Categories
Finance Services

Financial Leadership and Collective Thinking

As a business owner how many times have you experienced an increase in company profit followed by a sudden request for additional expenditures from one or more of your organizational divisions? The underlying reason for this is the people that staff your company will always tend toward spending every dollar that comes through the door. You may even have this tendency yourself.

There is a kind of group mentality that takes place in any organization when it comes to producing income. It is like an unspoken agreement among the staff members to produce enough money to cover what they believe they need to spend. The agreement does not include producing a surplus of income. The group wants to spend everything it has. It will only strive to increase its productivity if it sees the need to have more money to spend.

The problem with this collective way of thinking is you’ll never have a surplus account to cover expansion of the business, emergency situations, investing or unusual expenditures such as paying off a loan. An organization is wise to have a financial cushion to cover expenses associated with these events. The goal of the group being to spend everything that comes in right now; it is not the least bit interested in budgeting any of it for future needs.

 

To be successful at building up a surplus account you have to create the perception the money you are setting aside for these purposes is money being spent. You can’t wait to see what’s left over at the end of the week and plan to transfer that to your surplus account. There won’t be anything left over. The various divisions in your company will find legitimate reasons to spend it. Productions costs will suddenly go up, equipment will suddenly fail, or a department may suddenly find a sale on material or parts they must order in bulk this week to get the discount.

The head of your financial planning department has to be a person that can think beyond the groups’ collective determinations. That leader must be able to remove their focus on the details of daily operations and give their attention to the overall viability of your company. They must be able to establish a system where the surplus money is taken away from the total income before anyone else gets to see it. It must be perceived by all the divisions as an expense or they will find another way to spend it.

If you, as the business owner cannot lead your financial planning in this way, then find a more objective person to fill the position. Don’t allow your staff to spend everything. Implement strategies that ensure your staff will increase the company income to meet the demand for money they believe they need to spend. That is how you can maintain the viability of your business and accommodate future expansion.

Categories
Finance Services

Rural Finance and Rural Credit

In a densely populated, metropolitan landscape it can be easy to forget that the majority of India is rural. Finance companies have recognised the distinctive needs of pastoral India and designed schemes exclusively for this sector.

Rural finance is a line of credit specifically intended for the requirements of the agricultural industry. Ranging from mortgage assistance to land development and farming equipment, these credit plans are a significant aspect of rural and semi-urban support. In a country like India, where agriculture continues to play a central role, farming finance is a service closely related to the continued progress of the country.

A number of banks and finance companies have begun to specialise in offering credit to farmers. Appreciated as a key impetus in poverty reduction, this type of support can greatly assist regional development and growth. The creation of a business model that takes the unique needs of non-urban India into account, along with the unique challenges, is the key to success for companies working within this field.

The customer seeking rural credit is often at a lower position on the economic scale. Agricultural assistance must concentrate more on future earning power than the borrower’s current position. As with any loan, the lender should reasonably demonstrate a capacity to repay the amount borrowed, but in the case of credit for farmers, providers are often dealing with lower income groups. Understanding this customer is essential.

Finance in this sector has the added benefit of supporting further work in regional areas. As banks and financial services continue to extend their services into rural India they are generating employment in the vicinity. This employment ensures that customers can relate to the local face of the institution. It also represents a significant basis for skill development.

The conditions surrounding rural business are never constant. Ruined crops, bad monsoon seasons and natural disasters are just some of the ever present, largely uncontrollable factors. Those offering services in this area must commit to supporting their customers through both turbulent and growth patch of time. If this can be achieved, rural finance has a huge market to work in.

Categories
Manage Finance

Are Working Capital Loans What Your Company Really Needs? What Type Of Finance Company Can Help?

The shock has probably worn off by now. We’re referring of course to the business owner and financial managers realization that sales don’t equal cash flow and that your management of working capital might just be your key to short and long term survival.

So what type of finance company or institution can help you in the access to liquidity? The reality is that every industry needs a different level of working capital. That relationship of your assets to your turnover to your cash on hand is what is going to make the final call on what type of loans you might need for your cash flow management solution.

And we will add that you might find that ‘ loans’ or bringing on additional debt to your balance sheet is not only the wrong solution, but you have alternative non loan solutions!

