BUSINESS FINANCIAL SERVICES/ WORKING CAPITAL FINANCING ADVISORY SERVICES
Business Financial Services/Working capital financing is essential to any growing business. It helps keep your business current and competitive in your market. If you have commercial real estate or equipment that produces an income for your business, you can obtain working capital financing that can help pay down credit lines or accounts payable, freeing up money for growth opportunities. Before attempting to obtain this type of loan make sure that you have established good business credit scores. These credit scores will make a big difference when the lending institution is determining whether to give your business the money that it needs to succeed.
Working capital is a financial metric which represents operating liquidity available to a business, organization, or other entity, Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. If current assets are less than current liabilities, an entity has a working capital deficiency, also called a working capital deficit. Net working capital is working capital minus cash (which is a current asset) and minus interest bearing liabilities (i.e. short term debt). It is a derivation of working capital that is commonly used in valuation techniques such as DCFs (Discounted cash flows).
Working capital is used for many different purposes in a small business. It covers the costs of advertising, growth and expansion. It might be used for payroll, inventory purchases, handling debt or funding renovations. Access to working capital as needed could literally mean the difference between success and failure in any business.
Assistance in Preparing Business Plan
Business plan is a written summary for a startup or an existing business venture’s growth plans, manufacturing / servicing capabilities, marketing opportunities and strategy and managers’ skills and abilities. There is no substitution of a well-prepared business plan, and there are no shortcuts for creating it. A Business Plan bridges the gap from where we are and where we want to go. It indicates the direction that where the company is going in, what its objectives are, where it wants to be, and how it’s going to get there.
Formulating a business plan can be considered to be a multi-stage process, the result of which is a multi-faceted document generally built with the twin goals of proving the logic of financing (equity or debt) the business.
Entrepreneurs normally are described as risk takers who take chances based on a gut feeling. However, it needs careful planning and preparation when you are investing money or asking another to invest money. A business plan organizes all the essential elements needed to establish a business and continue a successful business in a simple format. It is also the tool you will present to lenders to convince them to take a risk on your business and offer you with financing. Thus, it must be extremely thorough and thought provoking.
Remember, aside from the general business plan goals, every business plan is unique. Your plan should involve all the relevant information, but be customized for your business. Eventually, we should focus on the content and not the number of pages.
Once complete, the business plan should determine the expectations you have for your new or existing business. If you plan to utilize the plan to procure finance, the completed plan should “tell the story” of your business to a potential lender. The plan should serve as a unique document in which all business issues are taken into consideration without requiring additional verbal explanation. Review your plan regularly and make appropriate modifications when your plans and strategies change.
Business plans are considered as decision-making tools. No fixed content and format is required to be followed when formulating a business plan. It is a creative document reflecting the business objectives, their relevance to market and industry and the organizational plan is to attain these goals.
A well structured Business Plan is formulated to facilitate confidence from the proposed venture capitalists / Financial Institutions to plough in money into the venture which shall ideally outcome a good return over a period of time to the owner of business.
LC Discount is Letter of Credit Discount. The Letter of Credit from the prime banks or financial institutions is considered as a complete security. A Letter of Credit is a letter from Bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. Let’s consider that the consignee wants to pay you after 90 days after it reaches him. But you want to be paid immediately after the documents are accepted. The banks will offer to pay you on a discount basis, meaning that they deduct a percentage from the value owing to you, which they keep as the cost of discounting; you get paid immediately the value less that the discount
FEASIBILITY STUDIES FOR BUSINESSES
The feasibility study is an evaluation and analysis of the potential of a proposed project which is based on extensive investigation and research to support the process of decision making. A feasibility study’s has main goal is to assess the economic viability of your planned business. The feasibility study requires to answer the question: “Does the idea make economic sense?” This study will provide a thorough analysis of the business opportunity, including a look at all the possible roadblocks that may stand in the way of your success. The conclusion of the feasibility study will indicate whether or not you should proceed with the planned venture. If the results of the feasibility study are positive, then the next step will be to develop a business plan.
If the results show that the project is not a sound business idea, then the project should not be execute. Although it is difficult to accept a feasibility study that shows these results, it is much better to find this out sooner rather than later, when more time and money would have been invested and gone.
We conduct feasibility study for new business start ups wherein we conduct economic- techno study of the investment to be made in new business as an investment decision. We support in preparation of business projections wherein we support the management in preparing the projected balance sheet, projected profit and loss account, and projected cash flows as a part of business projections.
The feasibility study is perhaps most misconceived aspect of developing a new project or Business venture. Yet, it is the most relevant step, as mistakes at this early stage can permanently handicap the project’s performance, perhaps fatally. A good feasibility study is more than just a set of financial projections that is incorporated into the overall business plan. Done properly, it becomes the market-driven strategic plan that is the road map for all consecutive decisions. As much as answering the question “Is a project feasible?” a good market and financial feasibility study also addresses the question of what is most feasible and how should all its aspects be to assure ultimate success.
HRISK & FINANCIAL MANAGEMENT SERVICES
The situation which remains to affect financial markets has made the safeguarding of liquidity and expansion of net current assets is one of the greatest challenges currently facing by financial departments. Moreover, financial operations are being tested on a regular basis by momentous changes such as acquisitions, mergers and demergers. Statutory stipulations regarding governance and risk management have also become more powerful from year to year. Last but not least, increases in operational efficiency implemented by modern CFOs now apply to the entire organisation – not just their own department.
Many organisations face an intention to provide high quality employee benefits and pension plans as well as spending and expanding its capital wisely. Increasing local legislation connected with a wide array of financial products, investment options and pension schemes, means organisations should seek specialist expertise to help assess, implement and manage the schemes and products which are most important and useful to their needs.
Our financial management practice is at the core of what our company offers as it target on developing and managing enterprise value. Today’s chief financial officer is the operational and strategic leader of a crucial enterprise-wide function, whose core processes, resources and technologies impact nearly every organizational activity. We provide a complete bunch of services to support the CFO, from end-of-period closing to consolidation & reporting and from performance measurement to business risk recognition, revenue cycle enrichment all the way to process outsourcing.
HOW DOES INVOICE DISCOUNTING DIFFER FROM FACTORING?
The fundamental difference between invoice discounting and factoring is that you are responsible for the collection of cash from your debtors. The payments that you receive are paid into a nominee bank account which is administered by the invoice discounter. Where a Confidential Invoice Discounting facility (CID) is in place your customers are unaware that a discounter is funding your business. For any business the potential for bad debt will always be an issue. If you are concerned about bad debts, many discounting companies can provide a facility that will include bad debt insurance protection for additional security.
BUSINESS AND ASSET VALUATION SERVICES
Business valuations needs various reasons in the business world like corporate carve-outs, corporate re-organizations, stock options and incentives, collateral values for loans, progression, planning, Impairment Testing, BS(Balance Sheet) Purposes, Mergers and procurement , Intercompany Transfer, Assessment of Import/Export Duty, Corporate recovery / Restructuring / Insolvency, buy/sell agreements, closure and spin-offs, Privatisation, Asset Backed Lending, Sale or Purchase , Insurance, in addition to financial reporting, selling and buying of a business, mergers, and same nature of transactions.