Leasing and Factoring for SME Finance

Size: px
Start display at page:

Download "Leasing and Factoring for SME Finance"

Transcription

1 Leasing and Factoring for SME Finance ADBI Seminar on SME Finance May 2006 Yasuo IZUMI 1 The v iews expressed in this paper are the v iews of the author and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the Asian Dev elopment Bank (ADB), or its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.

2 Table of Contents I. Leasing / II. Factoring Definition and Structure Comparison with Other Instruments Advantages and Disadvantages Promoting Lease / Factoring Legal Framework + Conclusion and Recommendations 2

3 I. Leasing (Financial Lease) 3

4 Capital Investment for Growth Fixed Capital Investment (Capex) - an Essential Factor for a Sustainable and Medium-term Growth of Economy Issues - Shallow and Weak Banking System - Lack of L/T Institutional Investors - L/T Funding Source - Non-Existent 4

5 SMEs and Capex SMEs Key Driving Force of Growth and Need Fixed Capital Investment Issues - SMEs are Poorly Treated by Banking Sector - Virtually No Possibility to Get a L/T Loan Due mainly to a) less disclosed financial statements b) poor credit history, and c) lack of collaterals against new loan 5

6 Lease 1. Definition A Medium-term Financial Instrument Contracted between Asset Owner (Lessor) and Asset User (Lessee) During a Given Period (Economic Life) Lessee Pays Rental for Usage of Asset Lessee may Exercise Option to Purchase Assets at Residual Value 6

7 Lease 2. Notion of Lease Profits are Generated by Usage of Asset NOT from the Value / Ownership of Asset Generated Cash-flow from Leased Asset Covers Lease Payment Collateral does NOT Value Asset Productivity 7

8 Lease 3. Structure 1. Apply Lease Lessor 5. Lease Equipment 6. Pay Lease Rental Lessee 2. Give Funding 7. Repayment 3. Purchase Equipment 5. Lease Equipment 4. Supply Equipment Financier Supplier 8

9 Lease 4. Comparison 1/2 Financial Lease vs. Operating Lease Asset Ownership - Fin. Lease - Transferred to Lessee at the End - Ope. Lease - Remains at Lessor Lease Term - Fin. Lease Economic Life of Asset - Ope. Lease Can be a Short Period 9

10 Lease 5. Comparison 2/2 Financial Lease vs. Bank Loan Ownership of Asset - Fin. Lease Belongs to Lessor (not Company or Lessee) - Bank Loan Borrowing Company 10

11 Lease 6. Advantages (Lessee) Leasing can be the Only Available Source of M/T Finance in Developing Countries Leasing can be Arranged more Easily Not requiring collateral arrangement 11

12 Lease 7. Advantages (Lessor) Lessor is Ensured Asset in Question is Purchased - Lessee NOT able to Use Proceeds for Other Purposes Lease Documentation is Simpler, thus Keep Transaction Costs Low Leasing Companies, not under Bank Regulation, Seek Higher Freedom 12

13 Lease 8. Promotion Suitable in Countries where: - Business Environment is Weak, - Creditor s Right are less Protected, - Collateral System is not Functioning, or - Asset Registry System is not well Managed 13

14 Lease 9. Legal Environment Legislation covering Leasing Operations may Cover: - Clear Definition of Leasing - Lessor s Ownership of Leased Assets - Assurance for Third Party to have Security on Leased Asset - Lessor s Right to Take Possessions when Lessee in Default 14

15 Lease 10. Accounting Accounting Framework should be Established on IAS-17 Basis - Recording of Leased Asset - Depreciate the Asset - Accounting Entries based on Economic Substance 15

16 Lease 11. Conclusion Lease can be a Valuable Additional Source of M/T Finance, Not often Available Particularly Suitable for SMEs not able to Receive Bank Loans 16

17 II. Factoring 17

18 Working Capital Working Capital Funding is Vital and Key of Dynamic Economy SMEs are always Difficult to Get Enough Funding - Lack of Assets to be Collateralized 18

19 Account Receivables Most Popular Asset Item Converting Account Receivables (A/R), Often in the Form of an Invoice, into a Legally Supported Financial Tool, called Factoring 19

20 Factoring 1. Definition A Type of Supplier Financing Companies Sell A/R to Factor and Receive Cash Factor Collect A/R by Due Date 20

21 Factoring 2. Structure Factor 4. Payment Obligation Buyer 2. Account Receivables 3. Cash Seller 1. Sale of Goods 21

22 Factoring 3. Comparison Working Capital Funding - Factoring Sell A/R, Receive Cash - Bank Loan Collateral Needed Creditworthiness - Factor Look at Buyers Credibility - Banker Borrower and its Collateral 22

23 Factoring 4. Advantages Suitable for Countries: - Financial System is Weak - Commercial Law and Enforcement is Poor Fit to Finance to High Risk Borrowers like SMEs - Factoring is based on Risks of A/R 23

