Buying From a Wholesale Clothing Online Provider

When you have decided to go into the wholesale clothing business, you most probably understand the profits that come with buying clothes in wholesale. However, there is are still some issues about buying at wholesale and selling at retail rates that you might not know, and this article helps you out. Firstly, it is about what you must have from the authorities. The federal department offers a tax identification, and the process is nicely explained at the IRS website. You might want to visit this website and start from there.Having acquired the identification, you may create a merchant account using the business name. With this kind of account, it is so easy to separate business and individual earnings. Another license, the vendor license, is also crucial as you cannot transact business with wholesale owners without it. Most wholesales would want to prove your ownership of a retail shop; the vendor license is enough proof.When it comes to searching for a reliable provider of wholesale clothing, the job might be tricky. However, some tips on how to land the most suitable clothing supplier will help. First, it is about the type of clothes you are going to sell. How available are the products in the market? Most importantly, look at the trends in your area, and order for such clothing. To know more about trends, eBay Seller Tools may help.Starting with your locality, there could be thousands of providers. For a larger pool of wholesale clothing, the online platform comes in handy. Despite the high chances of lack of legitimacy of wholesale clothing online, this method has gained a lot of popularity over the years. Retail business owners choose this method for several reasons including the ability to choose from a wider range of merchants. If you are able to develop a lasting relationship with a specific wholesale clothing merchant, you can buy goods in bulk, and make good profit, from the comfort of your living room.Even as you check for wholesale clothing online, you might also want to determine the kind of supplier you want. There are drop shippers, manufacturers, importers, and liquidators. For an online business, a drop shipper kind of supplier is the most preferable, because you don’t have to worry about warehousing or manufacturing costs.As you venture into clothing retail business, remember that as much as wholesale clothing online has unlimited possibilities, chances of falling prey to scams are also high. Therefore, do you research thoroughly before engaging with any wholesale clothing supplier. Happy shopping!

Alternative Financing Vs. Venture Capital: Which Option Is Best for Boosting Working Capital?

There are several potential financing options available to cash-strapped businesses that need a healthy dose of working capital. A bank loan or line of credit is often the first option that owners think of – and for businesses that qualify, this may be the best option.

In today’s uncertain business, economic and regulatory environment, qualifying for a bank loan can be difficult – especially for start-up companies and those that have experienced any type of financial difficulty. Sometimes, owners of businesses that don’t qualify for a bank loan decide that seeking venture capital or bringing on equity investors are other viable options.

But are they really? While there are some potential benefits to bringing venture capital and so-called “angel” investors into your business, there are drawbacks as well. Unfortunately, owners sometimes don’t think about these drawbacks until the ink has dried on a contract with a venture capitalist or angel investor – and it’s too late to back out of the deal.

Different Types of Financing

One problem with bringing in equity investors to help provide a working capital boost is that working capital and equity are really two different types of financing.

Working capital – or the money that is used to pay business expenses incurred during the time lag until cash from sales (or accounts receivable) is collected – is short-term in nature, so it should be financed via a short-term financing tool. Equity, however, should generally be used to finance rapid growth, business expansion, acquisitions or the purchase of long-term assets, which are defined as assets that are repaid over more than one 12-month business cycle.

But the biggest drawback to bringing equity investors into your business is a potential loss of control. When you sell equity (or shares) in your business to venture capitalists or angels, you are giving up a percentage of ownership in your business, and you may be doing so at an inopportune time. With this dilution of ownership most often comes a loss of control over some or all of the most important business decisions that must be made.

Sometimes, owners are enticed to sell equity by the fact that there is little (if any) out-of-pocket expense. Unlike debt financing, you don’t usually pay interest with equity financing. The equity investor gains its return via the ownership stake gained in your business. But the long-term “cost” of selling equity is always much higher than the short-term cost of debt, in terms of both actual cash cost as well as soft costs like the loss of control and stewardship of your company and the potential future value of the ownership shares that are sold.

