Business Technology: Saving costs is another way to make a profit

“Saving costs is another way to make a profit!”

Saving costs is another way to make profit and is an old adage, often overlooked, in our new section here at TolaTender.co.za News I will give my personal experience of about 20 years “playing” with business technology, but I will explain business technology  in my style which is “crystal clear” yet simple, the cost and benefit analysis of a business technology solutions that anyone can implement in their office, so that you are able to see clearly, in money terms, the cost savings per year and and implement those solutions if you wish to replicate my successes and reap the benefits in money terms of increase in your business profit, once again I remind you, this is a very critical understanding, “Saving costs is another way to make a profit!”.

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Business Technology Cost Savings

Let me make an example, I used to wake up and post content manually to our various social media platforms like Facebook and Twitter, from our database-driven company website or let us call it a blog as some of you may have blogs, blogs too are database-driven, a database basically is computer storage of information, in this case my business information, this exercise would take 2-3 hours each day from say 4am till 6 or 7am, planning and doing it, remember one must also add tracking code to content to collect performance statistics so I can know which posts had the most clicks etc, now an employee’s normal working day is 8 hours, so if you subtract the 3 hours than I would have already used a third of my working day doing this repetitive admin, and if an employee earns say R30 per hour that is R30 x 3 hours x 30 days x 12 months per year and the cost of that activity was R32 400 per year, if you could save R32 400 per year what can you use it for? An end of the year vacation, new office equipment or re-invest it and your time into another profit making business activity likes sales! Well that’s what I did, I developed a simple computer software program to do this repetitive admin task of posting to our social media from our blog or database-driven website.

We will clear the myths and superstitions around business technology, and bring your business  from the dark ages back to the 21 century!

Our new business technology section at TolaTender.co.za News will give such practical examples and clear cost savings in money terms not some “shady” business technology solution whose impact in money terms, the seller can’t tell you, yet sells it to you as a necessity and beneficial!
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Invoice Discounting: Is waiting for your business customer payments killing your business?

You have done the work for your customer, a big business, the client is satisfied, and you have issued your invoice, however, the problem is that your business customer will only  pay you in 7 to 60 days! Mean time, there are immediate expenses that need to be paid monthly, and these creditors don’t care that you will be paid in 7 to 60 days days they want their money pronto! They hound you and call your telephone almost daily demanding their money like yesterday! You can’t even sleep at night because of the worrying sigh…Man frustratedCLICK HERE!  Get This Business Finance Quote!

We all been there, it is called Cash Flow Challenge, let us call it CFC. Your accounting books tell you have the money, however the problem is that that money is not coming to you at the time you need it, which is now! But your money will be paid to you by your customer or debtor in the near future, and that future just happens to be in 7 to 60 days to come, which of course for a cash strapped entrepreneur is too far! And did I mention? You find that your local bank can’t help you especially since they became part of that new tighter international standard or law for banks, which basically means, banks can’t just loan people with low credit scores, and you happen to have a low credit score too!

Well, here at TolaTender.co.za we not here to write long and complicated stories, but we give the entrepreneur a working solution that the entrepreneur can start using immediately and solve his or her business problem, without further a due I present to you invoice discounting, another cash flow problem busting solution! In our last article I introduced tender financing or purchase order financing but that is for “tenderpreneurs” or entrepreneurs who have government purchase orders but no money to pay suppliers immediately and do the tender.

What is invoice discounting?

Ok, here at TolaTender.co.za, we write simply because we talking to entrepreneurs not some Masters of Business or Guru, and simple is better, basically, you sell your specific invoice for a debtor to another business at a discount, and the other business waits the 7 to 60 days you would have waited to get paid WHILE YOU DO NOT WAIT 60 DAYS, and you get up to 90% of the invoice value paid to you today! The rest, which is 10% minus the services fees, you get that later when your customer pays the business you sold that specific invoice to!

CLICK HERE!  Get This Business Finance Quote!

Benefits:

  • Your get this business finance even with a Low Credit Score!
  • Same day payment into your account!
  • The invoice purchaser does not take over your whole debtors book – only specific, large debtors;
  • The product is very flexible – you decide how much cash you need and which customers  you want to discount;
  • Your invoice will be discounted up to 90% of its value;
  • There are no monthly or fixed costs – you only pay for what you need;
  • There are no fixed terms – you can discount at any time;
  • Minimum paperwork required, and
  • Above all: YOUR CASH FLOW PROBLEMS ARE RESOLVED INSTANTLY.

    Requirements:

    • The product or service must already have been supplied by you to your customer or debtor;
    • Your customer must be satisfied with the product or service;
    • Your customer must be a reputable company with a good business record and credit standing;
    • Your customer must agree to pay the invoice amount into our bank account;
    • Your customer must sign an undertaking confirming the invoice amount.

Costs:

The discount rate is 0.15% per day until your customer pays the business that bought that specific invoice, but the actual rate depends on the credit risk assessment so you will be assessed. You will only be charged for the exact number of days for which the invoice is outstanding. There is no minimum period. They may be a nominal service fee of say R300 per discounting transaction but this depends on many factors.

CLICK HERE!  Get This Business Finance Quote!

Business finance
Business finance options in South Africa.

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