24 Factoring 5. Conclusion Factoring is Suitable Financial Tool Providing Working Capital Funding for SMEs Account Receivables are Representing Risks of Buyers Credibility, Quite Often Large Buyers Reverse Factoring Initiated by Large Buyers has been Growing Fast 24

25 End of Presentation Yasuo IZUMI Advisor, Sr. Consultant IC Net Limited 25

Leasing and Factoring

Leasing and Factoring Leasing and Factoring May 9 12, 2006 ADBI Seminar on SME Finance Yasuo Izumi The v iews expressed in this paper are the v iews of the author and do not necessarily reflect the views or policies of the

More information

Ethiopian Institute of Financial Studies (EIFS) PROJECT FINANCE

Ethiopian Institute of Financial Studies (EIFS) PROJECT FINANCE PROJECT FINANCE With the growth in the economy and the revival in the industrial sector coupled with the increasing role of private players in the field of infrastructure, more and more Ethiopian banks

More information

Adapted, with permission, from The Canadian Institute of Chartered Accountants, Toronto, Canada, October, 1998.

Adapted, with permission, from The Canadian Institute of Chartered Accountants, Toronto, Canada, October, 1998. Introduction to LEASING Adapted, with permission, from The Canadian Institute of Chartered Accountants, Toronto, Canada, October, 1998. COMMON LEASING TERMS The following list comprises some standard definitions

More information

Alternative Capital. Presentation by LakeView Leasing for the MBDA Webinar Series

Alternative Capital. Presentation by LakeView Leasing for the MBDA Webinar Series Alternative Capital Presentation by LakeView Leasing for the MBDA Webinar Series Our Message Today we aim to: Educate MBDA Clients and affiliates about how businesses can use different types of alternative

More information

11.437 Financing Community Economic Development Class 6: Fixed Asset Financing

11.437 Financing Community Economic Development Class 6: Fixed Asset Financing 11.437 Financing Community Economic Development Class 6: Fixed Asset Financing I. Purpose of asset financing Fixed asset financing refers to the financing for real estate and equipment needs of a business.

More information

A Leveraged Lease Primer

A Leveraged Lease Primer A Leveraged Lease Primer Understanding the tax and accounting treatments of this powerful equipment finance tool. The leveraged lease product has been used by many large corporations to finance capital

More information

Long-term sources - those repayable beyond 1 year. No guaranteed return, but potential is unlimited. High risks require a high rate of return.

Long-term sources - those repayable beyond 1 year. No guaranteed return, but potential is unlimited. High risks require a high rate of return. Sources of Finance Ord Shares Total Finance Long Short Term Term Pref Shares Loans & Debens Bank O/D Leases Debt Factoring Long-term sources - those repayable beyond 1 year. Ordinary Shares The risk capital

More information

A GUIDE ON FINANCIAL LEASING I. INTRODUCTION

A GUIDE ON FINANCIAL LEASING I. INTRODUCTION NATIONAL BANK OF SERBIA A GUIDE ON FINANCIAL LEASING I. INTRODUCTION The purpose of this Guide is to provide basic information on financial leasing as a way to finance purchase of equipment and other fixed

More information

How to Finance Export Receivables. By Michael D. Farstad Export Finance Lender

How to Finance Export Receivables. By Michael D. Farstad Export Finance Lender How to Finance Export Receivables By Michael D. Farstad Export Finance Lender Table of Contents New Products Working Capital Supply Chain Finance Guarantee Program Global Credit Express Loan Guarantee

More information

Accounting Is a Language. Financial Accounting: The Balance Sheet BALANCE SHEET. Accounting Information. Assets. Balance Sheet: Layout

Accounting Is a Language. Financial Accounting: The Balance Sheet BALANCE SHEET. Accounting Information. Assets. Balance Sheet: Layout Accounting Is a Language Financial Accounting: The Balance Sheet Richard S. Barr Purpose: providing information Financial Statements Summarize accounting information Examples We need to know what the numbers

More information

RENAISSANCE ENTREPRENEURSHIP CENTER First Finance Class (FIN-1)

RENAISSANCE ENTREPRENEURSHIP CENTER First Finance Class (FIN-1) Finance 1 (FIN-1) RENAISSANCE ENTREPRENEURSHIP CENTER (FIN-1) Learning Outcomes At the conclusion of this class, you should: Know what will be covered in the six finance class sessions. Have reviewed some

More information

Equipment Leasing Purchasing Guide

Equipment Leasing Purchasing Guide Equipment Leasing Purchasing Guide Introduction to the Equipment Leasing Buying Process What s inside: Trends Terms Leasing Types Choosing a Dealer Equipment leasing has become an increasingly popular

More information

CIMA F3 Course Notes. Chapter 10. Lease vs Buy

CIMA F3 Course Notes. Chapter 10. Lease vs Buy CIMA F3 Course Notes Chapter 10 Lease vs Buy Personal use only - not licensed for use on courses 137 1. Leasing Leasing Leasing is a process by which a firm can obtain the use of a certain fixed assets

