Whether your business is small and new or large and established you will need adequate finance for the majority of projects, purchases and expansions you’re your business makes. Obtaining the necessary cash to get your business off the ground can be a challenge and few new companies are able to finance themselves on cashflow alone and therefore need to consider gaining finance from other external sources. There are many of these external sources who will be willing to provide you with this start up finance, a few examples of these are stated below: • Bank loans • Business angels • Venture capitalists • Overdrafts • Credit cards • Friends and family These are just a few examples of some of the places that business start-up finance is available from; however there is another source of business finance available that many people often seem to forget, this is grant finance. Business Grants can however take several months to process so you should always add extra time to your planning so that you get a decision on your grant application before the project is due to start. A lot of start up companies and small businesses are often put off the idea of applying for a business grant to help them with their finances and because of this many of these businesses are missing out on a great opportunity to gain extra cash for there business; cash that doesn’t need to be paid back. Few, if any new companies can finance themselves on cashflow alone and therefore need to consider raising finance from other external sources. If your business needs extra cashflow for a specific project or purpose then a business grant could be exactly what you need. This is because business grants are only awarded for specific aspects. So what exactly is a business grant? A business grant is when an organisation or authority gives a sum of money to your business to help you succeed in a particular project these business grants are mainly awarded by the Government at both a local and national level as well as by smaller bodies such as The Princes Trust or The Arts Council. When you are applying for a business grant there are certain things that you should keep in mind such as a detailed description of the project, an explanation of the potential benefits of the project, a detailed work plan, details of your own experience and if possible a business plan. All of these will help you with your application process and help you to get closer to that business grant that you want. If you are successful in your grant application the money that you receive is none repayable and you won’t have to pay any interest for it either; however you will need to carry out a significant amount of hard work if you want to stand a chance of obtaining a grant. These grants are also limited so the competition that you will face for them is intense. Published at: https://www.isnare.com/?aid=285570&ca=Business
A used vehicle serves you well for longer period. So in case you are unable to afford a new vehicle like a car you can depend on a used car. If your own funds are not sufficient, do not loose heart as there is used vehicle finance to take care of the finance aspect. Used vehicle finance is made for easy buying of used vehicle and therefore the lenders are not hesitant even if the borrower is labeled as bad credit. It is lot easier to pocket used vehicle finance if you are willing to offer any of your property as collateral to the lender. In that case you can buy used vehicle of any type at the finance that is given at lower interest rate. You can avail greater amount of loan and repayment duration also is larger which saves you lot of money towards paying monthly installments. In case you do not want to risk property, the very used vehicle you buy can be used in securing the loan. The interest rate in that case may be slightly higher as the used vehicle may not fetch the loan back to the lender if he sells it in case of a payment default. Unsecured used vehicle finance does not require any collateral. All a borrower does is to provide assurance that the loan will be returned back in time. To do that, produce proof of annual income, employment and financial standing. Lenders may ask for bank statements of past many months also. The unsecured is especially useful for tenants and students. The unsecured loan however has this slight disadvantage of higher interest rate, smaller amount and shorter repayment duration. It would be wise that instead of taking all the amount need for buying the used vehicle as loan, better make a down payment to the dealer and borrow rest of the amount for early pay off. Your bad credit will not come in the way of the loan as all a lender wants to see is your present income. If the income is sufficient for easy pay off of the loan, lenders usually do not hesitate in the loan offer as they are earning higher interest. Bad credit people should make a convincing repayment plan to show it to the lender. Of course the loan will come at slightly harder conditions. Buy a used vehicle only from a reliable dealer for good quality and better service. Check the vehicle for mechanical defects and take a warranty in it. Often lenders have arrangements with the dealers. See how this arrangement can benefit you. Prefer applying online to the used vehicle finance providers for faster finance processing and approval. But prior to applying, compare different lenders for interest rates and other terms-conditions. Used vehicle finance providers give an opportunity for owning a car or any vehicle at easier finance. The finance is offered in a hassle free manner. Pay off each installment in time as this will enhance your credit score also. Published at: https://www.isnare.com/?aid=90017&ca=Finances
