|
c
We are in tough economic times and it will get tougher. With interest rates so low, the cost of loaning money is more risk than some banks want to take and many are turning down loans and lines of credit or they may only provide loans that have a monthly variable interest rate. The news may sound bleak but there are alternative funding sources to buy equipment, improve technology, or train your employees?
Federal and State grants and tax incentives are available for most companies. The programs vary from state to state but if you have locations in multiple states, each location can be eligible for grants, tax incentives, or both.
-
Grants are designed to help stimulate economic development through customized business and industry specific skills training programs and job or training analysis. In most states, the company may be eligible for reimbursements of up to $25,000 for small businesses and up to $50,000 for larger businesses.
-
Tax incentives are available for companies that are adding employees, building or adding on to an existing structure or have projects that require new equipment investment. Tax incentives range from $25,000 to millions and can be used immediately or spread out over a period of years.
At a time when many companies are looking to protect their bank lines, they're finding substantial value in the sale leaseback. The sale leaseback is a transaction wherein the owner of an asset sells the equipment to the leasing company and then they lease the equipment back for a determined term. This provides the benefit of a cash injection into the company from the sale, while continuing to have the use of the asset. The ability to free up the original owners capital can be a practical means of assisting a company with cash flow.
A common practice with businesses in tough times is to hold payables longer. Instead of paying in 30 days, it is now 45 or 60 days. Factoring receivables might be a good short term option. The Factoring Company buys your receivables and gives you 80% of their value. As the receivables come in, you receive the remaining amount minus their fee. This fee can range from 2%-12% depending on the age of the receivable. Use caution though. If you have receivables that are risky or age past 90 days your profit may be eaten up with the fees charged by the Factoring Company.
Acquiring capital for your business from an investor or partner is not new but if you have not pursued this in the past, you may want to now! Investors look at many opportunities and your company will need to stand out to get their attention. Investors will want to know, what has been your success so far, how much do you need, how will the money be used, what will be done to grow the company, and how will the money be paid back. There are a lot of private investors who have an interest in investing in growing companies specifically those in manufacturing or distribution. You do not have to go to the large investment groups to find them.
Article provided by Sheryl Shultz, President, Productivity Masters (513) 564-1596. For more information about any of these options, please call.
Continue to blog about this article at: http://xrpsystem.blogspot.com
|
|
The Consumer's Workshop: the future of American manufacturing
The Consumer's Workshop: The Future of American Manufacturing is a hand book on how to setup the systems within your company and create the workforce you need to be successful now and in the future. Written by authors that have worked at some of America's largest manufacturers, founded their own manufacturing organizations and helped numerous small manufacturers grow.
The Consumer's Workshop: The Future of American Manufacturing is a must read for today's business leaders. It is insightful and provocative in its approach to where US manufacturing has been, how manufacturing got into the troubles it faces today and what we need to do to become the standard for world class once again. If we want to know how to regain that competitive edge once again, the roadmap is certainly the pages of The Consumer Workshop.
-- Bruce Vaillancourt,Director, NIST MEP Program, TechSolve, Inc.
 The Consumer's Workshop is an extremely timely review of how manufacturing strategy developed in the past
and how it will change in the future. The author team clearly demonstrates that companies have to change -- and provide plenty of advise how such a change should take place."
-- Frank Piller, PhD, International Manufacturing Consultant
As the authors make clear, eventually American manufacturing will become the workshop for direct production of consumer's own designs -- or it will be no more. Begin that path by following the steps outlined here."
-- B. Joseph Pine II, author, Mass Customization: The New Frontier in Business Competition
Investment: $12.99
|
|
| In This Issue |
| Alternative Financing |
| xRP: Free 30 Day Trial |
| Manufacturing Statistics February 2009 |
The future of Enterprise Resource Planning
Coming Soon!
Base Subscription:
$9 per Month per User
|
|
Manufacturing Statistics
1) Manufacturing Output decreased 2.5%in December 2008 with durable goods down 2.6% and nondurable industries rose 2.1%.
Source: Federal Reserve Board
2) Manufacturing Employment fell by 149,000 jobs in December 2008.
Source: Bureau of Labor Statistics
3) Manufacturing Trade Deficit in November 2008 decreased $16.6 billion, or 24.1%, to $52.4 billion. Sources: Census Bureau, Bureau of Economic Analysis
4)Manufacturers' New Orders in November 2008 decreased $18.7 billion, or 4.6%, to $384.6 billion. Source:Census Bureau
5) Manufacturers' Inventories decreased $1.6 billion, or 0.3 %, to $553.4 billion. Source: Census Bureau
|
|