More information

Intermediate Accounting

Intermediate Accounting Intermediate Accounting Thomas H. Beechy Schulich School of Business, York University Joan E. D. Conrod Faculty of Management, Dalhousie University PowerPoint slides by: Bruce W. MacLean, Faculty of Management,

More information

Short Term Loans and Lines of Credit

Short Term Loans and Lines of Credit Short Term Loans and Lines of Credit Disadvantaged Business Enterprise (DBE) Supportive Services Program The contents of this training course reflect the views of the author who is responsible for the

More information

Types of Leases. Lease Financing. FINC 3630 Yost

Types of Leases. Lease Financing. FINC 3630 Yost Lease Financing Types of Leases Operating Leases Financial Leases or Capital Leases Sale and Leaseback Arrangements Combination Leases Synthetic Leases Operating Leases Payments include maintenance and

More information

IAS 40 - Investment Property

IAS 40 - Investment Property IAS 40 - Investment Property 1 Definition of investment property Investment property is property (land or a building or part of a building or both) held (by the owner or by the lessee under a finance lease)

More information

Customized Financing for Private Aircraft

Customized Financing for Private Aircraft Customized Financing for Private Aircraft Our clients appreciate the personal service. The aircraft finance team has been attentive to our clients as they purchased their aircraft. Financial Advisor The

More information

Financial Statement Analysis

Financial Statement Analysis Financial Statement Analysis Session 3 Cash Flow Statement 1 Introduction to your speaker Benjamin Koh Founder & Investment Manager of Lighthouse Advisors Private Limited Exempt Fund Manager under the

More information

Funding options for Commercial Projects

Funding options for Commercial Projects Funding options for Commercial Projects SOLAR360: LEVEL 18, 499 ST KILDA RD, MELBOURNE VIC 3004 PHONE 1300 600 360 - www.solar360.com.au The following financing solutions apply to commercial solar and

More information

Topic Overview. Strategies and Management E4: Resources Management Sources of Financing

Topic Overview. Strategies and Management E4: Resources Management Sources of Financing Resources for the TEKLA curriculum at Junior Secondary Topic 7 Sources of Financing Strategies and Management Extension Learning Element Module E4 Resources Management Topic Level Duration Topic Overview

More information

Financial Advice Guide for your Business

Financial Advice Guide for your Business Financial Advice Guide for your Business Contents Section 1: Section 2: Section 3: Section 4: Section 5: Section 6: Talk to your bank Reviewing your business for the future Managing your business today

More information

Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows

Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows Contents Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows Paragraphs OBJECTIVE SCOPE 1 3 BENEFITS OF CASH FLOW INFORMATION 4 5 DEFINITIONS 6 9 Cash and cash equivalents 7 9 PRESENTATION OF

More information

Appraisal A written analysis prepared by a qualified appraiser and estimating the value of a property

Appraisal A written analysis prepared by a qualified appraiser and estimating the value of a property REAL ESTATE BASICS Affordability Analysis An analysis of a buyer s ability to afford the purchase of a home, reviews income, liabilities, and available funds, and considers the type of mortgage a buyer

More information

KEY COMPONENTS - Financial projections. Table B7.2 - Cash flow projections

KEY COMPONENTS - Financial projections. Table B7.2 - Cash flow projections Business Plan Reporting Requirements and s Manual KEY COMPONENTS - Financial projections Block A Table B7.2 - Cash flow projections Net cash flow from operating activities 1 Net cash flow from operating

More information

CLFP EXAMINATION OUTLINE

CLFP EXAMINATION OUTLINE CLFP EXAMINATION OUTLINE Part I 2 Hours (275 points) History and Purpose of Leasing... 75 points Classification and Terminology... 150 points Lessor-Vendor Relationships... 50 points Part II 2 Hours (275

More information

ABL Step 1 An Introduction. How SIPPA can change the Lending Environment and Access to Credit

ABL Step 1 An Introduction. How SIPPA can change the Lending Environment and Access to Credit ABL Step 1 An Introduction How SIPPA can change the Lending Environment and Access to Credit Traditional Bank vs ABL Bank Focused on Credit Status Over reliance on Real Estate Vulnerable to Economic Cycles

More information

Leases Learning Objectives. Overview of Leasing. Advantages of Leasing

Leases Learning Objectives. Overview of Leasing. Advantages of Leasing Leases Learning Objectives 1. Describe the characteristics and advantages of leases 2. Operating leases vs Captial leases 3. Determine rental payments 4. Account for operating leases - lessee 5. Account

More information

Flashcards for Chapter 6 Introduction to Working Capital Management [ ]

Flashcards for Chapter 6 Introduction to Working Capital Management [ ] Flashcards for Chapter 6 Introduction to Working Capital Management [ ] [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract

More information

Lease vs.purchase Education Replay

Lease vs.purchase Education Replay Lease vs.purchase Education Replay Disclaimer This [lease/purchase analysis tool] is provided to you solely as a reference tool and neither International Business Machines Corporation (IBM) nor IBM Credit

More information

Title: Common Terms Used in the Leasing Industry

Title: Common Terms Used in the Leasing Industry Acceptance Certificate: Title: Common Terms Used in the Leasing Industry When leased equipment is delivered and installed, the Lessee typically authorizes the Lessor, in writing, to pay for it. The Lessee's

More information

Residual Values Accounting for Exchanges of Risk and Value

Residual Values Accounting for Exchanges of Risk and Value Residual Values Accounting for Exchanges of Risk and Value Conservatism must be your guide. Equipment ownership is a hallmark of equipment leasing that sets it apart from other types of financing transactions.

