Financial Advice
Money is the ‘oil’ that greases the engines of business. As an old advertisement for motor oils use to say: “Oils ain’t oils.” And likewise, money ain’t money. There are 3 broad categories of money, each with its own characteristics: Debt Equity or Capital Equity/Debt Hybrids: these are financing instruments which are a blend of [...]
The judgement in the Centro case has set the bar for financial literacy by company directors. To fulfil your responsibility as a director, you don’t have to know all the ins and outs of accounting and accounting standards but you do have to: read and understand the accounts of the business; and ask yourself if [...]
The recently released Aon Risk Management Survey 2010/2011 found that financial issues of “Liquidity” and “Capital Availability/Structure” raced up the ladder of risk concerns by businesses. Liquidity, which didn’t even rate in the top 10 risks in pre-Global Financial Crisis (GFC) years of easy money, ranked 7 in 2009/2010 and hit number 2 spot for [...]
“What’s the special today?” is a common question in restaurants when it comes to bill time in Asia. They have this wonderful system where discounts of up to 20% can apply if you pay with the credit or charge “card of the week”. Sadly, we don’t have that system in Australia but the plastic cards [...]
“Sales are going great. Profits are up. Yet I am always struggling to find money to meet wages and tax payments and my bank just knocked back my loan application.” In these post-Global Financial Crisis days, the last part of this is more likely to be “My bank wants me to repay my loans.” If [...]
Consider the following: Firm A’s sales have increased from $1 million in FY2009 to $2 million in FY2010. Net Profit has increased from $200,000 to $300,000. Is Firm A doing well? As this simple (and very obvious) example illustrates, it is the comparison of the ratio of profit to sales in percentage terms (ie net [...]
The quality of a loan proposal is a key factor in achieving the results for a business. It can make the difference between a ‘yes’ and a ‘no’ to a loan application-and in these times, potentially even the renewal of existing facilities. An effective loan proposal should be written such that it is a proxy [...]
Your business has excellent growth prospects but needs funding beyond your personal resources to realise its growth potential. You need to raise funds to do this. There are a number of avenues for capital raising for SMEs including venture capital funds, business angels, or even doing it yourself under s. 708 of the Corporations Act. [...]
Benefits Of Equipment Finance Equipment Finance is a highly effective way of financing your business. Advantages include: conservation of working capital ability to keep at the forefront of technological advances and improve efficiencies tax benefits (provided that the equipment is used for business purposes) flexibility in structuring payments to suit your cash flow budgetary certainties [...]
“Yes! Yes! Yes!” Would you like to get this sort of response from your bank(s) to a request for additional finance to achieve your growth plans? The reality today for many SMBs is that achieving a simple straight forward “yes” to the renewal of existing financing facilities on the same terms and conditions, let alone [...]
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