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Working Capital Management

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Effective Working Capital Management requires the formulation of optimal working capital policy and the periodic management of cash flows, inventories, account receivables, accruals and account payables. And because poor working capital management can severely damage a firm's credit worthiness and limit its access to money and capital markets, every effort must be made to minimize business default risk. Visit this site for more information on Working Capital Management. follow us : – PowerPoint PPT presentation

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Title: Working Capital Management


1
WORKING CAPITAL FINANCE
Understanding Working Capital Finance
www.primefund.com
2
Index Page
Working Capital Management Page -03
Working Capital Finance Page - 04
Working Capital Loan Page - 05
Business Capital Loans Page - 06
Photo Gallery Page - 07
Inventory Finance Page - 08
How To Find Working Capital Page - 10





3
Working Capital Management
Understanding Working Capital Finance
Numerous funds are required to setup a business
and get it running. Working capital funding is
the cost of funds that is used for the purpose of
financing a business. Business cannot do without
working capital financing. The cost of capital is
dependent on the financing mode used for the
purpose. It means the cost of equity if business
is financed through equity only or cost of debt
if debt was the sole means of finance.  Numerous
companies use the combination of equity and debt
for capital funding.
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on Business Capital Loans
The ratio of the working capital finance shows
whether the company possesses the short term
assets to cover the short term debts of the
business. Anything below 1 indicates negative WC
and anything over 2 indicates company is not
investing in the excess assets. The ratio between
is 1.2 and 2.0 is considered adequate. If company
fails to exceed its current asses from its
current liabilities, it could be well on its way
to disaster and have difficulty in paying back
the short-term creditors.
4
Working Capital Finance
It is the measure of the efficiency and the short
term financial health of a business.  Method of
how to find working capital is stated below and
can be understood by the following
equation Working Capital Current Assets
Current Liabilities The ratio of the working
capital finance shows whether the company
possesses the short term assets to cover the
short term debts of the business. Anything below
1 indicates negative WC and anything over 2
indicates company is not investing in the excess
assets. The ratio between is 1.2 and 2.0 is
considered adequate. If company fails to exceed
its current asses from its current liabilities,
it could be well on its way to disaster and have
difficulty in paying back the short-term
creditors.
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Working Capital Finance
www.carpenters.sg
5
Working Capital Loan
Our Services
The loan that is taken for the purpose of
financing the daily routine operations of the
business is called working capital loan. Working
Capital Finance loans cannot be used to make
long-term investments or buy long-term assets.
They are used instead, to cover wages, accounts
payable etc. Those businesses and companies that
have cyclical sales or high seasonality usually
rely on the working capital loans to help the
business in time of reduced business activity.
The cash available for financing the short-term
operational needs of a business is called working
capital.
Businesses that do not have a sound source of
funding may stagger under the weight of its own
debt and capital funding is the fuel on which a
business can run successfully. Different options
can be chosen by the business in order to gain
capital funding. Sometimes, more than one option
can be used for capital funding. The selected
mode of funding shall depend on the business
desire to remain in debt, solvency of business
owners at time of founding of company and the
amount of money business shall need to launch
itself and maintain through different situations.
6
Business Capital Loans
Under the Capital Fund Financing Program, private
capital may be borrowed by PHA to renovate,
improve and pledge depending on the availability
of adoptions, a part of its future annual capital
funds in order to make the timely debt service
payments for conventional bank loan transaction
or a bond.
Generally, a time period between 60-90 days can
be expected by the PHA.  The overall timeline for
review shall rely on the completeness of the
proposal as well as the responsiveness of the PHA
team. The PHAs are advised to anticipate and the
unforeseen issues that might arise.
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Business Capital Loans
They are expected to act accordingly if
unexpected circumstances surface during the
review process so that they are able to recover
and come out of it efficiently and timely.  
7
Photo Gallery
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on Business Capital Loans
8
Inventory Finance
The obligations of PHA are also subject to the
availability of appropriations by the Congress
and compliance with both the regulatory and
statutory requirements. A written approval by the
HUD is required for all the capital funding
transactions that pledge, obstruct or provide
security interest in other property or public
housing assets including capital funds and use
them for debt payment or financing costs. A PHA
is required to submit a financial proposal in
order to get the HUD approval. It includes a term
sheet, complete financial documents and
justification for use of the capital funding for
financing. The guidelines for CFFP program are
listed below
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on Inventory Finance
9
Inventory Finance
Our Services
The loan that is taken for the purpose of
financing the daily routine operations of the
business is called working capital loan. Working
Capital Finance loans cannot be used to make
long-term investments or buy long-term assets.
They are used instead, to cover wages, accounts
payable etc. Those businesses and companies that
have cyclical sales or high seasonality usually
rely on the working capital loans to help the
business in time of reduced business activity.
The cash available for financing the short-term
operational needs of a business is called working
capital. Sometimes companies lack in having
sufficient cash on hand or asset conversion for
covering the daily operational expenses, taking
working capital loan acts as basic corporate debt
borrowings which are utilized by the business to
finance the daily operations of the company.
Visit our website for More information on
Inventory Finance
10
How To Find Working Capital
Prime Funds approach to financing selection
commitment to fundamental research, long-term
investment, emphasis on individual
decision-making while centered on trust and value
to our clients. Our group consists of a seasoned
professional team with decades of experience in
banking, finance, real estate, high tech,
entrepreneurship, consulting, strategic and
tactical business development and operations.
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    of carpentry works, exhibiting our years of
    experience and workmanship through every single
    plank, every single nail, every single laminate
    that we use.

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