More information

Types of Leases. Lease Financing

Types of Leases. Lease Financing Lease Financing Types of leases Tax treatment of leases Effects on financial statements Lessee s analysis Lessor s analysis Other issues in lease analysis Who are the two parties to a lease transaction?

More information

AFM 391 Case Concepts

AFM 391 Case Concepts AFM 391 Case Concepts a. Why do companies lease assets rather than buy them? 1. 100% financing at fixed rates. Leases are often signed without requiring any money down from the lessee, which helps to conserve

More information

Securitization & Assets Sales. Usama Ashraf - CIT Chris Gill - GE Commercial Finance Joseph P Sebik - J.P. Morgan Capital

Securitization & Assets Sales. Usama Ashraf - CIT Chris Gill - GE Commercial Finance Joseph P Sebik - J.P. Morgan Capital Securitization & Assets Sales Usama Ashraf - CIT Chris Gill - GE Commercial Finance Joseph P Sebik - J.P. Morgan Capital SFAS140 Transfers of Financial Assets Chris Gill Technical Accounting Leader Capital

More information

Topic 3: Accounts and finance

Topic 3: Accounts and finance Topic 3: Accounts and finance 3.1 Sources of Finance LO1: Evaluate advantages & disadvantages of each form of finance. LO2: Evaluate appropriateness of source of finance for given situation. Short, Medium,

More information

The Internal Revenue Service and the Treasury Department are aware of types

The Internal Revenue Service and the Treasury Department are aware of types Part III Administrative, Procedural, and Miscellaneous Tax-Exempt Leasing Involving Defeasance Notice 2005-13 The Internal Revenue Service and the Treasury Department are aware of types of transactions,

More information

International Accounting Standard 7 Statement of cash flows *

International Accounting Standard 7 Statement of cash flows * International Accounting Standard 7 Statement of cash flows * Objective Information about the cash flows of an entity is useful in providing users of financial statements with a basis to assess the ability

More information

ROMANO BROTHERS AND COMPANY

ROMANO BROTHERS AND COMPANY STATEMENT OF FINANCIAL CONDITION INDEPENDENT AUDITORS REPORT To the Stockholders of Romano Brothers and Company: We have audited the accompanying statement of financial condition of Romano Brothers and

More information

Bioprocess Equipment Leasing ASPEN BROOK CONSULTING, INC.

Bioprocess Equipment Leasing ASPEN BROOK CONSULTING, INC. Bioprocess Equipment Leasing BY ASPEN BROOK CONSULTING, INC. Introduction Equipment Leasing in the U.S. alone is a $650 Billion dollar a year business. Until Q4 of 2008 spending on capital equipment had

More information

The Insider s Guide to Leasing

The Insider s Guide to Leasing The Insider s Guide to Leasing Table of Contents 1 The Power of Leasing 2 The 11 Advantages of Leasing 4 Cash Flow & Credit 6 Upgrading & Adding Equipment 7 Tax & Reporting Advantages 8 The Three Types

More information

Ghana s Legal Framework for Secured Transactions

Ghana s Legal Framework for Secured Transactions Ghana s Legal Framework for Secured Transactions M A R E K D U B O V E C M D U B O V E C @ N A T L A W.C O M Organization of the Presentation 1) Current Substantive Legal Framework 2) Assessment against

More information

Flexible and convenient equipment finance for your business. Expect nothing less.

Flexible and convenient equipment finance for your business. Expect nothing less. Equipment Finance equipment finance Flexible and convenient equipment finance for your business. Expect nothing less. Delphi Bank s flexible and convenient equipment finance solutions are a competitively

More information

Leasing as Credit Alternative

Leasing as Credit Alternative Leasing as Credit Alternative Renate Kloeppinger- Todd Rural Finance Advisor The World Bank The World Bank Presentation Outline Understanding Leasing Global Leasing Market Advantages of Leasing Cases What

More information

FINANCING BOOKLET SERIES ON FINANCIAL LITERACY

FINANCING BOOKLET SERIES ON FINANCIAL LITERACY FINANCING BOOKLET SERIES ON FINANCIAL LITERACY CONTENTS FINANCIAL CHECK LIST... 2 01 Definition of Financing... 4 02 Why Does Public Need Financing Services?... 6 03 When Does Public Need Financing Services?...

