Archive for the ‘Corporate Finance’ Category
An Effective Source of Bankruptcy Financing
Posted by admin in Corporate Finance on November 30th, 2009
Going through a chapter 11 bankruptcy can provide you with the necessary breathing room to reorganize your company, while giving you a chance to reduce obligations that would have otherwise forced you out of business. Although no one desires to go through a corporate bankruptcy, many times it’s the only available solution.
Contrary to popular belief, many companies going through a chapter 11 reorganization can obtain financing. This type of financing is called debtor in possession financing, commonly abbreviated to DIP financing. As matter of fact, obtaining DIP financing usually increases your chances of emerging from the bankruptcy process as a viable company.
In the past, debtor in possession financing was offered only to large companies that had substantial revenues and assets. And it was only offered by large banks or big corporate financing companies. However, a new alternative has began to emerge as a leading solution. And as opposed to other conventional options, this alternative is open to small companies. This solution is called factoring.
Having liquidity right after filing for bankruptcy is critical. Your company will need money to pay employees and new purchases from suppliers. However, after filing for bankruptcy your assets will be tied by the court. And if you sell to commercial or government customers you may need to wait up to 45 days to get your invoices paid, creating a liquidity crisis. Invoice factoring provides you with a substantial advance on your accounts receivable. This enables you to keep running the company while you navigate the bankruptcy process. It provides the funds to pay employees and vendors.
Accounts receivable factoring does not work for every company, but it can help businesses that sell goods to other businesses and wait 30 to 60 days to get paid. Qualifying for this type of financing is generally easy and can be setup fairly quickly. The approval of the bankruptcy court will be required and as a common practice, most companies file for bankruptcy and debtor in possession financing at the same time. That enables the company to minimize the disruption in operations and enhances the chances of a successful bankruptcy.
Support for Business Finance – Where Can You Go?
Posted by admin in Corporate Finance on November 29th, 2009
Doug Richard’s recent report on business support in the UK highlighted that there are 3,000 government agencies and most of them simply direct people to other agencies. This can lead to a never ending cycle of being passed from pillar to post and having to explain yourself over and over again. So if you want help with your business finance, where can you go?
Here are the various options open to SMEs in the UK to help you decide the best route for you.
1. Your Bank
The high street banks (RBS, Barclays, HSBC, Lloyds) can certainly give you advice in terms of loans, overdrafts, invoice finance and they can also give you some guidance on developing cashflows and general business advice. Usually the advice is coming from staff who are well trained internally and have seen lots of businesses from the outside but may not have had the direct operational experience of running a business.
2. Your Accountant
Accountants come in many guises and it’s important that you understand whether you are dealing with an auditor (responsible for verifying your accounts after the year end), a tax advisor (helping you with Tax and VAT issues) or a firm helping with your bookkeeping, management reporting and accounts. Each of these has different specialist skills and you shouldn’t assume that just because someone helps you with your tax, they’ll also be giving you overall business advice. Equally, you’ll find that many firms from the big four (PWC, Deloitte, KPMG, E&Y) , the mid tier (Grant Thornton, BDO, Baker Tilley) and the fast growing newer firms (Tenon, Vantis, Target) can give you good specific advice on business finance issues. However, make sure that you have agreed this specifically in any engagement letter. Otherwise they might think they’re just keeping your books or auditing your company and you might think they’re advising you on how well your business is performing and highlighting any potential finance issues. The gap between these expectations has caused significant problems for many companies.
3. Your own FD or CFO
If you have your own finance staff then make sure you make the best use of them. It’s easy to dismiss the finance team as being too much in the detail and always taking a negative view but they are often highly experienced and well trained professionals who have a very good insight into your business. Listen to what they have to say and don’t just disregard their views because you prefer to hear all the good news that your sales director is telling you. A good FD or CFO will often have experience from other companies that they can bring to bear in your business.
