FINANCING INSTITUTIONS OTHER THAN BANKS Often in business we need capital. Of course‚ this capital can be borrowed from banks or institutions other than banks. Of course‚ with borrowing on financial institutions other than banks will be charged a higher interest rate. The following definitions explain some of the institutions other than banks which cover several fields‚ namely: a. Leasing (Leasing) b. Venture Capital c. Factoring (factoring) d. Business Credit Card e. Consumer Financing
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ANSWERS TO CONCEPT CHECKS‚ FINANCIAL PLANNING PROBLEMS AND QUESTIONS‚ AND CASES Concept Check 7-1 (p. 186) 1. What are the main benefits and drawbacks of renting a place of residence? Advantages of renting are mobility‚ fewer responsibilities‚ and lower initial costs. Disadvantages are few financial benefits‚ restricted lifestyle‚ and legal concerns. 2. Which components of a lease are likely to be most negotiable? Some people will tell you that just about everything in a lease is negotiable;
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Short Term Finance What is Short Term Financing? Short term financing is basically refers to additional money for a business which requires for running its business for short terms which is usually a period of one year. There are some sources of short term finance which are as following:- Overdraft Overdraft bank basically means a facility that the bank provides to its customers where the customer is given permission to draw money from the banks in surplus of their balance in their heir
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following questions. If you owned your own business‚ how would you utilize the information reported on your balance sheet‚ statement of revenue and expense‚ and statement of cash flows? What determinations or decisions can be made with the information reported? Owning a business can be a very difficult challenge for the owner isn’t careful and doesn’t maintain a balanced financial account. The purpose of building the balance sheet is to have a snapshot of the business finances at a certain point in time
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Introduction Why do we need to borrow money? There a numerous reasons for the borrowing of money but common ones are; home loans‚ purchasing of cars‚ insurance‚ purchasing of business companies etc. People borrow money in general because they either can’t afford something or they have no money in cash‚ so they borrow from the bank‚ the disadvantage however is that you have to pay it back‚ and what people don’t realize is that the bank adds interest to the overall payment if you pay it over a period
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LESSON-15 LEASE FINANCING‚ HIRE PURCHASE AND FACTORING Rekha Rani STRUCTURE 15.0 15.1 15.2 15.3 15.4 15.5 Introduction Objectives Concept of Lease Financing Meaning of Lease Financing Importance of Lease Financing Types of Lease Agreements 15.5.1 Financial lease 15.5.2 Operating lease 15.5.3 Sale and lease back 15.5.4 Leveraged leasing 15.5.5 Direct leasing Advantages of leasing Leasing in India Concept & Meaning of Hire purchase Difference between Lease Financing and Hire Purchase NSIC & Hire
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Company A. Boudoir’s‚ Inc.: This company‚ a retail clothing store with three suburban locations in Atlanta‚ Georgia‚ is incorporated‚ with each of the three Boudoir sisters owning one-third of the outstanding stock. The company is profitable‚ but rapid growth has put it under severe financial strain. The real estate is all under mortgage to an insurance company‚ the inventory is being used under a blanket chattel mortgage to secure a bank line of credit‚ and the accounts receivable are all being
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Initial measures such as a cut in dividends‚ selling of assets and the closing of plants GM could reduce the re-financing amount to about $500-$750 Million. GM was now looking towards a viable method to raise the remaining amount. Solutions GM had a choice between different long-‐term financing measures listed below. Debt: Debt is usually less expensive
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What Are The Basic Problems Arising In International Trade Financing And How Do The Main Financing Instruments Help Solve Those Problems 1. Trade Financing Instruments The main types of trade financing instruments are as follows: a) Documentary Credit This is the most common form of the commercial letter of credit. The issuing bank will make payment‚ either immediately or at a prescribed date‚ upon the presentation of stipulated documents. These documents will include shipping and insurance
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Debt Verses Equity Financing Paper Debt Verses Equity Financing Paper Charlotte Hughes University of Phoenix The subject described in this paper compares and contrasts lease verses purchase options. The paper will define what debt financing and equity financing are and provide examples of each of the financing options. Debt Financing Debt financing is the selling of bonds‚ bills‚ and notes to raise money for working capital and capital expenditures. Debt financing are either short-term
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