PRACTICES IN PUBLIC SECTOR BANKS IN INIDIA: CHALLENGES A STUDY CLV SIVAKUMAR FAMILY SUPPORTIVE WORK VARIABLES, WORK FAMILY CONFLICT AND SATISFACTION

Size: px
Start display at page:

Download "PRACTICES IN PUBLIC SECTOR BANKS IN INIDIA: CHALLENGES A STUDY CLV SIVAKUMAR FAMILY SUPPORTIVE WORK VARIABLES, WORK FAMILY CONFLICT AND SATISFACTION"

Transcription

1

2 Table of Contents Articles-HR TALENT MANAGEMENT IN GLOBAL SCENARIO FOR TWENTY-FIRST CENTURY Dr.Rajender Kumar, Suneel Kumar AN INQUIRY INTO CONFLICT MANAGEMENT STRATEGIES: STUDY OF HIGHER EDUCATION INSTITUTIONS OF KHYBER PAKHTUNKHWA, PAKISTAN Siraj ud Din HR PRACTICES IN PUBLIC SECTOR BANKS IN INIDIA: CHALLENGES A STUDY CLV SIVAKUMAR FAMILY SUPPORTIVE WORK VARIABLES, WORK FAMILY CONFLICT AND SATISFACTION Uma Bhowon, Nashad Auchoybur ORGANIZATIONAL COMMITTMENT Dr.Madhurima Ganguly, Dr Aloke Kumar SEn LEADERSHIP, POLITICS AND PARTICIPATION IN LOCAL GOVERNMENT AREAS OF GOMBE STATE, NIGERIA Charas Madu Tella KNOWLEDGE MANAGEMENT: A PLANK FOR CORPORATE EXCELLENCE PALLAVI DESHMUKH, Dr. R.K. GHAI VIOLENCE AGAINST WOMEN IN JEAN SASSON S WORKS Vijay Kumar Mehta DOES WORK -FAMILY CONFLICT CREATES STRESS AMONG WOMEN PROFESSIONALS IN CHENNAI CITY Kanagasabapathi Jawaharrani, Ranganathan Muzhumathi IMPACT OF POST-REFORMS ON CHANGING INDUSTRIAL RELATIONS ENVIRONMENT IN INDIAN INDUSTRIES A STUDY MJ Arputharaj, R Gayatri STRATEGIC HRM IN PUBLIC SECTOR: NEED OF THE HOUR Gunupudi Nirmal Dayanand Raju STUDY ON EXPLORING THE BREAKTHROUGH STRATEGY OF LEADERS IN CHANGE MANANGEMENT. Anitha Aldrin, R Gayathri Suresh Articles-Finance MICROFINANCE INSTITUTIONS: NORMS, VALUES AND RULES IN THE GROWTH OF SELF HELP GROUPS CLV SIVAKUMAR ROLE OF FACTORING IN FINANCING SMES IN INDIA Anirban Ghatak A STUDY ON INVESTOR BAHAVIOUR TOWARDS ACTIVE AND PASSIVE EQUITY MUTUAL FUNDS Suresh Naidu, Dr.B. Sudhir Articles-Marketing A STUDY OF CONSUMER BEHAVIOR APPROACH TOWARDS SHOPPING MALL ATTRACTIVENESS WITH SPECIAL REFERENCE TO THE CITY OF AHMEDABAD Sujo Thomas, Bharati Pathak RANKING ANALYSIS OVER THE FACTORIAL DESIGNS OF CRM (A STUDY WITH SPECIAL REFERENCE TO PUBLIC SECTOR, PRIVATE SECTOR AND FOREIGN BANKS) Gayathry S HEALTH INSURANCE MARKETING: PROBLEMS AND PROSPECTS Thomas Varghese, Dr. Molly P. Koshy

3 Articles-Others ANELLING EFFECT ON THE LOWER MELTING POINT TERNARY SOLDER ALLOY Sn-Bi-Zn Dunia Kamil Mahdi, Tarik Talib Issa DETERMINANTS OF CONSUMPTION OF FOOD AWAY FROM HOME IN LAGOS METROPOLIS, NIGERIA Olasunkanmi Moses Bamiro AN EXPLORATORY ANALYSIS OF INTERNATIONALIZING SMES OF IN A DEVELOPING ECONOMY : A PLS PATH MODELING APPROACH Rafi Javed Qureshi ROAD MAP OF PROFESSIONAL EDUCATION: A CASE OF MANAGEMENT EDUCATION Madhuri Hebbalkar SIGNIFICANT ROLE PLAYED BY MATHEMATICS FOR EFFECTIVE TEACHING IN MANAGEMENT SCIENCE Madhuri Hebbalkar MSME SECTOR AND ITS CONTRIBUTION TO EMPLOYMENT, PRODUCTION AND GDP Dr Namita Rajput, Mr Ajay Rajput, Geetanjali Batra TREATMENT OF US PRINT MEDIA OPINION PAGES GIVEN TO EGYPT Mirza Jan, M. Riaz Raza, Dr. Khalid Sultan BUSINESS CONTINUITY MANAGEMENT: RESILIENT STEP FOR ORGANISATIONS- A REVIEW Vivek Y Gujar CONJUGAL LIFE FAILURE IN MAURITIUS Rajen Suntoo

4 Role of Factoring In Financing SMEs in India Dr. Anirban Ghatak, Asst. Professor, Christ University Institute of Management, Bangalore ABSTRACT Factoring is one of the upcoming sources of finance for SMEs in India. It is particularly, relevant if a company is growing on a daily basis and when new customers are added regularly there are chances of ending up with huge invoices. The notion that SMEs experience disadvantage in relationship with the capital market i.e. the existence of credit rationing and also finance gaps in their relationship with banking institutions have been popular for decades. This problem often directs many businesses to look for alternative source of finance like factoring. The study shows that the demand for factoring services will tend to reflect the impact of acute cash shortage due to delayed payment by debtors causing liquidity problems. From the research it is also evident that SMEs use these services during their start-up and growth stage, since this is the stage were organisations find it difficult to raise finance due to lack of financial data about its performance history. Even though the service providers of factoring charge 10%-15% of the receivables as their commission still there are organisations that prefer factoring services. Key Words: Factoring, SMEs, Introduction: Growth of the corporate sector is important in the process of economic development. The issue of finance has been identified as an immediate reason why business in developing countries fails to start or to progress. It is imperative for firms in developing countries to be able to finance their activities and grow over time if they are to play an increasing and predominant role in providing employment as well as income in terms of profits, dividends and wages to households. Financing of SME in the country is largely seen as a part of the regulated lending through a network of state-created institutions. While it is an achievement on the part of the banking sector and shows the credit absorption capacity, there is a definite and visible gap in its support to the sector. This problem often directs many businesses to look for alternative source of finance. Factoring could be helpful when a company holds a lot of capital in unpaid invoices, and wish to sell those receivables, mostly at a discount to the face value of receivables. It would be financially more secure as all the risk of default is taken by the factoring company. Factoring provides the company with a professional credit management service that will allow you, more time to concentrate on your business. Various studies conducted in the U.S states that factoring services are used by almost 80% of the garment industry. Factoring is not yet common in the Indian industry. It acts as an effective tool to manage the working capital and also streamline the cash flows for an organisation. It is an effective tool that can be used to reduce the cash cycle which helps organisations manage the day to day activities with the cash flows rather than going for various other methods like overdraft facilities from commercial banks. Following this line of research, the aim of the study is to identify if factoring could increase the profitability and helps managing the cash flow. Specifically, this study will try to investigate whether and to what extent can factoring be used as a source of finance. To achieve this goal a panel data methodology, controlling for individual heterogeneity, will be adopted and a more complete and bigger sample, than the foregoing studies, will be chosen. > RJSSM: Volume: 02, Number: 05, September-2012 Page 165