More information

Introduction to Tax Equity Structures Part II. Tom Stevens Bill Fisher Deloitte Tax LLP

Introduction to Tax Equity Structures Part II. Tom Stevens Bill Fisher Deloitte Tax LLP Introduction to Tax Equity Structures Part II Tom Stevens Bill Fisher Deloitte Tax LLP September 29, 2014 Introduction to Tax Equity Structures Part I Summary of Qualifying Resources and Facilities Partnership

More information

CIMA F3 Course Notes. Chapter 3. Short term finance

CIMA F3 Course Notes. Chapter 3. Short term finance CIMA F3 Course Notes c Chapter 3 Short term finance Personal use only - not licensed for use on courses 31 1. Conservative, Aggressive and Matching strategies There are three over-riding approaches to

More information

IASB EMERGING ECONOMIES GROUP 8th MEETING December 11-12, 2014 ISSUES FOR DISCUSSON: OTHER NON-FINANSIAL ASSETS AND RELATED MATTERS

IASB EMERGING ECONOMIES GROUP 8th MEETING December 11-12, 2014 ISSUES FOR DISCUSSON: OTHER NON-FINANSIAL ASSETS AND RELATED MATTERS IASB EMERGING ECONOMIES GROUP 8th MEETING December 11-12, 2014 ISSUES FOR DISCUSSON: OTHER NON-FINANSIAL ASSETS AND RELATED MATTERS National Organization for Financial Accounting and Reporting Standards

More information

PRACTICAL GUIDE IAS 17: LEASES

PRACTICAL GUIDE IAS 17: LEASES PRACTICAL GUIDE IAS 17: LEASES www.consultasifrs.com/uk 2014 www.consultasifrs.com 1 ConsultasIFRS is an online firm specialized in advisory on IFRS. PRACTICAL GUIDE IAS 17 Leases Our only goal is to exceed

More information

INFORMATION FOR OBSERVERS. Joint International Working Group on Leasing 15 February 2007, London

INFORMATION FOR OBSERVERS. Joint International Working Group on Leasing 15 February 2007, London International Accounting Standards Board This document is provided as a convenience to observers at IASB/FASB joint international working group meeting on leasing, to assist them in following the working

More information

Study on Financing Growth Capital for SMEs

Study on Financing Growth Capital for SMEs Study on Financing Growth Capital for SMEs Remarks by Marion G. Wrobel Vice-President, Policy and Operations Canadian Bankers Association for The Standing Senate Committee on Banking Trade and Commerce

More information

Commercial Property Investment Guide. Your guide to purchasing and managing a commercial investment property

Commercial Property Investment Guide. Your guide to purchasing and managing a commercial investment property Commercial Property Investment Guide Your guide to purchasing and managing a commercial investment property Contents Introduction 1 The benefits of commercial property investment 2 Why invest in property?

More information

Commercial Finance Products 1302a (Forms part of Finance Products Module TFAL_1302

Commercial Finance Products 1302a (Forms part of Finance Products Module TFAL_1302 Commercial Finance Products 1302a (Forms part of Finance Products Module TFAL_1302 Introduction The purpose of this module is to provide you with comprehensive information about the following Toyota Financial

More information

Tax Equity Structures: North Carolina Edition

Tax Equity Structures: North Carolina Edition Tax Equity Structures: North Carolina Edition May 21, 2015 John Marciano jmarciano@chadbourne.com 202-974-5678 Tax Equity The federal government currently pays a significant portion of a renewables project

More information

Canadian GAAP - IFRS Comparison Series Issue 8 Leases

Canadian GAAP - IFRS Comparison Series Issue 8 Leases - Comparison Series Issue 8 Leases Both and are principle-based frameworks and, from a conceptual standpoint, many of the general principles are the same. However, the application of those general principles

More information

Mary Kelly, BBS, FCCA. Martin Kelly, BSc (Econ) Hons, DIP.Acc, FCA, MBA, MCMI.

Mary Kelly, BBS, FCCA. Martin Kelly, BSc (Econ) Hons, DIP.Acc, FCA, MBA, MCMI. Article: Accounting for Leases - IAS 17 Leases By: Mary Kelly, BBS, FCCA. Martin Kelly, BSc (Econ) Hons, DIP.Acc, FCA, MBA, MCMI. Examiner: Professional 1 Corporate Reporting Introduction IAS 17 Leases

More information

Liberia Leasing Investment Forum

Liberia Leasing Investment Forum Finance Leasing in Liberia: Unlocking Accelerated Market and Business Development GROWING COMPETITIVE AND EFFECTIVE LEASING MARKETS Collins David-Ikpe Past chairman, Equipment Leasing Association of Nigeria

More information

Tax Implications of Significant PFRS Standards

Tax Implications of Significant PFRS Standards Tax Implications of Significant PFRS Standards Ma. Victoria C. Españo PICPA National Annual Convention Iloilo City, 2010 PFRS and Tax Laws Philippine Financial Reporting Standards (PFRS) set of rules to

More information

How should banks account for their investment in other real estate owned (OREO) property?

