Business turnaround refers to the process of revitalizing a struggling or underperforming company by implementing strategic changes and improvements to restore financial stability, enhance operational efficiency, and return the business to profitability. The goal of a turnaround is to address the root causes of poor performance and create a sustainable, competitive advantage for the company in its industry.
A business turnaround typically involves several key steps:
A successful business turnaround requires strong leadership, clear communication, and a commitment to making difficult decisions in the best interest of the company. Turnarounds can be complex and challenging, but when executed effectively, they can lead to significant improvements in a company’s overall health and future prospects.
These are the abbreviations for Business to Business (B2B), Business to Consumer (B2C) and Business to Government Sales (B2G), respectively. Invoice factoring is for B2B and B2G Sales on open terms. ACH & MCA products can typically be used for…
In a staffing context, the Back Office is part of the tech stack used to underpin the services of a Staffing Firm. It is used to create and distribute net pays and net bills (aka invoices) and to report and…
If you have bad personal credit and need funds as a start-up or grow your existing business your choices are: Invoice Factoring as the Factoring company looks more to your business or government customer's credit than your own. Crowdfunding or…
Debt that is unlikely to be collected. Unpaid invoices (an example of bad debt) is often paid for out of the client’s reserve account and or sold to a collections agency.
A Balance Sheet is a financial document showing a company's assets, liabilities and shareholders' equity at a specific date; for instance at a month, quarter or year-end. The profit is shown on the bottom of the Income or P&L Statement…
Balance sheet insolvency, also known as technical insolvency or net-worth insolvency, is a financial situation in which an individual or an organization has a negative net worth. In other words, their liabilities (debts and financial obligations) exceed their assets (cash,…
A balloon loan is a type of loan often used when purchasing real estate, auto loans or acquiring a business. Interest rates are typically low and payments are made over a short period of time, approximately five to seven years.…
A balloon payment is a large, lump-sum payment that is typically due at the end of a loan term, often used in loans such as mortgages, car loans, and business loans. Balloon payments allow borrowers to make lower monthly payments…
Bankruptcy is a legal process for individuals, companies or other entities that are not able to pay their outstanding debt to creditors. Bankruptcy can offer reprieve of some or all of the debt. Bankruptcy filings in the United States fall…
Bespoke financing is referred to as a loan that’s personalized specifically to a client through creative financial product offerings. Instead of offering a generic loan repayment to a client, the loan repayment is structured, generally, on the clients expected ability…
Bill & Hold is when a seller of product or goods bills a Customer for the product but does not ship the product to them until a later date. It can make it more difficult for a factoring company to…
A Bill of Lading is a document from a shipping company regarding the number of packages with a particular weight and markings and gives title of that shipment to a specified party. A factoring company will look to the Bill…
In the supply of temporary workers, the bill rate is the amount the buyer of staffing services is expected to pay the agency inclusive of the temporary worker pay, statutory expenses, benefits, and agency markup.
This is a recent term that is gaining momentum especially among large staffing firms that also offer MSP and RPO services. Blended workforce means the planned use of direct-hire personnel and contingent workers to meet the strategic and tactical workforce…
When the shipper and receiver are not aware of one another, the freight shipment is called a Blind Shipment. In such cases, the bill of lading lists the party that paid for the shipment as the shipper or receiver of…
Bookkeeping is the recording, management and reporting of a company, organization or individual’s financial transactions from a general ledger. Bookkeeping is vital for business planning, investing and financial management and is used to prepare financial statements.
Bootstrapping is when a business is started with its owner's personal resources, such as funding the company entirely with their own money, without receiving outside help and continuing to support the company through cash coming in from sales.
Borrowing Base is the value assigned to a company's assets, which is then used by lenders as criteria for providing availability under a loan agreement. These assets can sometimes be considered as collateral for the loan. Inventory and Accounts Receivable…
Covenants are promises or stipulations that are part of written agreements, frequently relating to real, tangible property such as a vehicle. If one of the parties involved in the agreement fails to adhere to some of those conditions or stipulations,…
The point at which the income from the sale of a product or service equals the invested costs, resulting in neither profit nor loss; the stage at which income equals expenditure. Our goal at eCapital is for companies to use…
Bridge Loans or bridge financing are short-term funds that "bridge" the gap between today's need for immediate cash to pay bills and the final closing of a pending investment deal or long-term financing package.
Bulk factoring is a financing arrangement in which a factoring company purchases a large number of a business's outstanding invoices at once. The factoring company provides immediate payment for the invoices, typically providing a percentage of the total value of…
In relation to pay, burden is the mandatory employer-paid payroll taxes and benefits based on the wage or salary of employees. In the US, burden will include workers’ compensation, unemployment insurance (SUTA), employer’s share of FICA (Social Security and Medicare)…
The rate at which an enterprise spends money, especially one venture capital, angel or private equity-backed, in excess of income. A company cannot be Negative Cash flow forever (unless you are Tesla or Uber, apparently) and must eventually get to…
A business acquisition is where one company buys another company to strengthen an already strong area of the acquiring company or improve a weak product or service offering. It can also be used to reduce competition.
There are two types of business credit protection. One protects you against hackers, employees, and thieves stealing assets from your company. The second insures that if your customers file bankruptcy, credit insurance pays for your losses.
A business credit report assesses the creditworthiness of a company by providing data on a company's financial health, payment history and overall history with the purpose of that company obtaining credit and the terms of that credit from a lender…
A business credit score allows lenders or suppliers to gauge the risk in providing a line of credit or a loan to a customer and if that customer will pay back the resulting debt within the agreed credit terms. Scores…
The requirements for a business line of credit from a bank are stringent and include 2 years of tax returns, YTD financials, your personal financial statements, cash flow, and sales projections, and your professional experience. Alternatively, If you are a…
A business loan is a loan intended for any type of business operations. It could be a term loan, a revolving line of credit, an equipment lease, or an invoice factoring facility.
