Factoring Blog - For Small Businesses

The tax stimulus package is seen by many as a “quick fix” for the economy, but not addressing longer term issues.

But will it really fix the economy even short term?

In an article in U.S. News and World Report, Professor Cornwall suggests that a recession is likely despite the package.  Or in the alternative, we’ll see a period of high inflation.  He notes on his own blog about the stimulus package:

On the other hand, I am more worried that it will work. The pressures for a large burst of inflation are still out there — wage, healthcare and fuel price pressures and falling interest rates. If we over-stimulate the economy right now, we may end up in an even worse condition economically. Either way, be it a recession or a period of inflation, I see a tough period ahead for small business owners in America ….

He’s usually been an upbeat guy, so this is rather serious stuff coming from him.

What about an exchange (like a stock exchange) where you can list your receivables? That’s exactly what two individuals have in mind. 

They are launching “The Receivables Exchange,” or TRE, in the first quarter of 2008, according to Inc.com:

Founded by Justin Brownhill and Nic Perkin, TRE aims to change the factoring model altogether. The exchange will allow companies to offer their receivables to dozens of factoring companies at once, along with hedge funds, banks, and other “liquidity providers,” in TRE’s parlance. These lenders will bid on the invoices, which can be sold in a bundle or one at a time. The increased competition, Brownhill and Perkin say, will make it easier and cheaper for growing companies to raise working capital. “We hope to allow companies to grow quicker, faster, better than they otherwise would,” says Brownhill, the exchange’s CEO.

It’s an interesting concept, although my guess is it will take a while to get off the ground.  Having set up some “exchanges” in my day, I wouldn’t relish the idea of doing it again.  You have to attract two audiences.  In this case, it’s the  companies that want to list their invoices, and then factors that want to buy the invoices.  A dual sales job — always a tough thing.

But it will be interesting to see where it goes, when it is launched.

The Bootstrapper blog at BusinessCreditCards.com rounded up 100 financial calculators.  There are calculators for:

• Working Capital Needs

• Debt to Assets

• Pay Per Click ROI (to determine where you pay-per-click online advertising campaigns are paying off)

• Wage Conversion (converting wages from hourly to weekly, weekly to monthly, etc.)

• Gas Guzzling Calculator (to determine what various vehicles’ mile-per-gallon differences cost you in a year)

And there are a lot more, including some fun ones, such as how your business’s revenues compare with what movie stars make).

Check out the entire list of calculators.  Bookmark the entire list or just some of them, for future reference.