Cash Flow through Debt Collection

Generating cash flow through new business has its own challenges. But an important part of cash flow for any business operation is collecting debts owed.

However, for companies that are in debt they, too, can convert short-term debt into a manageable long term plan.

The Small Business Administration reports that approximately 40,000 businesses a month close their doors or file for bankruptcy. These companies didn’t have a solid and proven plan to get out of debt; all they had were hopes and dreams.

If more than 30% of your payables are over 90 days old, you are taking chances with the future of your company unless you have a realistic plan to satisfy your creditors. Without a practical and affordable plan your company can sink deeper into debt, and it may only be a matter of time before creditors seize your assets and put you out of business.

Debt restructuring is not limited to credit cards, loans, and secured and unsecured lines of credit, but can also include equipment and commercial leases, liens and judgments as well. During the past several weeks, I've learned about a performance-based company called Commercial Debt Solutions based in the Los Angeles area.

Commercial debt restructuring is not for everyone. However, a structured program could work if you want to pay your creditors but are unable to establish affordable settlement terms.

Commercial Debt Solutions offers a free consultation for companies in Southern California either by phone or in person. For more information call 1-877-684-3631.

Cash Flow Opportunity in India

Generating cash flow for companies includes expanding into areas of opportunity while negotiating the inherent risks.

India presents an opportunity for many U.S.-based companies large and small across a variety of industries including telecomm, alternative energy, aerospace, and the auto industries. During the next 15-20 years, projections state that up to 40% of families in India will move into a middle class lifestyle.

India is also a young country with 71% of the people younger than age 35.

Those figures were quoted by Julie Anne Hennessy, director, U.S. Commercial Service in Los Angeles County speaking at the India Trade Conference held today in Irwindale, California at the Southern California Edison (SCE) CTAC Conference Center.

The 2nd annual conference was sponsored by SCE, Quanta Consulting and the Port of Los Angeles.

Pictured are: Jim McClellan, Director of Trade Services Port of Los Angeles; Daphe Ng Southern California Edison; R Sampath, Quanta Consulting; Gene Rodrigues, Southern California Edison.

The gathering gave a macro-view of reasons to enter the India market while offering an overview of tapping into relational networks to create successful business strategies.

Conference moderator R Sampath, Quanta Consulting, Inc., said companies should definitely look at the opportunity that's offered by the vast India market, improved infrastructure, and the rising level of education.

"But there are also risks," he said. "Part of the cost of doing business in India is its going to take time of the executives to map out a strategy and make the needed contacts to plug into the right networks."

The focus of the morning keynote addresses and afternoon break-out sessions was to help companies begin the process of discovering how to get started in doing business in India and how to generate revenue.

The costs and risks can be worthwhile. While China is the world's 2nd largest economy in terms of purchasing power, India is the world's 4th largest economy.

Commerce Minister Banashri Bose Harrison, Minister of Commerce, from the Indian Embassy in Washington, D.C. told attendees that India is a natural partner for U.S. companies.

“There is a degree of comfort level people in the U.S. feel when they go to India,” she said. “They feel at home and one of the reasons why is that English is so widely spoken and since both countries are democracies there is a shared value.”

She remarked that in developing innovative technology, India is a perfect place since testing is less expensive making the country a good R&D partner.

Information on doing business in India is available through the following sources:

Quanta Consulting, Inc.

“Crafting Your India Strategy”

The US Commercial Service, U.S. Department of Commerce

http://www.export.gov/india/

http://www.buyusa.gov/india/en/

The third annual conference is scheduled for June 2010 in Cerritos, CA.

Additional, upcoming posts from the June 26, 2009 conference on doing business in India to generate cash flow will focus on brand building, cultural differences and key challenges facing business ventures.