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Accounts Receivable Financing- Secrets

The Merriam-Webster Online Dictionary definesstructure a transaction legally so that the
"secret"  as:accounts receivable financing is transparent
to  the  ultimate  customer.
"1 a: kept from knowledge or view : hidden b:
marked by the habit of discretion :The third secret- "designed to elude
closemouthed c: working with hidden aims orobservation or detection" has to do with your
methods : undercover d: not acknowledged :business plan and how the way you think about
unavowed e: conducted in secret 2: remotethe world can affect your success. In 2006
from human frequentation or notice : 3:Prime Time Productions produced a film and a
revealed only to the initiated : esoteric 4:book called "The Secret". The film
designed to elude observation or detection 5:dramatically describes the "Law of
containing information whose unauthorizedAttraction" which asserts that people's
disclosure could endanger national security".feelings and thoughts attract real events in
the world into their lives. Can your feelings
As used in this article, secret means:and thoughts attract more business and
revealed only to the initiated; kept fromsuccess? Is the visualization of what you
knowledge or view; and designed to eludewant an aid for manifesting your business
observation  or  detection.goals? Is The Secret "just a new spin on the
very old (and decidedly not secret" The Power
The first secret- "revealed only to theof Positive Thinking (a book by Norman
initiated" relates to the fact that mostVincent Peal written in 1952) wedded to 'ask
schools, even business schools, do not teachand you shall receive' -as opined by Karin
the subject of factoring or purchase orderKlein, editorial writer for the Los Angeles
financing; most banks do not offer theseTimes? Did The Secret fail to discover the
financing facilities as products. Therefore,real  roots  of  powerful  thinking?
it is not surprising that many businesses are
unaware of the cash potential that laysIn the book, "The Diamond Cutter", Geshe
dormant  in  their  business  invoices.Michael Roach examines The Budda on Managing
your Business and your Life. Roach graduated
Let's suppose you own a small to mediumfrom Princeton University with honors,
business and you depend on customers payingstudied the ancient wisdom of Tibet and
invoices within a 45-60 day period for yourtraveled to the Tibetan Lamas at the seat of
working capital. In essence, you areHis Holiness, the Dalai Lama. In 1983 he took
extending credit like a bank to yourthe  vows  of  a  Buddhist  monk.
customers. For that period of time your cash
is tied up in your invoices- your accountsHis teacher encouraged him to enter the world
receivable. This limits growth and may createof business. Mr. Roach choose the diamond
problems regarding meeting payroll and payingbusiness. He hid the fact that he was a monk
your suppliers. Accounts receivable financingand maintained a façade of a normal
is the process of selling your invoices forAmerican businessman on the outside. The
cash as soon as they are issued which allowsbusiness developed from nothing to a one
you to make more effective use of yourhundred  million  dollar  per  year business.
assets. Purchase order financing is the
process of obtaining a third party commitmentThe original book, "The Diamond Cutter" is
to pay your suppliers as soon as products arethe "oldest dated book in the world that was
received by your clients (in advance ofprinted rather than being written out by
payment by you or your client), based on thehand. The British Museum holds a copy that is
surety of an accounts receivable financingdated A.D 868." It is a written record of
arrangement.Buddha teachings from over 2,500 years ago.
In brief, the central principles are: 1)
All businesses are limited in their growthbusiness should be successful and make money
and profits by the amount of capital and cashin a clean and honest way; 2) you should
flow available to take advantage of businessenjoy the money and stay in good health; and
opportunities. The availability of virtually3) you should be able to look back ay your
unlimited cash creates a powerful paradigmbusiness and say your years of doing business
for potential growth. It also can expand yourhad some meaning leaving some good marks in
thinking about what business is possible andthe world. I highly recommend "The Diamond
how you might go out and develop newCutter"  vs.  "The  Secret".
business.
The bottom line: accounts receivable
The second secret- "kept from knowledge orfinancing and purchase order financing may be
view" relates to the practice ofthe secrets to your business' financial
non-notification factoring. Some businesssuccess. If you read and follow the
people are concerned that working with aprinciples of "The Diamond Cutter" you can
factor, an accounts receivable financingexpand your opportunities for exponential
company, may not be viewed favorably by theirgrowth based on the 2500 year old teachings
customers. In many cases it is possible toof Buddha, as explained by Mr. Roach.



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