Shaw Capital Management and Financing Carve Out Time with Accounts Receivable Factoring

Factoring your accounts receivables might be a good way for your company to free up some time and smooth out cash flows. But just a warning, depending on the factoring agreement, the factor may collect your receivables for you. Read the latest articles from Shaw Capital to avoid scam, fraud and other online transactions. This is a good warning to avoid fraudulent transactions online.

Small business owners never have enough time. There are bills to be made, products to be marketed, employees to be hired and sales to schedule. Those 24 hours each day seem to simply disappear.

Fortunately, business owners can save some time with accounts receivable factoring.

Shaw Capital Management and Financing provides export trade financing to clients in every major world market and can convert accounts receivable finance transactions in 17 currencies.

We have no minimum or maximum monthly volume requirements. Other factoring companies require a financial commitment for the amount of freight bills you factor each month.

Our highly skilled team provides full administrative support - including credit management, invoicing, collections, account reporting, expense reporting, fuel card management and much more!

With Shaw Capital Management and Financing, you get paid in full minus our fee the day we receive your freight bills. Other factoring companies holdback 10 to 15 percent of your money or more for each invoice in a reserve account. That reserve amount is not immediately provided to your company. In the end, you receive part of that percentage back, depending on how long it takes the factoring company to receive payment on the invoice.

Under this arrangement, owners sell their outstanding accounts receivables to an outside factoring company. The factoring company, which buys the accounts receivables at a discount from the money owed on them, and then goes about handling the messy business of actually collecting on the receivables. The business owner, meanwhile, gets a quick infusion of cash.

Now, it’s true that business owners get a bit less cash than they would have received if they would have collected the money due to them by their clients. But collecting on accounts receivable can sometimes be a lengthy ordeal. With accounts receivable factoring, business owners get their money quickly.

At the same time, they free up valuable time for themselves. Instead of tracking down late payments, business owners can participate in income-generating activities, the kind of work that keeps a small business humming along.

For instance, instead of trsacking down missing payments, business owners can develop a new marketing plan to better promote their new product line. They can draft an expansion plan that will keep their business competitive. They can schedule interviews to hire those extra employees that they need as their business grows. Or they can finally decide whether moving to a larger building makes economic sense.

Shaw Capital Management and Financing - Business owners today need two things to thrive: time and money. Factoring account receivables provides them with an extra dose of both. Those owners, who struggle to get everything done in an average day, should consider taking the accounts receivable factoring plunge: It might help them provide the extra boost that their business needs. By Nathan Franks.

Shaw Capital Management Korea: Financial Markets

For most of the past month sentiment in the financial

markets continued to improve.

There was further evidence that the global economic

recovery was still on track, and short-term interest

rates remained very low.

But towards month-end the mood changed after the

decision to downgrade Greek debt to “junk” status, and

to reduce the credit ratings of both Portugal and Spain.

There was a fear that the contagion would spread still

further, and that the bond market pressures resulting

from the massive fiscal deficits around the world would

have serious financial consequences.

There was always the risk that some of the measures

that were introduced to counter the recession might

have adverse consequences, and this is now proving

to be the case.

Shaw Capital Management Korea: Major Equity Markets

After moving ahead for most of the month, most of the

major equity markets are ending the period unchanged

or slightly higher, and there have been sharp falls in

many of the minor markets.

Wall Street has been the exception, and is ending

higher, encouraged by some favourable corporate

results.

But markets in Europe, including the UK, are lower,

and there have been falls in the Chinese market, and

other Asian markets, after the measures by the

authorities to reduce the risk of over-heating in the

Chinese economy.

However views about longer-term prospect are still

fairly positive, and the markets seem to be simply

pausing until some of the uncertainties have been

resolved.

Bond markets; have produced a mixed performance,

with the major markets holdings fairly steady, despite

the worsening background situation, but with the minor

markets, especially in Europe, suffering very sharp

falls, and yield spreads between the stronger and weaker

markets opening up to record levels.

The threat of sovereign debt defaults has increased

and urgent action is needed, especially in Europe, if

they are to be avoided.

However there are also warnings that similar conditions

could develop in the UK and in Japan if there are no

early moves to reduce the level of fiscal deficits.

It is still expected that an aid package will be agreed

to avoid a default on Greek debt; but this may only

provide temporary relief.

Shaw Capital Management Korea: Currencies

Movements amongst the major currencies have been

relatively small over the past month.

However the weakness of the euro has enabled both

the dollar and sterling to improve as investors have

rushed to reduce their exposure to the European

currency.

There is a fear that the debt problems affecting Greece

and other countries in the euro-zone will make it

extremely difficult to restore the credibility of the euro,

and that it might make it necessary for some countries

to leave the single currency system, at least on a

temporary basis.

