Metrics Fraud
Posted in Business World August 1st, 2008

Metrics fraud is a subject which is not discussed but I feel will come into mainstream conversations as Internet Advertising matures. I have been in the Internet marketing industry for five years now and I have seen many numbers come and go. The single ubiquitous truth, however, is that these numbers are often never questioned.

I have learned that in the age of Internet time, where decision-making processes are considered obsolete if they take more than 3 days and everything needs to be done yesterday, companies are spending millions of dollars on Internet ad buys without consideration towards fraud.

While we would all like to close our eyes and wish that any online business will deal with is respectable and would not deceive us we must realize what is actually occurring behind the scenes. In an economy where business valuations can gain millions of dollars in a short time based on trafficking analysis an unscrupulous businessman may be tempted to inflate his site’s statistics for personal gain. Even though many Internet sites have their web trafficking numbers audited by third party vendors there are numerous sites on the Internet that police their own numbers. We are simply to trust these sites, on their good faith, that they will not deceive us.

Since the Internet is a wild land with no rules many sagacious and forward-thinking individuals are pushing for standards. Not just standards of a programming language but standards that can be applied to most facets of e-business. While we are all waiting for these standards however, we should be responsible consumers and questions where are ad dollars are going.

I know of one large Internet company that was spending several hundred thousand dollars per month for online advertising and was not even aware that almost a quarter of their ad buy was going to unaudited websites. These websites could have inflated their numbers or demographics to justify a higher CPM and there is no way to verify it!

I recommend that you apply a degree of common sense to ad buys for your site or your clients. When I organize ad buys for my clients I make sure I know where every dollar is going and who it is going to. Before I commit to a network buy I get a complete site list of every site that I will run on and I scrutinize each site individually. One of the questions I ask every site individually, yes I do contact each one individually, is whether or not the sites traffic is audited. I then discover which company audits that site and I verify that statement with the auditing house.

This may seem time consuming to some of you but I must insist that you consider the consequences. If you spend your clients ad dollars on websites that have the potential to over inflate their trafficking numbers then you have the potential to loose a client. Treat your client’s money like your own money and learn where it is going and learn about what sites it will be spent upon.

I have run into roadblocks while seeking this information. Some networks see you as “just another customer” and if you being asking questions that they do not have a canned response for, they may begin to focus on easier customers. The key here is to be persistent. Explain to the network that you are not going to make the network money without answers to your questions. Many networks nowadays, particularly DoubleClick, have so many clients that they may not perceive you as important - when compared to PepsiCo who is spending millions a month with them. You need to open your mouth and use your voice and do not hesitate to switch to another sales rep at that network. The people working at the networks work on commission and if you threaten to shrink their wallet, they suddenly become more attentive to your concerns and needs.

Be sure to write everything down and try to verify the information that is given to you. Just because a website claims that they are audited by ABC Interactive does not necessarily mean that they genuinely are. Call the supposed auditing agency and verify their relationship with the website. Do some investigative work to ensure the facts are indeed facts and not fiction.

Just remember, it is a wild Internet right now and there is a great deal of money to be made or lost. Regardless of your capacity in purchasing online advertisements, it is your responsibility to spend that money in a wise manner. Scrutinize your ad buys and scrutinize whom you deal with. If a company is honest then they will have nothing to hide from you. If a company is dishonest then your simple investigative work should not only save your reputation bur ad dollars as well - and in this digital economy ROI is all that matters.

About the Author

Rob Emerick
Freelance International Internet Marketing Council
Director of Internet Marketing
iWorldLottery.com
The World’s Largest Lottery!

Abandoned Boosters and Colony Materials
Posted in Business World July 31st, 2008

Used Rocket Boosters might indeed be excellent building materials for a space colony on the Moon or Mars. It seems we need to hold onto them and take them into space with us if we can. They are strong and made out of great materials and we need such things to use for housing you see?

