Month: March 2019

Franchise Companies: Find out more about Franchise Finance

by Richard Womack

 

 

 

Young entrepreneurs and those who want to become one have a hard time finding money because there are no demonstrable business successes. Who thinks about starting a business as a franchisee, should know: Again, this requires equity - sometimes even more than the bank requires. However, franchise business start-ups and franchisor support have made it easier for start-up franchise owners to get funding for their project.

Entrance fee in addition to the operating equipment

Entrance fee in addition to the operating equipment

Typically, a franchisee pays to the franchisor a one-time fixed entry fee as well as ongoing fees based on sales. The entrance fee is very different with the approximately thousand offerers in Germany, with 1.000 to 20.000 euro one must count on. However, this only requires the permission to become self-employed with the franchisor's business model and brand. Business equipment, goods and the like still have to be paid by the founder. Depending on the operating mode, this can be quite expensive - for example with the extensive set-up of a fast-food restaurant. Franchisors expect about 15 to 20% equity, depending even more on the industry. They do so for two reasons. First, the contractor has a certain creditworthiness, and secondly, he shows that he is willing to take entrepreneurial risk and become involved.

If the equity is not enough

If the equity is not enough

Of course, there is the possibility, with low equity on a franchising offer with lower capital requirements. But on the other hand, the newly formed company should be in line with the interests and inclinations of the founder, and therefore a completely different industry with less cost is likely to be out of the question. A well-prepared business plan may convince a bank's loan officer. The franchise concept helps because fundamental experience with the business model is available and brand awareness can be assessed. In addition, many franchisors are offering financial support and bank talks to new partners. The franchisee should inquire in advance with the federal promotional bank, KfW. KfW supports lending by taking a large part of the risk from the financing bank. For example, the KfW StartMoney of up to € 100,000 is associated with an 80% indemnity, meaning that your own bank only bears 20% of the default risk. If at least 10% equity capital is available, which is likely to be the case on a regular basis due to the requirements of the franchisor, the partial financing for founders and the universal start-up loan from KfW may also be considered. In addition, KfW offers support programs from federal, state and EU start-ups that can also be used to set up a franchise. Another alternative is crowdfunding, financing from the swarm, which is rather rare in the franchising segment.

 

How a Daily Expenses Worksheet Can Help You

by Richard Womack

 

 Organizing the budget is essential for anyone who wants to save money, create financial reserves and ensure a worry-free future. Have you thought about having a daily expenses spreadsheet to help you with this task?

The spreadsheet is meant to record all the money that goes into or out of your checking account, giving you full control over your finances. It can take many forms, from traditional Excel tables to more complete tools such as financial applications for mobile phones and computers.

Keep track of how spreadsheets can help you on a day-to-day basis, and get to know some models that work great for spending control!

How a Daily Spending Worksheet Can Help You

How a Daily Spending Worksheet Can Help You

Most of the time, we know exactly how much you spend on rent, college, car installment and other large bills. However, a lot of people get lost just in the small expenses of the day to day. Expenses may even seem insignificant, but when added together they represent great values ​​- have you stopped to tell how many cups of coffee you take each month? And beer with friends?

It is precisely at this point that a spreadsheet of daily expenses can make a difference. When you start recording all expenses, it is much easier to figure out where you can cut expenses and save a little more.

Daily expense worksheet templates

Nowadays, there are several options and types of spreadsheets to control the budget . Some are Excel files, others are simple Word tables, and there are still options online or per application (which we explain better in the next topic).

To help you get started, we've separated some of the best spreadsheets:

Spreadsheet for Excel 2007: If you are already familiar with Excel, this is a simple to use spreadsheet that allows you to control your daily expenses.

Orca Worksheet: This worksheet was recommended by Uol Economia after asking the opinion of some consultants. Worth checking, since it is also quite simple.

Idec (Brazilian Institute of Consumer Protection): it is the ideal spreadsheet for those who have never made a personal budget. It contains instructions for use and definitions of terms, helping lay people become more familiar with the novelty.

Financial Applications: The Evolution of Daily Spending Worksheets

Financial Applications: The Evolution of Daily Spending Worksheets

In addition to the more traditional daily spending spreadsheet, in table format, there are also financial applications such as Lemminkäinen . The great advantage of this app, for example, is that it is integrated with your bank account, automating all the control of revenues and expenses without having to enter the data manually. Simply synchronize it to your internet banking and the application surveys all financial transactions, separating them automatically by category.

These are some tips for you to control your monthly budget using a daily expenses spreadsheet. Choose one of the options we mentioned above and start taking the reins of your financial life today!

 

Corporate Finance: Increase Liquidity through Factoring

by Richard Womack

 

 

 

 

Newly-founded and expanding companies must pay particular attention to their liquidity planning. Insolvency is the most common reason for bankruptcy. In examining possible financing alternatives to traditional working capital loans, more and more companies are finding factoring. By that is meant the sale of claims against own customers already before the due date. With the money that the factor transfers, companies can be paid on time, such as materials and personnel, even if they grant generous payment targets to their own customers.

Professional service providers on the Internet

Professional service providers on the Internet

Important for the successful use of factoring is a reliable financial partner. Although factoring companies are not banks, they offer a service that is subject to authorization under the German Banking Act. They are controlled by the Federal Financial Supervisory Authority (BaFin) . This gives the seller of the claims a high security. In virtually every major city there are corresponding offers such as Wolf Factoring, your factoring company in Stuttgart . However, the corporate headquarters does not play a major role in the service itself. A modern factor takes advantage of the opportunities of digitization and offers the required workflows for factoring online. This way, the required documents, such as invoices, can simply be uploaded - the paperless office becomes a reality. In addition to the cost-effective administration, speed also speaks for the digital process. After two to four days, the factoring taker has the money in the account. The factor also benefits from the automated processes. The accounts receivable management of Wolf Factoring is also based on this: Due invoices can be easily identified and payment can be remitted without delay.

Factoring does not have to shy away from the cost comparison

Factoring does not have to shy away from the cost comparison

Of course, the factor receives money for its services. The costs are made up of two components: the factoring fee covers the actual service. Their amount depends on the scope of the functions transferred to the factor, for example accounts receivable and dunning. Usually, the fee also includes the assumption of default risk. In order to compare the costs of factoring with the expenses that would be incurred in your own company, you must therefore offset personnel costs and the time required in accounting, material and postage, but also the contributions for a credit insurance. The second component is the interest that the factor demands for pre-financing. For their calculation, the time between the sale of the receivable and the due date of the receivables is decisive. They are comparable to the interest on a working capital loan.