Sources of Business Finance

Sources of business finance can be studied under the following heads:

(1) Short Term Finance:

Short-term finance is needed to fulfill the current needs of business. The current needs may include payment of taxes, salaries or wages, repair expenses, payment to creditor etc. The need for short term finance arises because sales revenues and purchase payments are not perfectly same at all the time. Sometimes sales can be low as compared to purchases. Further sales may be on credit while purchases are on cash. So short term finance is needed to match these disequilibrium.

Sources of short term finance are as follows:

(i) Bank Overdraft: Bank overdraft is very widely used source of business finance. Under this client can draw certain sum of money over and above his original account balance. Thus it is easier for the businessman to meet short term unexpected expenses.

(ii) Bill Discounting: Bills of exchange can be discounted at the banks. This provides cash to the holder of the bill which can be used to finance immediate needs.

(iii) Advances from Customers: Advances are primarily demanded and received for the confirmation of orders However, these are also used as source of financing the operations necessary to execute the job order.

(iv) Installment Purchases: Purchasing on installment gives more time to make payments. The deferred payments are used as a source of financing small expenses which are to be paid immediately.

(v) Bill of Lading: Bill of lading and other export and import documents are used as a guarantee to take loan from banks and that loan amount can be used as finance for a short time period.

(vi) Financial Institutions: Different financial institutions also help businessmen to get out of financial difficulties by providing short-term loans. Certain co-operative societies can arrange short term financial assistance for businessmen.

(vii) Trade Credit: It is the usual practice of the businessmen to buy raw material, store and spares on credit. Such transactions result in increasing accounts payable of the business which are to be paid after a certain time period. Goods are sold on cash and payment is made after 30, 60, or 90 days. This allows some freedom to businessmen in meeting financial difficulties.

(2) Medium Term Finance:

This finance is required to meet the medium term (1-5 years) requirements of the business. Such finances are basically required for the balancing, modernization and replacement of machinery and plant. These are also needed for re-engineering of the organization. They aid the management in completing medium term capital projects within planned time. Following are the sources of medium term finance:

(i) Commercial Banks: Commercial banks are the major source of medium term finance. They provide loans for different time-period against appropriate securities. At the termination of terms the loan can be re-negotiated, if required.

(ii) Hire Purchase: Hire purchase means buying on installments. It allows the business house to have the required goods with payments to be made in future in agreed installment. Needless to say that some interest is always charged on outstanding amount.

(iii) Financial Institutions: Several financial institutions such as SME Bank, Industrial Development Bank, etc., also provide medium and long-term finances. Besides providing finance they also provide technical and managerial assistance on different matters.

(iv) Debentures and TFCs: Debentures and TFCs (Terms Finance Certificates) are also used as a source of medium term finances. Debentures is an acknowledgement of loan from the company. It can be of any duration as agreed among the parties. The debenture holder enjoys return at a fixed rate of interest. Under Islamic mode of financing debentures has been replaced by TFCs.

(v) Insurance Companies: Insurance companies have a large pool of funds contributed by their policy holders. Insurance companies grant loans and make investments out of this pool. Such loans are the source of medium term financing for various businesses.

(3) Long Term Finance:

Long term finances are those that are required on permanent basis or for more than five years tenure. They are basically desired to meet structural changes in business or for heavy modernization expenses. These are also needed to initiate a new business plan or for a long term developmental projects. Following are its sources:

(i) Equity Shares: This method is most widely used all over the world to raise long term finance. Equity shares are subscribed by public to generate the capital base of a large scale business. The equity share holders shares the profit and loss of the business. This method is safe and secured, in a sense that amount once received is only paid back at the time of wounding up of the company.

(ii) Retained Earnings: Retained earnings are the reserves which are generated from the excess profits. In times of need they can be used to finance the business project. This is also called ploughing back of profits.

(iii) Leasing: Leasing is also a source of long term finance. With the help of leasing, new equipment can be acquired without any heavy outflow of cash.