Lets say the baffling inside was made in such a way that it could have spiral staircases and grate floors in it? Then when you get to the moon you dig a hole and bury it straight down and thus no worries about space radiation and if you buried it upside down the rocket ends would great heat shields doubling as added protection you see. You know I really haven’t totally thought this thru but you have to admit it makes a lot of sense really.

You see once you are in space the extra weight is no big deal. Sure it might take a little more propulsion to get it all up there, but that just means more boosters and thus more habitats. Now then I know you are a skeptic right, what about the fuel and the toxicity and you are worried about all the astronauts?

Well what about bacteria, which would eat the fuel and then die after it starved. Just a matter of a good cleaning, which might take a while but consider some 6-8 Massive Boosters; you can have a whole set up, nursery for farming, lab, mining office to lease out to private industry and the makings of a first colony, hotel and well you get the idea? Consider this in 2006.

Lance Winslow - EzineArticles Expert Author

“Lance Winslow” - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/wttbbs/

Your Eight Hormones and Weight Loss
Posted in Business World July 31st, 2008

copyright 2005 by Greg Landry, M.S.

There are many physical, mental, and physiological benefits to regular exercise. One category of benefits is the impact that exercise has on many of your body’s hormones. Hormones are chemical messengers within your body that affect almost all aspects of human function:

1. Growth Hormone - Stimulates protein synthesis (muscle tone/development), and strength of bones, tendons, ligaments, and cartilage. - Decreases use of glucose and increases use of fat as a fuel during exercise. This helps to reduce body fat and to keep blood glucose at a normal level which helps you to exercise for a longer period of time.

Release of growth hormone from the pituitary gland in the brain is increased with increasing aerobic exercise time, especially more intense exercise such as interval training. To receive an article on interval training, send email to: Intervals@Fitness-Articles.com

2. Endorphins - An endogenous opioid from the pituitary gland that blocks pain, decreases appetite, creates a feeling of euphoria (the exercise high), and reduces tension and anxiety.

Blood levels of endorphins increase up to five times resting levels during longer duration (greater than 30 minutes) aerobic exercise at moderate to intense levels and also during interval training.

Also, after several months of regular exercise, you develop an increased sensitivity to endorphins (a higher high from the same level of endorphins), and endorphins that are produced tend to stay in your blood for a longer period of time. This makes longer duration exercise easier (you’re feeling no pain) and it causes your exercise high to last for a longer period of time after exercise.

3. Testosterone - An important hormone in both males and females for maintaining muscle tone/volume/strength, increasing basal metabolic rate (metabolism), decreasing body fat, and feeling self-confident. It’s produced by the ovaries in females and by the testes in males. - Females have only about one tenth the amount of testosterone that males do, but even at that level in females it also plays a role in libido and intensity of org*sms. Production of testosterone in females begins to decline as a woman begins to approach menopause and in males it begins to decline in his forties.

Blood levels of testosterone increase with exercise in both males and females beginning about 20 minutes into an exercise session, and blood levels may remain elevated for one to three hours after exercise.

4. Estrogen - The most biologically active estrogen, 17 beta estradiol, increases fat breakdown from body fat stores so that it can be used and fuel, increases basal metabolic rate (metabolism), elevates your mood, and increases libido. This hormone is at much higher blood levels in females, but the ovaries begin to produce less of it as a woman begins to approach menopause.

The amount of 17 beta estradiol secreted by the ovaries increases with exercise, and blood levels may remain elevated for one to four hours after exercise.

5. Thyroxine (T4) - A hormone produced by the thyroid gland, Thyroxine raises the metabolic rate (”metabolism”) of almost all cells in the body. This increase in “metabolism” helps you to feel more energetic and also causes you to expend more calories, and thus is important in weight loss.

Blood levels of thyroxine increase by about 30% during exercise and remain elevated for several hours afterward - this period of time is increased by an increase in intensity and/or duration of exercise. Regular exercise also increase thyroxine levels at rest.

