Invoice Factoring Financing – Whom Should You Trust?

It’s a big world out there and finding the best invoice factoring financing company might not be an easy task. Even after you have considered the pros and cons of various agencies, funneling out the best one requires more than your judgment.

Assessment of your needs and keeping a bird’s eye view of the available options might help you in short listing some of the best names in your region. However, whom should you finally trust.

Look for a reputed company – It’s important to work with reputable companies only. They have the experience and expertise to deal well with a client. You may find many lenders once you begin your search for a factoring agency, but not all follow the right approach. It’s not just invoice processing and cash transferring; the agency must be capable of dealing with situations when things start going south.

Therefore, look for a commercial bank lender that is well known for its business solutions. Not only do they have the right management to aid you with cash-crunch problems, but there are lots more ways where they can be of great help.

Whether or not they are offering other lending programs – Once your business grows, you would start looking for other types of lending programs rather than just factoring. Business owners who consider the future would know that they cannot depend only on invoice factoring for all their needs. Once their business grows to the next level and there is a bigger loan to pay, they will need to check the possibility of including other lending programs.

As a futuristic player, you must understand the benefit of collaborating with an agency that must specialize in other lending programs as well. Asset-based lending, trade finance, equipment financing, credit insurance, and a lot more fall into this loop. Make sure that your factoring business offers you the scalability to avail different kinds of money lending services if need be.

Constant cash flow is the key to a healthy and prosperous business. This must not stop no matter what kind of situation you are dealing with. Invest only in the Invoice factoring financing company that is ready to help you at every step and has a goodwill. A bank lender that specializes in customized financing programs can be of great help in the future. With a proper knowhow and market experience, they can aid you in finding the right vendors when the opportunity of growth presents itself.

Make Goal Based Investing to Realize Your Financial Goals

Life is all about setting different goals and achieving them one after another. As Tony Robbins said setting goals is the first step in turning the invisible into the visible. When each rupee you invest has a definite purpose behind it, is called Goal based investing.

Goal based financial planning is done for long term, midterm and short term gains. Long term plans usually yield more wealth comparing the other two. A midterm plan could be buying a home where a short term plan may be having a car.

How it is Different from the Traditional Approach
Unlike the traditional approach of investing, goal based investing does not only focus on your risk profile, rather its focus remains on achieving the target. The investment plans should be designed by keeping the goal at the centre.

The focal point of the traditional approach remains in selecting areas that ensure safe returns. It finds a safe and sure path to grow money. Whereas, in Goal based investing, realization of the goals defines its ultimate success. Wealth generation is not the sole target.

Goal based investment plans get designed only after doing a detailed research of the investor’s net worth, level of risk-tolerance and financial goals. In case of traditional approach, first the risk quotient is calculated and according to that a pre-designed investment plane gets selected.

Benefits of Goal Based Investing

In life, each rupee you spend is a type investment that yields certain results for you. If your goal based investments are planned, well thought out and work for achieving specific goals then they do not affect each other. The benefits of making goal based investments are-
It engages you in making systematic approach toward a better money management.
It is nothing but a good habit that restricts you from making spur of the moment purchases.
Channelizes your money toward building value assets and wealth through proper financial planning.
Increases the achievability of the financial goals of your life.
You can continuously monitor and make changes to your plan in order to reach closer to your desired financial goals.

How to plan a Goal Based Investing

Planning a goal based investment requires-
You have to make a list of important life goals that you need to achieve. You should prioritize them according to their importance.
Analyze your money needs. It will help you in clustering your investments according to the upcoming life events.
Cluster your investments in three sections- 1) Short-term, 2) Mid-term and 3) Long-Term.
Now choose suitable investment plans and start investing.

Short Term Goal based investments are made to fulfill impending requirements that are going to arise in next 2 years. You have to choose less volatile and low risk areas to invest as you need to turn them into liquid soon.

Mid-term Goal based investments are those where you need the return in next 3-10 years. Long-term goals may include retirement and child’s higher education. To meet such kind of goals, you need to accumulate large corpus. For that, you have to give good effort to identify pre-determined asset class and make systematic investment over longer period of time. During the course of time, you should stay invested in your plan irrespective of the short-term market upheavals.