Your property can serve you well in gaining access to a low cost loan for personal purposes. Secured personal loan finance is what you are looking around. The loan finance is available at lower interest rate and loan availing cost is kept to minimum. The loan can be utilize for variety of personal purposes like making home improvements, meeting medical or educational expenses, financing a vehicle or enjoying a holiday tour. Secured personal loan finance requires loan seekers to place collateral with the lender. Collateral may consist of any of borrower’s property like home, jewelry or vehicle etc. purpose of collateral is to secure the loaned amount. In case there is a payment default, lender is free to sell the property to recover the amount. Under secured personal loan finance, one can borrow £5000 to £75000 and for a greater loan lender would like to evaluate equity in collateral. So, higher equity collateral like home enables in taking greater loan. Secured personal loan finance is given to the loan seekers at lower interest rate which is main attraction. In fact the interest rate can be brought down once borrower makes comparison of different loan packages on offer. Another big advantage attached with secured personal loan finance is that one can repay the loan in larger period ranging from 5 to 30 years. This gives ample time to the borrower for recovering financial health if he is going through a lean patch. Those people who are labeled as bad credit in the loan market also take secured personal loan finance and with ease. This is because the bad credit person has given his property for the security of the loan. If there is payment default on his part, lender sells the property and recovers his amount. So no risk is there for the lender. Take a copy of your credit report and check it for errors before approaching the lender. For a low cost loan and fast approval, prefer applying online. You fill some basic information in online application like loan amount, repayment period, purpose of the loan and personal details. The approval is conveyed to you soon. Secured personal loans finance gives you access to lower interest rate finance at your terms. Make the best use of the loan. When monthly installments are paid in time, the loan enables in enhancing your credit score. Go through each aspect of the loan before making a deal. Published at: https://www.isnare.com/?aid=88259&ca=Finances
There just aren’t an excess of remedies to gain low credit score loan package nevertheless would not show that it might be unattainable to get them. Possibly even after you have chapter 7 pertaining to your credit file, you will find a strategy. Not only are you able to seize funds, but an individual will bring your trusty score back up to one top level. Better not hesitate that you really probably won’t obtain borrowing due to the fact it is very less complicated than you imagine. Delivering loan applications using the net will make you to receive auto loan finance if you have reported bankruptcy proceedings. Boost Your Credit History The first task before you apply for a post insolvency auto finance for spotty credit, you have to get your credit track record to look superior. Acquire a replica of your own credit score and try to fix it by just laying out money owed unpaid sums coupled with cutting out precisely what must not end up being on there. Think about providing the credit ratings bureau information belonging to the delinquent sums on there which concluded in you to your bankruptcy. Don’t e-mail one specific service but all of them since finance companies employ so many credit bureaus. Managing Your Monthly Repayment for Your Car Lease Bad Credit Just before you fill out just about any financing applications, you ought to know what you can very easily fork out month for month. Group a financial budget so that you will know precisely precisely how much could in fact be devoted to many kinds of requirements as well as your used or new car. You ought to give some thought to how many months you’ll make the payments for your personal van and the way you will make the repayments to the loan company timely. When you produce your price range, bear in mind your rate of interest as well as every-month payments may be increased. Locating a Guaranteed Credit Cards Post Chapter 13 Guarded credit card are available and you should make the grade to obtain the whole bunch. This is the right resolution to aid you in getting your ranking returning on course. You may need to offer something as guarantee in return for before you make use of credit cards. Build up your main trust levels through the credit cards in addition paying it off so quickly. Now don’t supply specifically the minimal amount money. Return in more in comparison to least possible or perhaps fork out beyond the the minimum to aid you to really fast have the balance out of the way. It’s an excellent way to enable you to look impeccable before you apply for car financing for individuals with a bad credit score. Go Searching for Car Loans Loan merchants for Low Credit Score The scariest thing you could do is to select the very first car finance company you unearth. You ought to shop around for the ideal rates additionally conditions. You need to find out how much which is really affordable to fork out for allowing you to look at the amount each bank or investment company reveals simply how much you’ll pay per 30 days in case you fund via the lender. Pick financial institution with the very best conditions as well as best value monthly instalment as outlined by whatever you can afford. Seeking out Your New or Car Or Truck When you you have discovered your loan for a motor vehicle with poor credit, now you can compromise together with car dealers for the automobile of your choosing. You have the ability to drive outside the truck dealerships lotwith a discharged chapter 7 bankruptcy less-than-perfect credit car loans. It may be not hard any longer and it may be one very popular course of action, given the current global economy. Published at: https://www.isnare.com/?aid=1854538&ca=Finances
Knowing Corporate Finance
Corporate Finance is anything that refers to the financial dealings of a corporation. It is a general term that applies to methods, procedures and operations of finances of the company. Corporate Finance is also called Corporation Finance. A corporation has a financial division department that is tasked in managing corporate finance. Through this business function, the company may be able to evaluate different business opportunities; and help analyse the different business relations that may impact the company’s operations and assets.
