A business normally needs funding. This can be in the form of debt or from equity financing.
The following are some of the considerations that can influenced us on the choice/type of finance:

The relative cost of finance

Debt finance is usually cheaper than equity finance because debt finance is safer from a lender’s […]

To conserve cash and for cash flow planning, when buying capital equipment, a business instead of paying outright using cash, it is usual to look for ways of spreading the cost of acquiring an asset, to coincide with the timing of the revenue generated by the business.
The most common sources of medium term finance for […]

Part 1 dealt with using accounts receivable for short term secured borrowings.
Now, let’s look at converting our inventory into cash using it as collateral for cash loan. The loan value depends on the following:

Marketability of the gooods;
Price stability of the goods;
Perishability of the goods

Basically, there are few ways of doing so:

Trust Receipts Loan

In our […]

In the Balance Sheet, accounts receivables and inventory normally form a high proportion of our current assets. So how familiar are we with the utilization of our company’s current assets like accounts receivable and or inventory as collateral for short term secured borrowing?
Incidentally, for any acceptable collateral, there must be price stability over time , […]

In my earlier articles on Bonus issue, we have place a lot of emphasis on understanding what is bonus issue and its purpose, mechanism and accounting treatment of bonus issue. I have also attached some local scenes on corporate round-up on bonus issue to reinforce a greater and practical understanding of bonus issue.
Next, we look […]