Corporate credit is one of the greatest tools of finance for small business owners. It provides you with the ability to obtain financing for unforeseen expenses, operations, expansion costs and investments.
There’s so much going on with corporate credit that there are several different fields devoted to servicing it, including business credit cards, small business loans, accounts receivable factoring, merchant account cash advance, lines of credit, equipment financing, secured/unsecured loans and many others.
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Retirement Plan Tactic
Separate employer stock from other assets before a rollover into an IRA
If you leave your job, rolling your company retirement fund into an IRA often makes sense. You can keep tax deferral on the earnings and take control of future investing.
But there are exceptions. One applies if you hold appreciated company stock in the plan.
Such shares qualify for a prime tax break. But that tax benefit will be lost with a full IRA rollover.
A better strategy might be to withdraw your company stock. And roll the rest of your retirement account to an IRA.
To understand the value of this maneuver, you should understand how your company stock will be treated.
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There continues to be a fair amount of press about the alternative financing method known by a number of different names These include Factoring, Working Capital Financing, Cash Flow Financing, Invoice Discounting, etc!! Let’s keep it simple and we’ll just call it factoring for our purposes.
The old cliché that the ‘cheques is in the mail ‘probably has never run more true for Canadian business owners and financial managers. Receivables, on balance, tend to be in most cases either the largest (or pretty close to it) liquid asset of the company, next to cash. And there is never enough cash.
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