Shaw Capital Management Korea: Short-Term Interest Rates

There have been no changes in short-term interest

rates in the major financial centres over the month.

The Bank of Canada though has indicated that it is

considering pushing rates higher, and this has

encouraged speculation that other central banks may

be planning similar moves.

Shaw Capital Management Korea: Commodity Markets

Moved higher over the past month as sentiment in the

financial markets improved.

Shaw Capital Management Korea: Portfolio Recommendations

We have made no changes in our portfolios this month.

The latest developments in the government debt

markets have increased the uncertainties about

prospects for both the bond and financial markets.

However, although the pace of the global economic

recovery may be affected, there appears to be enough

momentum to enable it to continue.

We have therefore maintained the level of our exposure

to the equity markets; and we have left 10% of the funds

in the portfolio in cash deposits as a contingency

measure. Bond exposure is zero.

Shaw Capital Management Korea: Portfolio

Recommendations - The UK Hung Parliament

The bond markets are totally calm about the hung

Parliament, as they are about both UK and US bond

prospects, with yields still below 4%, in spite of the

huge deficits both countries are running.

What is going on?

The first point is that both countries are recovering,

and seem set for growth rates in the 2–3% range.

Such growth is not ‘V-shaped’ but a V was unlikely

given the shortage of oil and raw materials, which

continues to limit world recovery potential. It does

give a prospect of improving tax revenues and falling

benefit expenditures.

As growth goes forward it will be possible to work out

more accurately how much of the current deficit is

‘structural’ — i.e. will not disappear with returning

growth.

For the UK the current estimate is that about 8% of

GDP is structural: still requiring a huge programme of

retrenchment.

The second point is that neither the UK nor the US has

ever formally defaulted in modern times.

Indeed for the UK, they can date this from the end of

the Napoleonic Wars when public debt reached around

300% of GDP.

The third point is the new unwillingness to use higher

inflation to bring down the debt in real value. Inflation

(implying an ‘inflation tax’ on government monetary

liabilities which thereby lose their value) is now

proscribed after the poor experiences of developed

countries during the ‘great inflation’ of the 1970s.

Electorates have rejoiced at the new inflation targeting

policies that have formally ended governments’

experiments with this form of taxation.

The electorates hated the messy and unintended

redistributions of wealth this tax implied — often from

the weak such as pensioners to the wealthy and the

unionized.

In this context bond markets have treated Mr. Obama’s

delays and the UK’s election result as simply policy

deferred.

In that they are likely to be right.

Shaw Capital Management Korea: Portfolio

Recommendations - The state of the eurozone

By contrast the situation in the euro-zone looks

increasingly difficult.

The problem is that Greece and Portugal — the two

main current problem cases — joined the euro in the

expectation that low interest rates would keep their

public finances under control.

Internally these countries have difficulty in raising

taxes and curbing expenditure but joining the EU and

then the euro gave them the authority to insist on fiscal

discipline as the ‘price’ of joining.

Now the discipline is becoming harsh and yet interest

rate premia are rising, as the risk of default increases.

Germany and the other euro-zone countries are

unwilling to transfer resources to them — and even to

provide loans on terms below these market rates.

Germany’s position in particular has hardened

massively under hostile home reactions to perceived

‘bail-out’.

Germany is simply unwilling to make transfers after

the huge costs of its integration policies for East

Germany.

There will come a point where the advantages of being

in the euro are outweighed by the disadvantages for a

country like Greece.

Once interest rate premia get high enough inside the

euro, the attraction of floating the currency down

outside it and still paying similar interest rates will

become overwhelming to governments faced with

public hostility to further sacrifice.

A large devaluation is a way of allowing the economy

to recover and produce extra revenue.

Furthermore reintroducing the local currency will

allow the government to re-denominate the debt in

that new sovereign currency … so effecting a de facto

partial default.

These exits would not spell the end of the euro. But

they will remind markets that the euro is bound

together by political convenience only and not by some

deep commitment to European integration.

Up to now there has been a general belief in such a

commitment; however, Germany’s recent actions have

destroyed this belief.

It was this belief that kept interest rate premia down

on sovereign debt of euro-zone countries; rather like

the debt of UK local authorities — formally underwritten

by the UK government, it was felt that these countries’

debt was being implicitly underwritten by other eurozone

members. No longer.

But of course what can happen to Greece could happen

to any other country. If so its risk premia too would

rise and it too would face the same trade-off between

staying in or exiting with the freedom to float at similar

interest rates outside.

Hence the chances of more break-up would get larger

and the system would become gradually closer to a

system of ‘fixed but adjustable’ exchange rates like the

old European Monetary System.