4. Part Time FD Companies
These have been rapidly growing in popularity for SMEs and even some larger corporates and they can provide an excellent source of support and advice. They provide someone in your business on a part time basis who can guide you from their knowledge and experience in a way that’s particularly relevant to your business. When you can’t afford your own full time FD or CFO these companies (FD Solutions, Secantor, Marshall Keen, FDUK, MyFD) can all provide the support and guidance you require for your business finance in a manner that can be very beneficial for your business. Having an FD or CFO in your business, even on a part time basis can give your company a real boost and can give you a trusted advisor to turn to for advice on your company finances.
5. Government Agencies
As the Richards Review highlighted it can easily end up feeling like you’re chasing your tail when you deal with these agencies and sometimes the time and effort you put in can feel wasted when you don’t get anywhere. Business Link, which provides somewhat of a hub, has a variable reputation depending on your local region. Some of the Enterprise Hubs are more supportive and operations like Finance South East have built a good reputation for clear and relevant advice.
6. Corporate Finance Firms
There are many companies competing in the market to help you raise money for your company. These are businesses in their own right who are seeking to make a profit but that shouldn’t put you off. It means they are incentivised to help you succeed. Generally these firms do charge an upfront fee but most of them earn more of their fees from a back-end success component (a percentage of whatever is raised). Charges will range from £2k to £15k upfront and success fees are generally in the region of 5%, although they can go up to 20%. Beware of companies that either offer the service for free (on the basis that you generally get what you pay for) or that charge a very high upfront fee. There are also some who appear to guarantee an investment providing you pay for Due Diligence (DD). You end up paying £40k in advance and they find something in DD that prevents them investing (which they never really intended to do anyway). Make sure you understand and agreements before you enter into them.
7. Your Friends and Family
In reality, this is where many people go for initial advice. Now unless your friends and family happen to fall into any of the previous 6 categories, it’s likely that their advice may be somewhat questionable. If they’ve had actual experience of the same issues and they’ve resolved it then by all means listen to them. However, you should always think about the source of your advice. Where has their knowledge and experience come from?
The key lessons here are to consider where the information is coming from, whether that information is based on real world experience and training and how relevant it is to your particular business.
How To Find Fantastic Finance Jobs
Posted by admin in Corporate Finance on November 28th, 2009
There are a wide variety of jobs in the finance industry and a job in finance can cover a wide range of tasks. Finance jobs typically offer good financial rewards but require the employee to be extremely well qualified and more often than not there is a favouritism in the industry toward people that are experienced in their sphere of the industry.
Because of the massive scope of jobs that are available it is often possible that there are jobs to suit people of all ages, skills and interests within the title of finance jobs. The types of jobs in this category include accountancy, corporate banking, commercial banking, investment banking, financial management, investment management, management consultancy, retail banking, personal financial services and taxation.
Chartered certified accountants
There are a number of types of accountants. Chartered certified accountants can work with private businesses, commerce and also the public sector. Chartered certified accountants develop and maintain financial systems. They also are interested in financial forecasting and auditing financial records. They can get involved in a number of levels of business and can produce reports and budget plans for businesses and individuals and they can also help manage funds and salaries.
Many accountants are also qualified to investigate financial anomalies. Some even offer management consultancy services designed to improve the management of the organisations that they deal with to make them more financially responsible and ultimately more profitable.
The chartered accountant can also offer a range of other financial services. They can offer advice on taxation, advice on insolvency and also offer advice on corporate finance. Because the advice that they offer has to be of good quality the accountant has to be extremely well trained and versed in the laws surrounding finance. Accountants can have a very varied working day and the tasks they complete typically include, preparing financial advice, preparing business plans, preparing budgets for clients and collating reports.
They will usually be adept at managing expenditure, credit, payroll and investments and will be able to create financial plans and forecasts. They will also typically have a large component of their work facing clients. This means they get a healthy mix of desk work as well as social interaction with their client base.