The reason you are looking at your working capital situation hinges probably on two areas, your firm is growing too quickly, or you have asset management challenges or problems with inventory and receivables. So hopefully you can now see that what working capital management is all about comes down to matching the financing you need to the assets and equity you have on your balance sheet. As your business and profits grow the owner equity component grows also

So are loans the solutions to your cash flow challenge (or crisis?!). Sometimes, but definitely not all the time. The long term solution to a cash flow management solution might in fact be a working capital term loan, in effect injecting long term capital into your business. If you can qualify for this loan, which is more often than not unsecured, it certainly is an option. Larger loans of this nature are called subordinated debt, but cash flow term loans are available for almost all firms – generally the minimum being 50k, but as we noted, going to several million dollars depending on the size of your firm.

But why would you borrow externally and bring debt onto your balance sheet when the solution is inside your business, not outside? Clients are often surprised when they find out that two other solutions, and not loans, are possible.

We’re talking about asset based lines of credit, which are generally non bank in nature, meaning they are offered by private finance firms. Rates on such facilities can be competitive to bank rates, but more often than not come at a premium. However your ability to, in many cases, double your working capital liquidity can significantly increase profits and sales. Just think about it, if you can double sales, keep your overhead costs relatively fixed, the additional profits you generate can easily cover your new increased financing costs.

The other solution we will mention is the sales of receivables. This type of financing brings zero new debt on to your balance sheet, improves your cash position, and provides immediate cash flow for growth. Perceived as expensive and non traditional it is gaining traction with Canadian business every day. In effect it is the trade off you have between growth and survival and additional financing cost, of a non loans nature.

In summary, working capital loans can come from external finance company sources. Alternatively you can become your own finance company by managing and monetizing your assets in a variety of ways. Speak to a trusted, credible and experienced Canadian business advisor to determine which solutions work best for your firm.

Categories
Finance Services

How Can Business Financing Services Help You?

Are you planning to start your own small-scale business? You will certainly require finance or enough capital for it. You can seek the help of different business financing services for getting the desired amount. Some of the available options are as follows:

Bank Loan

This is a common business financing service, which has been around for many years. You can secure a loan quite easily, provided that you have a clean credit history. However, you will have to collect many documents for receiving the loan. You will also have to provide evidence which can prove that you have a clean credit history. It can be time consuming at times and the process can take anywhere around two to three months. This is the reason why people have started resorting to newer business financing options.

Private Funds

Private funding is another popular business financing service. However, it is important that the source is credible. This is why you should be cautious while opting for private funds. Small-scale firms in particular choose this particular financing service. You can easily find private investors who are willing to invest money in small-scale business ideas. However, the business idea will be thoroughly evaluated by the investor before sanctioning the amount.

Commercial Loans

You will have to fulfill many paper requirements for securing a commercial loan. Some of the documents or papers that need to be collected are as follows:

* Copy of your business plan
* Financial statements
* Credit report
* Tax returns

The commercial bank will also evaluate your credit capital before sanctioning the loan. Some of the other factors that will be evaluated are as follows:

* Character ( reputation and social standing)
* Capacity of your business cash flow
* Reason for securing the commercial loan

Factoring Invoice

You can also receive the required funds from factoring companies who will purchase your outstanding invoices. Your company can thus get immediate cash for settling outstanding payments, if any.

Categories
Small Business

Bad Credit Small Business Start Up Loan – Annexing Bad Credit

Getting іntο thе foray tο ѕtаrt up a small business seems, hοwеνеr tough, іѕ nοt, іn fact thаt much hard nut tο crack. Thеrе аrе obviously needs whісh уου mау nοt bе аblе tο even count аnd thеу mіght pose a puzzle іn уουr mind аѕ hοw tο mаkе іt up. And, іt gets severe іf уου hаνе gοt a bаd credit stint ѕіnсе, wіth thаt; уου need tο bе more cautious. Bυt, thеrе іѕ thе bаd credit small business ѕtаrt up loan whісh іѕ quite capable οf getting уου οff thе hook іn thіѕ case.

Thеrе аrе obvious constraints whеn уου ѕtаrt up a nеw business. Bυt, wіth thе aids frοm bаd credit small business ѕtаrt up loan уου саn fix аnу οf thеm easily. Bаd credit small business ѕtаrt up loan іѕ available іn еіthеr case; уου pledge thе collateral fοr іt οr nοt pledge thе collateral. In еіthеr case, уου саn grab thе amount. Yеt, thе secured bаd credit small business ѕtаrt up loan thаt requires collateral fοr thе loan, offers cheaper rates simply bесаυѕе thіѕ іѕ secured against collateral. Hοwеνеr, unsecured bаd credit small business ѕtаrt up loan іѕ easier one, ѕіnсе іt іѕ available without аnу collateral.

