Submitted by: Janet Schlarbaum

Author: Sharon White

The weight of articles today remain opposed to the use of capital controls both in the long-term as well as the short-term despite the fact that more countries are now considering this type of economic policy. However, the recent imposition of capital controls in Malaysia, and the arguable success of such controls, has now led a few economists to come out in favour of this once universally discredited policy. Nevertheless, even those who view capital controls as having some value, caution against their prolonged and expansive use. The answer to whether or not capital controls are appropriate tools for protecting and facilitating the recovery of economies during crisis can only be answered when the extent and nature of such controls are determined with specificity along with the subject country’s economic position. Identical capital controls are not likely to be appropriate for two separate countries in two separate stages of economic development. Therefore, before a determination can be made as to whether or not capital controls are appropriate in a given situation, many factors must be considered concerning both the country and measures being proposed. The economy has now developed to a point that makes such extensive bureaucratic intervention, which necessarily accompanies capital controls, a greater burden than the minimal short-term good that accompanies it. Nevertheless, capital controls have not always been viewed as such opponents to a healthy economy.

Submitted by: Janet Schlarbaum

Author: Marco Terry

Do you own a business? If you are like most business owners, you probably have a lot of responsibilities. First and foremost, you have to meet payroll. Every time. You also need to pay rent and suppliers - on time. All this requires working capital.

However, if you are selling products or services to commercial clients or to the government, you are probably painfully aware that they can take as many as 60 days to pay their invoices. Why? Because if you want their business you have to conform to their terms. There is no other way around it.

But this also leads to an impossible situation. You have bills that need to be paid quickly but customers that want to pay slowly. Unless you have a lot of money in the bank, it’s not a sustainable situation. Sooner or later you’ll miss payroll, delay a supplier payment, or turn a large opportunity away.

The solution is simple. You just need working capital. One way to get working capital is to get a business loan. However, business loans are hard to get and can prove to be inflexible. A better solution is to factor your invoices.

Factoring, or invoice factoring as it is most commonly known, is a type of business financing that is ideal for owners who cannot wait up to 60 days to get their invoices paid. It provides you with the necessary working capital to pay rent, suppliers and meet payroll. And, as opposed to a business loan, factoring is easy to get.