6. Epinephrine - A hormone produced primarily by the adrenal medulla that increases the amount of blood the heart pumps and directs blood flow to where it’s needed. - Stimulates breakdown of glycogen (stored carbohydrate) in the active muscles and liver to use as fuel. It also stimulates the breakdown of fat (in stored fat and in active muscles) to use as fuel.

The amount of epinephrine released from the adrenal medulla is proportional to the intensity and duration of exercise.

7. Insulin An important hormone in regulating (decreasing) blood levels of glucose (”blood sugar”) and in directing glucose, fatty acids, and amino acids into the cells. Insulin secretion by the pancreas is increased in response to a rise in blood sugar as is often the case after a meal.

Typically, the larger the meal, or the greater the quantity of simple sugars consumed, the larger the insulin response. This is another reason that it’s good to eat small frequent meals and to limit consumption of sugar and of processed bread, pasta and rice. The whole grain (non-processed) versions of those products are a much healthier choice.

Blood levels of insulin begin to decrease about 10 minutes into an aerobic exercise session and continue to decrease through about 70 minutes of exercise. Regular exercise also increases a cell’s sensitivity to insulin at rest, so that less is needed.

8. Glucagon A hormone that is also secreted by the pancreas, but it’s job is to raise blood levels of glucose (”blood sugar”). When blood sugar levels get too low, glucagon is secreted and causes stored carbohydrate (glycogen) in the liver to be released into the blood stream to raise blood sugar to a normal level. It also causes the breakdown of fat so that it can be used as fuel.

Glucagon typically begins to be secreted beyond 30 minutes of exercise when blood glucose levels may begin to decrease.

So, next time you’re exercising, think about all the wonderful things that are happening to your hormones. It might even make you want to do more exercise!

Solar powered cars; how they work and where they are used.
Posted in Business World, Information Info, Infos, Road Cruisers July 30th, 2008

A solar powered car is an electric car which is powered by the suns energy, which is obtained from solar panels on the surface of the vehicle. Photovoltaic cells convert the suns energy directly into electrical energy. Solar powered vehicles are not practical every day uses of transportation at present, but are mostly demonstration vehicles and engineering exercises, which are often sponsored by government agencies.

There are solar cars, which are not primarily solar energy, they combine technology, used in aerospace, bicycle, alternative energy and automotive industries. The solar car is severely limited by the amount of energy put into it by batteries and power from the sun. All solar cars that have been built have been used for the purpose of solar car races, because they are not yet capable to go on the road against normal cars.

Like a lot of race cars, the driver’s cockpit usually has room for just one person; however some of them contain room for a second passenger.

The cars contain a lot of the features that are available in normal cars such as brakes, accelerator, indicators, rear view mirrors, air con, and some times even cruise control.

Solar cars are usually fitted with gauges like in conventional cars. The driver’s main priority is to keep an eye on these gauges to spot possible problems. Solar powered cars can also have what is called wireless telemetry, and this allows the driver’s team to monitor the cars energy consumption, solar energy and other parameters and free the driver to concentrate on just driving.

The main thing to remember is that you cannot use solar panels on regular cars, they have to be electric.

The electrical system is the most important part of the cars system because it controls the power that comes in and out of the system. The battery pack in the car has the same use that a petrol tank has in a normal car in storing the power for future use. Solar cars use a range of batteries including lead acid batteries, nickel-metal hydride batteries, nickel cadmium batteries, lithium ion batteries and lithium polymern batteries.

Solar race cars have complex data systems that monitor the whole electrical system while even the simplest cars have systems that provide information on battery voltage and current to the driver.

So these solar powered cars are very clever, and efficient.

Solar powered cars are designed to keep friction and weight to a minimum while still maintaining strength. Titanium and composites are normally used by designers to ensure a good strength-to-weight ratio.