5 Reviews of Literature: Khaled Soufani (1994), in his paper titled Factoring as a Financing Option: Evidence from the U.K cited on how use of factoring by business, varies according to difference in characteristics of the firm. Their relationship with their banks varies through the availability of credit, size and value of the collateral, total value of firms debt and also if the business is experiencing financial distress. The study found that factoring services are used by small firms more likely in manufacturing and associated industries. The demand for factoring services is evident from the financial constraints upon firms and in particular impact of delayed payment on working capital. Leora Klapper (2005) in the paper titled The Role of Factoring for Financing Small and Medium Enterprise examined how factoring helps SMEs as an innovative source of financing. Factoring is all about linking the value of the supplier s accounts receivables to the credit provided the lender. Therefore, factoring allows high-risk suppliers to transfer their credit risk to their high-quality buyers. Reverse factoring, which is a technology that can mitigate the problem of borrowers informational opacity in business environments with weak information infrastructures if only receivables from high quality buyers are factored. Florette, Gerson, and Postrick, (2008) in the paper titled Enhancing the role of factoring and leasing companies in providing working capital to SME in Namibia examined how factoring and leasing could be used in making working capital accessible to SMEs in Namibia. The study shows that factoring and leasing services seem to have lower default rates than conventional loans in all three countries. After being granted financial assistance, SMEs are not left on their own but, the lending institutions take constant follow-up action on them. Jill Malick (2009), in the paper titled Factoring can help your business with cash flow gives a view on how poor cash flow can bring a company totally down. The study shows that Factoring is the innovative source of financing that will reduce the cash crunch. Chris Miller, (2009) in his paper titled Factoring can be an option when traditional financing isn't showed that Factoring may decide a company s growth, survival or bankruptcy. The study also showed that Factoring business is growing at a stage greater than that of growth of SME businesses. Glen J Katlein (2010), in the paper titled Financing small business growth - The factoring option states that for some small business owners factoring is misused and becomes a high cost financing source that is challenging to eliminate. In some cases especially during tight bank credit environment - factoring may be used as a cost effective solution to finance working capital for growth. Objectives of the study The present study has been undertaken with the following objectives: To identify how factoring helps in effective working capital management. To identify impact on factoring if the credit availability from financial institutions declines. To analyze the capital structure that leads an organization for factoring. Variables of the study Dependent variable The dependent variable in the study is Factoring Independent variable Independent variables used in the study are Turnover, Ownership Structure, type of source of finance, bank credit, number of employee, turnover, bank credit, capital structure. > RJSSM: Volume: 02, Number: 05, September-2012 Page 166

6 Hypotheses Primary Hypothesis: Hypothesis 1: Business using factoring is relatively small when measured by turnover. Hypothesis 2: Factoring services tend to be more focused upon manufacturing. Hypothesis 3: Factoring services are used by firms which are 1-5 years old. Hypothesis 4: Factoring is availed by organisations when the availability of bank credit declines. Hypothesis 5: The higher the amount of debt, the more the business would prefer factoring. Hypothesis 6: The greater the financial difficulty the business is facing, the higher is the use of factoring. Hypothesis 7: Factoring services are more focused on limited liability companies. Sampling procedure The primary research instrument used in this study was the questionnaire. Based on the proportionate sampling method the researcher has selected 200 manufacturing SMEs from Bangalore for the current study. Data Analysis: Factoring is one of the upcoming areas in the Indian SME sector. It is one of the ways to better manage working capital requirements. The primary data was collected with a purpose of studying the objectives and to arrive at a conclusion that will determine the role of factoring in financing SME. The primary data obtained from questionnaires helped in understanding the views of the SME s towards factoring. Testing of Hypotheses: Hypothesis 1: Business using factoring are relatively small when measured by turnover. Insert Table No 1 From the above result, by taking the significance of ANOVA, the hypothesis can be proved. The acceptance rule is: If significance is less than 0.05, then reject the H 0. Here as the value is 0.468, the null hypothesis is not rejected. The beta factor of.592 depicts a positive correlation between factoring and turnover. Hypothesis 2: Factoring services tend to be more focused upon manufacturing. Insert Table No 2 value is 0.187, the null hypothesis is not rejected. The beta value being.636 states that there is a positive correlation between organisations into manufacturing and those using factoring. Hypothesis 3: Factoring services are used by firms which are 1-5 years old. Insert Table No 3 significance is 0.529, hence the null hypothesis is not rejected. The Beta factor of.505 states a positive correlation exist between age of the organisations to that of factoring. Hypothesis 4: Factoring is availed by organisations when the availability of bank credit declines. Insert Table No 4 significance is 0.016, the null hypothesis is rejected. The beta factor of.550 signifies a positive correlation which means bank credit has only a small impact on factoring. Hypothesis 5: The higher the amount of debt, the more the business would prefer factoring. Insert Table No 5 significance is 0.01, the null hypothesis is rejected. The beta factor of.546 signifies a positive correlation which means bank credit has only a small impact on factoring. > RJSSM: Volume: 02, Number: 05, September-2012 Page 167

7 Hypothesis 6: The greater the financial difficulty the business is facing, the higher is the use of factoring. Insert Table No 6 significance is 0.486, the null hypothesis is accepted. The beta factor being.504 shows a positive correlation between financial difficulty and factoring since the value is close to 0 the impact of financial difficulty on factoring is less. Hypothesis 7: Factoring services are more focused on limited liability companies. Insert Table No 7 significance is 0.365, the null hypothesis is accepted. The beta factor being.516 indicates sign of positive correlation. Findings of the Study After undertaking the study, the following findings were made about the role of factoring in financing SME. The role of factoring is to finance companies during the start-up and growth stage as their funding requirements may not be met by banks. Factoring being post shipment finance is mainly used by organisations in manufacturing sector. This is because in manufacturing there is physical delivery of products to clients and hence there is an underlying physical asset where as in service sector physical delivery of an underlying does not take place. Factoring is not used by organisations when bank credit declines or during financial difficulty. This is because a factoring company is also tends to reject an organisation on the grounds of which the bank rejected them. Ownership of an organisation does not have an impact on factoring services. The factoring service provider analyses the past financial performance and also the track record of debtors for past twelve months before offering factoring services. Factoring is not used as a tool to manage credit risk rather it is used to better manage working capital requirements. The cost incurred in availing factoring services is quite higher as the factoring companies charge a commission as high as 20% of the receivables a part of which may be released once the payment from debtors is received. On availing factoring services the entire cash flow of debtors of the company will be managed by factoring service provider and if one debtor defaults then the factoring service providers make the loss good from cash inflows from other receivables. Conclusion: The paper focuses to identify the role of factoring in financing SMEs in India. The evidence supports the hypotheses presented in terms of size, sector, age and ownership. The evidence that was collected from users of factoring services confirms that the service is availed to better manage their cash flows and improve working capital management. The demand for factoring services will tend to reflect the impact of acute cash shortage due to delayed payment by debtors causing liquidity problems. The factoring companies offer the services based on past performance of the organisation as well as the performance of debtors. From the research it is also evident that SMEs use these services during their start-up and growth stage, since this is the stage were organisations find it difficult to raise finance due to lack of financial data about its performance history. > RJSSM: Volume: 02, Number: 05, September-2012 Page 168