Objective of Corporate Finance
A core objective of Finance Corporate is to make wise decisions with respect to financial resources availability of the company. The company develops an operating budget that addresses all the company’s needs. Its goal is to ensure 100% financial resources accessibility for the corporation. The corporation may expand their resources to stock shares and corporate bonds. Corporate Financing may also use in calculating assets and other business operations. It may also determine debt financing or equity financing of the business. Corporate Finance may invest from individual investors and firms such as venture capitalists and mutual fund agencies.
A well-functional Corporate Finance promotes, enhances and maintains financial resources. Any decision-making of Corporate Finance must be discussed and agreed by chief financial officers, financial staff board of directors or shareholders.
Quantitative and Qualitative Corporate Finance
Categorically, Corporate Finance may be quantitative or qualitative. Quantitative Corporate Finance uses mathematics and statistics to narrow down financial information and see its calculated results. Common quantitative formula are return on investment, cost-benefit analysis and net present value. Quantitative method is used to gather some financial information in the market. The information gathered will be taken by corporation then, and the information gathered will be taken by Corporate Finance department to determine the potential income and failure rate of a business opportunity.
Meanwhile, Qualitative Corporate Finance focuses more on decision making. The decision making relies more on the manager’s experience and expertise in the industry. The manager’s decision relies on his person view and assessment.
Corporate Finance Law
Every Corporate Finance has Corporate Finance Law. Corporate Finance Law refers to any legal issues relating to business and finance. In dealing with Corporate Finance Law, the corporation may contract attorney to guide the company and other businesses. Attorneys relate different legal issues such as lawsuits and understanding contracts. Corporate Finance Law ensures that all financial matters are legally protected and executed. Along with attorneys, other finance professionals such as financial experts and investment bankers aim in protecting the company by avoiding mistakes and other illegal predicaments.
Because of today’s tight economy, companies are consistently trying to streamline processes and be more efficient with fewer resources. Departments across the board are being challenged to produce better results with fewer employees and accounts payable departments are no different. This department is typically responsible for handling a company’s invoicing and check requests. And is usually falls under the Finance department, reporting to the Director of Finance or other supervisor who is responsible for a company’s finances. Another thing, these departments often require a great deal of personnel if a company processes a lot of invoices or checks or if payables are still processed largely by hand using paper systems.
When the accounts payable department is usually responsible for writing checks and paying bills, this makes it important for this department to be running efficiently and for employees to have the resources and time allocation to properly do their job in order to maintain accuracy and avoid fraud. When this department is understaffed, overworked, or inefficient, the company can more easily become a target for fraud, either internally by employees or externally by vendors who are aware that invoices are not getting proper attention. When processes in this department are streamlined and updated, a company may be able to make significant improvements in reducing costs and saving time.
One way to improve efficiency, particularly in financial departments, is to automate systems and processes. These departments typically receive, process, and send a lot of paperwork. Incoming bills, outgoing checks with attached invoices, payroll logs, financial reports, and check requests all add up to a lot of paperwork. Paperwork necessitates manual handling and physical storage space as well. Automating systems can eliminate a lot of paperwork and create a more efficient system. There may be less of a chance for human error when your systems are all automated. Problems such as being double billed or accidentally paying a bill twice can be eliminated with automation. Not only that, it may also be able reduce false invoicing or fraud.
As we continue to try to accomplish more with fewer resources, it is important for every department to have an accurate picture of what is happening with workflow. The management will be aware which employees are handling what functions, what tasks are being duplicated, where errors are taking place, and where things are falling through the cracks with the help of process mapping. Mapping out a department’s workflow and learning where processes can be improved may help management determine how automation might be implemented to improve processes and improve a team’s function. Only when you reduce the paperwork and human error in the accounts payable department, then it can help a company reduce costs, reduce fraud, and improve transaction turnaround time. Thus, it improves the efficiency in this department can will eventually affect a company’s bottom line positively.
Trade finance is the method importers and exporters of commodities and goods use to finance their business. Basically, trade finance has been in existence for many thousands of years – and one can trace the roots of trade finance and structured trade finance right back to the early days of China and the silk route, Mesopotamia and Europe. Trade Finance was around long before Europeans settled in America and long before the world’s stock markets were born!
Today, trade finance is a massive, multi-billion dollar business. As the world trades more and more goods and commodities are bought and sold, so more and more banks and financiers are needed to lend money to finance the purchase and sale of these goods and commodities – right across the global supply chain.
How is trade finance and structured trade finance useful?
