Explore Asset And Sales Finance Solutions With Your Bank

If you’re starting up a business, it can be hard to grasp the terminology you need in order to speak to your bank about funds; when it comes to discussing asset and sales finance, for instance, things can get tricky. It is, firstly, important to know what asset and sales finance is: a service through which banks help businesses obtain a range of equipment, including plant and machinery, commercial vehicles, IT equipment, office furniture and cars. Essentially, sales financing will help you get quick access to cash, while asset financing will help fund business equipment.

Many banks offer several cost-effective and expedient sales financing solutions; and with such solutions, businesses can find enough working capital to be able to operate. Two sales financing solutions are factoring and invoice discounting. With factoring (recourse and non-recourse),up to 95% of the value of approved invoices can be advanced within a given period of time with the balance being paid on receipt. And while invoice discounting (also recourse and non-recourse) functions in a similar way, there is a crucial difference between the two: in factoring, the client’s customers are made aware of the bank’s involvement with the business; in invoice discounting they are not.

Another method of sales financing used by many banks is stock finance; this allows you to release as much as 60% of the funds tied up in eligible stock through a completely flexible system. This will release finance that is usually not available for working capital needs.

Asset financing solutions will help you gain assets in an economical way, without eating into your cash reserves. As with sales financing, banks will often offer a range of asset finance solutions to its business customers. Hire Purchase, for example, can help you acquire the asset you need right away, but payments can be spread across the life of the asset in question. This may also allow you to keep the asset at the end of your term for a particular fee. Operating Lease asset finance will allow you to benefit from a particular asset, while the bank itself takes on the risk of losing its value; the rental and return conditions for the asset are fixed at the outset.

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Overview of Switzerland Finance & Banking Jobs

In the first Quarter of 2010, the number of jobs available in the Swiss financial sector was around a total of 3,508 jobs. This is an increase of 19 percent over the same quarter in 2009. From the latest report by Finance & Operational Recruitment (FOR) the number of job vacancies in the Swiss financial sector has increased since the summer of 2009 by 35 percent.

Based upon a total of 1,400 banks, insurance companies, accountants and other consultants currently there are 3’508 finance jobs are advertised. That is 35 percent more than in June 2009.

Across the banking sector banks in Switzerland had a total of 1,457 jobs at the end of March 2010. This is 110 percent more than in June 2009.

In Insurance we have seen a slight decline. Across the insurance industry, including health insurance, in the summer of 2009 there was 1,086 open insurance jobs. At the end of March 2010 this had declined to 1,016. This represents a decline of -6.4 percent.

Across the other financial sectors & support industries (Accounting, consulting, IT, etc.) jobs have increased from 819 to 1,035 (+26.4 percent).

The main reasons for this development, is the banks are replacing staff originally cut when they had to reduce costs – during the previous 2 years. For many insurance companies, cost cutting is ongoing. In addition, increased regulatory pressure meant additional experts were necessary.

The report used an index which shows the evolution of online Switzerland job vacancies in the financial sector in Switzerland and Liechtenstein. The index is produced every three months by the Swiss financial portal finews.ch with data of the portal JobDirectory.ch.

Switzerland Banking Jobs in focus:

Most banking jobs were offered in late March 2010, Credit Suisse, with 395 jobs, followed by UBS with 336. While at Credit Suisse, the demand last year grew more constant and rose sharply from 2010, at UBS as early as October 2009, there was a significant increase which lasted up to February 2010.

Foreign banks are recruiting

Coupled with this the Foreign Banks in Switzerland are recruiting for banking jobs. This increase reflects recruitment having a high turnover, but also the fact that many institutions consider the adjustment in the private banking as an opportunity to recruit good people.

Swiss Banking looking to the customer:

Almost two-thirds of all vacant banking jobs in Switzerland are for specialists and executives. Only ten percent of the jobs are for employees on the level of clerk or assistant.

The greatest demand for workers is at the customer front. The most common available banking job is for Account Managers in the retail and SME business, followed by Investment advisers in the so-called affluent area (average retail segment).