(iv) Financial Institutions: Different financial institutions such as former PICIC also provide long term loans to business houses.

(v) Debentures: Debentures and Participation Term Certificates are also used as a source of long term financing.

Conclusion:

These are various sources of finance. In fact there is no hard and fast rule to differentiate among short and medium term sources or medium and long term sources. A source for example commercial bank can provide both a short term or a long term loan according to the needs of client. However, all these sources are frequently used in the modern business world for raising finances.

Top 3 Super Foods Revealed – Foods That Make Your Penis Bigger

If you are looking to gain some inches and girth, and are seeking a safe and natural way to achieve this, then you have to consider trying these tips I am about to give you on foods that make your penis bigger. Millions of men around the world are unhappy with their size, but are not willing to use silly pumps or pills that are loaded with side effects. Use all natural ways. These are 3 foods that will help you Naturally. if you combine these foods with the penile Enhancement program, you will have great results.

1. Salmon- Eat this food as well Which is a great one of the Foods That Make Your Penis Bigger. Salmon contains omega-3 fatty acids which makes the blood less sticky, therefore it causes the blood flow to your penis to be improved drastically.

2. Bananas- Men who add 2-4 inches to their lengths always have good blood circulation, so eating bananas that by the way are an excellent source of potassium is great and a must do. Potassium is awesome for the heart and blood circulation, therefore a must have if you are trying to grow larger. Eating bananas helps keep sodium amounts in your body low, and that stops your blood pressure from skyrocketing and it also lowers the risk of heart problems.

3. Onions- What this food does for people is that it thins your blood and enhances your circulation, also making it less likely to clot and clog up. Very important if you are trying to move blood to your penis.

These Foods That Make Your Penis Bigger are the top 3 and will help you to gain 2-4 inches if you combine them with Penile Enlargement exercises.

Tips To Effective Working Capital Management

Working capital is the available cash on hand for the day-to-day operations of your businesses. And this can be affected by numerous factors, which include internal mechanisms and external issues.

Another factor that will have a huge impact on your working capital is the unwarranted focus on the task of coming up with excellent quarterly sales results. Oftentimes, this has a negative effect on your working capital performance. When your business operations marked seasonality and the requirements of your working capital vary from one quarter to another, there will definitely be a great chance for your working capital performance to be affected negatively.

Indeed, proper capital management will ensure that you maintain enough liquid resources for your everyday business operations. Proper manage will involve attempting to achieve a balance between reducing insolvency risks and maximizing your asset’s return.

How To Manage Your Working Capital

Create proper cash flow projecting – This process must consider the market cycles, the loss of a valued client, the actions done by your competitors, and the impact of all unanticipated events to your business’ overall performance. Moreover, you must also consider the unexpected demands of your capital.

Craft contingency plans for unexpected events – Regardless of how profitable your business is, you must always ensure that you are well-prepared in case unexpected events arises. You need to hone your skills in efficiently managing any uncertainty by formulating risk management procedures. Remember though to establish these procedures based on the objective and realistic view of your working capital requirements.

Use your working capital in a corporate wide basis – This is regarded as among the most effective capital management strategies because this will help make sure that your business’ cash on hand are utilized in various functions. This can be performed by using such cash from one place to another. Making sure that different aspects are in place is a great way of efficiently implementing this tip. These will include efficient banking channels, excellent linkages between production and billing, effective internal systems, information access, and good treasury practices.

Manage disputes properly – This can free up cash that have been locked in due to certain disputes to clients. Customer service can also be improved with efficient dispute management procedures. Most importantly, your business efficiency is expected to improve since you can begin to minimize operating costs via this tip.

These tips will definitely help you in measuring the operational and financial efficiency of your business effectively.

10 Smart Financial Moves You Should Make in 2018

“Financial planning is about more than just good advice or investment returns. It is about providing guidance that you can trust.”

It is always beneficial to plan out and have a blueprint of your future finances ready. You certainly don’t want to make a same financial blunder that you have made earlier. It’s also important to plan your investments well.

