2013년 11월 22일 금요일

Irene Breeding 's blog ::September 13 2010: Basel III: We Lost, The Banks Won







Irene Breeding 's blog ::September 13 2010: Basel III: We Lost, The Banks Won








Just               picture               your               firm               having               access               to               all               the               working               capital               you               need.

Seem               impossible?

Not               really...

if               you               have               a               solid               understanding               of               your               options               and               your               firms               capability               of               qualifying               or               executing               on               those               options.

Whether               you're               the               largest               corporation               in               Canada               or               a               small               new               start               up               (and               everything               in               between)               your               business               needs               working               capital.

In               Canada               small               business               financing               loans               and               financing               arraignments               for               working               capital               are               limited               to               a               handful               of               possibilities               -               but               being               aware               of               what               they               are               and               qualifying               for               them               could               be               the               solution               to               your               constant               focus               on               cash               flow               via               some               sort               of               working               capital               loan.
               It               is               probably               easier               than               you               think               to               ensure               you               are               addressing               the               cash               flow               challenge               correctly               -               where               it               gets               somewhat               '               thorny               '               is               matching               a               solution               to               the               problem               or               locating               an               expert               that               can               provide               you               with               the               business               financing               assistance               you               need               .
               Two               key               elements               of               your               first               step               working               capital               assessment               are               your               gross               margins               and               your               turnover.

That's               the               big               problem               we               have               with               text               book               /               academic               solutions               to               working               capital               -               they               point               you               to               the               text               book               calculation               -               give               you               a               formula               which               essentially               has               you               subtracting               current               liabilities               form               current               assets,               and               voila               !

the               inference               is               you               have               working               capital               .

However,               our               clients               have               never               paid               a               supplier               or               completed               a               company               payroll               with               a               ratio!
               To               properly               assess               your               working               capital               needs               focus               on               understanding               your               turnover               -               how               much               inventory               do               you               carry,               what               are               the               days               outstanding               in               inventory,               and               as               importantly,               or               more               importantly,               are               your               receivables               turning               over               .

Have               you               realized               that               for               many               firms               80%               or               so               of               the               total               of               all               the               business               assets               you               have               are               tied               up               in               A/R,               inventory,               and,               on               the               other               size               of               the               balance               sheet               let's               not               forget               payables.
               So               can               you               have               financial               success               based               on               your               new               found               knowledge               and               analysis               of               your               cash               flow               and               asset               turnover.

We               think               you               can.
               Canadian               business               financing               solutions               to               small               business               finance               loans               really               revolve               around               a               couple               viable               solutions.

Typically,               in               our               experience               Canadian               chartered               banks               cant               satisfy               your               business               working               capital               needs               -               if               only               for               the               reason               that               they               rarely               finance               inventory               and               require               significant               merit               in               your               overall               financials,               profitability,               external               collateral,               personal               credit               worthiness,               etc               .
               So,               where               do               you               go               from               there?

The               other               solutions               are               very               viable               and               can               take               you               to               a               potential               100%               turn               around               in               cash               flow               -               they               include               working               capital               financing               as               a               bundled               line               of               credit               on               a/r               and               inventory               via               an               independent               finance               company               .

For               firms               that               are               larger               we               believe               the               ultimate               tool               is               an               asset               based               line               o               f               credit               that               provides               high               leverage               margining               on               all               you               business               assets.
               Other               more               esoteric               solutions,               but               still               very               viable               although               somewhat               misunderstood               are               securitization,               and               purchase               order               financing               of               new               contracts               and               orders.

(Your               suppliers               are               paid               directly               for               the               orders               you               have               in               hand               -               what               could               be               better               than               that?)
               Finally,               coming               up               the               road               at               lightening               speed               is               factoring               and               invoice               discounting.

We               mention               them               lastly               but               they               are               probably               the               most               popular               method,               gaining               traction               everyday.

Our               favorite               is               confidential               invoice               financing,               allowing               you               to               control               your               financing               .
               So               there               you               have               it.

You               have               identified               new               ways               to               determine               the               need;               we               have               outlined               4               or               5               solutions               that               will               take               the               guess               work               out               of               working               capital.

These               loan               and               financing               options               are               available               with               a               bit               of               research               ,               and               ,               if               you               choose               ,               speak               to               a               Canadian               business               financing               advisor               who               can               provide               you               with               timely               and               valuable               assistance               in               your               cash               flow               needs               .






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leverage ratio formula for banks
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leverage ratio formula for banks
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leverage ratio formula for banks
leverage ratio formula for banks


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leverage ratio formula for banks
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leverage ratio formula for banks
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