Business & Finance

Every new business needs finance when they are first starting up. You will need to buy equipment and your workplace will need to be set up as well as all of your marketing costs being sorted out but it doesn’t just stop here; when you are officially set up and your business starts making money you will need to cover all of your businesses bills and your staffs wages. If an applicant has both met and exceeded the conditions of their firmly accepted offer, they will have up to five calendar days from the time their place was confirmed (or A level results day, whichever is the later) to research places more appropriate to their performance. Applicants will have to nominate themselves for this system, and their eligibility will be confirmed by the institution they apply to adjust to.

Investment Decisions : The business gets cash, mainly from sales. It also gets cash from other sources. It gets long-term cash from equity shares, debentures, term loans from financial institutions, etc. It gets short-term loans from banks, fixed deposits , dealer deposits, etc. The finance manager must invest the cash properly. Long-term cash must be used for purchasing fixed assets. Short-term cash must be used as a working capital.

For example, in the run-up to the recent financial crisis, rising property prices were used to justify high levels of debt where an injection of equity would often have been more appropriate. The collapse of property values has wiped out much of the equity that was on SME balance sheets pre crisis. Many SMEs who borrowed against properties valued at the peak of the market have found themselves with loans that they are struggling to refinance, as the value of the property has decreased so much. Banks are no longer prepared to finance at high Loan-To-Value ratios, and expectations of SMEs therefore need to be re-set.