Tuesday, September 18, 2012

replica aqua sea uggs australia boot sale

replica aqua sea uggs australia boot sale -

Business Refinancing

Cash flow is the lifeblood of any business. Without it, the business will fail. Unfortunately the credit crunch has resulted in many businesses becoming starved of cash because they are unable to raise the funds they need from traditional sources such as bank loans and overdrafts. In addition, in many situations, agreed lending facilities such as overdrafts are being reduced or even withdrawn completely.

The economic downturn has also lead to commercial property values plummeting. The effect of this has been that unless your business owns a property outright and therefore has significant equity in it, it may be virtually impossible to raise mortgage finance against commercial property.

Despite these issues, there are other avenues that you can investigate that may well be the answer you are looking for in terms of raising cash and improving liquidity in your business.

Management Buy Out

Re-financing techniques are not just for the turnaround and rescue of troubled businesses. They can also be used replica aqua sea uggs australia boot sale in more positive situations: the cash raised from re-financing can facilitate both Management Buy-outs (MBO), and Management Buy-ins (MBI).

If the existing management of the business wishes to buy out the existing shareholders it is rare they will have the funds at their disposal. A refinancing of the businesses assets could raise funds to enable this to happen.

Some serial entrepreneurs who regularly buy businesses can use invoice and asset re-financing as a means of funding the purchase. Companies who look to buy out other businesses can either refinance their own assets, the bid target replica aqua sea uggs australia boot sale assets, or both, to raise the funds to make the purchase.

The Alternatives to Bank Loans and Commercial Mortgages

Asset Refinance

Asset refinancing is borrowing against the value of fixed assets replica aqua sea uggs australia boot sale within the business. In theory any business asset can be financed as long as an independent value can quantify its market value. However, asset refinancing generally works well in sectors where a business is likely to own large assets such as machinery and plant, which have clearly quantifiable resale values. Examples of such businesses might be manufacturing, engineering, print, construction and transportation.

No comments:

Post a Comment