How should banks account for their investment in other real estate owned (OREO) property? TOPIC 5: OTHER ASSETS 5A. REAL ESTATE Question 1: (December 2008) How should banks account for their investment in other real estate owned (OREO) property? Detailed accounting guidance for OREO is provided

More information

Access to Finance & Business Planning for Small and Medium Enterprises. Caeman Wall

Access to Finance & Business Planning for Small and Medium Enterprises. Caeman Wall Access to Finance & Business Planning for Small and Medium Enterprises Caeman Wall Presentation Outline Fáilte Ireland s Business Planning Tools and Calculators Some Finance Options Useful Templates Recent

More information

Small and Medium Enterprises

Small and Medium Enterprises Small and Medium Enterprises YOUR LOANS Small and Medium Enterprises Financing Products for Your Business A consumer education programme by: contents 1 Introduction 2 The right product for the right purpose

More information

UNCONTROLLED IF PRINTED ACCOUNTING POLICY

UNCONTROLLED IF PRINTED ACCOUNTING POLICY UNCONTROLLED IF PRINTED NAVY CANTEENS ACCOUNTING POLICY Applicability: This procedure is applicable to all RANCCB directors and Navy Canteens, managers and staff in all Navy Canteens business units. Legislation:

More information

Copyright 2015 NAGGL, Inc. - Do Not Copy/Distribute. Today s Discussion. Reminders. #orangesince1984

Copyright 2015 NAGGL, Inc. - Do Not Copy/Distribute. Today s Discussion. Reminders. #orangesince1984 #orangesince1984 Today s Discussion Value in using the CAPLines program to provide larger LOCs with SBA s full guaranty W/C CAPLines = most widely use so we ll cover in most detail - Underwriting - Monitoring

More information

Assurance and accounting A Guide to Financial Instruments for Private

Assurance and accounting A Guide to Financial Instruments for Private june 2011 www.bdo.ca Assurance and accounting A Guide to Financial Instruments for Private Enterprises and Private Sector t-for-profit Organizations For many entities adopting the Accounting Standards

More information

REDUCING THE RISKS OF DEFAULTING EQUIPMENT BUYERS. by H. Lee Schwartzberg, Jr., Esq. 2005

REDUCING THE RISKS OF DEFAULTING EQUIPMENT BUYERS. by H. Lee Schwartzberg, Jr., Esq. 2005 REDUCING THE RISKS OF DEFAULTING EQUIPMENT BUYERS The Risk by H. Lee Schwartzberg, Jr., Esq. 2005 The commercial realities of the marketplace frequently require manufacturers to offer payment terms to

More information

Personal Financial Responsibility Instruction Guidelines for Implementation

Personal Financial Responsibility Instruction Guidelines for Implementation Personal Financial Responsibility Instruction Guidelines for Implementation Digest This policy establishes guidelines for school corporations to meet the legislated requirements for including instruction

More information

Equipment Leasing Terms

Equipment Leasing Terms Equipment Leasing Terms This Glossary of Equipment Leasing Terms will help you understand the "Leasing Language" so when you are ready to acquire equipment you can make an educated decision. Accelerated

More information

Lease vs. Buy. Lease. Benefits of Leasing Various types to meet your needs. Optimize cash flow. No loan. Maintain credit.

Lease vs. Buy. Lease. Benefits of Leasing Various types to meet your needs. Optimize cash flow. No loan. Maintain credit. www.stma.org Lease vs. Buy Deciding if you are going to lease or buy equipment depends on your situation. In general, leasing is more appropriate for businesses with limited capital or need equipment upgrades

More information

PRESENTATION SUMMARY:

PRESENTATION SUMMARY: PRESENTATION SUMMARY: CONSULTING SERVICES INCLUDING CAPITAL EQUIPMENT LEASING INTRODUCTION FOR BY: Year June-2003 PowerLease Solutions Products Menu of Financing Products: 1. Fair Market Value Leases (Non-Compliance-Capital

More information

Definitions of operating, investing and financing activities

Definitions of operating, investing and financing activities STAFF PAPER IFRS Interpretations Committee Meeting Project Paper topic IAS 7 Statement of Cash Flows 22 23 January 2013 IFRS IC March/July 2012 IASB January 2012 Definitions of operating, investing and

More information

MORTGAGE TERMS. Assignment of Mortgage A document used to transfer ownership of a mortgage from one party to another.

