Invoice discounting is a common finance tool or arrangement with a finance company or bank. It allows the bank to advance monies to a business against its debtors (customers) thus helping cash flow.
This very attractive option in financing your business is somewhat overlooked, however it is a safe, cost effective and fast way to insure that your company has a good and solid cash flow.
This could be an extremely viable funding option available to companies that provide a product or service on credit terms to their customers. The purpose of the finance is to give you access to immediate funds, without having to wait for the customer to pay the invoice. This is particularly beneficial to those of you who are in a growth period and committing more working capital to customer credit \ debtors.
The company lending you the money will agree that for all invoices raised you will have a certain percentage available of the value of the invoice at you disposal. You do not necessarily have to utlisie the full available amount (credit limit) immidiately but have the assurance that you can draw on the facility when needed.It can therefore act similar to an overdraft just with the added advantage that it is not directly influences by collateral as per bank requirements.
The process of getting a credit limit in place is actually very simple: The ‘factor’ (the lending company) is disclosed to all of your customers, with your customers paying the factor direct. The factor will collect all amounts due and offset this amount against your account. The balance of the invoice will be paid into your account, less the fee and interest.
To obtain such a facility you can log onto www.fogwell.co.za
Showing posts with label Cash Finance. Show all posts
Showing posts with label Cash Finance. Show all posts
Friday, June 11, 2010
Friday, January 29, 2010
Using the Small Claims Court
In many cases a lot of us feel like justice is far from reach. It feels like we have no recourse against poor workmanship, friends lending money and even in the case of micro business, defaulting creditors. To prove my point, how many times have you decided not to act on a claim of R 4000-00 or so because the lawyers costs more....?
Little of us know about the cheap, easy and simple process available to all South African citizens needing civil/financial recourse. This prince coming to save us from the evil micro bad guys is found in the form of the small claims court, and as stated it is available to all SA citizens.
So how does it work? Simple the small claims court allows smaller civil disputes to be resolved with out the expensive and slow process of taking normal civil action using the magistrates court. It operates outside of business hours and the "judge"is a practicing attorney. You do not need a lawyer, in fact they are not allowed! You do not need to speak legal! You do not need to file expensive papers in latin of "high" english. All you need is to contact your local small claims court, obtain the relevant notice drafts and wallah you and the person you have a dispute with can slug it out (man-2-man) in the small claims court where an attorney will give a judgement that is just as powerful as that of the magistrates court.
Who can use the small claims court? Any natural person with a claim smaller than R 7,000-00 (this amount is being reviewed) can approach the small claims court for relief.
What can a person sue for?. Any civil dispute, in other words any dispute that has a desired end result of financial relief. Broken equipment, bad workmanship, debt, outstanding invoices (only in the case of Sole Proprietors & Partnerships, no CC's or Companies).
Who cannot sue?. A juridictional entity is not allowed to seek relief from the small claims court. Again in more simple terms no CC's, companies or trusts. That said as an individual you can call your dispute to the small claims court against any legal entity.
What can I not sue for?. As a legal entity (CC, PTY or trust) you cannot approach the small claims court. You cannot approach the small claims court for financial relief higher than R 7,000 and you cannot send your lawyer on your behalf. The aim of the court is to resolve small disputes between individuals to insure justice is accessible to all.
What happens if my claim is more than R 7,000?. In the event that your claim is fractionally higher than the prescribed limit, as stated it us currently under review, you can choose to forfeit your right to the balance. As an example: If your past room mate leaves your house without paying his portion of the rent and the lovely fella also decided to take the washing machine causing you damages of R 8,350-00. You can approach the small claims court and choose to forfeit your right to the balance. If you therefor get a successfull verdict the judgement will only be for R 7,000-00.
Who do you approach to have a dispute settled by the small claims court?. Any good attorney or legal services company will be able to provide you with the contact details of the small claims court in your area. Do not use intermediaries or consultants, it is a total waste of money. However if you want consult with an attorney about the process and facts of your case.
Little of us know about the cheap, easy and simple process available to all South African citizens needing civil/financial recourse. This prince coming to save us from the evil micro bad guys is found in the form of the small claims court, and as stated it is available to all SA citizens.
So how does it work? Simple the small claims court allows smaller civil disputes to be resolved with out the expensive and slow process of taking normal civil action using the magistrates court. It operates outside of business hours and the "judge"is a practicing attorney. You do not need a lawyer, in fact they are not allowed! You do not need to speak legal! You do not need to file expensive papers in latin of "high" english. All you need is to contact your local small claims court, obtain the relevant notice drafts and wallah you and the person you have a dispute with can slug it out (man-2-man) in the small claims court where an attorney will give a judgement that is just as powerful as that of the magistrates court.
Who can use the small claims court? Any natural person with a claim smaller than R 7,000-00 (this amount is being reviewed) can approach the small claims court for relief.
What can a person sue for?. Any civil dispute, in other words any dispute that has a desired end result of financial relief. Broken equipment, bad workmanship, debt, outstanding invoices (only in the case of Sole Proprietors & Partnerships, no CC's or Companies).
Who cannot sue?. A juridictional entity is not allowed to seek relief from the small claims court. Again in more simple terms no CC's, companies or trusts. That said as an individual you can call your dispute to the small claims court against any legal entity.
What can I not sue for?. As a legal entity (CC, PTY or trust) you cannot approach the small claims court. You cannot approach the small claims court for financial relief higher than R 7,000 and you cannot send your lawyer on your behalf. The aim of the court is to resolve small disputes between individuals to insure justice is accessible to all.
What happens if my claim is more than R 7,000?. In the event that your claim is fractionally higher than the prescribed limit, as stated it us currently under review, you can choose to forfeit your right to the balance. As an example: If your past room mate leaves your house without paying his portion of the rent and the lovely fella also decided to take the washing machine causing you damages of R 8,350-00. You can approach the small claims court and choose to forfeit your right to the balance. If you therefor get a successfull verdict the judgement will only be for R 7,000-00.
Who do you approach to have a dispute settled by the small claims court?. Any good attorney or legal services company will be able to provide you with the contact details of the small claims court in your area. Do not use intermediaries or consultants, it is a total waste of money. However if you want consult with an attorney about the process and facts of your case.
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