Posts Tagged ‘business finance’
Sources of Business Finance (IV)
Formulas for the purchase of goods
So far we have referred mainly to cases of lack of liquidity, but what formulas exist for the purchase of goods by the company? The loan is normally used, as well as leasing and renting.
In these cases it is gradually paying it in monthly installments. In addition, the lease will also be gradually paying VAT, which can be beneficial for the company, which, after the deadline, I can choose to purchase the property, renew or return.
In the lease there is also a continual renewal of the property acquired, so that it is continually adapted to new technologies and innovations that might affect you. The share of the lease includes not only the right to use the property, but also all the services necessary for their operation (insurance, spare parts, breakdowns, etc …). Read the rest of this entry »
Source of Business Finance (III)
Another formula normally used when we have lack of liquidity (lack of money to meet immediate payment obligations) is the “trade off”, consisting of a contract by which the lender pays us the money we should a client before that it will pay us. It is very useful if I can not wait for the customer pay me and I have to make payments in a short period of time. For the financial institution is a very controlled risk, because it is a very short-term debt (120 days maximum).
The document more acceptable by the financial institution is the note or letter of acceptance and also the preferred financial institution that will take you many customers and small amounts a few large, thus diversifying risk. Read the rest of this entry »
Sources of Business Finance (II)
Financing through external resources
Unlike equity, borrowed funds must be returned to the entity or organization that grants them. The company should generate resources to pay both the interest charged for allowing us the money to reimburse the payer, within more or less, the amount contributed. The funder may or may not become part of the company as a partner, but if part of it, it will always call out within a specified period.
Normally, when the financier became part of the company, also part of the governing bodies. In this way, with your input, the funder monitors developments in the business and also can help in one way or another that business thrives in a fast and effective. Read the rest of this entry »
Sources of Business Finance (I)
When starting a business, a key element is choosing the most appropriate source of funding, depending on the characteristics of the company or the purpose that they want to give money.
When funded, any business, large or small, old or new, should combine resources of self and others in a balanced manner. The latter are those from external agencies or bodies, whether banks, venture capitalists, business angels, or even customers and suppliers. On the contrary, are equity funds (goods or money) contributed by the business partners, and the benefits generated by the business and not distributed, but the partners agree to give the book greater society funding. Read the rest of this entry »