MORTGAGE TERMS. Assignment of Mortgage A document used to transfer ownership of a mortgage from one party to another. MORTGAGE TERMS Acceleration Clause This is a clause used in a mortgage that can be enforced to make the entire amount of the loan and any interest due immediately. This is usually stipulated if you default

More information

Proposed Lease Accounting Changes: Impact on Asset Finance Deals

Proposed Lease Accounting Changes: Impact on Asset Finance Deals Proposed Lease Accounting Changes: Impact on Asset Finance Deals In August 2010, the International Accounting Standards Board ( IASB ) issued a proposal which, if adopted, will overhaul lease accounting

More information

I. GENERAL PROVISIONS KEY DEFINITIONS

I. GENERAL PROVISIONS KEY DEFINITIONS APPROVED by Resolution No. 1 of 18 December 2003 of the Standards Board of the Public Establishment the Institute of Accounting of the Republic of Lithuania 20 BUSINESS ACCOUNTING STANDARD OPERATING LEASE,

More information

STATE BANK OF INDIA BRANCH. Interview Form For Loans above Rs.25,000/- (To be submitted to the Sanctioning Authority along with the Application Form)

STATE BANK OF INDIA BRANCH. Interview Form For Loans above Rs.25,000/- (To be submitted to the Sanctioning Authority along with the Application Form) Annexure-SBF/3 STATE BANK OF INDIA BRANCH SMALL BUSINESS FINANCE Interview Form For Loans above 25,000/- (To be submitted to the Sanctioning Authority along with the Application Form) To be used for :

More information

Credit Scoring of SME Using Credit Information Database. Satoshi Kuwahara CRD Association, Japan July, 2015

Credit Scoring of SME Using Credit Information Database. Satoshi Kuwahara CRD Association, Japan July, 2015 Credit Scoring of SME Using Credit Information Database Satoshi Kuwahara CRD Association, Japan July, 2015 1. What is CRD? 2. Background of CRD Establishment 3. Credit Bureau & Credit Database 4. Concrete

More information

INCOME APPROACH Gross Income Estimate - $198,000 Vacancy and Rent Loss - $9,900

INCOME APPROACH Gross Income Estimate - $198,000 Vacancy and Rent Loss - $9,900 INCOME APPROACH The Income Approach considers the return on Investment and is similar to the method that investors typically use to make their investment decisions. It is most directly applicable to income

More information

WHAT IS BUSINESS CREDIT?

WHAT IS BUSINESS CREDIT? 1 WHAT IS BUSINESS CREDIT? Why Do I Need Credit? Establishing a good credit rating is an important financial priority for every business. Having good business credit means that owners of businesses can

More information

Off-Balance Sheet Financing: Operating Leases & Other Topics

Off-Balance Sheet Financing: Operating Leases & Other Topics Off-Balance Sheet Financing: Operating Leases & Other Topics Session 7 FIN 551 - Financial Statement Analysis 1 Let s Discuss Leases FIN 551 - Financial Statement Analysis 2 1 Off-Balance-Sheet Obligation

More information

Sri Lanka Accounting Standard-LKAS 7. Statement of Cash Flows

Sri Lanka Accounting Standard-LKAS 7. Statement of Cash Flows Sri Lanka Accounting Standard-LKAS 7 Statement of Cash Flows CONTENTS SRI LANKA ACCOUNTING STANDARD-LKAS 7 STATEMENT OF CASH FLOWS paragraphs OBJECTIVE SCOPE 1 3 BENEFITS OF CASH FLOW INFORMATION 4 5 DEFINITIONS

More information

Working capital: Keep the ball rolling

Working capital: Keep the ball rolling Working capital: Keep the ball rolling Author : Michael Byrne Date : March 9, 2011 Working capital is considered the life line of any company, allowing the company to grow, expand operations, and weather

More information

BA 351 CORPORATE FINANCE. John R. Graham Adapted from S. Viswanathan LECTURE 5 LEASING FUQUA SCHOOL OF BUSINESS DUKE UNIVERSITY

BA 351 CORPORATE FINANCE. John R. Graham Adapted from S. Viswanathan LECTURE 5 LEASING FUQUA SCHOOL OF BUSINESS DUKE UNIVERSITY BA 351 CORPORATE FINANCE John R. Graham Adapted from S. Viswanathan LECTURE 5 LEASING FUQUA SCHOOL OF BUSINESS DUKE UNIVERSITY 1 Leasing has long been an important alternative to buying an asset. In this

More information

THE BASICS OF FACTORING. A Guide to Understanding Accounts Receivable Financing

THE BASICS OF FACTORING. A Guide to Understanding Accounts Receivable Financing THE BASICS OF FACTORING A Guide to Understanding Accounts Receivable Financing The Basics of Factoring Table of Contents What is Factoring?.. 1 Benefits of Factoring 4 What Types of Businesses Utilize

More information

THE CONCEPTUAL FRAMEWORK OF FACTORING ON SMALL AND MEDIUM ENTERPRISES

THE CONCEPTUAL FRAMEWORK OF FACTORING ON SMALL AND MEDIUM ENTERPRISES THE CONCEPTUAL FRAMEWORK OF FACTORING ON SMALL AND MEDIUM ENTERPRISES Minaxi Rani Assistant Professor (Extn.), Department of Commerce, Govt. College for women P.G. College, Hisar, Haryana, (India) ABSTRACT

More information

Making Money in the Equipment Leasing Business By Richard M. Contino, Esq.

