Although there are many methods to finance and capitalize a company, the financing transaction is usually structured and secured in one of two ways. Either your put up collateral as security or you give up some ownership of your company (equity). Both methods have their benefits and drawbacks. One of the major benefits of using collateral instead of giving up equity is that you retain ownership and control of the business. This can be very important for business owners who want to retain their independence. When you sell equity, the buyers become your new partners – for better or for worse.
Most small and medium sized companies look for financing because they have cash flow problem. Although you can fix these problems by selling equity and recapitalizing the company – it’s not always the easiest solution.
One business financing alternative is to get a business loan. Although business loans are a popular tool to finance a company – they can be hard to get. The current lending environment is very difficult and institutions are only extending loans to very low risk ventures. To qualify, most companies need to have strong financial statements, multi year profits, seasoned management, substantial collateral and good growth potential. Few companies meet these criteria, especially small and midsized companies.
If the cash flow problems are caused by slow paying clients – rather than by low sales – invoice financing may be the right solution. Invoice financing is a simple solution that provides a funds advance on your slow paying invoices. It plugs the cash flow gap, providing the money you need to pay suppliers, employees and other business costs. More importantly, it smoothes out cash flow, providing predictability and allowing the business owner to focus on other tasks.
Most invoice financing transactions are structured as two advances. The first payment is given to you as soon as you invoice your client. It’s usually 80% of the invoice. The second advance, which is 20% less the financing fee, is given once your client actually pays the invoice.
Personal finance software is also known as home finance software. This is because it is simply personal finance software that you use in your home. You can use different applications under the category for different purposes.
Some of the applications cater to money management and accounting, whereas others concentrate on expense, income, and investment tracking. You can also use some of the applications for calculating mortgage payments, loan rescheduling, and loan prepayments. This you can do because the applications are equipped with a built-in mortgage calculator.
You can also use home finance software applications for budgeting purposes. They can help you prepare the monthly budget based on calculations involving the family’s income and the expected monthly expenses. The software will churn out a budget report at the click of a mouse. The important advantage of budgeting using home finance software is that you do not need to manually track your monthly budget.
Home finance applications maintain accurate account balances. However, for this you need to enter all purchases, credits, and payments in the application’s database through the checking account built into the application’s user interface. You are spared the hassle of making calculations as the application does this for you.
This is why reconciling of your personal finance accounts becomes easy with the burden of doing the math without making any errors whatsoever is taken over by the software. This keeps your mind relaxed and then you are able to concentrate on other important tasks that require your immediate attention.
Tax tracking becomes easier if you are in the habit of using home finance software. This is because tax categories are part of the software. Even if some of the tax categories are not included, all you have to do is to set them up. Such categorization of tax transactions helps you in saving time when the time comes for filing your annual tax returns. A decision on whether you need to make adjustment of tax with holdings can be done throughout the whole year through such categorization.
A career in Corporate Finance means you would work for a company to help it find money to run the business, grow the business, make acquisitions, plan for it’s financial future and manage any cash on hand. You might work for a large multinational company or a smaller player with high growth prospects. Responsibility can come fast and your problem-solving skills will get put to work quickly in corporate finance.
The job of the financial officer is to create value for a company. For example, the finance group at American Electric Power of Columbus, Ohio has four main areas of concentration: liquidity, flexibility, compliance with laws and regulatory support. The goals of the objective are met through four main activities carried out by AEP’s Finance Department: 1) designing, implementing and monitoring financial policies, 2) planning and executing the financing program, 3) managing cash resourcesFree Reprint Articles, and 4) interfacing with the financial community and investors.
Jobs in corporate finance are also relatively stable while performance in these jobs counts. But it’s not like your job is going to depend on whether you’re selling enough this week or getting good deals finished this quarter. Rather the key to performing well in corporate finance is to work with a long view of what going to make your company successful. Many would argue that corporate finance jobs are the most desirable in the entire field of finance.