In relative terms, the number of classical Private Banker -which to serve wealthy clients has grown the most. Since summer 2009, the number of private banking jobs presented has increased from 19 to 45, representing an increase of 140 percent.

Overall – good recruitment growth:

In the first Quarter of 2010, the number of jobs available in the Swiss financial sector was around a total of 3’508 jobs. This is an increase of 19 percent over the same quarter in 2009.

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The Many Advantages of Accounts Receivable Financing

There are many accounts receivable financing advantages. Businesses the need capital will be hard pressed to find a much better or faster option. Such financing is not dependent upon a businesses’ credit or the length of time that they have been in business. As long as a company has clients with good credit and outstanding invoices, then accounts receivable financing is a viable commercial financing option. Below, we will go into a little more detail about only a few of the many advantages of generating capital in this manner.

Fast money

Accounts receivables financing is a really great way to get money fast. Most factors are able to provide payment for invoices in about 24 hours. This process may initially take more time. However, after a business has established a relationship with a factor, the process goes really quickly. Unless a company has an open line of credit, it is difficult to think of a faster way to raise commercial capital. Even in cases where a line of credit is utilized a company is forced to pay interest which can be extremely expensive. There are no such costs associated with receivables financing.

Easy money

Accounts receivables financing is easy money. When a business desires to get a bank loan, they must be willing to jump through hoops. They will need to have all of their financial documentation in order. For a small business, this might require an unpleasant trip to the accountant. They then must also be ready to answer any questions a bank has. If they are unable to satisfactorily do so, then they won’t qualify for the loan. Also, many banks won’t loan money to new businesses, these are often the companies that need it most.

Today, it is even more difficult then in the past to receive bank financing. Banks simply aren’t willing to part with their money right now. They are turning down loan applications from businesses with good credit and that have been in business for a long time. Commercial financing has become more difficult then ever to secure, though not in every sense. Accounts receivables financing is a pretty easy way to get money. As long as a business has outstanding invoices owned by clients with good credit, they may be able to qualify for monies.

A business credit score doesn’t matter

If a business has any chance of receiving a bank loan, they must have a good credit score. In this day and age, they just might need an excellent credit history with no blemishes. Fortunately, businesses that utilize accounts receivables financing don’t have to worry about this. A factoring company is more concerned about the credit history of the invoiced clients then the company that owns those invoices because that is who they will be collecting their money from.

Accounts receivables financing has many advantages over traditional capital financing options. Generating capital in this manner is fast, easy, doesn’t require that a company has been in business long, nor do they need to have good credit.

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Your Bank and Business Financing – Reality Check

Business owners and managers want to compare equipment finance companies to their bank and for a good reason; a bank is a company’s first point of reference when borrowing money or financing equipment or an expansion project. A bank is the most obvious place to start and a secure place to store your money and use their multiple services. But what a bank does not do well, both historically because of their structure and the recent tightening of the credit market, is offer business financing for capital assets (equipment). Yet many people get confused when looking for an equipment loan because they are not seeing the whole picture; this is a case where you definitely want to compare apples to apples to get the best results.

Here are a few points to compare; these are not set in stone but based on years of experience, these trends apply a majority of the time.

1) Total Dollars Financed – banks normally require that you keep a balance of 20% or 30% of the equipment loan amount on deposit. This means they are only financing 70% or 80% of your equipment costs because you have to keep a certain amount of YOUR money in a fixed account for the duration of the loan. In contrast, an equipment finance company will cover 100% of the equipment including all “soft” costs and will only request a one or two month prepayment. No fixed deposits required.

2) Soft Costs – banks also will normally not cover “soft” costs like labor, warrantees, consulting and installation which means these costs come out of your pocket. An equipment finance company will cover 100% of the equipment price including “soft” costs and some projects can be financed with 100% “soft” costs which no bank would ever consider.