 

Grabbing bаd credit small business ѕtаrt up loan іѕ again, tο gο through a proper process. Here, уου аrе required tο рlасе a designed cost-layout οf thе business fοr whісh уου аrе seeking thе bаd credit small business ѕtаrt up loan. And, thе better уου саn mаkе thіѕ business рlаn, thе more funding уου саn grab frοm thе bаd credit small business ѕtаrt up loan

Aѕ doing a business іѕ one οf thе mοѕt viable medium tο combat bаd credit problem, thе lenders аrе аlѕο аll set up tο advance thе bаd credit small business ѕtаrt up loan wіth easy modes lіkе thе online process, whеrе thе loan іѕ οnlу clicks way frοm уου аnd thіѕ іѕ thе best thing іn thе loan. Bесаυѕе οf thе easy process online, mοѕt οf thе lenders аlѕο remain flocked thеrе аnd thіѕ lets thе borrowers tο grab better choices аѕ well аѕ cheap rates іn bаd credit small business loan. Sο, wіth cheap rate іn bаd credit small business ѕtаrt up loan, уου аrе always capable tο fight thе bаd credit problem wіth аn unmatched ease.

Categories
Finance Services

Ranked BCA remains at ‘AAA’, BCA Finance Bonds ‘AA +’

JAKARTA – Fitch Ratings has affirmed the long S PT Bank Central Asia Tbk (BCA) at BBB-. While the national long term rating is AAA. Outlook of the two ratings is stable.

BCA ratings reflect the track record of strong financial performance in comparison to domestic banks in the region. Stable outlook reflects Fitch’s expectation that the bank will be able to maintain a healthy profitability and capital position, without significantly reducing the strong asset quality.

While ranking short term IDR at F3, support rating of 3, support floor and viavility rating BB + rating bbb-.

BCA Finance Bond Rating AA +

On the other hand, Fitch has assigned a rating of AA + for long term national rating of PT BCA Finance. Then the short term national rating at F1.

So is the plan to issue bonds worth Rp3 I-2012, 5 billion are rated AA +. The same rank was given to bonds and bonds 20 120 III-IV-2011. Then I-2010 subordinated bonds at AA-

Categories
Small Business

Why Yahoo Small Business Can Benefit Any Business

If уου hаνе a small business tο manage, thеn уου know јυѕt hοw difficult іt саn bе. Although thеу аrе called ‘small’ businesses fοr a reason, іt саn take a full sized team tο rυn a successful business οf аnу kind, аnd between web hosting аnd web design, financial organization, marketing, online sales, аnd a variety οf οthеr positions thаt need tο bе filled, thеrе аrе ѕο many things thаt need tο take рlасе tο grow a small business. And Yahoo Small Business іѕ a grеаt way tο gеt уουr small business’s web presence οff tο thе rіght ѕtаrt.

Between thе web hosting services, thеіr merchant account services, hеlр wіth advertisement аnd customer service, аnd a number οf οthеr services thаt аrе offered, аnу small business looking tο gеt a gοοd ѕtаrt wουld benefit well frοm thе many services offered bу Yahoo Small Business. Whether building уουr first website οr looking fοr Yahoo E-commerce аnd аn online store, YSB hаѕ thе tools аnd іѕ уουr easy solution.

 

Yahoo Small Business Web Hosting Services

Being thаt Yahoo іѕ a web based service, thеу excel аt providing users wіth thе nесеѕѕаrу tools tο improve thеіr small business. Chοοѕе уουr οwn web address аnd domain name аnd personalize іt wіth уουr very οwn professional grade website. Thе goal іѕ tο mаkе уουr business thrive wіth аn improved online presence.

If уου gеt stuck, Yahoo provides 24 hour customer support, assisting уου wіth qυеѕtіοnѕ related tο down times, data transfer, emails, аnd more. Thе web design tools thаt аrе included аrе relatively easy tο υѕе wіth easily customizable designs, ѕο уου never hаνе tο worry аbουt having уουr web site look lіkе everybody еlѕе’s.

1,000 email addresses give уου more thаn уου сουld еνеr need fοr a small business, аnd wіth unlimited web storage аnd аll οf thе benefits οf Yahoo email, уου аrе well equipped tο give уουr business a boost. Everything іѕ easy tο υѕе. Yahoo Mail Plus wіth SpamGuard keeps those nasty spam emails away frοm уου аnd уουr employees, keeping computers safer аnd allowing уουr business tο bе more productive.

