discuss how financing could assist in the maintenance of company's liquidity?
364502
Financing is bringing money (usually cash) to the firm.  With a larger cash reserve, the company will have more liquid assets.\n\nThe firm could also take out a large revolver at a bank and this type of financing would help to ease the uneven cash flows for a cyclic industry and help increase liquidity.
863291
Effect on company:\n\nLower interest costs, shift of financing over to equity from debt\n\nEffect on shareholders:\n\nDilution to old shareholders, possible change in control due to change in percentage ownerships and/or shift in eligibility for directorship\n\nEffect on holders of convertable bonds:\n\nStop receiving coupon payments (if there were any), start receiving dividends (if applicable),now an equity owner, potentially eligible for directorship (if ownership is high enough)
205899
Many approaches:\n\n1) Discount cash flow method. Work out all the projected free cash flows of the company and then do a dcf on it. The key is not in doing up the model - the key is in your assumptions (as in all models);\n\n2) Multiples - look for a listed company in a similar industry and use a EBITDA multiple to find out an approx value. Check yahoo finance - it is rather good for info finding;\n\n3) Asset valuation method - not as accurate as the above but add up all the assets of the company. Note that the sum may be worth more than each piece if all is functioning together well;\n\n4) replacement value - check out the market values of all the assets and value that. \n\n5) Net Asset Value - Assets minus liabilities for a really general ballpark figure. \n\nI generally use 1 & 2. 3-5 are just very general guides.
433572
- Attract potential investors when the business grows and needs to expand.\n- Better chances of getting credit from the banking system.\n- You will end up getting a better price if you ever decide to sell your compmany.
617754
You have three avenues to cover.Check with your local city to see what requirements are necessary. (There's probably city,county,and state requirements.)The gas/diesel company you'll use will have certain expectations and requirements. Then (unless you're paying cash) your bank will obviously want to see assets, money down, and a business plan forecast put together probably as far as 5 years. The easiest way would be to re-start an existing station that has been closed for awhile. Good luck.
482935
There are plenty of companies that offer 100, 103 and 107% loan options.  Lending Tree.com would be a start.
1186184
it would take a couple years at least but getting a small loan from a bank will help and also those instore credit cards like target cards...fashion bug/ american eagle....smaller store cards like that.
977094
Businesses that are financed by loan capital need to increase their margins higher than the interest rate in order to turn a profit. They may cut down costs for example by retrenching staff  or increase sale price.\n\nSuppliers to the business may also increase their prices in order to service the higher interest. This will lead to higher input costs thus higher prices.\n\nConsumers who borrow money to purchase from business will shy away from higher interest loans leading to reduced sales volume by business a thus a real  possibility of closure.\n\nShare holders expect their returns to be higher than if their money was in the bank. So they will be pressure on businesses to turn out higher profits ... in all the turbulent waters mentioned above.\n\nBusiness can be punished by shareholders/ Financial investors by removing their investment not only from that business and that industry, but from the entire UK region and invest in other friendly parts in the Globe if they feel an impediment on their profits or unpleasant surprises on their capital.\n\nHigher interest left unchecked could return UK back to the dark days of iron and steel making in several villages of South Wales in the 1700s
153568
The most important issue is revenue. They want to know where it will come from, what are similar companies generating for sales, and what should your company be able to sell. the next issue is profit margin, how much of that revenue will you have available to pay back the loan.
638332
They assist in managing finances
561340
a good business would be a loans program
560193
Lend money, hold yours, make a profit for their shareholders, make investments, Set up retirement accounts, etc.
137017
You would borrow money, typically, from depositors. You would need an equity stake of something like 15% when you first start-up although that could decline to around 10% as you grow.
84542
You need to look at several things:\n\n- asset quality - collateral of lending and sectors lent to\n- credit policies - are these good?\n- corporate governance - are the BOD people who may pose a problem or embezzle etc?\n- market risk - what are the risks inherent in the banks/insurance shareholdings/bonds and maturity risks\n- liquidity risks - is the funding base broad based, concentrations in deposits aren't good or few credit lines - since removal of one can affect the entity \n- geographic concentrations - good or bad?\n- performance - last years performance may not repeat so check what analysts have to say about sustainable side of the business\n\n- what's the market share?\n\nthat should be plenty to watch out for.\n\nValuing is mainly done either by:\n1-net present cash flow of expected business going forward - but this has many many estimates and assumptions - especially terminal values and discounting rates\n\n2-using EPS and P/E ratio to calculate a value\n\n3-using CAPM to calculate the value and using efficient frontier to work out whether the share is over prices or underpriced if actively traded\n\n4-fair market value of business after due diligence - often only available to strategic investors.
867845
1) Ask relatives and friends to buy shares in the hotel and/or\n\n 2) Ask them to give you loans, at rates of interest between bank savings a/c and mortgage a/c.\n\n3) Take a business mortgage for the rest.\n\n4) Do not forget to leave yourself sufficient working capital. More businesses fail due to that than from anything else.
439834
If you can secure it to a point where they wont lose their money in the event your business should lose again. Exit strategies and security ,along with nice above average returns. Although this is just based on what you are stating here. If you want to discuss options further email me at bizconsultant2000@yahoo.com
412703
yes. u need to have surity. also have a business plan...let it be realistic.i mean both in terms of time and resources. show the bank why is it worth investuing in your proposed business...when is that businees going to reach BEP and how r u going to do it...