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Reasons To Have A Cash Collection System

Cash management is an important aspect of a business. Cash is needed to ensure the business is running well. When there is improper cash management within no time the business will start facing cash flow issues which are going to affect the performance of the business negatively. The good thing is there are cash management systems which help in managing cash for the business. Here are reasons to have a cash collection system.

Why A Cash Collection System

Accountability

When it comes to matters to do with money accountability is one of the important things. The cash management,msskjsjsjsjssj system should be able to help in achieving this. When money comes in through the cash management system, the relevant people are aware and it can be tracked from when it was received till when it was spent. Operating without this system would mean that some of the money would go missing or unaccounted for how it was spent especially if the transactions involve huge chunks of money and they are many carried out in a single day.

Reporting

Reporting is necessary to ensure that the management and the relevant stakeholders have a clear picture of what is happening on the ground with the money received in their businesses. With the use of a cash management system, reporting is made easier. With the click of a button, one can get a whole report of how the money was received, when it was received, how it was spent, recurring payment company and the remaining balance.

Decision making

The reports from the system give the management what is happening to their money. This has made decision making easy hence faster. From the reports given they can gauge how their business is performing, which areas need improvement and what course of action needs to be taken. This will go a long way in helping the business to stay in line with what they were meant to do. They can also make an analysis of the business in comparison with the previous years. They can also decide on which line of business to pursue if they have surplus cash.

Efficiency

Using the cash management system makes working very efficient. It helps in eliminating errors which could be easily made if one inputs the data manually. Even if an error occurs when one uses the system, they can be easily traced and rectified. This has increased output and has made the business more productive.

Save on costs

A cash management system handles the collection and distribution of money. If many transactions are done in a day, it would mean that more people would have to be employed so that work runs smoothly. This would cause an increase in the staff expenses. The system can operate efficiently even when operated with one person whose primary job would be to verify the transactions hence saving the company costs.

Conclusion

m,xsmsmssmsmWhen it comes to selecting a cash management system one should ensure that they go for a system which will meet the needs of their business and give them a chance to expand should they do so in future. Having this cash management system will go a long way in helping the business operate efficiently.

Jeremy Fernandez / 09/12/2017 / Business

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Why Cash Advance Is A Good Business Financing Option

For any business to run smoothly, there must be constant cash flow. This cash is of the essence in maintaining stock, expanding the business, and paying debtors among other purposes. In some instances, obtaining credit from commercial banks may be hard due to reasons such as the size of the business or lack of security. However, this should not worry you. With a merchant cash advance, you can easily get an advance with ease.

What is merchant cash advance (MCA)

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This is a source of credit for small and medium businesses, which lack collateral to secure a loan. However, large enterprises can also rely on this funding. This form of business financing operates on the basis that after an agreement you receive the agreed advance amount. On the other hand, your MCA provider will deduct a portion of the income based on the receipts you have every month until the amount is fully paid. This article will highlight some of the main advantages of cash advance in business financing.

No collateral or credit is required

If you wish to have an excellent credit rating among your competitors, then you should think of merchant cash advance. This type of financing resembles a sales transaction, and therefore it will never reflect in the credit reports. Thus, the market can never know of your credit levels. Also, with this type of business financing, at no particular point will you lose your collateral due to payment default.

Less bureaucratic procedures

Unlike commercial bank loans where you would take, a lot of time to apply and receive a loan this is not the case for a cash advance. This limitation may paralyze business operations. In MCA funding, once you have filled the application form, you are certain of getting money on short notice. This implies that your routine activities will go on as planned.

Good approval

asdCsdCaasMerchants rate firms based on their stability. The amount of money advanced to a business is solely influenced by the average of total revenue within the previous year. This is contrary to other forms of business funding. The later use credit reports for evaluation of credit worthiness of the firm. Thus, other forms of financing a business, rate credit financed business as a poor performer. This implies that a business can receive a small amount of loan as opposed to what cash advance merchants offer.

Revenue- based collections

Many businesses will pay a fixed amount of money at the end of the agreed period. In some cases, this may not be possible, as the business might be not be able to make these payments. However, this depends on how a merchant cash advance works in canada. In MCA funding, a business will only pay after receiving income.

 

 

Donnie Mendel / 07/14/2017 / Business