Take an example: imagine you are a trader in cocoa beans in Cote d’Ivoire, buying beans locally and selling them to foreign buyers. To make your purchases, you will need to have money to buy the cocoa up-country in Africa, prior to their export. Where will you find money to make these purchases? And supposing you are the international buyer; the shipper, purchasing from cocoa traders all over West Africa – how will you finance your transactions, which at any one time may exceed your cash reserves? What might be supported by your bank who, if they are traditional lenders, will only lend against your balance sheet?
This is where trade finance and structured trade finance is useful – your business can grow and develop if you use the services of a specialist trade finance department who will structure trade finance structures can be tailored to your needs, using the collateral of the goods you are trading, rather than your own balance sheet or other assets.
What is the basis of trade finance and structured trade finance?
Goods and commodities have an underlying value of their own. For example, if cocoa beans are worth many hundreds or even thousands of dollars per tonne, then once a big pile of beans is accumulated in one place; in a warehouse or on a ship, it is worth a lot of money. A bank may lend money against the total value of the beans, minus some amount to take account of price and other risks
It is the same for every commodity or trade good which is resalable. A bank will make a loan as long as the collateral “adds up” and as long as the bank is comfortable with the way the deal is structured between both the buyer and the seller. Of key importance is that if something goes wrong the bank is able to take possession of the commodities or goods and sell them to realise monies to repay any loan amounts outstanding.
Basically, when we talk of structured trade finance we are talking of deals whereby complex arrangements are put in place to ensure a bank can take possession and sell the underlying capital used for the loan; in this example, the goods and commodities themselves.
Is trade finance complicated?
No. It is a simple business although the structures used in trade finance in more complex deals require a lot of work for all of the parties involved. This is why the total loan amount of a structured trade finance loans must be high enough to warrant the involvement of highly-paid bankers, lawyers and other advisers.
Where can I find out more about trade finance and structured trade finance?
Traditionally the businesses follow the trend of maintaining a proper and big in-house accounting team to manage and take control of the business accounting and finance needs. The costs of raising and maintaining an accounting department in-house goes much higher with it becoming the prime focus to be taken care of neglecting the other core systems which effect the business growth and expansion. Outsourcing the accounting work is the way to lead for.
Bookkeeper – a combination word with simple meaning and simple implications. A bookkeeper is a qualified professional who maintains the account books of a business, records each and every transaction the business does, files each credit and debit entry into the records. These are some of the responsibilities a bookkeeper does out of the many.
A business is like a tree, it’s only through the roots it gets its food and support for its survival. Same is with a business, if its roots that are HR, accounts and finance, IT, sales and marketing which are marked as the strong pillars on which a business stands; are well managed and aided with the best of manures in form of people, capital and technology makes a business grow amazingly. Commonly business segregates these roots into separate departments which aid one-another with data and information and work in-sync with each other. Accounts and finance department is one of the most important department in a business which monitors and controls all the capital funds movements both in and out.
For any business of any size, type and scale, it’s primarily important to trace down all its cash in-flow and out-flow movements in from of salaries of the employees, infrastructural development and maintenance, profits earned, losses, investments, etc.. Like all other departments in a business, a full-fledged team of professional accountants, CPA’s, financial experts headed by a financial controller is required to manage the finances of the business. The department should wisely achieve the targets of higher profits, lesser losses, appropriate tax-savings, long and high-yielding future investments. But what you have to bear to run this department is hefty salary packages of these highly qualified professionals, high-priced fancy ERP packages and accounting software’s to assist their working, and data management risks.
Every minute financial detail has to be closely monitored and tracked down to draft out correct financial statements. Accurate financial figures on basis of which financial statements are drawn serve highly important to draw out future financial decisions related to business growth and expansion. But the benefits can only be enjoyed if everything goes on track. The combined costs of time, effort and capital associated with maintaining an accounts department in-house is quite high, with you as an entrepreneur deeply involved in tracing out the issues. Instead of focusing primarily on business growth, you are struggling with the financial crisis. An alternate to such financial mess is going out-house with accounting. Yes you had made a safe landing with your brain machine, outsourcing your accounting with an out-house bookkeeper.
Outsourcing is not a new term in business world and needs no explanations. Usually businesses go outsourcing with HR and personnel departments and IT, but now even the accounts and finance can also be outsourced successfully. All you have to do at your end is to search out for an excellent and professional out-house bookkeeper. After analyzing your business accounting needs draft them out to the out-house bookkeeper. The finance data has to be carefully transferred to the bookkeeping firm. Higher profit margins, proper and timely tax-filing, tax-savings, correct financial statements are some the returns associated with this investment. Data management is done highly effectively mitigating the data risks of loss, security and validity. An out-house bookkeeper is your true accounting friend.
From Excel to excellence for the month-end close reconciliation process.
