Monthly Archives: February 2015

Accounts Receivable Financing Ensures a Constant Cash Flow

business dealA business is in constant need of some form of financing to ensure that its operations are never halted, because of a shortage of money. The finance is required for the buying of raw material, paying salaries, paying for utilities, administrative costs, and financial costs and to extend credit to their customers, in order to facilitate business.

One type of financing that is used by companies, uses their assets which have built up as a result of their supply of manufactured products or services, and which the customer has not yet paid for. This is called accounts receivable financing and is money owed to the business that functions as collateral. The lender will agree to provide an amount that is lesser than the total value of the goods billed to customers. This form of financing has been around for centuries and involves the pledging of invoices to a third party, or often their outright sale. This ensures that businesses receive cash immediately after they dispatch goods to customers, and this allows them to use it for continuing their activities, without having to wait for the proceeds of the sales.

In accounts receivable financing, a business provides the customer with their required product or service against properly documented invoices. Once the customer authenticates an invoice, the business sends this to the financing agency and in turn receives a percentage of the invoice value, normally ranging between eighty and ninety percent. In most cases, the customers will pay the invoice value directly to the financing agency, as and when it is due. Fees for this financing are decided in advance and these are deducted from the remainder value of the invoice and sent back to the business.

Businesses need to inform their customers about the financing arrangements, so that they make the payments to them, and it is necessary that they agree to such an arrangement. Financing companies have to depend on customers of the business for payments and will in most cases insist on verifying the credentials of such customers, and may even refuse financing if they are having any doubts about their credibility.

This form of financing allows businesses to use money from lenders to ensure their growth and continuing business. They however, need to be very careful to ensure the reliability of their customers, if this has to be a success. This arrangement works very well for older and well established customers who have a history of being scrupulous about making payments for goods received by them.

24 Feb 2015

The Top Four Meat Companies Make Quite The Monopoly

sausage meatThere is a focus on industry standards these days when it comes to meat companies. Taking a close look at the business as a whole would tell you that there are a handful of these businesses that are actually controlling the meat market. There is also a move towards stricter standards, brought on by perceived shortcuts and thoughts about supply and demand.

With industry standards a hot topic, many people are looking into ways to get a hold of the best meat they can find. There is a huge difference, for instance, when including meat in your diet from grass fed cattle vs grain fed cattle.

The meat industry of course contains the poultry faction, which is quite the big business. Who are the four big meat companies of today? They are Tyson, Cargill, National Beef and JBS.


Tyson comes in with exactly a quarter of the market share when it comes to sales. Would you be able to even guess what their slaughter capacity is? It is 28,700, and their annual sales from beef is over 12 billion dollars, which equates to over a billion dollars each month.

Are you familiar with the name IBP? They were the largest supplier of meats in the world until they were bought by Tyson more than a decade ago. Tyson caters to 90 countries with its products, and it’s the world’s second largest producer or chicken and pork.

Cargill is based in Wichita, Kansas, and its slaughtering capacity is slightly higher than that of Tyson. Cargill is not just in the meat industry, and in fact it is the largest private company in the entire world. It currently holds just under a quarter of the entire market share within the meat industry.


JBS is based out of Colorado, and it has a market share of just under 20 percent. JBS at one time tried to buy National Beef Packing Company, which is the fourth largest producer of meat; however, this move was halted by the Department of Justice.

The parent company for JBS is based in Brazil, and the company has a total of 54 processing plants. While they failed to buy National Beef Packing Company, they have acquired a few companies in the past years, that last one being Pilgrim’s Pride.

You can learn a lot by examining the top meat producing companies in the world. Where do you get your meat from?

11 Feb 2015