Solar cars usually have three wheels but some can have four. Three wheeled cars usually have two at the front and one at the rear: the front wheels steer and the rear obviously follows behind. The four wheeled cars are set up just like normal cars. One day we may be learning to drive in these cars as they are increasing in technology every day and are definitely the most environmentally friendly.

Chris Woolfrey is the solar panel expert at EcoSwitch The environmental social network.

Death, Time, and Struggle
Posted in Business World July 24th, 2008

Okay, let’s say that we got a sudden psychic premonition that we were going to die exactly three years from now. The premonition is so strong and clear that there is no doubt as to its veracity. Would we fight it and try to change it with our thinking, ordaining it away? Or would we “give up the struggle and allow a quiet and non-resistant departure”? And if we did “give up the struggle”, would we suddenly find that life was very different without “the struggle”? Without the struggle, would we find that it really did not matter how much time we had left?

The key elements here are time and struggle. THEY ARE VERY RELATED! If we change our concept of either one, then our concept of death must also change.

And if we really truly have free will, then we cannot die unless it is a choice on at least some level. This, of course, begs the question, “Why would any of us choose death?”

The two main reasons people choose to die are time and struggle. There are those two words again. Most of us choose to die because we are tired of struggling, or because we don’t like this time and want to move on to a different time. The method we use to die, whether it is being hit by a bus, dying in an earthquake, having a heart attack, cancer, or being murdered, is just the tool we employ to carry out the choice we made at whatever level.

Sometimes, we die because it is the only way we know how to change.

So it would seem that the way to overcome death would be to change our perception of time and struggle, and to learn how to change. Change is utilizing death without dying.

About the Author

Copyright © 2005 by White Feather. White Feather’s five books can be investigated here: http://www.lulu.com/laplumablanca. White Feather is webmaster of http://www.whitefeatherforum.com

High Volume Merchant - Do You Need One?
Posted in Business World July 24th, 2008

When your business grows to the point where it is ready to move into the electronic age, you should give some thought to opening a high volume merchant account to expand your company’s potential. A merchant account will allow you to partner with a local bank or another financial institution to provide credit card processing payment options to online customers through the company Website.

Creating a high volume merchant account will let you increase operating capacity to process exponential numbers of customers and credit transactions. You won’t have to worry about keeping correct change on hand at all times, nor will you have as many bad checks to chase after. Your customers won’t have to look for an ATM and pay extra usage fees to get cash when they wish to shop at your company’s physical location or online Website. You can hire fewer people to accept payments since your electronic equipment will be able to do that for you. In a short time your profits may soar as operating costs dwindle.

To apply for your high volume merchant account, first find a bank that offers this service. It need not be in your area, as you can now do most banking tasks online via the Internet. You will probably want to open your merchant account in a country that is economically stable. One with U.S. bank branches might be particularly useful in helping you open a high volume merchant account, since many U.S. banks enjoy a highly esteemed international reputation. Whether you apply online or in person, you will need to show proof of your citizenship and your company’s country of operation. You must show that your business does not involve illegal, and in some cases, immoral activities like pornography, gambling, pharmacy, and telemarketing initiatives. Generally, there are no limits on volume, so even if your credit card processing unit brings in far more profit than anticipated, you need not worry about being charged extra fees, although you will have to clarify this up front.

Your application for a merchant account could be approved in a day or two, which means you could start accepting credit card payments in a couple of days. Of course, you will need to select the type of credit card processor that you want to use either at a physical location or via your online Website. You may want to use a wireless processor for employees who travel from one site to another. Your high volume merchant account will be ready for business promptly to ensure that payments can be processed right away for your customers’ convenience and your company’s profit.

Many entrepreneurs, company owners, and managers find it exciting to expand their operations to include credit card processing options so that customers can shop night and day, 24/7. Start browsing online banking sites or community financial institutions that can provide this opportunity, and carefully read the conditions and terms for each institution before you choose one and apply for your high volume merchant account.

