Choose Your Sources of Working Capital Finance for Business Credit
You have choices in sources of working capital finance and in business credit solutions.
It is all about understanding the problem and knowing where to go for the solution, so let’s look at those two key issues. Understanding the problem is not something you have to read about, as a business owner and financial manager in Canada you live the capital ‘crunch’ or ‘challenge’ every day.
Working capital is best understood as your operating capital, and you have investments in receivables, inventory, that’s where your investment currently lies, and your goal is to monetize those assets in the best manner possible.
The textbook definition doesn’t really help us out – our accountants and analysts tell us to go to the balance sheet, subtract current liabilities from current assets, and, voila! That’s working capital!
One of the biggest contradictions that you need to understand is the issues of assets, profit, liquidity and turnover. Once you have a handle of those the concept of working capital and, more importantly, the solutions start making more sense.
We hate those textbook definitions we referred to, but we will agree that the calculation we shared needs to be positive – you do need more inventory and receivables combined as measured against payables and other short term liabilities. How you manage those short term assets of A/R and inventory is the challenge.
Many business owners quickly realize that one of their liabilities, i.e. payables, is actually a large asset in measuring capital and managing it. That is because if you can continue to convert inventory into A/R into cash, and slow down payables you are achieving working capital progress.
Is there a perfect way to measure your working capital needs and progress? One of those methods is to check into the ‘cash conversion cycle ‘- It’s a tool you can use to measure how low a dollar takes to flow through your company. It simply takes your inventory and receivable days outstanding, subtracts your payables days outstanding, and there is your final number. It’s a great long tool to understand your progress over long periods of time.
In order to achieve solid cash flow you need to increase turnover – that can be done by accelerating cash flow by borrowing against receivables, or selling receivables via a factoring process.
Your working capital solutions in Canada are limited, but they are very focused and real. Your can increase cash flow today with no ones assistance simply by accelerating turnover of your assets such as receivables and inventory. If you feel your challenge is more of a long term nature a term loan (if larger these loans are called subordinated debt) is the solution.
You can also generate unlimited capital by entering into an asset based lending or facility with a non bank finance firm. Don’t forget that term loans for working capital add debt and obligations to your balance sheet, so we often suggest to clients that the best solution is in fact monetizing your assets, not borrowing more – that where asset based lines of credit work best.
So whats it all about – it’s a case of understanding what it is, looking at how your firm performs in key metric areas of turnover, etc, and then choosing a solution that works best for your firm, whether that is long term in nature, or a bulge type facility that augments your daily cash needs. Speak to a trusted, credible and experience working capital business financing advisor to determine what choice is best for your firm.
Finance Jobs – Lucrative Career Opportunities in Finance
Finance Jobs in Dubai are extremely lucrative and promising. No Doubt about it. Having opened its doors to banks, financial institutions and investment banks from across the world, Dubai also set up a specially designated area called Dubai International Financial Centre (DIFC), on the lines of it’s highly successful Special Economic Zones. To take advantage of zero taxation and many other benefits accorded to companies operating in UAE by the government, scores of companies operating in the Finance space, worldwide, have rushed in. Various International & Local Financial Companies offering:
* Retail Banking Solutions Companies have set up shop across the length and breadth of The UAE, to take care of consumer banking needs.
* Similarly, taking advantage of people’s needs to invest for their future, and given the vibrancy and dynamism of the Stock Exchanges in the region, several Investment Banks and Financial Advisory firms have started operations. These offer a gamut of investment options and advice for many products such as Mutual Funds, Real Estate, Stocks, Futures, Commodities, Debentures, Bonds, and Oil.
* Corporate Banking Solutions are offered by several Banks to large and medium sized companies operating out of Dubai, in the Middle East and North African region (MENA).
* Accounting is required by every small, medium and large company for various purposes like profit and loss statement of accounts, payroll processing, payments and collections, tax calculations, loan payment calculations and benefits and perks calculations.
This activity has led to the creation of hitherto non-existent careers & opportunities in sectors such as Investment Management, Banking & Accountancy. Job Positions like:
* Investment Advisor, Commodities Broker, Foreign Exchange Broker, Equities Trader, Platform Consultant, Investment Analyst, Investment Marketer, Investment Fund Manager, etc. have become hot considering the earnings potential in investment products.
* In the same way, Banker, Teller, Corporate Financier, Credit Analyst, Financial Adviser, Corporate Sales Representatives, Product Manager, and many more have become much wanted in the Banking sector.
* Accounting Technician, Chartered Accountant, Chartered Certified Accountant, Chartered Management Accountant, Chartered Public Finance Accountant have come into their own due to many new companies establishing base in Dubai.
A 100% Tax free income and lucrative perks such as Family Accomodations, Car, Gas, Home flight tickets, Club Memberships, school education for kids, etc. have made job seekers from every part of the world wanting a Dubai finance job in Dubai. These perks of course, depend largely on the type of job and seniority level too.
Now let’s see, how do you secure a finance job in Dubai for yourself? If you do not live in Dubai or the UAE, then how do you find out the vacancies there? How do you apply? How do you know which are the Finance specialist recruitment agencies to apply to? Which are the biggest and best companies offering these lucrative jobs?
Well, the answers to these questions are quite simple. You need proper guidance and help. Luckily, you’ve come to the right place. Follow the systematic and time-tested path towards acquiring your DREAM Finance Job in Dubai. It is a well thought out, multiple action plan that will lead you to your goal.
Information About Finance Jobs
The financial sector employs millions of people every year in various job positions around the world. Careers in finance can be both challenging as well as fulfilling for anyone, as professionals in this field face new challenges each and every day due to the volatile nature of the finance markets.
Over the years, the economic world has seen a lot of changes and with the downfall of communism almost all the countries adopted a free market economy, this paved the way for trade between nations resulting in strengthening of the financial sector. Thus, many new finance jobs are created every year in addition to the existing ones. It is the life line of any economy and so governments regulate their policies to benefit this sector.
Different types of Finance Jobs
There are a wide range of responsibilities, positions and job opportunities available in the financial sector. We can even say that wherever monetary transactions are involved, there will be work opportunities for professionals of this field. The various industries that employ these professionals are as follows:
Banking: The banking industry employs millions of people in the US itself, different positions that fresh graduates can apply for include relationship managers, bank tellers, accountants, customer service officers, branch managers etc. The salary offered is also at par with other sectors if not better.
Stock Market: With billions of dollars of daily transactions, the equities market needs qualified professionals to handle the massive work load that is generated. Positions in this sector include advisors, day trading consultant, share brokers, etc.
Insurance: The insurance industry is also a rapidly growing sector which often provides new work avenues for people. Mostly people start as insurance sales representatives and they can later reach advanced positions like that of a sales manager or head of the sales function. Along with decent salaries, people can also earn good amount of incentives in this field.
Investment Banking: This is an aggressively growing sector which needs dynamic people to take up the challenges associated with it. The main responsibility of an investment banker is to help the clients earn huge amount of profits through investing in different commercial activities.
Apart from the above mentioned sectors there are others as well which employ finance professionals. The best way to get information about such finance jobs is by registering in different job portals where many such employment opportunities are posted every day.