Investment management
Investment management jobs include a wide variety of different branches. This can be jobs such as a commodity broker, investment analyst, investment fund manager, stockbroker and also trader. Commodity brokers deal in physical commodities such as coffee, grain, sugar and oil. They buy and sell these commodities on behalf of the product producers and try to make the most of their investments.
An investment analyst researches the trends and undertakes analysis that is developed to help investment fund managers make decisions that aim to maximise the return for the portfolios that they manage. Stockbrokers invest money with the aim of making returns for their clients. They do so for a number of different people and organisations. They utilise market information that is supplied to them by market analysts. There are a number of different types of stockbrokers and each of these types tends to work for a different type of client for example, private individuals or corporate institutions.
Careers and Prospects in Accounting and Finance
Posted by admin in Corporate Finance on November 27th, 2009
Do you enjoy the challenge of working with numbers on a daily basis? Then an accounting finance career is right for you. With the tools that were taught in school, you will be able to help a company or a business run efficiently.
What is a CPA – CPA is the statutory title of qualified accountants who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA.
Primary Function of a CPA – CPA can attest to the validity of financial information. This means that they can audit financial statements and report on whether they are accurate or not. Certified Public Accountant (CPA) are licensed by law.A CPA attest to the reasonableness of disclosures, the freedom from material misstatement, and the adherence to the applicable generally accepted accounting principles (GAAP) in financial statements.
Career Opportunities in Accounting and Finance – Career opportunities in accounting and finance are endless. You can earn a degree in accounting and become a general accountant, but this is just one of the options you can follow. Some of things that you can get into include actuaries, auditing, banking, chartered accounting, corporate finance, corporate recovery, stock broking and taxation management. There are also specialist areas you can pursue, such as auditing, management policy and taxation.
If you have either a CPA or CA license with you, it is possible for you to work for a large firm that has offices both here and abroad. Given that every company needs ones, it will not be that hard to find a job.
Career Prospects – One report shows that employments prospects for these professionals is quite high over the past 5 years and this is expected to continue until after 2010. You will also be handsomely rewarded with a good salary but long hours come with the territory especially when companies and individuals have to file their income taxes and towards the end of the financial year.
Average Annual Income – Just to give you an idea, newly grades who work in banks earn an average of $35,000 to $50,000 annually, while financial managers earn almost double that amount. Professionals who soon become partners for the bigger firms earn more than $100,000.
Career Development – In order for you to get a higher position, you will also need to go back to school. Most financial experts pursue an MBA after a few years in the corporate world. While some return to their employers, others apply elsewhere.
Before you can see yourself up there, you have to work from the bottom going up. While some decide to make it big in Wall Street, you too can also succeed wherever you decide to apply.
Market Research – The first thing to do is conduct some research. This will make you understand how things work and how news in business affects the industry, the country and the world as a whole.
Networking -If you want to get the job, aside from being knowledgeable, you need to have connections that are already there so you are given the position instead of someone else. This means building your network from school and then using it to your advantage. Associating yourself with those who have done well may give you pointers so you too can be just as successful as them.
Start Early – But you shouldn’t wait until graduate before you start looking at the various career opportunities in accounting and finance. The best way to get your foot in the door is to apply for a summer position or an internship because most companies hire those who have worked with them for a short period of time compared to those that sent in their resumes. Believe me; you already have an edge right there as you already have an idea about the internal workings of the company.
Prepare Your Resume – Just in case the company you worked for does not have an opening right now, you should prepare your resume and yourself for interviews with other companies that do similar activities with what you used to do during your internship.
The average professional who works in either accounting or finance leaves after 2 years. They may apply for reassignment to another department or find employment doing something else. When this happens, there are job openings around for fresh graduates as well as those who already have experience in this industry.
Indeed, there are career opportunities in accounting and finance. You just have to build your network and get it.
Looking for Career Opportunities in Accounting & Finance?