Shane Penrod is the founder of Merchant-Acount-Quotes.com Specializing in allowing merchants the ability to shop and compare multiple quotes from national merchant account providers. For free quotes on merchant account rates and fees, please go to www.merchant-account-quotes.com

Home Business Startup Tips
Posted in Business World July 23rd, 2008

Starting a home based business? If you are a beginning home based entrepreneur there are a few things that you need to realize and learn before the money starts rolling in. Having your own home based business is a great way to generate a second income and leverage it into a full time income over time. There is a lot to learn about starting a home based business but the benefits will be worth it.

Many people who get started in a home based business wonder how they can get off to a fast start. Well here are just a few tips that you can use to get your home business off to a fast start.

Set up a office space in your home - The first thing you want to do is to set up a separate workspace in your home. This should be a place that is off limits to children and family members and should be your designated area for working on your home business.

Manage your time wisely - One of the benefits of having your own home business is that you can set your own hours. This can also be a disadvantage for some because you don’t have someone telling you when to work. Set up a schedule as to when you will work on your business and stick to it.

These are just a couple of tips for getting started in your own home based business. There are many things to learn when getting involved in a business of your own. You don’t have to get everything right or perfect, the important thing is to just get it going and make adjustments along the way.

© Copyright Chris Monato. Chris Monato is an internet marketer and online entrepreneur. http://income22.com

How To Protect Your Website Content
Posted in Business World July 21st, 2008

Most of the webmasters put in a great deal of energy and time in developing quality content for their web site. But they are not aware of thousands of other webmasters who are using content from their web sites without permission.

The problem of online copyright infringement is a growing phenomenon. The ease and extent of infringement is greatly facilitated by the nature of web.

Webmasters can use the major search engines to check whether someone has stolen content from their site. For each search, they should carefully review the first two results pages. Here, we discuss some of the measures to safeguard your web content:

1. Place a Copyright Remark

You must demonstrate your copyright notice on each page of your web site. This notice should have the year of publication and also the name of your firm. This information could also be displayed in a graphic pasted in the footer of the page, eg.

© 2000-2004, Active Venture Pte Ltd. All rights reserved.

2. Register with the U.S. Copyright Office

You may also register your web site with the U.S. Copyright Office. Even if you don’t register, still you will get protection, but in that case you will have to collect evidence against the content thief.

You have to register your site with the U.S. Copyright Office within three months of its launch.

3. Action to be taken against online thieves

You should send them a strong mail telling them to stop their copyright infringement activities.

If they continue to violate copyright, send a mail to their ISP, credit card company, webhosting company, and the domain name registrar.

If nothing happens even after you have taken these steps, contact your lawyer for further advice to take legal action against the culprits.

Apart from the above mentioned measures, there are some simple tricks to prevent online thieves from lifting content from your web site:

1. Disable right click

You can use JavaScript to disable the right click of your mouse. But this method can be annoying for the sincere visitors to your site.

2. Software security

There are several softwares to prevent users from seeing your source code. These softwares invoke a JavaScript function ‘unescape’ which ‘encodes’ the HTML coding into a long series of characters. However, it can still be easily decoded to HTML using another function of JavaScript.

3. Use PDF files.

More usage of password-protected PDF files would prevent people from blatant copy and paste of your web content. Although the more experienced thieves could make use of several password recovery softwares available to break through the protected PDFs and copy the content.

4. Conversion of text to images

This solution takes a lot of time and the size of pages also get increased but is a fool-proof solution for copy-paste problem. But if someone is determined on lifting content from your site, then no one can stop him from re-typing the content.

5. Using Java/Flash

If your images are embedded in Java Applets or Flash, it is very difficult for online thieves to copy them.

Here again, the more experienced thieves will take a ‘print screen’ of your image, open it in paint and get way with it.

So, you could see that all these tricks would only prevent the new thieves from copying content. The more experienced ones could always come up with counter-measures for all these tricks.

To conclude, I would say that you should adopt one or more these tricks/measures to reduce copyright violation and for the more experienced thieves, you have to seek help of U.S. Copyright Office in taking legal action against them.