3) Interest Rates – this is the most popular question in the finance world; what’s my rate? If the bank requires 30% deposit in a fixed account then that automatically raises a 5% interest rate to a 20% rate. Now people will argue that you get that deposited money back at the end of the term but that is money which you do not have access to and has an opportunity cost associated with it. Equipment finance companies target their financing rates between 3-5% for cities and 7-9% for commercial financing which is a real fixed rate and not under-stated as the bank rates can be thus independent finance company rates are very competitive with “true” bank rates.

4) Process Speed – banks often take weeks to review and approve a finance request while independent finance companies normally only take a few days and can work much more quickly. Finance underwriters only review business financing while a bank has other types of requests clogging their channel.

Banks also have many more levels of approval and review to pass while independent finance companies normally only have two, underwriting and credit committee. Even with complicated deals, the finance company’s process is always faster.

5) Guarantee – banks require, as a standard part of their documentation, a blanket lien on all assets, both personal and business assets are used as guarantee against default on the loan. Your business assets, your home, your car, and your boat can all be on the line when entering into a bank transaction. This may also be the case with an equipment financing company but if your business operation is solvent then only your business will be listed as collateral and not your personal assets; this is known as a “corp only” approval.

6) Monitoring – banks require yearly “re-qualifying” of all their business accounts which means on the anniversary date of your loan each year, you must submit requested financial documents to assure the bank that everything is going well and nothing has affected your business in a negative way. Finance companies do not require anything during the term of the loan or finance as long as the monthly payments are made on time. Nobody will be checking into your business or policing what you do.

When comparing your bank financing to an independent equipment finance company, you have to make sure you are evaluating all the key parameters, not just one. Clearly, the fine print and terms of the transaction are more important than the big numbers. Banks work well within their space but have proven time and again not to be as flexible or solution-oriented as an independent finance company which solely focuses on business lending can be.

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Core Banking and Choosing the Right Solution

Imagine what banks looked like before 1970. Long queues and particularly long waiting period for just about any transaction was normal. People where customers of a branch and not really a parent bank. All transactions could be performed at your particular branch only. Any entry only reflected after more than 24 hours as information went to data centers in batches at the end of the working day. However, over the next 40 years most banks chose to create a Centralized Online Real-time Exchange or Environment (CORE) to manage their operations, thus giving rise to Core Banking. In India alone, the number of public sector bank branches with core banking implementation went from 79.4% in March 2009 to 90% in March 2010. All over the world, the numbers are closing in on cent per cent.

According to US-based research and advisory firm Gartner, core banking system (CBS) is basically a back-end system that performs banking transactions on a daily basis and updates accounts and financial records. It is essentially a bank’s nervous system that if affected can change the bank’s operations drastically. CBS is a common point of connection for the entire gamut of products and services that banks today provide under one umbrella.

Centralized data centers have been formed and all banking applications can be accessed here. Data of any bank as a whole is stored in a central server that branches, regional offices and head office can lay hands on. All types of banking operations like recording all types of transactions, loan and mortgages as well as interest calculations, deposits, money transfer, payment balance, customer information and such other operations have become fully automated using a core banking solution. Such a solution makes use of the internet or other forms of connectivity to automate the operations with an appropriate software. This core banking software is then applied across all the branches thus bringing them all on a single platform.

A solution usually comprises of:

• Internet, mobile, tab banking
• Data centre and colocation as well as DR services
• Fund transfer remotely and immediately (IMPS, NEFT, RTGS, etc.)
• Automated Teller Machines (ATMs) & Point of Sale systems
• Several other services like QR Code Merchant Payment, Agency Banking Application, eKYC Solution, Connectivity and others.

Goal of CBS

Core banking solutions differ from bank to bank and largely depend on the type of customer bases that a bank has. The basic goal of core banking is to be largely customer convenient and cut down on operational expenses. A good core banking solution directly impacts profitability, customer satisfaction and competitiveness. It enables customers to achieve more freedom in transaction, banks yield from reduced time and resources spent on monotonous activities.

A Core Banking solutions is especially beneficial because of its:

• Scalability: As transactions are processed in bulk volumes daily, the business priority is to be able to scale up without any breaks.