Posted by admin in Corporate Finance on November 26th, 2009
Career opportunities in accountancy and finance are endless. It’s because when you have either a CA or CPA license with you, it is possible for you to work for a large firm that has offices both here and abroad. Given that every company needs ones, it will not be that hard to get a position.
A few things that you want to get into include actuaries, auditing, banking, chartered accounting, corporate finance, corporate recovery, stock broking and taxation management.
There’s one report that shows you that employments prospects for these professionals is quite high over the past 5 years and this is expected to continue until after 2010. You will also be handsomely rewarded with a good salary but long hours come with the territory especially when companies and individuals have to file their income taxes and towards the end of the financial year.
Here is an idea, newly grades who work in banks earn from $35,000 to $50,000 annually while financial managers earn almost double that amount. Professionals who soon become partners for the bigger firms earn more than $100,000.
But in order for you to get a higher position, you will also need to go back to school. Most financial experts pursue an MBA after a few years in the corporate world. While some return to their employers, others apply elsewhere.
Before you can see yourself up there, you have to work from the bottom going up. While some decide to make it big in Wall Street, you too can also succeed wherever you decide to apply.
The first thing to do is conduct some research. This will make you understand how things work and how news in business affects the industry, the country and the world as a whole.
If you want to get the job opportunity, aside from being knowledgeable, you need to have connections that are already there so you are given the position instead of someone else. This means building your network from school and then using it to your advantage.
Associating yourself with those who have done well may give you pointers so you too can be just as successful as them.
But you shouldn’t wait until graduate before you start looking at the various positions in accountancy and finance. The best way to get your foot in the door is to apply for a summer position or an internship because most companies hire those who have worked with them for a short period of time compared to those that sent in their resumes. Believe me; you already have an edge right there as you already have an idea about the internal workings of the company.
Just in case the company you worked for does not have a job opportunity right now, you should prepare your resume and yourself for interviews with other companies that do similar activities with what you used to do during your internship.
The average professional who works in either accounting or finance leaves after 2 years. They may apply for reassignment to another department or find employment doing something else. When this happens, there are positions around for fresh graduates as well as those who already have experience in this industry.
Indeed, there are job opportunities in accountancy and finance. You just have to build your network and get it.
Careers In Finance
Posted by admin in Corporate Finance on November 25th, 2009
The finance industry is concerned with how individuals and institutions handle their financial resources—how they raise their money, where they allocate it and how they use it—and assesses the risks involved in these activities as well as recommends ways to manage these risks.
There are a number of exciting and rewarding jobs in the field of finance. What follows are just a few examples.
The commercial banking sector employs more people than any other facet of the financial services industry. Banks offer individuals the opportunity to interact with a broad spectrum of people and the chance to develop a clientele. People in banking usually start out as tellers and shift to other bank services such as leasing, credit card banking, trade credit and international finance.
As the name indicates, a career in corporate finance means you will work in a corporation and are mainly concerned with sourcing money for the company—money that will be used to develop the business, make acquisitions and ensure the company’s future. In a corporation, you are likely to start as a financial officer.
As a financial planner, you may also work for a corporation but will mainly be concerned with only one aspect of finances—planning for the future. You have to have a firm grasp of investments, estate planning as well as taxes. Or you may serve as a consultant who provides financial planning for individuals, e.g., planning their retirement needs or how they can put their kids through college.
With annual revenues surpassing the trillion-dollar mark, the insurance industry looms as one of the most attractive areas for a career in finance. In 2005, there were an estimated 2.5 million people in the US who were employed in the insurance field, which is mainly considered with the business of managing risk and anticipating problem areas. Possible jobs in insurance include working as an underwriter, sales representative, customer service rep, asset manager or an actuary.
A career in investment banking means you will be concerned with issuing securing and helping investors buy, manage or trade financial assets. As a bonus, you get the chance to work on Wall Street in a leading investment banks such as Merrill Lynch, Salomon Smith Barney, Morgan Stanley Dean Witter and Goldman Sachs.