Copyright © Active-Venture.com’s (www.active-venture.com) webhosting service. This article may be reprinted freely online or in print, as long as you provide an active link to www.active-venture.com

11 Subliminal Identifiers Of A Floundering Venture! Companies That Are In Development Stage
Posted in Business World July 9th, 2008

It can be very difficult if not impossible to determine the status of a company by its financial statements alone, especially in circumstances where the company is in its initial product development phase. All of the normal financial indicators, that are normally utilized to determine a company’s status, such as sales, gross margins and inventory values are totally meaningless.

The question then becomes how does an investor determine if a business is on track if it is not expected to have any product sales at this time.

In general entrepreneurs are extremely optimistic and self-assured individuals. They have an undying belief in their product or service and what they are doing or trying to do and they have sold you, the investor, on the potential success of their business. Because of this, it becomes very difficult and embarrassing for the entrepreneur to admit, even to himself, that the business is not progressing as planned or advertised. The entrepreneur also generally believes that the problems are nothing more than hick-ups (the optimism) and that things will correct themselves over time, they believe that there is no need to put the investors into panic mode nor do they “need” to have the investors “hounding” them about the “small” problems that they are encountering. “After all the investors don’t have a true appreciation for the creativity and development involved to get the product to this stage, all they care about is making money.”

Over the years, I have taken note of what I consider to be a number of non-financial indicators that can provide you the investor, in advance of meaningful financial information, a suspicion that there may be a problem within a business.

Please bear in mind that not all of the indicators will appear in all of the cases. All of the items are based on change. If an entrepreneur has always operated in a specific manner then the fact that he is doing so now is probably a sign that things are proceeding along well. It is a change in operating style that could be the indicator of potential problems.

Operating changes that should raise a red flag include:

1. Middle management seems to have a high turnover rate:

Senior managers generally have a “commitment” to a company and to see a project through from start to finish. There is a level of professionalism and personal ego involved. Middle managers do not, as a general rule, appear to have the same commitment to an organization. Middle managers seem to be aware of problems instantly and are the first to look for new employment if they feel that their job security is threatened.

2. Monthly reports are delivered earlier or later than normal or skipped:

If the entrepreneur feels that the investor group is suspicious of a problem a report may be forwarded earlier than normal. It would appear that the mental justification is that having the report early will quell any suspicions of problems and build confidence within the investors.

If a report is filed late I have found that it is because the entrepreneur experienced a problem and was hoping to have a resolution to the problem prior to sending the report out.

Overall, I have found that a report filed earlier than normal, without any other justification of why it was filed earlier, is a more serious red flag then a report filed late.

In some cases a report may be skipped completely, besides the fact that this is a bad habit to indulge, it could be a sign of problems.

3. Monthly reports show very few negatives:

Every business experiences ongoing problems and challenges, whether they are internal or external. How problems are dealt with is the key to a successful business, not whether or not the business has problems. Reports to investors that do not identify any problems are unrealistic and should be questioned.

4. Monthly reports show very few, if any, failures and/or threats:

This is very similar to point number three. Every business experiences failures and threats of failure, whether it is a deadline not met, the loss of a key employee or a joint venture that didn’t come to fruition. Businesses that do not experience failures and threats of failure are not realistic operations. No failures, no threats, red flag!

5. Monthly reports do not provide continuity:

For instance, a report one month that shows an opportunity and the opportunity is not mentioned in any manner in the next months report. The same situation applies to threats. A threat to the business is reported one month and the following month it is not mentioned at all.

6. New opportunity conversations:

Conversations with the entrepreneur, whether in person or by telephone are always centered around or directed towards “new” opportunities in the form of additional products and/or markets, with little if any conversation about the original product or market.

7. Abnormal working hours:

The entrepreneur, and other senior management are working more hours and weekends.