8 Even huge organisations are availing factoring services. This industry is in the initial stages of its growth and hence has a great growth potential. Even though the service providers of factoring charge 10%-15% of the receivables as their commission still there are organisations that prefer factoring services. To further regulate these factoring service providers an apex body is to be formulated who could regulate and lay down policies on the working of factoring service providers. As factoring service also includes export financing were in foreign receivables are also discounted by factoring companies there is huge possibility of exchange risk involved in such transactions causing loss to organisations availing factoring services. References: 1. Financing SMEs and Entrepreneurs. (2006). Policy Brief. oecd 2. Allen.N.Nerger & George.F.Udell. (2005). A More Complete Conceptual Framework for Financing of Small and Medium Enterprises. SSRN ID: Anna Lau Siew Lin. (2008, June). Securing Financial Resources for Small and Medium Contracting Firms in Malaysia. ebscohost. 4. Chris Miller. (2009). Factoring can be an option when traditional financing isn't. Hudson Valley Business Journal Business Resource Guide, Christer Bergquist &Linus Dahg. (2007). The impact of financial gap on growth and development of SME. SVCA ID: Constantinos Stephanou & Camila Rodriguez. (2008). Bank Financing to Small and Medium Enterproses in Colombia. SSRN ID: Daniel S Levine. (1998). Factoring Pay Offs. ebscohost. 8. David Dagan. (2009). Businesses explore alternative financing known as factoring. Central Penn Business Journal, David Irwin. (2006). Barriers faced by SMEs in raising finance from banks. irwingrayson id:isbe 06financeBarriers. 10. Dimitri B Papadimitriou, Ronnie J Philips & L Randall Wray. (1994). Community based factoring companies. SSRN ID: Don Sadler. (2011, June 15). Tips for dealing with slow paying customers. Costco Connection, 26(6), p Dr Stuart Fraser. (2005). Finance for Small and Medium-Sized Enterprises: Comparisons of Ethnic Minority and White Owned Businesses.BIS.GOV.UK ID: Dr. Alexander Kritikos. (2007). Financing small business in western europe - An micro level and an institutional perspective. OPUS.KOBV.DE ID:2008/ Dr. Brian Lucey. (2006). Capital Structure and the Financing of SMEs: Empirical Evidence from an Irish Survey. SSRN ID: Elise Nicole Ray. (2010). Small and medium enterprise finance in South Africa: implications for private sector-led development. DALSPACE.LIBRARY ID:10222/13151/. 16. Florette Nakusera, Gerson Kadhikwa, Postrick Mushendami. (2008). Enhancing the role of factoring and leasing companies in providing working capital to SME in Namibia. SSRN ID: Fraser. (2005). UK Survey on SME Finances. 18. Glen J Katlein. (2010). Financing small business growth - The factoring option. indiastat. 19. Grzegorz Michalski. (2008). Factoring and Firm Value. SSRN ID: Jan Bartholdy and Cesario Mateus. (2008). Financing of SME's: An asset Side Story. SSRN ID: Jill Malick. (2009). Factoring can help your business with cash flow. Inside Tucson Business, Kesseven Padachi. (2006). Trends in Working Capital Management and its Impact on Firms Performance: An Analysis of Mauritian Small Manufacturing Firms. techshristi. > RJSSM: Volume: 02, Number: 05, September-2012 Page 169

9 23. Kesseven Padachi; C. Howorth; M. S. Narasimhan & R. Durbarry. (2011.). Working Capital Structure and Financing Pattern of Mauritian SME. 24. Khaled Soufani. (1994). Factoring as a financing option: Evidence from the U.K. London: SSRN ID: Khaled Soufani. (2002, January 31). The decision to finance accounts receivables: The factoring option. Managerial and Decision Economics, p Leora F. Klapper, Virginia Sarria-Allende & Victor Sulla. (2002). Small and Medium Enterprise Financing in Eastern Europe. SSRN ID: Leora F. Klapper, Virginia Sarria-Allende, Victor Sulla. (2008). Financing of SME's : An Asset Side Story. SSRN ID: Linh GiaThai, Yun Xu. (2009). Banking market competition and SME financing in China Case study across Chinese provinces.diva-portalid:diva2: Mahesh Y Reddy. (2006). Financing of Small and Medium Enterprises in India. Cab Calling, Marcus Andersson, Petra Wahlberg and Jacob Östlund. (2006). Financing rapid organic Growth in Sweden:A study of manufacturing gazzele companies. HJ.DIVA-PORTAL ID: Marie H. R. Bakker, Leora Klapper& Gregory F. Udell,. (2004). Financing Small and Medium Enterproses with Factoring: Global Growth in Factoring-and its potential in Europe. worldbank. 32. McGee. (1999, July 2). Factoring offers companies innovative financing for accounts. Business Press, 12(10), p Mohd Amy Azhar Mohd Harif & Siti Khadijah Md. Zali. (2010). Business Financing for Small and Medium Enterprises; How to strike? ebscohost. 34. Mohd Amy Azhar Mohd Harif, Chee Hee Hoe and Siti Khadijah Md. Zali. (2011). Business Financing for Malaysian SME:What are banks detrmining factors. wbiconpro id Morten Balling, Beat Bernet and Ernest Gnan. (2009). Financing SME's in Europe. SUERF ID: Pat Wiesner. (2011). Small Company Financing. Coloradobiz, Smith and Schnucker. (1994). Organizational Structure of SME. sitesource.worldbank. 38. Thitapha Wattanapruttipaisan. (2003). The Proposal for Improved Financing of SME Development in ASEAN. Asian Development Bank, William.C.Philbrick. (1994). The Use of Factoring in International Commercial transactions and the need for legal uniformity as applied to factoring transactions between the United States and Japan. Commercial Law Journal, 30. Annexure Table No 1 (Constant) Turnover Table No 2 (Constant) Manufacturing Table No 3 > RJSSM: Volume: 02, Number: 05, September-2012 Page 170