Making Money in the Equipment Leasing Business By Richard M. Contino, Esq. Making Money in the Equipment Leasing Business By Richard M. Contino, Esq. There are many ways to profit in a lease transaction. To succeed, and sometimes even survive, in the highly competitive business

More information

International Accounting Standard 28 Investments in Associates

International Accounting Standard 28 Investments in Associates International Accounting Standard 28 Investments in Associates Scope 1 This Standard shall be applied in accounting for investments in associates. However, it does not apply to investments in associates

More information

MORTGAGE DICTIONARY. Amortization - Amortization is a decrease in the value of assets with time, which is normally the useful life of tangible assets.

MORTGAGE DICTIONARY. Amortization - Amortization is a decrease in the value of assets with time, which is normally the useful life of tangible assets. MORTGAGE DICTIONARY Adjustable-Rate Mortgage An adjustable-rate mortgage (ARM) is a product with a floating or variable rate that adjusts based on some index. Amortization - Amortization is a decrease

More information

Statement of Cash Flows

Statement of Cash Flows STATUTORY BOARD FINANCIAL REPORTING STANDARD SB-FRS 7 Statement of Cash Flows This version of SB-FRS 7 does not include amendments that are effective for annual periods beginning after 1 January 2014.

More information

Chapter 32. 32-1 What Is a Secured Credit Transaction? 32-2 How Are Security Interests Perfected and Terminated?

Chapter 32. 32-1 What Is a Secured Credit Transaction? 32-2 How Are Security Interests Perfected and Terminated? Secured and Unsecured Credit Transactions 32-1 What Is a Secured Credit Transaction? 32-2 How Are Security Interests Perfected and Terminated? South-Western, a part of Cengage Learning Slide 1 32-1 What

More information

I. Business Transfer Strategies

I. Business Transfer Strategies In many two-generation farming arrangements, the younger party begins by working for a fixed wage. Eventually, however, he or she will want to become an owner/operator not just an employee. Achieving this

More information

3. Classification of Financial Instruments

3. Classification of Financial Instruments 3. Classification of Financial Instruments C lassification of financial instruments and identification of their nature is one of the most important phases for compilation and presentation of monetary statistics.

More information

BANKING SUPERVISION UNIT

BANKING SUPERVISION UNIT BANKING SUPERVISION UNIT POLICY DOCUMENTS POLICY DOCUMENT ON THE REGULATORY PROVISIONS FOR THE UNDERTAKING OF FINANCIAL LEASING ACTIVITIES BY INSTITUTIONS AUTHORISED UNDER THE FINANCIAL INSTITUTIONS ACT

More information

FINANCE for the POOR Equipment Leasing and Lending: A Guide for Microfinance 1

FINANCE for the POOR Equipment Leasing and Lending: A Guide for Microfinance 1 FINANCE for the POOR Equipment Leasing and Lending: A Guide for Microfinance 1 GLENN D. WESTLEY Senior Advisor, Micro, Small and Medium Enterprise Division Inter-American Development Bank As microfinance

More information

Newsletter July 2011. Corporate / Mergers & Acquisitions Tokyo. Changes to personal property security in Australia. Overview.

Newsletter July 2011. Corporate / Mergers & Acquisitions Tokyo. Changes to personal property security in Australia. Overview. Corporate / Mergers & Acquisitions Tokyo Newsletter July 2011 Changes to personal property security in Australia The law of personal property security is set to be revolutionised the new legislation will

More information

LINX EDUCATIONAL INSTRUCTOR S GUIDE

LINX EDUCATIONAL INSTRUCTOR S GUIDE EXTRA CREDIT: UNDERSTANDING THE DO S & DON TS OF USING CREDIT TAKING CHARGE OF CREDIT: 10 TIPS TO CREDIT DISCIPLINE Use the following suggestions as guidelines to self-discipline to keep your credit in

More information

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Credit is the lifeblood of South Louisiana business, especially for the smaller firm. It helps the small business owner get started, obtain equipment, build inventory,

More information

Summary of Certain Differences between SFRS and US GAAP

Summary of Certain Differences between SFRS and US GAAP Summary of Certain Differences between and SUMMARY OF CERTAIN DIFFERENCES BETWEEN AND The combined financial statements and the pro forma consolidated financial information of our Group included in this

More information

THE LEASE VERSUS BUY DECISION

THE LEASE VERSUS BUY DECISION Over the past thirty years, U.S. Bancorp Equipment Finance has grown into one of the largest bank affiliated industrial finance companies in the nation. With total assets in excess of $8 Billion and offices

More information

ELA Lease Accountants Conference

ELA Lease Accountants Conference ELA Lease Accountants Conference Advanced Leveraged Leasing Financial Reporting Issues September 21, 2004 Betty Davis Washington, DC Discussion Items: Qualification issues Assumption changes Buying, selling

More information

PRC REGULATORY OVERVIEW

PRC REGULATORY OVERVIEW Our business is mainly conducted in China. The key laws and regulations regulating our business operations in China include the following: Measures on the Administration of Foreign Investment in the Leasing

More information