7601 Penn Ave. S
Richfield, MN 55423
December 17, 2017
BluJay Aviation Inc
P.O. Box 49867
Townend, NY
Dear sir/madam
REF: FINANCIAL CONSULTANCY SERVICES
We would like to express our gratitude for believing in the services of our company. Our company has been in existence for over ten years now and has been offering services to businesses in many fields. Some of the areas include manufacturing, marketing, logistics, transport, aviation, among others. We offer our services to both starting and established companies. We do not only give guidance but also conduct follow-ups to check how the business is performing, a reason why most of our clients have stuck with us.
We are aware that your company has been in operation for three years. This period is usually challenging for most businesses, but it is commendable that you have had a good progress. The two of you in the management are still committed to other tasks hence you need to exercise caution in your operations. We would advise that you consider hiring extra individuals to help you handle some activities. The gift shop is an opportunity for your business to expand. It is critical for diversification and is an extra source of revenue. It will be important that you recruit a manager to help you handle the gift shop. However, before acquiring the gift shop, make sure that you do proper auditing to assess the stock and the inventory. Some companies run away with massive debts, and if you inherit the business without caution, the deficits might jeopardize the operation of your business. You might have trouble with creditors hence a bad image for the company. If the current supplies and inventory cannot pay the creditors, then we would advise that you settle the issue with the relevant authority before taking up the shop. Do not accept to inherit losses at all costs.
Delegate your assignment to our experts and they will do the rest.
Every business needs cash to sustain itself. When you offer your services, you have to be paid for you to stay in business. Nevertheless, there are circumstances when clients do not pay in time. This situation is undesirable for business and presents problems whenever the business wants to expand. The thirty-day billing policy that your company uses is not entirely a bad idea. However, the policy should not apply to every client. We recommend that the policy is implemented to clients who have a long-term partnership with the company. New clients should be requested to pay up-front before using the services. It is not logical for all people to be carried on the chopper and then required to pay within thirty days after they have used the service.
The company should be careful when establishing long-term clients. The best long-term clients would be established enterprises or business corporations. It would be easier to take action if they default in payment because they have physical addresses. It is difficult to follow up on individuals. In the case of companies, you ought to request for down payment and clear terms of paying the balance. Your company can also encourage clients to pay earlier by giving discounts. You notice that some clients pay even after the expiry of the thirty-day period. Such occurrences will affect your projections and budgeting. You need to discourage this habit by charging penalties. However, the penalties ought to be stated in your policy so that clients do not complain and involve you in legal battles. Defaulters should be made to pay by seeking legal action. If you do not take any action to clients who do not pay, more people will be encouraged to run away with your money. Make sure that you have a lawyer or law firms that can help you recover debts. It will also be a necessary to avoid threatening policies. It will scare away clients.
A crucial thing that you need to consider is your financial statements. They ought to depict the true state of your company. Accuracy and honesty help you develop better strategies on how to improve the performance of the company. Companies that attempt to change figures and give false projections have not survived for long. With time, you will need investors. Your financial statements will attract people. If you change the statements to give a positive state of the company, definitely you will attract more investors. You will then be tempted to incorporate all the investors who come around. However, you will start to have challenges of how to make the best out of the company so that you can pay the investors their dividends.
Your company has not been in operation for a long time, and hence you need more time to study the market and build a sufficient customer base. In case you make losses, and you are unable to pay back the investors and other business partners, your company most likely will be engaged in legal battles. If the relevant authorities discover that you interfered with your financial statements to lure investors and partners, you risk being charged and imprisoned. The tampering with financial statements in order to attract customers is financial fraud and attracts harsh punishment. It is best that the company focusses on its scope and gives the correct information. As the management, you will not grapple with many things that are unrelated to the business. Your only worry will be on how to make the company better.
The operation of the aviation industry relies on the availability of choppers that are in excellent condition. In the case of BluJay Company, you have been in operation for three years, and hence you have a better projection of the market. Your statements also suggest that you are performing well and you are attracting more customers each day. The company needs to purchase a new helicopter to serve the increasing number of clients. The Raven R44 that you have proposed to purchase ought to be inspected by a qualified engineer to ascertain that it does not have serious mechanical and technical problems. However, your company cannot sustain its price of $148, 000.
Before considering investors, talk to your bank first. All banks give loans to businesses that have a promising future. BluJay’s future is already promising because the company already has clients that most likely will have a long partnership with the business. Banks have flexible payment terms, and our firm recommends that you avail accurate financial statements so that the bank knows what interest to charge and the payment period. It is essential for the bank to come up with estimates that are affordable to the company. You should not rush to ask for investors. Investors ought to be sought when the company is stable and has obtained a considerable share of the market. Investors might exert too much pressure on the company. Some will request to withdraw their finance before stipulated periods hence jeopardize the operation of the business.
In conclusion, we would like to inform you that we also liaise with financial institutions to assist businesses like BluJay. Our billing rates differ depending on the type of clients. For permanent clients, we charge a flat rate of $3, 000 per month whereby we give unlimited consultancy services. For clients that prefer hourly rates, we charge 20 dollars per hour payable within 15 days upon issue of the invoice. For this assignment, we will charge 60 dollars because it took approximately three hours to compile the relevant information. We, however, look forward to having a long-term partnership with you. Thank you in advance.
Yours sincerely,
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