10 (Constant) Years of operation Table No 4 (Constant) Bank Credit Table No 5 (Constant) Amount of debt Table No 6 (Constant) Financial difficulty Table No 7 1 (Constant) Ownership *** > RJSSM: Volume: 02, Number: 05, September-2012 Page 171

FACTORING SERVICES IN INDIA: A STUDY

FACTORING SERVICES IN INDIA: A STUDY FACTORING SERVICES IN INDIA: A STUDY Khaja Moinoddin Mohmad 28 ABSTRACT Factoring is one of the upcoming sources of finance for SMEs in India. It is particularly, relevant if a company is growing on a

More information

Factoring: A n Effective Financing Option to SMEs in China

Factoring: A n Effective Financing Option to SMEs in China Factoring: A n Effective Financing Option to SMEs in China FENG Yue Economics and Management Department, Nanjing Institute of Technology, P.R.China, 211167 fengyue@njit.edu.cn Abstract: Factoring is a

More information

保 理 在 中 国 情 境 下 的 融 资 作 用

保 理 在 中 国 情 境 下 的 融 资 作 用 所 属 领 域 : 资 产 证 券 化 Category: Asset securitization 发 表 语 言 : 英 文 In English 保 理 在 中 国 情 境 下 的 融 资 作 用 The financing role of factoring in China context Shuzhen Chen 1 School of Management, University of

More information

THE CONCEPTUAL FRAMEWORK OF FACTORING ON SMALL AND MEDIUM ENTERPRISES

THE CONCEPTUAL FRAMEWORK OF FACTORING ON SMALL AND MEDIUM ENTERPRISES 210 THE CONCEPTUAL FRAMEWORK OF FACTORING ON SMALL AND MEDIUM ENTERPRISES ABSTRACT C. SREEKANTH SARMA* *Assistant Professor, Pulla Reddy Institute of Computer Science, Hyderabad, AP, India. Factoring is

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

Discussion. 1. Warren Mundy and Mark Bryant

Discussion. 1. Warren Mundy and Mark Bryant Discussion 1. Warren Mundy and Mark Bryant This paper by Professor Gregory Udell provides an assessment of the existing academic literature on the issue of small to medium-sized enterprise (SME) access

More information

The Determinants of Global Factoring By Leora Klapper

The Determinants of Global Factoring By Leora Klapper The Determinants of Global Factoring By Leora Klapper Factoring services can be traced historically to Roman times. Closer to our own era, factors arose in England as early as the thirteenth century, as

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

ABHINAV NATIONAL MONTHLY REFEREED JOURNAL OF RESEARCH IN COMMERCE & MANAGEMENT www.abhinavjournal.com

ABHINAV NATIONAL MONTHLY REFEREED JOURNAL OF RESEARCH IN COMMERCE & MANAGEMENT www.abhinavjournal.com A STUDY ON WORKING CAPITAL MANAGEMENT THROUGH RATIO ANALYSIS WITH REFERENCE TO KARNATAKA POWER CORPORATION LIMITED Srinivas K T Associate Professor, CIMS-B School, Jayanagar, Bangalore, india Email: srinikeelara@gmail.com

More information

ECONOMIC FACTORING ROLE AND ITS ADVANTAGES COMPARED WITH DEBT COLLECTORS AND BANK CREDIT TO SMEs IN ALBANIA

ECONOMIC FACTORING ROLE AND ITS ADVANTAGES COMPARED WITH DEBT COLLECTORS AND BANK CREDIT TO SMEs IN ALBANIA ECONOMIC FACTORING ROLE AND ITS ADVANTAGES COMPARED WITH DEBT COLLECTORS AND BANK CREDIT TO SMEs IN ALBANIA Shpresa Çela 1 Dr. Faculty of Economics, University of Tirana sh_cela@hotmail.com +355 68 20

More information

EFFECTS OF BANK MERGERS AND ACQUISITIONS ON SMALL BUSINESS LENDING

EFFECTS OF BANK MERGERS AND ACQUISITIONS ON SMALL BUSINESS LENDING EFFECTS OF BANK MERGERS AND ACQUISITIONS ON SMALL BUSINESS LENDING Allen N. Berger Board of Governors of the Federal Reserve System Wharton Financial Institutions Center RIETI Policy Symposium Japan s

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

INTERNATIONAL FACTORING A VIABLE FINANCING SOLUTION FOR FIRMS

INTERNATIONAL FACTORING A VIABLE FINANCING SOLUTION FOR FIRMS Finances - Accounting INTERNATIONAL FACTORING A VIABLE FINANCING SOLUTION FOR FIRMS Assoc. Prof. Ph.D Giurc Vasilescu Laura University of Craiova Faculty of Economy and Business Administration, Craiova,

More information

PROBLEMS FACED BY MICRO, SMALL AND MEDIUM ENTERPRISES IN RAISING DEBT CAPITAL

PROBLEMS FACED BY MICRO, SMALL AND MEDIUM ENTERPRISES IN RAISING DEBT CAPITAL PROBLEMS FACED BY MICRO, SMALL AND MEDIUM ENTERPRISES IN RAISING DEBT CAPITAL Mohammed Ahmar Uddin Dhofar University, Salalah, OMAN ahmaruddin@sify.com ABSTRACT Finance is one of the most critical inputs

More information

A conceptual paper on factors influencing Financial Institutions on lending technologies to technology-based SMEs in the northern region of Malaysia

A conceptual paper on factors influencing Financial Institutions on lending technologies to technology-based SMEs in the northern region of Malaysia A conceptual paper on factors influencing Financial Institutions on lending technologies to technology-based SMEs in the northern region of Malaysia Wan Sallha Binti Yusoff & Chuthamas Chittithaworn School

More information

Factoring financing alternative for SMEs

Factoring financing alternative for SMEs Factoring financing alternative for SMEs Laura Giurca Vasilescu Faculty of Economy and Business Administration University of Craiova, Romania laura_giurca_vasilescu@yahoo.com Abstract Financing is necessary

More information

Factoring as an Alternative Trade Finance Instrument in a Competitive World

Factoring as an Alternative Trade Finance Instrument in a Competitive World Factoring as an Alternative Trade Finance Instrument in a Competitive World 22 November2013 Peter Brinsley Director, POINT FORWARD LTD Peter Brinsley - credentials 21 years in factoring Now a freelance

More information

Xynergy Commercial Capital LLC

Xynergy Commercial Capital LLC Xynergy Commercial Capital LLC How Can Work For You The Problem Short of cash and must pay suppliers, lease, bills and salaries? No need for stress, get your payments in advance for your invoices and pay

More information

Section A: Introduction

Section A: Introduction Section A: Introduction A1 Was this business a subsidiary of another business in 2014? Yes No A2 If you are a subsidiary, what is the name of your current parent business? A3 Did your business generate

More information

Financing the New Venture

Financing the New Venture Topic 7 Financing the New Venture LEARNING OUTCOMES By the end of this topic, you should be able to: 1. Identify the nine common start-up costs that need to be considered when starting a new venture; 2.

