Where your company is in a cash-scrapped situation or you are generating low return on assets due to holding on to idling or unproductive fixed assets or you want to have a lump sum cash to invest in other projects, it might be worthwhile to consider a financing technique called Sale and Leaseback.
The sale/leaseback is […]

Story 1
Ah Lian ask shopkeeper:
Eh Ah chek, u got sell stocking up to knee, boh?
Ah Chek : Lu siao ah! stocking wear up to ‘yeo’ (waist) only, where got
up to the ‘nee’(breast) one.
Story 2
Ah Beng bought a Honda VTI recently and drove to Ah Lian’s place to show it
to her.
So there Ah Beng was bragging […]

Teacher: Simon, your composition on “My Dog” is exactly the same as your brother’s. Did u copy his?
Simon: No, teacher, it’s the same dog!
 
Your teacher says she finds it impossible to teach you anything!
Son: That’s why I say she’s no good!

In my previous articles, privatization scheme, divestitures, carve-out, hive off were mentioned. Now, we touched on to another corporate re-structuring which is called Hiving-down.

So what is Hiving-down?

It is the transfer of a business from an insolvent company owning it to a new subsidiary which is specially form for the purpose.

By doing so, there are advantages […]

In my earlier article on Overtrading where due to cash shortage, the company is unable to take advantage of suppliers’ discount by paying accounts promptly.
This so-called cost of cash inadequacy can be easily computed based on the approximate annual cost of not taking the cash discount from our suppliers.
The formula is as follows:
(% Cash Discount […]