The Budget 2018 was announced recently and while there is no change in personal income tax, long-term capital gains will be taxed at 10% for amount exceeding Rs. 1 Lakh, without indexing.

So, how should you plan 2018 to make it financially viable?

To make your financial year of 2018 a big HIT, here are 10 financial moves that you can take:

1.) Venture on a Term’s Plan or Insurance

Life has its own course of running. You can never be aware of what is going to happen next. It is unpredictable and therefore it’s important that you plan ahead.

Invest on a Term Plan, as a way to secure your family’s future. Term plan or Term Insurance is a financial protection that helps your family financially in your absence. Term insurances are increasingly becoming popular as they come with loads of benefits.

2.) Have a Health Insurance

Health is wealth and there is no denying that fact.

Whether you’ve family or you’re living an independent life, it must be your priority to invest on a health plan. Accidents and ailments aren’t uncommon, and the sad part is that medical treatment isn’t cheap in our country.

Having a Health Insurance helps you overcome sudden medical emergencies.

3.) Invest in a Systematic Investment Plans (SIPs)

It is one of the most simple and convenient manner to invest money in mutual funds. You have the liberty to venture your money either weekly, monthly, or quarterly. Systematic Investment Plans grant you an already decided amount to be paid uniformly at regular terms. This type of investment in mutual funds is regarded as the most safe and suitable kind in the market.

4.) Buy Real Estate

After the implementation of the Goods and Service Tax (GST) in the year 2017, realty investors weren’t very sure about their financial security. However, the picture is likely to change in the year 2018. It seems the government is looking for new ways to revive growth in the real estate sector.

With the Real Estate Regulatory Authority Act (RERA) in place, there is no place for false promises by real estate developers. You’ll also most likely not have to deal with cheating or delay in possessions. Also, the rates are low all across the country. Owing to the good market conditions, this can be the right time to purchase a house or a commercial property. But, make sure to leverage the benefits of a home loan while doing this costly transaction. Instead of paying the complete cost in cash, use a home loan to pay a part of the total cost and save on taxes. What better time to invest in real estate than now?

5.) Evergreen Fixed Deposits

It is a financial mechanism provided by banks where investors receive a high rate of interest varying from 4 to 6.5 percent than the normal savings. Here, your money is deposited in a Fixed Deposit account for a certain time period without and you can’t withdraw it until its maturity. The maturity periods can vary from a week’s time to 7 years depending on the investors. And since your money is locked, you don’t have any other option than to save. Loan on your Fixed Deposit is available, which you can opt for in the case of emergencies.

6.) Tax Saving Investments

Balance your portfolio well and keep a tab on the tax saving instruments, while investing in the year 2018. You’re eligible for a tax deduction of up to Rs. 1.5 lakh under Income Tax Act Section 80 (C). Ensure to use this carefully.

In the cases of traditional debt tax saving instrument, the returns have become lower over the past few months. Invest in options like ELSS to maximise your ROI.

PPF is another option you have. Though the rate of interest has gone down recently, your money is safe here.

In addition to that, use financial loans for expenses like child’s education, home renovation. This will help you claim tax benefit under section 80 (C).

7.) Invest in Balanced and Liquid Funds

Debt Mutual Funds and liquid funds offer moderate returns, are tax-efficient, and will keep your hard-earned money safe. What percent of these should constitute your portfolio depends completely on you.

8.) Have a Proper Budget in Place

Having a proper budget in place and sticking to it is crucial.

Did you have a budget for 2017? If not, then it’s time to have one. And if you already have one, make sure that it doesn’t have the same loopholes as the one before.

Every single person needs to have a budget regardless of the money he or she earns. Keeping a constructive budget helps you to track your expenses. It will also help you in keeping a tab of your savings and planning your finances well.

9.) Assess your Monthly Expenditure

Keeping track of your monthly expenditure to know where your money is being spent. Spend some time going through your expenses and cut down on unnecessary spends. This will help you in the future to build up your savings.

