Not only is currency trading decentralised, individual forex investors are able trade around the clock, from just about anywhere they wish, thanks to laptops and smartphones. This means the individual trader should have access to a variety of trading tools if he or she is to be consistently profitable.

The very nature of forex trading, which is performed on a computer or smartphone with access to a high-speed internet connection, means that these tools can easily be found online at numerous forex brokers’ websites.

There are many types of forex trading tools; some are designed specifically to assist newcomers to the market, while others are targeted at providing the analytical information necessary for experienced traders to be consistently successful.  So important is the role of online tools that traders often base their choice of a brokerage on the trading platform it provides.

Advice on forex tools is available online, particularly at websites such as forexloft.com. While there are several key points to look out for when considering which tools to use, an absolute essential is an ability to deal efficiently with what is, after all, a very volatile foreign currency market.

Tools should also be able to perform a wide range of tasks, including reducing stress on the individual and enabling him or her to trade as effectively and profitably as possible. Advancements in technology now allow trades to be placed and closed automatically.

Automated forex trading tools have proved to be a boon to traders. They have helped reduce the amount of effort that has to be put into opening and closing trades, for example. Even a relatively inexperienced trader can benefit from them, as less time has to be spent learning the intricacies of the forex market.

Some of the most useful tools are forex robots, signals and charting, each of which is aimed at helping traders maximise their profits, while minimising losses.

Invoice financing, whether in the form of invoice discounting or invoice factoring, is a way of increasing a company’s cash flow without incurring more debt. Rather than being forced to extend an overdraft or arrange a loan, both of which are likely to involve significant rates of interest, a company can instead arrange to have money drawn against its outstanding sales invoices.

This form of funding is available from brokers such as Touch Financial; they usually offer both invoice discounting and invoice factoring. In some ways factoring and discounting are very similar; up to 90% of the value of the invoice is released to the company, usually within 24 hours or so and once the invoice has been paid in full the company receives the balance, less any charges owed to the broker.

It is important to note that the money received by the company is not a loan and does not attract interest, whether factoring or discounting are being used. It is clear that the entire process is designed to ensure the invoices are paid in full and as quickly as possible. The main difference between the two is how the money owed is recovered.

In the case of invoice factoring it is the broker who is responsible for chasing payment of the invoice, including sending out statements, reminders and collecting the payments. It is a comprehensive service and is ideal for start-ups and smaller companies, along with enterprises that do not have their own finance departments.

For larger businesses, which are capable of carrying out their own debt collection, invoice discounting is likely to be the best option. Because these companies remain responsible for collecting the monies owed the service is somewhat less expensive.

It has emerged that it is not the health of the Small or Medium Enterprise, its profit record or the business plan presented being as the reason they are being rejected when applying for business finance, but the credit rating of the founder! No one is suggesting that a founder who has had a succession of failures, or clearly cannot manage finances should be just given money, but it does seem strange that over 58% have been turned down due to the personal rating of the owner or founder.

One example quoted was that someone was turned down by his bank after it was revealed he had a poor credit rating. This apparently was due to him buying a car previously and although he maintained the loan correctly and made payments as required, the financier had made a huge number of checks through many agencies and this had caused his rating to drop dramatically.

This is revealed by a report which has discovered that banks’ were rejecting loans to SME’s and there were many instances where these companies were being harshly judged based on personal credit scores, leading to them being turned away automatically, more often than not  before any dialogue gas taken place. It is also revealed that on appeal, a huge 40% of the rejections for applications for bank loans are overturned when companies use an independently monitored appeals process. This is known as “the best kept secret in banking.” The banks’ have a long way to go before we can get back to growth in the SME sector.

25
Jun
stored in: Business and tagged:

The use of the business card is not something from the dark ages and whatever the size of your business a one man band, or perhaps the owner of an expansive SME, the business card is an important tool. However how does it look is it just old fashioned script or are you one of the modern thinkers that believe that the design of your card must overcome the desire to bin it!

