device that permits parents to regulate the time that their children can watch television wins Best of show in a commercial competition for innovative products. Commercial interest in purchasing the product is intense, but funds to manufacture are insufficient. Another company manufactures a device that is related to pets. For twenty years they struggle. They pitch it to a "Big Box" store and sign a proposal to test market it in fifty stores; if successful, it will be rolled out to 200 to 300 stores with wholesale purchase orders for $ 1000 per week per store. If the product sales meet expectations, how will the manufacturer afford to pay to produce the immunity quantity of product required?

Both of these situations are in need of a bridge over troubled water called purchase order financing. Purchase order financing can be complicated and complex in details, but the concept is simple.

When a manufacturer or distributor has a large purchase order from a creditworthy customer, a commercial finance company will issue a Letter of Credit to guarantee that a factory producing the product will be paid. When the goods are shipped and delivered to the customer (ie the big box store) the commercial finance company pays the factory. The customer is invoiced for the product. An account receivable is created, which will be paid to the commercial financing company that provided the letter of credit. Purchase order financing is the bridge that makes the deal possible. Accounts receivable financing, or factoring, is the back end financing that guarantees payment to all concerned. This may involve one company on both sides of the transaction, or two companies- a purchase order financing company and an accounts receivable financing company with an intercreditor agreement to contractually obligate all parties to be repaid.

The Free Dictionary defines bridge as a verb, – .to make a bridge across; "bridge a river" …

HGV insurance stands for heavy goods vehicle insurance. This type of insurance is highly recommended for anyone owning a vehicle over seven tonnes that is used to transport goods from one place to another. The benefits to heavy vehicle owners of this insurance are many, and cover a range of things that conventional motor vehicle insurance does not. In order to ensure you obtain the right cover for you it is important to gain an understanding of the range of cover available for HGVs.

There are several reasons why special insurance for HGVs is required. Firstly these vehicles are constantly traveling and the sheer time they spend on the road means that the risk of something unforseen happening is increased. They are also carrying goods that belong to others, and HGV insurance will cover against any damage or losses of the goods in transit. If goods are damaged while being transported, lorry owners are required to pay for these losses, which could be costly. Taking out the right kind of insurance provides security not only for the heavy vehicle owner but for their customers as well.

The cost of insurance cover for HGVs varies and is generally dependent on the weight of the vehicle as well as the risk it undertakes. Because of this, some insurance premiums can be expensive but now many insurance companies offer packages that can prove to be better value for money. Many of these companies also offer pay by the month premiums which may be worth looking into. There are introductory offers available if you shop around and could save you up to 60% of your premium for the first year. While your transport business is being established, a saving of this magnitude in the first twelve months would be of great benefit.

When shopping around for HGV insurance there are several things that you need to look for. A good insurance package for HGVs should include cover for goods in transit, public liability cover as well as employer's liability coverage for those lorry owners who employ drivers. There are also many other options that you can select from, such as insurance against violations and legal costs, and the options that you choose for your insurance will be dependent on your individual needs. You also need to consider where your HGV travels. Whether your transport business operates locally, nationally or internationally – a good insurance provider should be easily contactable from any location your business takes you.

Obtaining insurance for your HGV can be costing, depending on the range of cover you take. Having said that, however, it is certainly not something that anyone in the transport industry can afford to overlook. The risks that face heavy goods vehicles are significantly higher than other motor vehicles and their value, as well as the value of the goods they transport, is too high to neglect covering yourself against any unforeseen circumstances. Be sure to protect your business by shopping around for the best heavy goods vehicle …

Choosing a business address is important because without it your company won’t be able to perform the most basic functions. A business address allows you to receive mail, open bank accounts, and provides an official location to receive written communications. If you already know you’re going to operate your business from a retail location, warehouse, or office building then the choice is obvious. But for most startup businesses the most frequent choice is a current residential address or P.O. Box, and neither of these aren’t always the best choice.

The Best Option that Fits Your Business Address Needs

If you use your residential address you can expect to receive a barrage of junk mail from businesses marketing their services to you. Some clients or customers may take advantage of knowing where you live and come knocking at any given time. Depending on your home location, delivery companies such as UPS or FedEx may have logistic issues when trying to make regular daily deliveries to you or you may not be home during regular delivery times and miss out on an important package. When you apply for a mortgage or car loan, lenders have more requirements when they see your work and home address are the same. Post office boxes are also not ideal because delivery companies cannot make deliveries there and in most cases a physical address is required when obtaining business licenses, permits, etc.

Private Mailbox

The suggested business address for any startup is obtaining a private mailbox from a local UPS Store, Postal Annex, Mail Boxes Etc, or similar service. Renting a private mailbox allows privacy, and helps separate your business from your home. Rental mailbox services are open regular business hours and there’s always somebody available to receive packages from delivery companies. Renting a mailbox will give you an actual street address which is usually acceptable in obtaining most licenses and permits, while others will simply ask you to provide your business mailing address and physical location where work is to be conducted (for example your home). Renting a business mailbox can range from $15 to $45 per month depending on services provided. You can find these types of companies by looking under “mailbox rental” in your local business directory or Yellow Pages.

Virtual Office

Another and much more professional solution would be a virtual office. You receive the same benefits as a rental mailbox, but with the added benefit of an actual office place where customers can come to meet with you. Since a “virtual office” is at an actual office place, it also satisfies the physical location requirements when obtaining licenses and permits. Prices can range from $60 to $300 per month. When your business is ready to grow, many of these companies can help accommodate you moving into your own office suite. Virtual office spaces can be found internationally from companies such as Regus, or HQ Global. You can find these types of companies by looking under “executive office suites” in your local business …