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Busniess Reation, what can we negotiate when starting a New Busniess?

1/14/2015

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Embark on the exciting adventure of company creation can sometimes be tricky in terms of cash and available funds. That is why we must not hesitate to negotiate certain points. Zoom on the main trading routes.

Negotiate with the bank, always possible

Buy Stock, production machines, the provision of staff salaries, rent ... so many positions - and so many others! - Which often require the granting of a loan. Add to that the conventional bank charges, and the note can be salty. However, there are several points on which it is possible to negotiate.

The borrowing rate. And this directly with its client advisor or by involving a broker who will search the best rates for its customers.

Administration fees, the cost of insurance, the grace of the loan may be revised downwards as well.

Account maintenance fees, which can be divided by two in some cases.

Commissions on credit card payments.

Discuss the amount and conditions of the commercial lease

Rent commercial premises are high, the entrepreneur-creator will be well advised to discuss all the elements that make up the commercial lease.

The rent itself can be lowered. Important point: refuse "revenue clauses" which sets the rent based on turnover achieved.

The lease term. Prefer leases less than nine years, because beyond the owner of the walls can exercise his right to uncapping the rent that may increase rather consistently.

The no-door should be here to do well define its nature. If there is a rent supplement and not a compensation lump sum, the amount will then be deducted from the tax point of view.

The due date of the rent can be negotiated to preserve intact cash earlier this month, for example.

Negotiate the departure of stock

In busniess creation, the creation of a stock can be a particularly important cost.

Negotiate with the supplier may be playing on the quantity ordered. Therefore, it is not uncommon to even -5% discount, 10% agreed. And conserve cash, a second trading on late payments will be taken. (see Negotiate payment terms)

Negotiate payment terms

Many providers tend to require payment of bills on receipt of the goods or when work is completed - for example POS planning -.

This can be detrimental to the contractor at the start of activity.

The good idea is then to negotiate - even before the deal - a payment period of 30 or even 60 days. Most companies accept and allows to get cash through sales before make the payment of invoices.

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