Use the modern social media, we are sure that you will have a web address, but do not ignore social links, such as Facebook, Twitter, consider the design also, different recipients may require a different approach, perhaps social as well as personal. Take a close look at the design, is it a stock format that you have used for years or the same as one that you have seen elsewhere, if so it is pretty sure that the same format is used by competing companies, not very good is it? Choose the designer and printer carefully, the ones seen on TV advertising, newspaper and business magazines are the ones that you competitors will be heading for.

Embrace modern technology such as QR codes, today these are appearing on just about everything and they may look strange, but Smartphone users are very aware of them and they can take you to any webpage you want them to. They can be used for a variety of things, you can forward potential customers to promotions, discounts or other bonuses, all from your card!

The world of forex trading can be practically impenetrable for a complete beginner.  The jargon and terminologies alone can be enough to put an individual off trading for life.  Here are some of the key things about forex trading which every beginner should know:

It’s all out there!

All the information required to become a successful trader is available on the internet.  Forex trading is not a get rich quick scheme.  Individuals need to invest a great deal of time into learning the ins and outs of the market if they wish to be successful.

Forex is not gambling

Gambling suggests a major reliance on luck.  While there is an element of luck in forex trading, it is more important to understand the theory and be able to read and react to market signals.  Individuals need to have the confidence and concentration to act at the right times.  Doing so is not necessarily easy but it is certainly a long way from gambling.

Controlling emotions is key

Winning and losing money can stimulate a wide range of emotions.  Successful traders are able to recognise when they are getting greedy and take a step back to see the wider picture if they have a bad day trading.  Trading should be cold and calculated at all times.

Robots are not infallible

Forex robots and systems have their place and are discussed on www.forexrobottesting.com and www.bestforexfeed.com.  Traders simply need to recognise they are not 100% perfect.  Robots can analyse a great deal of data but if the market becomes volatile, they are liable to make errors and lose a trader money.

Many beginners come to forex looking for a way to make profits quickly and easily.  In reality, investing in the market requires skill, timing and willpower.  While there is a lot to learn, beginners can quickly pick up the ropes and enjoy the learning process.

Trading shares for capital can be a practical option for small businesses in need of an immediate term financial boost to keep them ahead of the game. However, it is still an option that many business owners struggle with because of the sentimental weight they naturally attach to a company in which a huge amount of time and energy has been invested and the fear of losing control. Fortunately, there are solutions available that can balance the needs of investors with the concerns of business owners to provide satisfactory options all around.

Contracts and commitments

People considering equity finance often ask what a standard contract looks like. The truth is that there is no standard contract, although financial advisory services often provide a selection of basic models that can be adapted as required. Deals like this are established through a process of negotiation. Those who are unsure of what is reasonable to ask for are best served by reading about recent deals involving similarly sized organisations, factoring in the potential likely to be created by new developments and the overall outlook for their business sector. This will provide an up-to-date grounding for negotiations, but deals are not usually limited solely to cash for shares.

Some areas of negotiation are inevitably more nebulous than others. For example, it is difficult to quantify a commitment to provide advice on overseas trade. This is something that might need to be taken on trust, but the degree of trust that is appropriate to give can be based on an investor’s reputation. More formal commitments should be confirmed in writing as part of the contract underscoring the deal.

Buyback

For those determined to own the entire business once again in the long term, the option of buying back shares after a certain period has elapsed can be worth negotiating at the outset. This means that even if the company is not publicly floated, ownership can ultimately be renegotiated.

Invoice factoring and invoice discounting are ways for a company to raise much needed cash against unpaid invoices. This method of raising finance, provided by brokers such as Touch Financial provides a viable alternative to a company having to extend its overdraft or seek a bank loan in a bid to maintain its cash flow.

Cash from invoice finance brokers, whether by invoice discounting or factoring, can be secured very quickly, often within 24-hours, but both work quite differently.

Invoice factoring is a much more comprehensive service and helps save companies the time and expense involved in maintaining a credit control department. The broker becomes responsible for the collection of debts. With invoice discounting the company still has to follow up on invoice collection.