• Flexibility: Banking has numerous modules that requires a solution which is extremely flexible that is able to configure the right mix of IT resources at the right time.

• Agility: To be competitive in the market the solution can quickly adapt to changes and transformations.

• Cost-effectiveness: These solutions not just deliver customer-satisfaction but also benefit the bank by saving them lots of man hours and maintaining accuracy.

A successful core banking application can be migrated in all types of financial institutions including:

• Corporate Banks
• PSU & Nationalized Banks
• Scheduled Co-Operative Banks
• Urban Co-Operative Banks
• State Co-Operative Banks
• Payment Banks
• Small Finance Banks
• Non-Banking Finance Corporations
• Micro Finance Institutions
• Credit Co-Operative Societies
• Securities & Insurance Sector
• Regional Rural Banks

Advantages

Among the myriad of advantages that a CBS has, the most important is that it has enabled banks to strengthen their relationship with customers. Concepts of customer satisfaction, retention, customized and tailored plans, customer convenience and others were introduced in the financial industry, thanks to core banking.

Customers today have a plethora of channels through which they can contact their respective banks. It could be through their PCs via the internet, on their smart phones, tabs or through mobile kiosks. A good core banking software integrates all these channels and provides a seamless transacting experience for both the bank and the customer.

Since all processes become automated, another major advantage of a good modern core banking solution is that it reduces chances of human errors and fraud. This in turn increases employee efficiency and then eventually boosts business opportunities. All the resources are aptly utilized thus minimizing chance of wastage as well.

Automation, more often than not, always helps companies save a lot of money and time. Online banking decreases human footfalls in bank premises which means that infrastructural costs go down drastically. Similarly, operational and support expenses also go down. Maintaining legacy systems is also a pricy affair. Core banking brings down IT maintenance costs by moving to shared services platforms.

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The Benefits of Stainless Steel Roller Chains

Typically, roller chains can be found in a lot of mechanically powered systems. For instance, you can find them in a number of environments like automotive industries and agriculture systems. Examples of automotive industries they are used in are bicycles and motorcycles. In this article, we are going to take a closer look at some of the common benefits of roller chains made of stainless steel. Read on to find out more.

Rollers chains are also commonly used in conveyor belts and many other industrial assembly environments. Aside from this, you can find these systems in many other environments too.

Advantages of Stainless Steel Roller Chains

Although these products are made of other metals as well, stainless steel is the most common one. This is because this metal offers a lot of benefits. Some of them are listed below. Please note that this list doesn’t talk about all the benefits the unit offers.

Food Applications

Stainless steel roller chains are quite popular in the food industry for many reasons. One of the main reasons is that the steel offers immense strength unlike other metal types you can find and use.

Therefore, products made of this metal can withstand even extreme conditions. Another good thing is that it’s much easier to clean. For instance, in an environment where food packaging, processing and handling is done, you may need to clean the chain more frequently. This is what makes these roller chains a great choice.

Temperature Resistance

Another great thing about these roller chains is that they can work fine even if you place them in an environment where temperature exceeds 400 Celsius. In the same way, they won’t stop working even if you use them in a place where temperature drops below -20 Celsius. This is what makes it an ideal choice in environments that are not good for other metals.

Corrosion Resistance

They are also corrosion resistant even if used in acidic or alkaline environments. In many industries, these roller chains are used either in alkaline or acidic settings. This is why they are preferred in a lot of industries. Aside from this, it offers quite low magnetic permeability. Therefore, we suggest that you opt for them instead of other options out there.

Heat-Treated

Another good thing about these chains is that they are heat treated for a lot better temperature resistance. Plus, they are put under a lot of stress for testing purposes to reduce the chances of stretching issues or premature leakage. So, as far as safety is concerned, this is the best choice you can take. They can save you a lot of money due to their long lifespan.

Long story short, these are some of the most common reasons why these roller chains are quite popular these days. Although they can’t be the best option for all types of applications, they can work well in many environments. Therefore, if you want to opt for them, we suggest that you give them a go. You won’t regret your choice.

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