Alternative Financing Solutions

But what if your business needs working capital and you don’t qualify for a bank loan or line of credit? Alternative financing solutions are often appropriate for injecting working capital into businesses in this situation. Three of the most common types of alternative financing used by such businesses are:

1. Full-Service Factoring – Businesses sell outstanding accounts receivable on an ongoing basis to a commercial finance (or factoring) company at a discount. The factoring company then manages the receivable until it is paid. Factoring is a well-established and accepted method of temporary alternative finance that is especially well-suited for rapidly growing companies and those with customer concentrations.

2. Accounts Receivable (A/R) Financing – A/R financing is an ideal solution for companies that are not yet bankable but have a stable financial condition and a more diverse customer base. Here, the business provides details on all accounts receivable and pledges those assets as collateral. The proceeds of those receivables are sent to a lockbox while the finance company calculates a borrowing base to determine the amount the company can borrow. When the borrower needs money, it makes an advance request and the finance company advances money using a percentage of the accounts receivable.

3. Asset-Based Lending (ABL) – This is a credit facility secured by all of a company’s assets, which may include A/R, equipment and inventory. Unlike with factoring, the business continues to manage and collect its own receivables and submits collateral reports on an ongoing basis to the finance company, which will review and periodically audit the reports.

In addition to providing working capital and enabling owners to maintain business control, alternative financing may provide other benefits as well:

It’s easy to determine the exact cost of financing and obtain an increase.
Professional collateral management can be included depending on the facility type and the lender.
Real-time, online interactive reporting is often available.
It may provide the business with access to more capital.
It’s flexible – financing ebbs and flows with the business’ needs.
It’s important to note that there are some circumstances in which equity is a viable and attractive financing solution. This is especially true in cases of business expansion and acquisition and new product launches – these are capital needs that are not generally well suited to debt financing. However, equity is not usually the appropriate financing solution to solve a working capital problem or help plug a cash-flow gap.

A Precious Commodity

Remember that business equity is a precious commodity that should only be considered under the right circumstances and at the right time. When equity financing is sought, ideally this should be done at a time when the company has good growth prospects and a significant cash need for this growth. Ideally, majority ownership (and thus, absolute control) should remain with the company founder(s).

Alternative financing solutions like factoring, A/R financing and ABL can provide the working capital boost many cash-strapped businesses that don’t qualify for bank financing need – without diluting ownership and possibly giving up business control at an inopportune time for the owner. If and when these companies become bankable later, it’s often an easy transition to a traditional bank line of credit. Your banker may be able to refer you to a commercial finance company that can offer the right type of alternative financing solution for your particular situation.

Taking the time to understand all the different financing options available to your business, and the pros and cons of each, is the best way to make sure you choose the best option for your business. The use of alternative financing can help your company grow without diluting your ownership. After all, it’s your business – shouldn’t you keep as much of it as possible?

Do You Wish You Could Travel and Make Money?

The more home business owners I talk with tell me that besides the money they can make the second reason they started their own home business was the freedom it gives to travel and enjoy life.That is no surprise to me, we all desire a work life balance and a home business gives you that ability. It’s also why the travel industry is an 8 trillion dollar industry and expected to double in the next 5 years.OK, so I do listen to the news and I do fill up my car periodically with gas, so I hear about the high cost of gas and how that is affecting the airline industry, travel and resort destinations. But I also heard, at least here in the West, National Parks, lake resorts and hotels in prime resort areas were full over the past two holidays. So what’s my point, people will find a way to get away and enjoy their free time no matter what the economic situation.However, in these economically challenged times people are searching out more deals than they ever have in the past. Timeshares are out of reach for the average household so the next best option is travel memberships to all those same four and five star communities. And with the drastically reduced costs that people can obtain with these memberships makes taking a vacation affordable even in today’s economy.The Global Resorts Network membership allows their members to travel anywhere in the world, stay at four and five star resorts for eight days and seven nights for less than most people would pay for a week’s groceries. This lifetime membership also offers values on cruises with all the top cruise liners.If that product wasn’t enough the business opportunity is so lucrative it has many people wondering just how they can do what they are. As a home business opportunity it is the ability to pay well and give the business owner something they are telling me they are looking for; freedom to travel…Cheap!So if travel is something you love to do or are looking to do in the future Global Resorts membership and business opportunity is a great value.