Corporate And Commercial Law
Posted by admin in Corporate Finance on November 23rd, 2009
Commercial law is effectively the legislation that covers most transactions in the life of Joe Public, from the fine balance of a marriage contract to the more fundamental protection of intellectual property. Corporate law, on the other hand, is the exclusive domain of big businesses and concentrates on the intricacies of corporate governance, finance and the ongoing cycle of mergers, acquisitions and insolvencies.
Although the two terms are effectively interchangeable, commercial law has a broader application in that it is not only applied to business alone; whereas corporate law is a specific branch of the law that concentrates on all aspects of business.
Thus, when one ties the knot, finances a car or house or even finds alluvial gold in the stream running through our property, we have to take advice from a commercial lawyer and follow the legislation set out in commercial law.
In South Africa, commercial and corporate law is effectively governed by a handful of Acts promulgated over the years, including:
The National Credit Act of 2005
The Competition Act of 1998
The Close Corporations Act of 1984
The Alienation of Land Act 1981
The Credit Agreements Act of 1980
The Companies Act of 1973
Commercial law applies to virtually any and all transactions and it is advisable to contact reputable attorneys before embarking on any deal or contract. Top flight lawyers will ensure that the deal is fair and, more importantly, in your favour.
South African law firms can and will give imperative advice on the following:
The administration of estates
The sale and carriage of goods
The acquisition of real estate
The protection of intellectual property
Inward and outward investment options
Tax, both personal and corporate
Marine, fire, life and accident insurance
The dedicated corporate attorney will take care of more pressing issues facing you and your business, including
Acquisitions, mergers and takeovers
Banking and finance
Commercial contracts, including lease agreements, service and management agreements and licences agreements
Corporate finance
Empowerment transactions
Corporate restructuring
Stock exchange listings
Tenders
In a nutshell then, commercial law involves the areas of law that have particular relevance to commerce and commercial transactions whereas corporate law deals with big businesses.
Selecting a Career In Finance
Posted by admin in Corporate Finance on November 22nd, 2009
If you have a knack for numbers, particularly if you are good in understanding and interpreting figures, then a career in the finance industry may be just right for you. Certainly, working in finance is not for everybody. It takes a person with an analytical mind and a certain discipline to make it in this business. However, if you are one of the chosen few who manages to enter the world of finance, then the sky is usually the limit for the talented and driven.
As the name indicates, the business of finance is primarily concerned with financial resources or, more precisely, how individuals and institutions handle their financial resources. Finance considers how they get their money, where they use it and what they use it on and it analyzes the risks involved in each of these phases as well as gives recommendations about how to manage the risks.
Although not many are qualified to work in finance, there are a number sectors in the financial community that offer many exciting and rewarding employment opportunities. Here are some examples.
If you want to break into finance, perhaps there is no sector that is easier to penetrate than the commercial banking sector. It is a good place to learn the basics of the business of finance. That is one reason why commercial banking has the most number of people of any sector of the financial industry. Aside from the opportunity to learn about the business, working in a bank will also put you in touch with a wide range of people and gives you the chance to develop your own clientele. The most basic entry-level position is as a bank teller. From there, it is a short jump to other more challenging job opportunities such as leasing, credit card banking, trade credit and international finance.
In corporate finance, you handle the internal finance requirements of the corporation that employs you unlike in a bank where you handle the financial requirements of several clients at a time. The in-house corporate finance department sources money for the development of the business, particularly for expansion and acquisitions. The entry-level position in a corporation is as a financial officer.
A corporation also employs a financial planner, a vaunted position whose sole concern is planning the future finances of the company. This position requires great vision and foresight as well as a firm understanding of investments, estate planning as well as taxes.
How to get Corporate Business Loans
Posted by admin in Corporate Finance on November 20th, 2009
Business Finance Broker Ltd. is a team of dedicated corporate financiers, with over Eighty years combined, Corporate Finance, Banking, and Financial Law experience, making us the ideal choice for your financing needs.