8. Less contact between company directors/investors and staff:

If the entrepreneur always invited other staff members to board or investor meetings (with the consent of the board) and now he deals with the board and the investors on his own, it is a signal that there are problems within the organization.

If it was common for board members and/or investors to have a tour of the facilities and talk with other employees, when there was a meeting and those tours seem to have disappeared it could be a sign of problems.

9. Change of meeting venues:

If meetings were held at the company’s facilities and the entrepreneur has suggested utilizing a hotel or other outside meeting facility it should raise a red flag.

10. Telephone calls/email messages:

If the entrepreneur generally took your telephone calls and now has someone take a message and/or if you used to get a response to an email message in a short period of time and now that doesn’t happen it is an indication of a change within the business that may not be for the better.

11. The entrepreneur cancels or does not take a scheduled vacation:

I have found that one reason that an entrepreneur cancels a vacation is because he is concerned about what is going on within the business and does not have the confidence in his staff to continue without him. Secondarily the entrepreneur may be concerned that you will call during his absence and speak with someone else in the organization.

Robert Berman - EzineArticles Expert Author

Robert Berman is a business consultant specializing in business development, strategic planning, acquisitions & mergers and international sales & marketing. He has been a columnist for the National Post Newspaper under the byline of “The Business Doctor” and he has authored “The Business Buyer’s Manual”. He may be reached at Robert.Berman@businessbuyersmanual.com or visit http://www.businessbuyersmanual.com

Purchase Order Financing Basics
Posted in Business World July 3rd, 2008

Let’s say that your business suddenly gets a big order from your best client. However, it is an order that is clearly too big for you. What would you do? If your business has a good banking relationship perhaps you may be able to tap into a line of credit or a bank loan. But what happens if your business is small or new and you have no banking relationship? Do you turn the customer away? Fortunately, you don’t have to. Purchase order (PO) financing may be able to help you secure the sale and deliver the order.

What can purchase order funding do for you?

Purchase order funding is a tool that allows you to finance your big orders. It provides the necessary funding to fulfill orders that otherwise you could not afford to deliver. When used correctly, it can enable you to grow your company quickly

As opposed to bank financing, purchase order funding does not rely on your company’s financial strength. Rather, it relies on the financial strength of your customers. This means that if you sell products to large companies or to government entities, purchase order funding can be the ideal option to finance those sales.

Who is a good candidate for purchase order financing?

To qualify for purchase order financing, your company must sell products rather than services. An ideal candidate for this type of financing would be a product re-seller or distributor who is buying products from a supplier and then shipping the products to the client. Purchase order financing can also work in instances where products are sold in conjunction with services (e.g. maintenance), however, the product part of the order must be separate from the services component.

The business case for PO financing

PO financing is simple to use. The po financing company buys the products from your suppliers in your name, using a letter of credit or similar instrument. It then ensures that the products are properly delivered to your client. Once the order is delivered and approved by your client, the funds from the letter of credit are released to your supplier.

At this point, the order has been delivered and an invoice is issued. Most invoices take 30 to 60 days to pay. Once an invoice is paid, the transaction between the parties is settled. It is common to combine po financing with receivables factoring because this enables you to reduce the total cost of the transaction.

Receivables factoring is a type of financing that provides you with financing based on your receivables (or invoices) for delivered products. Usually, once an invoice is generated, the invoice is factored and the funds are used to close the po financing facility. This is done because the rates for po financing tend to be higher than the rates for factoring receivables. This little trick can help you save money and realize greater profits.

Although po financing is a great tool, it does not work for every company. However, if you have margins of at least 20% and good paying customers, you should be able to benefit from it.

About Invoice Factoring Group

Invoice Factoring Group is a factoring company that can provide you with a free receivables factoring or purchase order funding quote. Marco Terry, the president, can be reached at (866) 730 1922.

Copyright (c) 2006 Commercial Capital LLC. All rights reserved. Article may be reprinted freely, provided it is not modified and all live links are included.