Another big difference is that with factoring the invoice is, in effect, sold to the broker who takes control of the sales ledger and payment collection. A business opting for invoice discounting draws cash against the invoice, but remains responsible for the sales ledger.

With invoice factoring the debtor company is made aware that a broker has become responsible for collection. With discounting the entire process is much more confidential as there is no necessity to inform the customer that a third party is involved.

A company using factoring can receive up to 90% of the value of the unpaid invoice at the start of the process. When taking the invoice discounting route the broker will first make a check on the company, its clients and its business systems.

Because invoice discounting leaves a company responsible for the credit control function it is especially suitable for those which operate good financial control procedures and credit control. As this is not as comprehensive a service as factoring it tends to costs less than factoring.

09
Jun

Anyone wanting to trade successfully in the foreign currency markets will need to develop a strategy. This will depend on market analysis and there are two types to be considered in the forex market.

The first form of analysis used in forex trading is known as technical analysis. This enables the trader to predict movement in future currency prices by analysing what has happened in the past. With this trading strategy it is necessary to build up a picture of previous price movements and one of the most common ways to do this is by using charts. Forex charts are used to help spot trends and determine potentially profitable trading opportunities.

The second form of analysis is fundamental analysis. This is a far more comprehensive approach to determining possible weaknesses or strengths in a particular currency’s relative value. With this form of analysis the range of factors to be taken into account include a particular country’s economic forecasts, its interest rates, trading figures and political stability. This means keeping up to date with the latest news, both economic and political. Based on this data the forex investor will be ideally placed to make informed trading decisions.

Because of the amount of data that has to be taken account of with fundamental analysis many traders choose to concentrate on only a small number of pairs of currencies.

There is reliable advice available on trading financial analysis, along with strategies, at websites such as forexloft.com. Based on this information, backed up by their personal forex trading experience, the investor will be in a great position to make profitable trades.

Decision-making in the currency exchange market is a dish which must be eaten cold.  That is to say, emotional decisions have no place in this arena.  A successful trader will be someone who thinks strategically, is always one step ahead of others and can balance and collate information with ease.  Processing information quickly is another personal characteristic which is necessary for success.

Being a successful trader involves a balance of cautiousness and greed.  Mastering a personal urge to gamble is one of the initial problems a forex expert has to overcome.  There is often also a desire to overtrade.  If this is accompanied by a lack of belief and confidence in oneself, trading will be unsuccessful.  The best traders believe in themselves and the decisions they make.  They are unshakeable in confidence terms and follow their own strategies.

Planning in advance

An individual will find it far easier to navigate the sometimes volatile trading market by avoiding emotional decision-making and going with gut feelings.  Often emotions can run extremely high and this is where they need to be kept in check.  The importance of formulating a strategy in advance and adhering to it is particularly relevant in this concern.  Analysis goes hand in hand with this and many of the most successful forex traders will have tried and tested systems which they have developed over the years in order to keep their trading in check and at the highest level possible.  Systems are created and developed by analysing historical market trends and data, not through hunches.

Three parties are involved in the factoring process: the business owner (you); a broker (such as Touch Financial); and a third party (either an open group or specific, targeted buyers).

A factoring broker will provide a bridge between your business and the company that will buy your outstanding invoices, or accounts receivable.  Factoring provides you with upfront cash for your invoices, although you will sell these at a slightly discounted price.

The main benefit of business factoring is that your business receives an almost immediate cash injection.  This can be used to improve cash flow, settle debts, expand the company, or to buy new resources.  The company that buys your unpaid invoices takes on the responsibility for recovering the money from your clients, so you no longer need to worry about doing so.

Most factoring brokers are experienced in selling business invoices and will be able to advise you on how and when to sell, who you should sell to, and the rate you can expect to pay to complete the process.  A reputable factoring broker will be able to provide you with references from previous clients who have used their factoring services.

If you are interested in factoring or invoice discounting, it is well worth contacting a broker rather than attempting to sell your company’s accounts receivable yourself.  A number of quotes can normally be found in a matter of minutes, ensuring that you get the very best rates, and the funds will often appear in your account within 24 hours.