. In consideration of conservation, cities throughout the country have developed programs including penalties to get homeowners to conserve on water consumption. While the intent of such a program is founded on sound principles, cities also see the need for variance in the case of new lawns. The problem with residents planting new lawns is that they have heard all about conservation principles relevant to established lawns but little or nothing about different requirements and the fact cities would allow a for variance in the case of newly planted lawns.
Even though sound principles are involved in conserving water, a consideration should be taken into account for a difference in water requirements of a germinating lawn.. The germinating seedlings of a new lawn have to be kept moist almost constantly during the heat of the day in order to keep the sun from scorching and preventing germination. Grass seed and most other types of seed require a certain amount of moisture in order to germinate.
So when setting up a watering schedule, instead of watering every two or three days and watering deeply, it has to be kept moist with multiples of watering during the heat of the day. On hot days, it perhaps should be watered four or five times during the daylight hours especially during the heat.
In some cases, residents are encouraged to water in the evenings for more efficiency. Supposedly, less water is lost in evaporation. However, it is necessary to utilize sprinkler systems more effectively with a different mindset of watering lightly during the heat of the day and not using any of the clock times during the evening thus taking away from the number of watering cycles available during the daylight hours when the germinating seedlings need water most frequently.
The financial arm of a business in its infancy also has to have a mindset different from a well established company. Ideally, a company is able to borrow money to take care of cash flow shortfalls. However, banks are hesitant to loan to companies that are not well established with a track record showing a balance sheet and financial statements and healthy and positive cash flow.
Most financial institutions require that a company be in business for at least two years. The management of a new company has to have a different and more creative approach to financing startup and growth. It is great that a company is making a lot of sales and taking more orders. However, when there is a large number of invoices tying up available cash, a company will struggle.. That is where creative alternatives such as factoring invoices need to be considered.
Watering a new lawn multiple times during the day is likely to be more expensive than watering deeply every two or three days. Furthermore, the city is willing to offer a variance to accommodate the germination of new seedlings. The important thing about a new lawn is that what matters most is not how much water has been used nor how much money has been spent on the materials for the lawn. More importantly, it is imperative to keep the lawn moist during the heat of the day.
Factoring is likely to be more expensive than conventional financing but sometimes necessary in order to be able to finance growth and development. When a Kentucky Bluegrass lawn has matured and developed rhizomes and a capacity to absorb more water, a transition can be made to water more conservatively.
Similarly, when a company becomes more established, it is likely to make a transition from alternative financing to conventional financing. In the mean while, there are some advantages to factoring invoices.
Normally, a factoring application is very simple and can be processed with an answer and subsequent proposal within a couple of business days.. Factoring an invoice is not a loan. An invoice is a company asset. A business doesn't incur a debt when factoring invoices because it is the sale of an asset at a discount..
The same principles apply to credit card financing. When a company receives payment with a credit card, the company makes a discounted sale of the invoice to the credit card company. The credit card company pays for the invoice almost immediately but takes a discount on the purchase. A savvy businessman knows it will allow for more sales to accept credit cards and be able to pass the cost to the customer.
Factoring allows a company to shorten the amount of time it takes to get paid for products and services and to fit into the accounts payment cycle. Creditors need to be paid on a timely basis so the business can grow and become established. A new Kentucky Bluegrass lawn needs water every day so it can germinate, develop rhizomes and become well established before it can transition to a more conservative watering cycle.
In order to determine the viability of factoring invoices, one must analyze the cash flow needs of the company..
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Russell Wardle is president of Corporate Capital Source. His company provides nationwide commercial financing, factoring and equipment leasing. Contact him at 801.676.0579. Also visit http://www.corporatecapitalsource.com
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