More information

Non-Bank Debt Finance providers operating in Ireland

Non-Bank Debt Finance providers operating in Ireland Non-Bank Debt Finance providers operating in Ireland Presented by: Tom Early Enterprise Ireland Date: Tuesday 10 th February 2015 Understand the Banks Perspective Banks are concerned with REPAYMENT CAPACITY

More information

B. Bibby Barometer Small Business Survey findings:

B. Bibby Barometer Small Business Survey findings: A. Research structure: Q & A for Bibby Barometer findings 1. Who did the research? The Bibby Barometer Small Business Survey was conducted by Galaxy Research - a well-known Australian research company.

More information

SECTOR ASSESSMENT (SUMMARY): MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISE DEVELOPMENT

SECTOR ASSESSMENT (SUMMARY): MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISE DEVELOPMENT Women s Entrepreneurship Support Sector Development Program (RRP ARM 45230) SECTOR ASSESSMENT (SUMMARY): MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISE DEVELOPMENT A. Overview 1. Significance of micro, small,

More information

2011 Meridian Partners Limited. Meridian Partners Trade Financing

2011 Meridian Partners Limited. Meridian Partners Trade Financing Meridian Partners Trade Financing About Us Meridian Partners provides you with the legal requirements of a registered office address in Hong Kong, a corporate secretary, telephone, fax and mailing services.

More information

The Use of Trade Credit by Businesses

The Use of Trade Credit by Businesses Amy Fitzpatrick and Bobby Lien* Trade credit is an important source of funding for some businesses, particularly those in the unlisted business sector. Nonetheless, little is known about the use of trade

More information

Two trillion and counting

Two trillion and counting Two trillion and counting Assessing the credit gap for micro, small, and medium-size enterprises in the developing world OCTOBER 2010 Peer Stein International Finance Corporation Tony Goland McKinsey &

More information

SMEs Access to Financial Services: Bankers Eye. Evelyn Mweta Richard, Neema Geoffrey Mori

SMEs Access to Financial Services: Bankers Eye. Evelyn Mweta Richard, Neema Geoffrey Mori Chinese Business Review, ISSN 1537-1506 February 2012, Vol. 11, No. 2, 217-223 D DAVID PUBLISHING SMEs Access to Financial Services: Bankers Eye Evelyn Mweta Richard, Neema Geoffrey Mori University of

More information

Finance for Small and Medium-Sized Enterprises

Finance for Small and Medium-Sized Enterprises Finance for Small and Medium-Sized Enterprises A Report on the 2004 UK Survey of SME Finances Dr Stuart Fraser Centre for Small and Medium-Sized Enterprises Warwick Business School University of Warwick

More information

A STUDY ON THE PERFORMANCE ANALYSIS OF FACTORING SERVICES IN INDIA

A STUDY ON THE PERFORMANCE ANALYSIS OF FACTORING SERVICES IN INDIA A STUDY ON THE PERFORMANCE ANALYSIS OF FACTORING SERVICES IN INDIA Dr. K. N. KALAIVANI Dr. S. Gopalraju Government First Grade College, Anekal, Bangalore 562 106 E-Mail: drkalaivanikn9570@gmail.com ABSTRACT

More information

Reading the balance of payments accounts

Reading the balance of payments accounts Reading the balance of payments accounts The balance of payments refers to both: All the various payments between a country and the rest of the world The particular system of accounting we use to keep

More information

performance of a company?

performance of a company? How to deal with questions on assessing the performance of a company? (Relevant to ATE Paper 7 Advanced Accounting) Dr. M H Ho This article provides guidance for candidates in dealing with examination

More information

The Nature, Elements and Importance of Working Capital

The Nature, Elements and Importance of Working Capital C. WORKING CAPITAL MANAGEMENT 1. The nature, elements and importance of working capital 2. Management of inventories, accounts receivable, accounts payable and cash 3. Determining working capital needs

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

Receivables Finance in Emerging Markets

Receivables Finance in Emerging Markets Receivables Finance in Emerging Markets How financial innovation can enhance social and economic development Executive Summary Andy Davis and Peter Chen June 2014 In the White Paper, the authors examine

More information

WORKING CAPITAL MANAGEMENT AND PROFITABILITY: EVIDENCE FROM PAKISTAN FIRMS

WORKING CAPITAL MANAGEMENT AND PROFITABILITY: EVIDENCE FROM PAKISTAN FIRMS Abstract WORKING CAPITAL MANAGEMENT AND PROFITABILITY: EVIDENCE FROM PAKISTAN FIRMS Ahsen Saghir Faculty Member of APCOMS, Rawalpindi Muhammad Ali Jinnah University, Islamabad Faisal Mehmood Hashmi Muhammad

More information

Lecture 18 SOURCES OF FINANCE AND GOVERNMENT POLICIES

Lecture 18 SOURCES OF FINANCE AND GOVERNMENT POLICIES Lecture 18 SOURCES OF FINANCE AND GOVERNMENT POLICIES Learning Objectives Sources of finance for small and medium-sized businesses. Types of financial assistance Finance is needed throughout a company

More information

Financing in China. Export Development Canada. November, 2012. Chris Evans, Ontario Region

Financing in China. Export Development Canada. November, 2012. Chris Evans, Ontario Region Financing in China Export Development Canada Chris Evans, Ontario Region November, 2012 About Export Development Canada (EDC) Canada s Export Credit Agency Crown corporation wholly owned by Government

More information

Non-Bank Debt Finance providers operating in Ireland. Date: Wednesday 10 th December 2014

Non-Bank Debt Finance providers operating in Ireland. Date: Wednesday 10 th December 2014 Non-Bank Debt Finance providers operating in Ireland Presented by: Tom Early Date: Wednesday 10 th December 2014 Understand the Banks Perspective Banks are concerned with REPAYMENT CAPACITY De-risking

More information

Micro, Small and Medium Enterprises Financing in India - Issues and Concerns

Micro, Small and Medium Enterprises Financing in India - Issues and Concerns Micro, Small and Medium Enterprises Financing in India - Issues and Concerns Dr. C.S. Prasad* Micro, Small and Medium enterprises (MSME) constitute the dominant form of business organisation worldwide.

