Why Investors Put Their Money on Companies That Respect Its Stakeholders

In every institution, the stakeholders are considered as the people or entities who have a stake in the business. These stakeholders can be further divided into two categories–internal and external stakeholders. The former is composed of the organisation’s employees, shareholders, and members of its board, while the latter is composed of the company’s customers, clientele, and the entire community where it exists and operates. With this symbiotic relationship between the company and its internal and external stakeholders, you can already assume that one affects the other. Meaning to say, when the company succeeds, its stakeholders also succeed and vice-versa. This is one of the principles that made companies, like Truebell Capital, Apple, Chevron, and Procter & Gamble.

Truebell Capital

With these multi-million companies empathising with their stakeholders, you may start to ask why is there a need to do that? Businesses are here to profit, right? Why should they invest in building relationships, as well?

Business is about relationships

If you check out Truebell’s website at https://truebellcapital.com/, you’ll understand how companies like them are committed to building relationships first. For them, trust and integrity is as important as business financial gain. This premium they place on relationships made them include in their pre-qualification the criterion that requires any company that applies for investments to care for their stakeholders.

From that perspective, you can deduce that if you have empowered, dedicated, and loyal internal stakeholders, your business will function as if it’s run by the owner. The loyalty of your employees will spur them to look after the welfare of your business. Also, if you have shareholders who are equally dedicated to the well-being of your company, you are assured that every decision that emanates from them is all for the good of everyone. Click here Truebell Capital

On the other hand, if you are well invested in your relationship with your external stakeholders like the companies chosen by Truebell Capital, it’s easier for you to market and sell your products and services. Because they trust and believe you, they also trust the integrity of your products. At the end of the day, your business benefits the most from such a well-anchored relationship.

A good reputation stems from trust

If you are an investor, you are careful and strategic about your investments. It doesn’t need a rocket scientist to figure out why they have to be that way. Even in small stakes, people want something valuable in return for the money that they parted with.

Companies seeking financial investments need to understand the fact that investors do not only look at your financial statements. They also look at how you manage your customers and how you deal with them. After all, your financial statements may look better if your customers patronise your products and services. But, your brand will remain for a long time if you build and keep your good reputation.

There is always a human element in every business transaction

If you want to know what other criteria investment managers like Truebell Capital have specified, you can check out https://truebellcapital.com/. It has not only become a trend for companies and investors to give emphasis on the humanitarian aspect of operating a business. Your financial documents may look sterling, but if you have a notorious relationship with your stakeholders, you will have a hard time getting more investments. Aside from that, you will also have a hard time surviving in the industry.

The Final Takeaway 

Everything starts and ends with people. In business parlance, people is the reason why companies start selling their products and services. As these people consume and make use of these products and services, they also decide which business stays or dies.

To get professional advice on running a company where people like to invest in, contact a trusted invest manager like Truebell Capital.

5 Advantages of a Credit Insurance Policy

While running a business, you are likely to meet customers who are quite poor in clearing debts. Some will even disappear while owing you large amounts of money. When you are faced with such customers, credit insurance companies come to your rescue. A good example of a credit insurance company is Niche Trade Credite. Just like in any other insurance policies, credit insurance has its advantages which really help you as the business person to overcome the challenge of bad debts. The companies help you in getting back to your financial position before the bad debts were noticed. By insuring your credits with a good company like Niche Trade Credite, you are certain of getting the best insurance cover on your bad debts. Credit insurance companies make sure that you increase your sales and hence your business grows. A company like NicheTC gives you the best solutions when dealing with errant customers. It is therefore necessary that you acquit yourself with the advantages of taking a credit insurance cover.

Niche Trade Credite

Below are some of the advantages:

Increased borrowing

Most credit insurance companies make sure that you have access to working capital which is cost effective. This helps your business to grow and also to avoid major cash flow disruptions. Credit insurance companies have a goal of maximizing the availability of your working capital. This is usually from the receivables that you have pledged to your lender.

Peace of mind

Once you insure your credit losses, you are certain that there will not be any bad debts being written off. This way you relax and run your business while you are at peace. This way, you smoothly run your business.

Loss protection

Credit insurance companies protect you from catastrophic losses. It is good to note that one of the most risk prone assets is the receivables. Credit insurance companies provide a safe net when they protect you from bad debts losses. The fact that a credit insurance company reinstates you to your initial position creates a kind of protection from huge and unexpected debt losses.

Lowering of bad debts reserves

Credit insurance helps you to manage write offs with a much greater certainty. This happens when you reduce the bad reserve, then you can take up excess of the bad debts reserves into your own income. This hence improves your earnings, financial ratios and shareholder equity. It is good that you note that your bad debts are not tax deductible.

Better risk management

Credit insurance companies ensure that you have the skill of better risk management. You can issue credit while you know it is a risk you are undertaking. This can only happen with the mentality of credit insurance company’s intervention in case of bad debts loss. This enables you deal with any risk that involves bad debts losses.

On top of these advantages, some credit insurance companies will make a point of paying the indemnity and also take part in the cost incurred when attempting to claim your receivables.

Advantages of Using Hard Money Lenders

An investor wishing to beat a strict deadline on a deal is better off using hard money lenders instead of the conventional lenders. Of course just like in the bank situation, hard money loans have a process that must be followed. The major advantage over other traditional lending methods,however, is that they have fewer qualifications, take a shorter time to process and loan amounts are negotiable.

Unlike the bank situations where a strong collateral as well as credit score determine whether a client obtains lending or not, hard money lenders only need to ascertain that an individual has sufficient collateral and the project for which the money is meant to fund is viable. After that, an investor can get money within a week or less.

An individual who has had a recent foreclosure may not avail proof of loan repayment to a conventional lender. The same is different for a hard money lender. Even with a very poor credit score, a hard money lender is able to extend credit to a client so long as there is surety of repayments. This basically means that one’s credit rating does not affect the amount of borrowing a hard money lender can offer.

Most times, people ask about those who really need hard money loans. Well, they are best for real estate investors and house flippers. Here are occasions when to apply for this type of lending:

  1. When there is a deal that may be time barred if one wastes a week or two.
  2. When an individual needs a large amount of money that conventional lenders are not ready to offer.
  3. When one has a poor credit rating but still needs to make investments.
  4. When a borrower has defaulted on a previous loan with other lenders and is still in need of lending to strike a deal.

Although the interest rates charged on hard money loans is higher than that of the banks, there are various advantages a borrower enjoys when using this type of credit. These are:

  1. Simple processing of application and quick approval. Hard money lenders know how time is crucial for applicants and rush to meet those deadlines.
  2. Little scrutiny of an applicant’s financial situation. Unlike in the banking situation where a client’s tax returns, income and credit score get a thorough scrutiny, hard money lenders rarely do this.
  3. Borrowers are not humiliated because as long as there is collateral, funding is availed.
  4. Most banks and other financial institutions prefer to extend loans only to people who are officially employed and have a steady monthly income. This is different with hard money lenders as they avail loans to all cadres of professionals.
  5. Huge amounts of loans are granted based on property value.

As it is, hard money lenders can use residential and commercial property as security. However, they often shy on the use of owner occupied buildings as these have lots of thresholds attached to them as the law requires. Commercial property that can act as collateral includes office buildings, shopping centers, hotels and land meant for development activities.