| By :
Kristin Gabriel
Health care reform has been heavily in the mainstream news while the U.S. elected officials decide about voting on the bill. But there are many small business owners who are worried about how it will affect them. People are saying the $900 billion bill will lower costs, but many small business owners think it will actualy cost small businesses more. If you are a small business owner, here are some points that you may want to think about insofar as the bill's impact on you and your business if it comes to pass: It is true that a small business owner will be forced to provide health insurance. If passed, legislation will force small businesses with 50 or more employees to provide health insurance. Small businesses will need to pay $2,000 per employee if they do not meet the requirements. Small businesses will pay more in taxes in the end. Why? Because there is a new $6.7 billion per year tax on health insurance plans, which falls on health insurance companies based on their market share. That just means the larger an insurer's market share, the higher its share of the $6.7 billion it has to pay. So basically, insurance companies will be passing this expense along to their customers by increasing costs per family. But it is basically small businesses that this tax will be passed on to, because unions and larger businesses have negotiated a deal that exempts them from having to pay for it. Employees and small businesses will be forced to buy plans that meet standards determined by the government. This just means that for self-employed and small businesses, costs will go up in order to meet these new expensive requirements for coverage. So if you are a small businesses owner, you will need to be prepared. Invoice factoring will help to cover the costs to avoid penalties. Factoring is the one solution that will pay in as little as 24 hours. The world's economic circumstances have made it very tough for small business owners, so these times call for creative solutions. In order to sustain and grow businesses need some cash. And when outstanding invoices stack up, single invoice factoring, also known as spot factoring, is one tactic that many companies know will help them stay in business. Also known as accounts receivable factoring, or spot factoring, this tactic enables companies to get short-term working capital and improve cash flow and grow their businesses. Since most companies don't get paid immediately for delivered products or services, factoring benefits businesses that do not get paid for 30, 60 or 90 days by advancing up to 90 percent against the company's invoices. Factoring companies usually look at the creditworthiness of the client's customers first, and they don't always expect to buy 100 percent of a company's receivables, so there are no minimum or maximum sales volume requirements to do the transaction. In the end, factoring could be a means to support the many small businesses that will soon need to pay for increased health care costs thanks to the new legislation.
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