More information

WORKING CAPITAL MANAGEMENT AND PROFITABILITY IN SUGAR INDUSTRY OF PAKISTAN

WORKING CAPITAL MANAGEMENT AND PROFITABILITY IN SUGAR INDUSTRY OF PAKISTAN WORKING CAPITAL MANAGEMENT AND PROFITABILITY IN SUGAR INDUSTRY OF PAKISTAN Muhammad Ehsan Javaid Leghari PhD Management Sciences COMSATS Institute of Information Technology Islamabad, Pakistan Email:muhammadehsanjavaid@yahoo.com

More information

Leasing and Factoring for SME Finance

Leasing and Factoring for SME Finance 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

More information

INFORMATION FOR OBSERVERS

INFORMATION FOR OBSERVERS 30 Cannon Street, London EC4M 6XH, United Kingdom Tel: +44 (0)20 7246 6410 Fax: +44 (0)20 7246 6411 E-mail: iasb@iasb.org Website: www.iasb.org International Accounting Standards Board This document is

More information

Your bid for growth funds. Supporting your business with financing decisions

Your bid for growth funds. Supporting your business with financing decisions Your bid for growth funds Supporting your business with financing decisions Contents 3 Introduction 4 Preparing your application 6 Assessing applications 8 What Barclays considers 9 Funding solutions 10

More information

M. Com (1st Semester) Examination, 2013 Paper Code: AS-2368. * (Prepared by: Harish Khandelwal, Assistant Professor, Department of Commerce, GGV)

M. Com (1st Semester) Examination, 2013 Paper Code: AS-2368. * (Prepared by: Harish Khandelwal, Assistant Professor, Department of Commerce, GGV) Model Answer/suggested solution Business Finance M. Com (1st Semester) Examination, 2013 Paper Code: AS-2368 * (Prepared by: Harish Khandelwal, Assistant Professor, Department of Commerce, GGV) Note: These

More information

Financial Structure Mix: Effect on Growth and Earning of Small and Medium Enterprises in Nigeria

Financial Structure Mix: Effect on Growth and Earning of Small and Medium Enterprises in Nigeria International Journal of Humanities and Social Science Vol. 4 No. 4 [Special Issue February 2014] Financial Structure Mix: Effect on Growth and Earning of Small and Medium Enterprises in Nigeria James

More information

FINANCIAL PERFORMANCE AND BANKRUPTCY ANALYSIS FOR SELECT PARAMEDICAL COMPANIES AN EMPERICAL ANALYSIS MAHESH KUMAR.T ANAND SHANKAR RAJA.

FINANCIAL PERFORMANCE AND BANKRUPTCY ANALYSIS FOR SELECT PARAMEDICAL COMPANIES AN EMPERICAL ANALYSIS MAHESH KUMAR.T ANAND SHANKAR RAJA. FINANCIAL PERFORMANCE AND BANKRUPTCY ANALYSIS FOR SELECT PARAMEDICAL COMPANIES AN EMPERICAL ANALYSIS MAHESH KUMAR.T ANAND SHANKAR RAJA. M ** Ph.D **Research scholar, School of commerce, Bharathiar University,

More information

(in Indian scenario) Authors: (1) Dr.R Venkataraman, Professor, Presidency College, Bangalore

(in Indian scenario) Authors: (1) Dr.R Venkataraman, Professor, Presidency College, Bangalore Reverse mortgage: Bringing smiles on wrinkled faces (in Indian scenario) Authors: (1) Dr.R Venkataraman, Professor, Presidency College, Bangalore Abstract (2) Archana Mishra, Asst. professor, Presidency

More information

Where to Turn When Banks Say No? MGI Pagán-Ortiz & Co., CPA, PSC

Where to Turn When Banks Say No? MGI Pagán-Ortiz & Co., CPA, PSC Where to Turn When Banks Say No? MGI Pagán-Ortiz & Co., CPA, PSC Factoring Definition FACTORING COMPANIES, typically buy a business's accounts receivable at a discount and collect the receivables themselves.

More information

The big Small and Medium story - A commentary on SME Financing

The big Small and Medium story - A commentary on SME Financing The big Small and Medium story - A commentary on SME Financing Mr. Rakesh Singh CEO Limited Key Fundamentals update Developments since Mar 14 Apr Dec 13 Nov 14 New Government Equity Fed tapering / US Recovery

More information

Contemporary Logistics. Two-factor Export Factoring: Optimal Option for Export-oriented SMEs Financing

Contemporary Logistics. Two-factor Export Factoring: Optimal Option for Export-oriented SMEs Financing Contemporary Logistics 06 (2012) 1838-739X Contents lists available at SEI Contemporary Logistics Journal homepage: www.seiofbluemountain.com Two-factor Export Factoring: Optimal Option for Export-oriented

More information

The Use of IFRS for Prudential and Regulatory Purposes

The Use of IFRS for Prudential and Regulatory Purposes REPARIS A REGIONAL PROGRAM The Use of IFRS for Prudential and Regulatory Purposes IAS 39 Examples Anna Czarniecka Financial Reporting Consultant annaczarniecka@tiscali.co.uk THE ROAD TO EUROPE: PROGRAM

More information

SECTOR ASSESSMENT (SUMMARY): FINANCE 1. 1. Sector Performance, Problems, and Opportunities

SECTOR ASSESSMENT (SUMMARY): FINANCE 1. 1. Sector Performance, Problems, and Opportunities Country Partnership Strategy: Bangladesh, 2011 2015 SECTOR ASSESSMENT (SUMMARY): FINANCE 1 Sector Road Map 1. Sector Performance, Problems, and Opportunities 1. The finance sector in Bangladesh is diverse,

More information

Prepare for business. Prepare for success

Prepare for business. Prepare for success Prepare for business Decisions you take in the early years of your business can be the most difficult as well as the most important, particularly if you are a first-time entrepreneur. Prepare for success

More information

CASH FLOW BASED LENDING FOR SMEs

CASH FLOW BASED LENDING FOR SMEs JULY 2015 PROJECT TECHNICAL NOTE CASH FLOW BASED LENDING FOR SMEs By Ulla Balle INTRODUCTION One great opportunity in SME financing is shifting the mindset of financial institutions (FIs) from their current

More information

Funding for Growth. Introduction & brief outline of the format for today

Funding for Growth. Introduction & brief outline of the format for today Funding for Growth Funding for Growth: Does your business need working capital to grow? Introduction & brief outline of the format for today Attendees to introduce themselves & advise what they hope to

More information

ICAEW Business Advice Service. Prepare for success. Managing cash flow

ICAEW Business Advice Service. Prepare for success. Managing cash flow ICAEW Business Advice Service Prepare for success Managing cash flow Managing cash flow When running your own business, planning and managing your own cash flow is extremely important. Ensure you take

More information

Business Finance Advice Scheme: FAQs

Business Finance Advice Scheme: FAQs Business Finance Advice Scheme: FAQs Q. Why was the Business Finance Advice Scheme created? The Business Finance Advice kitemark scheme helps businesses find professionally qualified accountants who are

More information

DBN. A presentation on the DBN s MSME Support & Strategy-Emphasis on Innovation Fund Occasion:NBIC Entrepreneurs Circle

DBN. A presentation on the DBN s MSME Support & Strategy-Emphasis on Innovation Fund Occasion:NBIC Entrepreneurs Circle DBN A presentation on the DBN s MSME Support & Strategy-Emphasis on Innovation Fund Occasion:NBIC Entrepreneurs Circle MICHAEL HUMAVINDU, Research Department 28 February 2011 Contents 1. Introduction to

More information

HOW DO SMALL BUSINESSES OPERATE

HOW DO SMALL BUSINESSES OPERATE HOW DO SMALL BUSINESSES OPERATE Sources of Finance and Advice N4 BUSINESS IN ACTION N5 UNDERSTANDING BUSINESS LEARNING INTENTIONS AND LEARNING INTENTION: I understand the SUCCESS CRITERIA different sources