10.) Sustain a Good Credit Score

An acceptable credit score assists you in a greater acquiring ability that will help you in accomplishing your dreams of purchasing a house or funding your child’s education. Always keep a check on your credit score.

How to Naturally Overcome the Refractory Period?

Okay, you’ve just had one of the best orgasms you’ve had in a while, you turn over off of your lady, and you lay there in bed, not wanting to do a thing.

You’ve provided your lady with an orgasm, but she’s not done yet. She begins to play with your penis, but its floppy and not going anywhere. She begins to suck on it, but still no erection…

She looks at you with a face like “what’s going on with your dick?”… And while you are embarrassed and wish you had it in you… you just can’t get yourself to get an erection again… and you don’t feel like doing it either.

Sex is the last thing on your mind… eating or sleeping sound like much better options…

But your girl’s not fully satisfied… again… you feel like a total weakling… but there’s not much you can do.

Has this ever happened to you?

If so, you are familiar with the inconvenience that is known as the male refractory period… the above scenario used to happen with us number of times… and it sucks to say the least

The Pain-in-the-Ass known as the Male Refractory Period

The vast majority of men have a refractory period. The refractory period is what hits us after we ejaculate. After we ejaculate, we lose our erections, our sex drive disappears, our penis becomes very soft, and it takes a good while to get hard again.

This refractory period keeps us men from really performing sexually how we’d like. Some men have stronger refractory periods than others. This means they feel more wiped out and have more difficulty achieving an erection after they climax.

As we age, our refractory period increases as well.

While young we may be able to have an orgasm, and within a few minutes get another erection, an older man may take up to a day or two before they can get hard again after an orgasm!!

The refractory period is what differentiates our orgasm from a female’s… While we feel wiped out after we orgasm, a woman has no such time period.

While an orgasm is still highly satisfying for a female, she is actually just getting warmed up and can keep going… hence the importance of providing a woman with multiple orgasms….

While ejaculating in large amounts is good for male fertility, the refractory period it creates is not good for their sexual performance.

How to Reduce your Refractory Period

There are a couple of options to reduce your refractory period.

Increase your testosterone production naturally – One option for quickly overcoming your refractory period is to naturally increase your testosterone production. There are a number of things you can do to boost this testosterone production, such as a little exposure to sunlight everyday (direct exposure to your bare back works well for this, as strange as it sounds).

Eating broccoli works well too. It contains something called indoles which work to increase your overall testosterone levels.

What this increase in testosterone helps for is to increase your overall sexual appetite and libido. After ejaculating, you will still maintain at least some desire for sex. This mental desire greatly helps you to become aroused and erect again quickly. Without this desire, your erection will not want to cooperate with you.

Erection strengthening exercises – Another way to battle the refractory period is to perform erection strengthening exercises… there are a couple of options for this, and none of them require medication.

You have some muscles within your body, below/behind the base of your penis. This includes the PC/BC muscles and the pelvic swing. With certain kegel like exercises you can strengthen these muscles, and help create stronger, longer lasting erections.

There are also some manual techniques that can improve blood flow to your penis, helping you achieve complete erections quicker.

With this combination of increased testosterone levels, libido, and better erection quality, you can help reduce or completely overcome your refractory period.

How to COMPLETELY ERASE your Period with the male multiple orgasm?

Another option to battle the refractory is the male multiple orgasm technique.

Orgasm and ejaculation are two separate events happening simultaneously. You can separate the two.

With a strong pc muscle, and the proper techniques, you can hold back your ejaculation during orgasm. Ejaculation is what causes you to have a refractory period and lose your erection… not orgasm. So with this technique you can maintain your erection after orgasm, erasing your period. This allows you to continue penetrating after you climax.

And the good news is you can repeat the technique over and over each time you are going to ejaculate, allowing you to have multiple orgasms without losing your erection, and lasting as long as you want. This technique is called the Male Multiple Orgasm.