As a financial accounting professional, it is almost certain you will have been using Microsoft Excel spreadsheets during the month end close process. It is also extremely likely you will have experienced problems with them too!
Over the last thirty-odd years, spreadsheets have become a mainstay in finance departments, used for all sorts of tasks, from reconciliation to reporting and everything in between. Despite their popularity with finance staff, they still pose a massive margin for error. The expected error rate when reconciling with spreadsheets is 0.8-1.8% and though this may seem small, for a company with a $1m turnover this represents a risk of $80,000-$180,000.
What’s more, the damage done can also affect public perception and trust in your brand, leading to less tangible but just as dangerous losses.
Is it possible to move away from spreadsheets?
For smaller businesses, the number of accounts needing to be reconciled is relatively small, so it makes sense for smaller businesses to continue using a combination of spreadsheets and QuickBooks. In turn, the team that manages the financial close process will also be relatively small, perhaps just one or two finance staff, so there is also less room for data handling errors.
However, as the number of accounts to reconcile grows and the team managing your monthly close process is expanded, errors can easily worm their way in to the reconciliation process. Once a business has grown, it makes sense to move away from Excel spreadsheets and QuickBooks, particularly for tasks like reconciling. At its capacity, the finance department of a large organisation can generate up to five hundred spreadsheets a month – so it’s easy to see how errors and duplications can creep in.
Will the finance department ever rid themselves of Excel spreadsheets completely?
It seems unlikely that Excel spreadsheets will disappear from the finance department completely; admittedly, they are still a really useful tool for auditing, even for very large businesses (of 1,000+ headcounts) and they will probably remain the go-to program of choice for creating graphs and charts.
However, businesses that are managing to grow and are serious about both productivity and regulatory compliance will likely move their reconciliation and monthly close process to specialist programs, as opposed to makeshift spreadsheets. Especially as the need for advanced reporting and intuitive financial analysis expands beyond the capabilities of Excel.
Businesses who are serious about both productivity and regulatory compliance should look to specialist reconciliation software packages from Adramatch
Article Source: http://EzineArticles.com/expert/Sadie_Hawkins/1227282
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Almost all departments within all companies have an untapped ‘cognitive surplus’. A ‘cognitive surplus’ is the difference between the specific tasks an employee is assigned to do and what they actually are capable of doing – the actual versus the potential work.
It seems obvious, but to tap into it the ‘Cognitive Surplus’ can make a huge difference.
Companies such as 3M, Dell and Google have all implemented what is called ‘20% time’ or ‘innovation time’ – one day of their working week, dedicated to whatever projects they like… provided it benefits the company in some way.
Does it pay off?
One might wonder: Does it pay off? Well, at Google this has resulted in successful projects such as Gmail, Google News and AdSense, and according to ex-employee, Marissa Mayer, as many as half of Google innovations are a result of ‘20% time’.
But, while this approach might be considered something market leaders can utilise, many finance departments perceive they barely have the time to complete all the necessary work at present, never mind crafting new and innovative ideas, supporting procedures that aid business growth.
Yet finance departments really do need this ‘innovation time’.
In this slow and sometimes contracting economy, the next two years will be critical for businesses. It will fall largely on finance departments to walk the thin line between productive spending and managing a dwindling pool of resources. Additionally, with a host of new financial regulations coming into place in this two-year period, financial departments will be instrumental in helping businesses to remain compliant without losing their current standing.
This extra pressure and workload will make it difficult for finance to inspire new talent whilst holding on to the employees they already have. Finance professionals require stimulating challenges without being overloaded with extra work – they need ‘20% time’ to effectively tap-in to their expertise, and not have their time consumed by lengthy, repetitive tasks – that can be automated.
How to make time for tapping into ‘Cognitive Surplus’ in the finance department
One way in which businesses can help free up some of their finance department’s time to complete tasks, is by automating the tedious and time-consuming tasks that turn prospective talent off finance work. Reconciliation is one such set of tasks that finance professionals find particularly tiresome and time consuming. Fortunately it is now possible to automate account reconciliation, processing hundreds of thousands of transactions in just minutes rather than hours or potentially days.
While significantly reducing reconciliation errors, automation also frees up large chunks of time that could be dedicated to maintaining compliance, providing strategic insight in this tough economy.
This additional time could even become the rarely considered ‘innovation time’ your business needs to inspire growth and stay competitive.
To find out more about automatic data matching and automated reconciliation software that helps your company to streamline and free-up time get in touch today to get a tailored answer to your data matching questions around maximising productivity in the finance department.
Article Source: http://EzineArticles.com/expert/Sadie_Hawkins/1227282
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