More information

5. Funding Available for IP-Rich Businesses

5. Funding Available for IP-Rich Businesses 20 IP Finance Toolkit 5. Funding Available for IP-Rich Businesses Introduction As the Banking on IP? report notes; SMEs first port of call for finance is often a bank. Figures quoted in the report show

More information

Investing in Emerging Markets It Is Not What It Used To Be

Investing in Emerging Markets It Is Not What It Used To Be Investing in Emerging Markets It Is Not What It Used To Be Brian J. Gibson, CFA Senior Vice President, Public Equities Alberta Investment Management Corporation Background and History Over the decades,

More information

INSTITUTE OF ACTUARIES OF INDIA. CT2 Finance and Financial Reporting MAY 2009 EXAMINATION INDICATIVE SOLUTION

INSTITUTE OF ACTUARIES OF INDIA. CT2 Finance and Financial Reporting MAY 2009 EXAMINATION INDICATIVE SOLUTION INSTITUTE OF ACTUARIES OF INDIA CT2 Finance and Financial Reporting MAY 2009 EXAMINATION INDICATIVE SOLUTION General guidelines to markers: The solutions provided here are indicative ones. Please award

More information

December 2013 exam. (4CW) SME cash and working capital. Instructions to students. reading time.

December 2013 exam. (4CW) SME cash and working capital. Instructions to students. reading time. 1 December 2013 exam (4CW) SME cash and working capital Instructions to students 1. Time allowed is 3 hours and 10 minutes, which includes 10 minutes reading time. 2. This is a closed book exam. 3. Use

More information

University meets Microfinance. Do our clients grow? - Microfinance vs. SME Finance

University meets Microfinance. Do our clients grow? - Microfinance vs. SME Finance University meets Microfinance Do our clients grow? - Microfinance vs. SME Finance July 2012 Definition(s) of MSME Definitions vary greatly between countries, financial regulators and financial institutions.

More information

Incisive Business Guide to Factoring

Incisive Business Guide to Factoring Incisive Guide to Factoring Factoring Guide Summary This guide from Incisive outlines the features and benefits for your business from using factoring and invoice discounting services. Factoring is commonly

More information

Table 1.1 TOTAL FACTORING VOLUME BY COUNTRY IN THE LAST 10 YEARS (MILLIONS OF EUROS)

Table 1.1 TOTAL FACTORING VOLUME BY COUNTRY IN THE LAST 10 YEARS (MILLIONS OF EUROS) INTRODUCTION Factoring is a financial option for the management of receivables. In simple word it is the conversion of credit sales into cash. In factoring, a financial institution (factor) buys the accounts

More information

Credit Risk Assessment of POS-Loans in the Big Data Era

Credit Risk Assessment of POS-Loans in the Big Data Era Credit Risk Assessment of POS-Loans in the Big Data Era Yiyang Bian 1,2, Shaokun Fan 1, Ryan Liying Ye 1, J. Leon Zhao 1 1 Department of Information Systems, City University of Hong Kong 2 School of Management,

More information

Cash Flow Statement: Comparative Analysis of Financing, Operating and Investing Activities.

Cash Flow Statement: Comparative Analysis of Financing, Operating and Investing Activities. Cash Flow Statement: Comparative Analysis of Financing, Operating and Investing Activities. Ajay G. Paliwal 1 Mukesh B. Ahirrao 2,Dr. V.S.Rana 3 1 Management Student, M.B.A Dept, S.S.B.T s College of Engineering

More information

Section A Introduction This section asks for information that aims to identify the independence and ownership situation of your business.

Section A Introduction This section asks for information that aims to identify the independence and ownership situation of your business. Access to Finance Purpose of this survey Access to finance is crucial to business success and an important factor for economic growth in Europe following the economic crisis in 2007. The purpose of this

More information

The Study of Working Capital Strategies in Life Cycle of Companies

The Study of Working Capital Strategies in Life Cycle of Companies 2013, World of Researches Publication Ac. J. Acco. Eco. Res. Vol. 2, Issue 4, 77-88, 2013 Academic Journal of Accounting and Economic Researches www.worldofresearches.com The Study of Working Capital Strategies

More information

Management of Working Capital

Management of Working Capital International Journal of Computer Science & Management Studies, Vol. 13, Issue 03, May 2013 Management of Working Capital Arti Rani Assistant Professor Kanya Mahavidhyalya, Kharkhoda, Sonepat, Haryana

More information

Better Business Finance

Better Business Finance Better Business Finance Alternative sources of finance There are a wide range of financial products now available to help businesses access the investment needed to grow and thrive. This factsheet explains

More information

Access to Finance: Impacts of Publicly Supported Venture Capital and Loan Guarantees

Access to Finance: Impacts of Publicly Supported Venture Capital and Loan Guarantees Access to Finance: Impacts of Publicly Supported Venture Capital and Loan Guarantees Authors : Dr. Ronnie Ramlogan & Dr. John Rigby Presented by : Arslan Austin Innovation IV SS 2014 Introduction Innovation

More information

Financing Your Business. 27 th May 2015 John Irwin Head of AIB SME Strategy & Enablement

Financing Your Business. 27 th May 2015 John Irwin Head of AIB SME Strategy & Enablement Financing Your Business 27 th May 2015 John Irwin Head of AIB SME Strategy & Enablement TARGET RETURNS Funding Provider Returns VS. Risk Private Equity c.25% Venture Capital c.25% Property c.10% - 12%

More information

Major Sources of Financing Solutions to Chapter Review Questions

Major Sources of Financing Solutions to Chapter Review Questions Chapter 2: Major Sources of Financing Solutions to Chapter Review Questions 1. Debt finance available in Australia: Trade Credit Bank Overdraft Trade Bills Promissory Notes Commercial Bills Inter-Company

More information

Emerging Markets Value Stock Fund

Emerging Markets Value Stock Fund SUMMARY PROSPECTUS PRIJX March 1, 2016 T. Rowe Price Emerging Markets Value Stock Fund A fund seeking long-term growth of capital through investments in undervalued stocks of companies in emerging market

More information

C&I LOAN EVALUATION UNDERWRITING GUIDELINES. A Whitepaper

C&I LOAN EVALUATION UNDERWRITING GUIDELINES. A Whitepaper C&I LOAN EVALUATION & UNDERWRITING A Whitepaper C&I Lending Commercial and Industrial, or C&I Lending, has long been a cornerstone product for many successful banking institutions. Also known as working

More information

Managing Cash Flow & Accessing Finance

Managing Cash Flow & Accessing Finance Managing Cash Flow & Accessing Finance A Presentation by Clive Lewis, Head of Enterprise, Institute of Chartered Accountants in England & Wales (ICAEW) Managing Cash Flow & Accessing Finance Presentation

More information

Commonwealth Caribbean Regional Conference. Investing in Youth Exploring Strategies for Sustainable Employment. Financing and Financial Mechanisms

Commonwealth Caribbean Regional Conference. Investing in Youth Exploring Strategies for Sustainable Employment. Financing and Financial Mechanisms Commonwealth Caribbean Regional Conference Investing in Youth Exploring Strategies for Sustainable Employment Financing and Financial Mechanisms Presented by Ian Chinapoo May 25 th, 2011 Outline: Background