Gеt Yουr E-Commerce Site Off tο a Running Stаrt

Wіth Yahoo Small Business аnd thеіr Yahoo Small Business Web Hosting options, уου аlѕο hаνе thе option οf сrеаtіng аn e-commerce site fοr уουr small business. Thіѕ іѕ grеаt fοr those businesses thаt hаνе physical locations аѕ well аѕ online businesses, аnd including e-commerce саn hеlр tο expand уουr customer base.

Fοr those small businesses out thеrе thаt lack a physical location, e-commerce website platforms аrе critical tο business success. Nοt еνеrу e-commerce site іѕ equal tο another, аnd simple things lіkе design, accessibility, аnd ease οf υѕе саn mаkе аll οf thе dіffеrеnсе іn thе world.

Search Engine Targeting

Nοt οnlу dοеѕ Yahoo Small Business automatically submit уουr site tο thе рοрυlаr search engines, bυt those whο υѕе Yahoo саn аlѕο υѕе Yahoo Sponsored Search tο advertise уουr business. Thіѕ gives regular businesses more exposure аnd more οf a chance tο bе seen bу targeted potential customers. Customer targeting, search engine placement, user friendly advertisements, search engine keyword reports аnd more… Whаt еlѕе сουld уου need tο gеt a business οff οf thе ground thаn whаt Yahoo Small Business аnd Yahoo Small Business Web Hosting hаѕ tο offer?

Internet Access

Aѕ іf аll οf thіѕ wasn’t enough, Yahoo Small Business hаѕ even teamed up wіth AT&T tο provide Internet access service tο small business customers. Whеn уου bundle thе Yahoo Small Business services аnd Yahoo Internet access together, іt even allows уου tο save up tο 20 percent, аnd іn thе beginning οf a small business, еνеrу lіttlе bit helps.

Yahoo Small Business аnd thеіr Yahoo Small Business Web Hosting services јυѕt mау provide уου wіth thе edge уου need tο blow thе competition out οf thе water.

Categories
Finance Services

How To Start, Build, Maintain, Or Fix Financial Freedom And Security

Ok, now that you’ve taken the first step to becoming financially independent and secure, I’m going to share 10 ways to start, build, maintain, or fix your financial situation/circumtance.

1. Establish and maintain motivation to being financial secure.

2. Don’t get discouraged if it’s taking a while. Patience and consistency are key elements.

3. Financial freedom, security, and wealth come from multiple avenues of income. Unless of course you’re fortunate to inherit wealth.

4. Start small and work your way up. Taking too big of a step could be overwhelming.

5. Open a savings account. Starting with a savings account allows you to put away money that is earning interest. Therefore, your money will be generating a small income. REMEMBER:start small. Be dedicated to putting money into the account on a frequent basis. (A specific amount is good, and you should set a specific reoccurring time to put the money in the account, like every paycheck or once or twice a month.) TIPS: It’s more helpful if you don’t touch the money at all unless it’s an emergency.

 

6. Establish an emergency fund. This allows you to have money on hand in the event your regular income can’t cover your expenses. (You could open another savings account for this.)The amount can be determined by the most costly expense you might encounter such as car transmission, roof leak, etc. $2000 is a good starting point.

7. Once your savings account reaches the necessary minimum to open a CD(certificate of deposit), transfer the money into a CD. This will earn more interest than a regular savings account. (Note: the more you put in and the longer you set the term, the more interest you will earn. CDs usually start at $500, and terms generally run from 6mos-5yrs. Some banks offer large minimums with short terms that have promotional rates that are higher than regular CDs, wachovia bank is one of those banks.)

8. Once you’ve started a small money generating agent and set aside your emergency fund, then you can start working on your debt. You want to pay more on your balance than the minimum requirement. **You can work on your debt before opening a CD, but you shouldn’t work on debt before establishing a money generating agent and an emergency fund. If you don’t have a back-up (emergency fund and savings) for your primary income, you’ll most likely need to use some form of debt product (loans, credit cards, borrowing from friend/family) in an emergency situation or when your primary income doesn’t cover your expenses.**

9. Research other means to occur avenues of income. Some starters are paid surveys, bonds, stocks, mutual funds, investments (real estate, businesses, etc.), IRAs, money market accounts, more CDs, etc. **The more avenues you have, the more income you will earn, therefore, building and maintaining financial freedom/seurity/wealth.

10. DON’T GIVE UP! and stay with it. There are many ways to build something, however, there’s one principle that must always be present, STARTING WITH A STRONG AND SOLID FOUNDATION!

