Welding and You: The Industrial Process You Benefit From Every Day

Welding is a relatively simple and easy to understand process, right? Use heat to join two pieces of metal. Whether you’re repairing something or creating something. While the process can easily be explained in as little as a few words, history has given us a many different methods to join metal, and diligent innovators have continually expanded on how technology can consistently bring us more with flame, electric arcs, and laser lights.

When you think about welding, chances are you picture sparks flying – reflected in the welder’s dark visor. However, the history of welding stretches back farther than you may think. The earliest recorded historical evidence of welding can be traced back to the middle ages, in the bronze age. These early weldments tended to be golden boxes. Elsewhere, the Egyptians were also pioneering the art of welding – much like they did for many other metal fabricating processes. For instance, many of the Egyptian tools discovered by archaeologists were welded. In any case, the process of welding for these ancient people didn’t take place because of flame and electricity wasn’t invented yet, but blacksmiths achieved a similar result with heat, hammer, and anvil. Soon, welding by brute force, flame, and steel would be replaced by a more scientific approach.

With the industrial revolution and the turn of the 19th century, welding experienced major technological advancement in the form of an open acetylene flame. This allowed for a much higher degree of precision for small and intricate metal tools. In 1800, Humphrey Davy – a British chemist and inventor – also developed a battery operated tool that created an electric arc, this proved invaluable when it came to easily welding metals. With all of this innovation, the industrial world had access to multiple welding methods, which would continually be improved upon.

By the time World Wars 1 and 2 ended, welding made a major impact on the war effort and continued to become much more prominent. In fact, during WWII, President Roosevelt even wrote to Winston Churchill to boast about the advancements America had made in the field of welding, allowing the U.S. Navy to produce ships faster than ever before. Thankfully, those advanced processes came at an invaluable time, where the need for automatic (and more effective) welding made a remarkable distance when it came to precision and quality. For years afterwards – and the present day – inventors consistently built upon the arc welder and other welding tools, gradually contributing to what would become the modern-day equivalent of welding tools that provide businesses with welding services everywhere, every day, around the clock.

Welding played a major role in bringing the manufacturing and fabrication world to where it is today, and actively influences the way products come together everywhere. For example, in the 60′s General Motors installed the world’s first industrial robot, which was capable of automatically performing spot welds, step-by-step, with commands stored on a magnetic drum. In 1969, Russian Cosmonauts used welding in space, leading to future technological advancements that have made welding crucial in the construction and repair of the international space station. Back on earth, you interact with welded products every day, and it’s been determined that more than 50% of fabrications in the U.S. require welding. Some of these include bridges, ships, computers, oil rigs, farm equipment, medical devices, cell phones, and more. When you think of it, it’s pretty clear that welding helps us accomplish a lot– it helps us get where we’re going, and it helps us stay healthy, fed, safe, and in touch with those we love.

What Kind of Financing is Right for Your Business?

Most businesses need financing. Unless you won the lottery or inherited a fortune most people start a business with either their own funds or a combination of their funds and financing. Even an established business needs financing at one time or another.

Cash flow is different than profits and profits do not guarantee money in the bank. Entrepreneurs need financing for inventory, payroll, expansion, develop and market new products, to enter new markets, marketing, or moving to a new location.

Defining and selecting the right financing for your business can be a complicated and daunting task. Making the wrong deal can lead to a host of problems. Understand that the path to getting financed is neither clear nor predictable. The financing strategy should be driven by corporate and personal goals, by financial needs, and ultimately by the available alternatives. However, it is the entrepreneur’s relative bargaining power with investors and skills in managing and orchestrating the finance drill process that actually governs the final outcome. So be prepared to negotiate with a financing strategy and complete financials.

Here’s a brief rundown on selected types of financing for commercial ventures.

Asset-Based Lending

Loans secured by inventory or accounts receivable and sometimes by hard assets such as property, plant and equipment.

Bank Loans

A loan that is repaid with interest over time. The business will need strong cash flow, solid management, and an absence of things that could throw the loan into default.