More information

The Determinants and the Value of Cash Holdings: Evidence. from French firms

The Determinants and the Value of Cash Holdings: Evidence. from French firms The Determinants and the Value of Cash Holdings: Evidence from French firms Khaoula SADDOUR Cahier de recherche n 2006-6 Abstract: This paper investigates the determinants of the cash holdings of French

More information

HOW TO IMPROVE THE WORKING CAPITAL OF A COMPANY

HOW TO IMPROVE THE WORKING CAPITAL OF A COMPANY Volume 3, Issue 5 (May, 2014) Online ISSN-2277-1166 Published by: Abhinav Publication Abhinav National Monthly Refereed Journal of Research in HOW TO IMPROVE THE WORKING CAPITAL OF A COMPANY Hemanshu Kapadia

More information

tutor2u Working Capital Introduction to the Management of Working Capital AS & A2 Business Studies PowerPoint Presentations 2005

tutor2u Working Capital Introduction to the Management of Working Capital AS & A2 Business Studies PowerPoint Presentations 2005 Working Capital Introduction to the Management of Working Capital AS & A2 Business Studies PowerPoint Presentations 2005 Introduction All businesses need cash to survive Cash is needed to: Invest in fixed

More information

Raise the anchor. FEATURE 4 March 2015. One of the most reliable growth stimuli for SMEs is value chain financing.

Raise the anchor. FEATURE 4 March 2015. One of the most reliable growth stimuli for SMEs is value chain financing. Raise the anchor FEATURE 4 March 2015 One of the most reliable growth stimuli for SMEs is value chain financing. Qamar Saleem, Martin Hommes and Aksinya Sorokina explain how this works and why it is good

More information

Comparative Analysis of Profit Rate of Islamic Banks on Investment and Fixed Rate of Interest on Loan of Conventional Banks in Bangladesh

Comparative Analysis of Profit Rate of Islamic Banks on Investment and Fixed Rate of Interest on Loan of Conventional Banks in Bangladesh Comparative Analysis of Profit Rate of Islamic Banks on Investment and Fixed Rate of Interest on Loan of Conventional Banks in Bangladesh Mohammad Rokibul Kabir Assistant Professor Department of Business

More information

Planning & Financing of Working Capital

Planning & Financing of Working Capital Planning & Financing of Working Capital Objectives of Working Capital Elements of Working Capital Sources of Working Capital Working Capital Control and Banking Policy Tondon Committees Recommendations

More information

Cost of Credit. How much is customer credit REALLY costing your business? Tips & advice for effective credit management

Cost of Credit. How much is customer credit REALLY costing your business? Tips & advice for effective credit management Cost of Credit How much is customer credit REALLY costing your business? Tips & advice for effective credit management Group UK The best advice any business can follow to ensure they do not experience

More information

SME: Finance -Challenges & Opportunities- Factoring Services- A non-conventional option

SME: Finance -Challenges & Opportunities- Factoring Services- A non-conventional option IFCI Factors Limited SME: Finance -Challenges & Opportunities- Factoring Services- A non-conventional option 1 India s SME Scenario Indian SMEs account for almost 45 percent of industrial output and 40

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

Factoring in the 21st Century

Factoring in the 21st Century Factoring in the 21st Century The economic relevance of factoring and trade finance in Europe May 2013 1. What is factoring? 2. Who are factoring clients? 3. European factoring market and future trends

More information

An Introduction to Debtor Finance

An Introduction to Debtor Finance An Introduction to Debtor Finance For small businesses in Australia and around the world, cash flow remains one of the most persistent barriers to growth and profitability. With tight margins and limited

More information

Determinants of Capital Structure in Developing Countries

Determinants of Capital Structure in Developing Countries Determinants of Capital Structure in Developing Countries Tugba Bas*, Gulnur Muradoglu** and Kate Phylaktis*** 1 Second draft: October 28, 2009 Abstract This study examines the determinants of capital

More information

Hansani Chathurika Dassanayake a a University of Peradeniya, Sri Lanka. hansanidassanayake@gmail.com. Abstract

Hansani Chathurika Dassanayake a a University of Peradeniya, Sri Lanka. hansanidassanayake@gmail.com. Abstract Reshaping Management and Economic Thinking through Integrating Eco-Friendly and Ethical Practices Proceedings of the 3 rd International Conference on Management and Economics 26-27 February 2014 Faculty

More information

FUNDING SNAPSHOT 2013

FUNDING SNAPSHOT 2013 FUNDING SNAPSHOT 2013 Case Study How do I raise more finance for my business? Until recently the big banks were the first stop for businesses wanting to borrow money, but the marketplace is changing. Alternative

More information

A STUDY ON MANAGEMENT OF WORKING CAPITAL IN SELECTED IT COMPANIES IN INDIA

A STUDY ON MANAGEMENT OF WORKING CAPITAL IN SELECTED IT COMPANIES IN INDIA A STUDY ON MANAGEMENT OF WORKING CAPITAL IN SELECTED IT COMPANIES IN INDIA Bhavesh Chadamiya 1 and Dr. Vijay Pithadia 2 1 Research Scholar of Karpagam University & Assistant Professor, OM VVIM college

More information

Selecting sources of finance for business

Selecting sources of finance for business Selecting sources of finance for business by Steve Jay 08 Sep 2003 This article considers the practical issues facing a business when selecting appropriate sources of finance. It does not consider the

More information

Small Business Funding in Australia

Small Business Funding in Australia Small Business Funding in Australia Mihovil Matic, Adam Gorajek and Chris Stewart Smaller businesses typically access funding on less favourable terms than larger businesses. The reasons mostly relate

More information

A guide to business cash flow management

A guide to business cash flow management A guide to business cash flow management Contents 01. Cash flow management 01 02. Practical steps to managing cash flow 04 03. Improving everyday cash flow 06 04. How to manage cash flow surpluses and

More information

Schemes for Financing Micro, Small and Medium Enterprises

Schemes for Financing Micro, Small and Medium Enterprises Schemes for Financing Micro, Small and Medium Enterprises Background The Small Scale Industries Sector, redefined since 2006 as the Micro Small and Medium Enterprises Sector has played a seminal role in

More information

Long Term Business Financing Strategy For A Pakistan Business. Byco Petroleum Pakistan Limited

Long Term Business Financing Strategy For A Pakistan Business. Byco Petroleum Pakistan Limited Long Term Business Financing Strategy For A Pakistan Business Byco Petroleum Pakistan Limited Contents Why We Need Financing Strategy 3 How Financing Strategies are driven? 4 Financing Prerequisite for

More information

Code of Conduct for Business Lending to Small and Medium Enterprises

Code of Conduct for Business Lending to Small and Medium Enterprises 2012 Code of Conduct for Business Lending to Small and Medium Enterprises Scope This Code applies to all business lending by regulated entities. This Code shall not apply to Credit Unions. Credit Union

More information