Working Capital Financing – Easiest to Get, Best to Repay
Any business, big or small, requires a continuous hoard of organized finance in order to keep functioning and grow in future. Risks and speculations are integral parts of any business and successful entrepreneurs often require funds to back up their strategies to undertake these risks and speculations. In order to obtain state of the art gears and infrastructure, forecasting a future market trend, relocating or growing beyond stipulated boundaries, running successful promotional campaigns or simply for paying off debts, working capital financing provides the ultimate fluid to business.
In present times, keeping up with the latest technology might often become the key to a successful business. Acquiring hi-tech means for business would definitely increase productivity and work flow and as a result provide an edge over competition. However, incorporating these advanced technical features for a business would require a considerable amount of investment for their installation and knowledge base. It would become impossible to acquire them without a capital boost.
Office environment plays a very important role in the productivity of a business. A nicely planned office space would help employees to have a psychological advantage and thus increase productivity. Moreover, relocation and growth prospects often call for businesses to set up new bases at different places. This would ideally mean a complete new setup and would definitely need some amount of capital boost. Without a sturdy capital, this can never take place.
Advertisements and other promotional campaigns are a must for any business that aims to create a long-term impact on the minds of its consumers. It is often said that consumer memory is short and hence even though any particular business might have been afloat for quite some time, it still requires extensive promotional campaigns. These campaigns are often very expensive, as they require to be continued over a long period of time.
Debts come as a part and parcel of every business. Be it a startup or an established business, debts are bound to occur at some point of time. These debts require to be paid off at regular intervals in order to maintain goodwill and avoid getting over burdened. And this would ideally require an inflow of cash to meet these demands.
Working capital financing proves handy when it comes to meeting these essential business needs. There are several benefits that working capital financing offers to entrepreneurs. These finances are easily available and cash is generally disbursed within 72hrs of application. It does not require any application fee. Unlike other forms of capital finances, working capital finance does not require any personal guarantee or collateral. But most importantly, the best part of working capital financing is its repayment procedure. Or should we say, no procedure at all. Well, it does not have any fixed repayment schedule or time frame. Only when a sale is made, a percentage automatically gets deducted from the sales amount towards the repayment of the capital. Moreover, loyal customers are often rewarded with incentives and special programs. Any fund acquired through working capital financing can be used for any business purpose.
Thus pondering working capital financing is an admirable decision when in need of spry financing for business wants, as it’s the easiest to get and best to repay.
Comments
Comment from Finance F
Time July 29, 2009 at 1:53 pm
The answer is 418.76 pounds.
Ok. This is a 'fairly' simple growth question. The formula I'm using is for compound growth which I'm sure you've heard of, as you put this question in the right section. (Compound growth is used most in finance). This is how the formula looks:
FV = PV ( 1+i )^n
Where FV is future value (his future weight which is what you want). 'i' is the growth rate. 3% growth means i will be 0.03. And n is the number of years he'll grow over, which is 60-35 = 25 years old. For this question the formula could be worded as:
Weight, multiplied by ((1+percentage growth) to the power of number of years he'll be growing).
= 200*(1.03^25)
The answer is 418.76 pounds.
To help you understand. If you're growing by 3 percent a year. then next year you will be 1.03 multiplied by the weight you are now. This would be 200 * 1.03
His weight in two years would be 200 * 1.03 (the weight after the first year) which will then grow by 1.03, so the above bit needs to be multiplied by another 1.03. So in two years he'll be 200*1.03*1.03 or 200*1.03^2. You'll notice the power is simply the number of years he's been growing. After three years would be 200*1.03^3.
So it ends up being 200* (1.03 to the power of 25)
Good luck with any other questions.
Comment from jay27
Time July 31, 2009 at 1:03 am
It is a problem in a matter of law.
You should turn to your laywer for professional advice.
Comment from Finance F
Time July 29, 2009 at 1:45 pm
Have you always wanted to be able to do compound interest problems in your head? Probably not, but it's a very useful skill to have because it gives you a lightning fast benchmark to determine how good (or not so good) a potential investment is likely to be.
The rule says that to find the number of years required to double your money at a given interest rate, you just divide the interest rate into 72. For example, if you want to know how long it will take to double your money at eight percent interest, divide 8 into 72 and get 9 years.
Yes, it is a useful tool and is reasonably accurate.