Our highly experienced team’s efforts without doubt are quickly establishing us as the major player in the otherwise highly volatile International Business, Corporate, and Corporate Construction financial marketplace.
At Business Finance Broker, we specialize in arranging Business, Corporate and Commercial Construction finance for our increasing International clientele that now spans twenty-four countries globally.
Our specialist service caters only for clientele in the following categories:
Business Loans – (Multi purpose Business Loans from: $100,000 – $500,000). Corporate Finance – (Multi purpose Corporate Loans from: $500,000 – $50,000,000). Construction Finance: (Corporate Construction/ Project Finance from: $1,000,000 – $100,000,000).
Business Finance Broker Ltd. bridges the gap and opens the door between your business and a network of 1000+ Swiss family offices, hedge funds, venture capitalists, and private lenders. The very sources that will provide your business the much needed financing most lenders and banks will not.
Business Finance Broker Ltd. differs from the many competitors out there, we are in the business of securing funding for your business. We do not promote or condone the hard sell, or false promise tactics used by the competition, we will tell you straight out within 72 Hours if you will qualify for funding.
We are so confident in our abilities to arrange the financing your business requires that we do not need to charge UPFRONT or APPLICATION FEES like our competitors; our commissions is earned when an offer of loan is made.
If we cannot arrange the financing your business requires nobody can, it really is that simple.
Arranging your financing requirements through Business Finance Broker is as easy as 1-2-3.
Finance and Financial Planning
Posted by admin in Corporate Finance on November 19th, 2009
Finance means providing funds for business or it is a branch of economics which also refers to the concepts of time,money,risk and other assets. In a Business management, finance is a most important characteristic as business and finance are interrelated. One can achieve its goal by choosing the correct financial instruments. Financial planning is essential for both the individual and an organization to ensure a secure future.
Personal financial decisions may involve paying for education, insurance policies, and income tax management, investing and savings accounts. Personal finance is used to avoid burden and life become enjoyable, if getting it from a right source at minimum cost. Personal loan is also a part of personal finance.
Financial planning is very important in business to achieve its objectives. In general, payment plans available under an insurance premium finance arrangement consist of a down payment followed by equal, monthly installments. The amount of down payment required, as well as the number of installments to be paid by the insured, may vary depending on the underlying insurance policy terms and conditions, the nature of the insured’s business and the credit worthiness of the insured. The complete terms of the premium finance loan, including the payment schedule and interest rate charged, are reflected on the finance contract.
Small business finance is a stepping stone for all small businesses. With small business finance borrower can minimize the difficulty of funds that the borrower comes across during the business. There are two main types of finance available to small business. They are Debt Finance and Equity Finance. In Debt Finance, the borrower has to repay the principal and interest where as Equity Finance is a time consuming process. The source of equity finance may be through a joint venture, private investors.
Professionals in corporate finance assist organizations invest money to run the business and grow the business. Theses specialists work to support and expand business operations. Online has proved to be a simple and the fast method of acquiring the small business finance. The small business finance borrower must not forget to compare the quotes of different lenders in respect to repayment period, lower interest rate, and the loaned amount.
Vendor program arrangement is a kind of financing arrangement in which finance is offered to the customers as a sales, marketing & deal closing tool. Country, state, city or municipality finance is called public finance. It is concerned with the budgeting process.
Each type of company requires a unique way of marketing depending on what kind of focus they have for their company. Advertising a company is purely based on the products. Making the plan and getting the overview is not enough. Company needs to put the plan into action and follow it up and evaluate it periodically.
International finance is the branch of economics that studies the dynamics of exchange rate,foreign investement, and how these affect international trade. It also studies international projects, international investments and capital flows, and trade deficits. It includes the study of futures, options and currency swaps. Together with international trade theory, international finance is also a branch of international economics.
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