Bridge Financing

A short-term loan to get a company over a financial hump such as reaching a next round of venture financing or filling out other financing to complete an acquisition.

Equipment Leasing

Financing to lease equipment instead of buying. It is provided by banks, subsidiaries of equipment manufacturers and leasing companies. In some cases, investment bankers and brokers will bring the parties of a lease together.

Factoring

This is when a company sells its accounts receivable a a discount. The buyer then assumes the risk of collecting on those debts.

Mezzanine Debt

Debt with equity-based options, such as warrants, which entitle the holders to buy specified amounts of securities at a selected price over a period of time. Mezzanine debt generally is either unsecured or has a lower priority, meaning the lender stands further back in the line in the event of bankruptcy. This debt fills the gap between senior lenders, like banks, and equity investors.

Real Estate Loans

Loans on new properties-which are short term construction loans-or on existing, improved properties. The latter typically involves buildings, retail and multi-family complexes that are at least 2 years old and 85% leased.

Sales/Leaseback Financing

Selling an asset, such as a building, and leasing it back for a specific period of time. The asset is generally sold at market value.

Start-Up Financing

Loans for businesses at their earliest stage of development.

Working Capital Loan

A short-term loan for buying assets that provides income. Working capital is used to run day-to-day operations, and is defined as current assets minus current liabilities.

It’s always better to get by without taking on debt. But on the other hand, most businesses need to acquire financing at one point or another. A home office is less likely to require financing than a business location that you rent. A one person operation is less likely to need financing than one with employees.

When you do need the financing, remember to examine all avenues of financing open to you and scrutinize the terms of all the proposals.

Technological Equipment and Software Financing

In today’s competitive business scenario it is very important to stay abreast of the best of technological advancements, essentially, those dealing with computer peripherals and relevant software. Technological or computer software comprises of new computer system, routing software and safety equipment.

These gadgets are often steeply priced and so it helps if someone provides the capital for the technological gadgets and computer software. However such specialized technological tools and software may not find their sponsors. This is owing to the lack of knowledge about these equipments and the business idea behind them. Therefore someone proficient in computer hardware and software has to impart the know-how on these tools. And it is not difficult to procure such technologies once you have the backing of some authentic sponsors.

There are a range of computer peripherals and software to choose from. Therefore the ways in which the financial institutions help with capital are various.

1) Audio visual equipment companies need their relevant tolls that are used in the business. Companies that are involved in mass communication deal in such equipments. The high price tags of these gadgets often require financial assistance.

2) Safety and security equipment forms the top priority when it comes to technological spending. It involves products like safety alarms, burglar alarms, fire safety alarms, metal detectors, closed circuit TV, motion detector and likewise. These are essential for maintain security in the offices and also homes. But its astronomical price deters individuals from floating such business. And hence there is the need for financing safety and security gadgetry.

3) Modern day businesses rest on the mighty shoulders of telecommunications. It is due to this technology that lots of companies could be incubated in campuses across the world. It has bridged the gap between production and the management. Sound and systematic communication is possible with the latest of technology in telecommunications. Offices are up o date with the latest of technologies like broadcasting equipment, multiplex equipment, telephone system and transmitting gadgets. But a ubiquitous high price bars these technologies from reaching small and medium scale businesses. Telecommunications funding gives them the chance to float such ventures.

4) Computer peripherals are essential for surviving in today’s business environment. So, most companies source such products. The data storage equipment, server, workstation are the must haves of businesses these days. But their configuration keeps changing from time to time. So hardware up gradation is a must to stay competitive. Therefore technological and software funding provides the necessary oxygen in these ventures.

5) Your business will also function smoothly only with the help of latest software. But conservative lenders would not allow their money to be used to source software. But the fact remains that businesses require various kinds of software like accounting software, ecommerce software, manufacturing software and CAD software. Infact every company runs on software. Therefore some financial institutions realize the value of software and offer them assistance.

Since, the process of technological and software equipment funding is smooth and hassle free, therefore, it’s ideal for small and medium scale companies to apply for such funding assistance.