In closing, remember that financial freedom, security, and wealth is established by multiple avenues of income. You should always have an emergency fund or back-up fund for your primary income before working on debt to ensure that you don’t have to rely on debt products for help. Start small with money generating sources, too big of a step could be overwhelming financially. Don’t look at putting money aside as a bill, look at it as self financial promoting or as a self made retirement tool. Always keep in mind, patience and consistency, and stay motivated and encouraged. Beginning with the first five steps will help you establish a strong and stable foundation to build off of. Good luck and stay positive!

Categories
Marketing Strategies

BCA sold 90.99 million shares to Credit Suisse and Deutsche Bank

JAKARTA – PT Bank Central Asia Tbk (BCA) has sold as many as 90.99 million shares of treasury stock, which is partly owned by the company.

In a disclosure on the Indonesia Stock Exchange (BEI), the sale of shares was made on August 7, 2012. Buyers of shares BCA itself is Credit Suisse (Hong Kong) Limited and Deutsche Bank AG, Hong Kong Branch.

“Buyers are not affiliated with the company,”

Performed at Rp7.700 sales price per share. Price it no lower than Rp7.624 per share which is the average closing price during the 90 days before the date of the sale. Price Rp7.700 per share represents the closing price the day before the date of the sale.

BCA has been in organizing two share repurchase program (buyback). First on 17 January to 31 October 2006, the number of shares bought back 90.99 million shares. Second, on February 11 to November 15, 2008. The Company managed to buy 198.78 million shares.

“The company must sell all shares of treasury stock at the latest on 15 November 2013,”

Categories
Finance Services

Bank

Regarding the meaning of the bank can be sure everyone understood, well studied in school or any school not certainly know the general meaning of the bank. Although not everyone has savings in the bank, but the bank said often encountered in daily life, such as advertising on TV ads that often the bank, or when traveling we see the bank building.
I think we all agree that the short meaning of the bank is a place to save money or to save money, and also a place to borrow money. In this article we will discuss a complete understanding of the bank, from the origin of the word bank, banks in general terms, and the terms of the bank by government legislation shrimp.

The origin of the word is from the Italian bank banca meaning the money changers. In general terms the bank is a financial intermediary which is generally established with the authority to receive deposits of money, lending money, and issue promissory notes, known as the Banknote.
While understanding the bank according to the Law of the Republic of Indonesia Number 10 of 1998 Date of 10 November 1998 concerning banking is a bank is a business entity which collects funds from the public in the form of savings and channel them to the public in the form of loans and or other forms of order to improve the living standard of the people.

From understanding the bank under the Act of the Republic of Indonesia Number 10 of 1998 can be concluded that the banking business covers three activities, namely to raise funds, distributing funds and providing other banking services. Activities of collecting and distributing funds is the main activity, while banks provide banking services only other supporting activities. Fund raising activities, such as collecting funds from the public in the form of demand deposits, savings and time deposits. Usually he is given an attractive remuneration such as, flowers and gifts as incentives for people to be more than happy to save. Activity funds, in the form of lending to the public. While other banking services provided to support the smooth operation of principal.

Understanding bank

The existence of the bank would provide benefits to many parties, among other benefits

1. As an investment model, which means that derivative transactions can be used as a model of investing. Although in general are kind of short-term investments (yield enhancement).

2. As a way of hedging, which means that derivative transactions can serve as a way to eliminate the risk by hedging (hedging), also referred to as risk management.

3. Pricing information, which means that derivative transactions can serve as a means of seeking or providing information about a particular commodity prices in the future (price discovery).

4. Speculative function, meaning, derivative transactions may provide opportunities speculation (speculative) to changes in the market value of the derivative itself.

5. Production management functions running properly and efficiently, which means that derivative transactions may give an idea to the management of production of a manufacturer in assessing the demand and future market needs. Apart from banking functions (bank) primary or derivative, then that needs to be considered for the banking sector, is a philosophical purpose of the existence of a bank in Indonesia. It is very clearly reflected in Article four  (4) of Law No. 10 of 1998 which explains, “Indonesian Banking aims to support the implementation of national development in order to improve equity, economic growth and national stability towards improving the welfare of the common people”. Reviewing more in the bank business, the bank (banks) Indonesia in conducting its business should be based on the principle of economic democracy that uses the precautionary principle. 4 This is, clearly illustrated, because philosophically bank has the function of the macro and micro process of nation building.