Study on Financing Growth Capital for SMEs

Size: px
Start display at page:

Download "Study on Financing Growth Capital for SMEs"

Transcription

1 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 Thursday, December 1, 2011 Ottawa CHECK AGAINST DELIVERY EXPERTISE CANADA BANKS ON LA RÉFÉRENCE BANCAIRE AU CANADA

2 Opening remarks On behalf of the Canadian Bankers Association, its 52 members and 267,000 employees, I would like to thank you very much for the invitation to speak to the Committee on the subject of Financing Growth Capital for SMEs. I am here with Gail Cocker, Senior Vice President, Commercial Banking at BMO Bank of Montreal. Before we take your questions we would like to take a couple of minutes to talk about: How banks serve SMEs; How SMEs are financed; and How banks assist fast-growing SMEs reach their business goals through both credit and non-credit products and services in the early and growth stages of their life. Banks and SMEs Lending and providing products and services to SMEs is an important part of a bank s business portfolio. As of December 2010, Canada s domestic banks authorized around $87 billion in credit and have relationships with more than 1.5 million SMEs operating across Canada. In lending to SMEs, Canadian banks have utilized prudent lending practices and excellent risk management systems that have led us to be ranked four years in a row as the most sound in the world by the World Economic Forum, and ranked first in the world for financial strength by Moody s Investor Service for two years in a row. Indeed, as the Superintendent of Financial Institutions said last week when she appeared before this Committee, it is strong banks who can lend. SMEs have benefited from this strength. Lending to SMEs has gradually increased and year-over-year growth has consistently remained positive over the last five years. Since Q when SME lending began to increase its pace of growth, total authorized lending has increased by 6% and in the last year, authorized lending has increased by 4%. 1

3 Our emphasis on serving SMEs is being recognized by the SMEs themselves. In a CBA survey taken in the midst of the financial crisis, seventy-eight percent of SMEs indicated that they have a positive relationship with their financial institution. Of those SMEs that have a credit relationship with their bank, ninety percent reported that relationship to be positive. Forms of Finance for SMEs Businesses rely on two main forms of financing: credit and equity. Banks are institutions that provide credit financing to businesses. That is lending out funds with the promise to repay at a later time. When it comes to business credit, there are two main types of loans. One is secured loans, where the business puts up collateral such as a building or a machine tool as a guarantee. This is similar to a mortgage. The other type of loan is operating capital, where the bank lends money based on expected cash flow or income. The difficulty is that companies that are just starting out have no assets, and often no income, to borrow against. That, unfortunately, means that a bank that would lend to that company would take on essentially the same risk as the equity financiers, with little of the same upside reward of equity investments. Equity financing essentially provides investors with the opportunity to provide funds to a business in exchange for an ownership stake and a chance for that upside reward. The equity financing of new or growing private companies is often called venture capital. While the rewards with this type of financing can be very high if the company is ultimately successful, there is no guarantee that this will be the case. As other witnesses have already pointed out, four out of five new companies never see their fifth birthday. The level of risk among new businesses is very high and, as you ve also heard, it s very difficult to make money by providing venture capital. 2

4 Banks are not very active in providing financing to this area of the market. There are a number of reasons for this but the main one is prudential risk: banks are in the business of taking risks, but as both the Governor of the Bank of Canada and the Superintendent of Financial Institutions recently said before this Committee, there must be a limit on the amount of risk they are allowed to take. This makes sense if you consider what banks are and what they do. Banks operate large retail networks to take deposits and then invest those deposits, supported by shareholders capital. This means that that capital needs to be levered several times; not too much so as to create excessive risk, but enough to enable banks to operate efficiently and provide financing at low cost. Venture capital, because of its inherent riskiness, cannot be funded this way. It cannot be levered the way bank activities are. That is why banks do only small amounts of venture capital financing and that is why venture capital firms look very different from banks. Banks are using depositors money and hence keep risks low. Venture capital firms employ shareholder funds and hence can take bigger risks. We ve seen in other countries what happens when banks take too much risk or risks they do not fully understand. For the reasons I have just talked about, it s very difficult for banks to be active capital providers in the early stages of a company s growth. That doesn t mean, however, that the banks don t have a role to play. In the early stages, banks are able to provide financing and services to support them as they seek out venture capital. As companies grow, banks can play an increasingly important role in financing their growth. Bank Assistance for Fast Growing SMEs In the start-up and early stages of business formation, entrepreneurs attempt to prove that an idea has a reasonable chance of success, and then bring the product or idea to commercialization. These stages often witness the fastest growth. In these early stages, SMEs require seed and start-up financing to cover the marketing expenditures and organizational investments to begin to earn revenues. SMEs also require other products and services to help ensure their businesses are able to succeed and help them acquire additional debt and equity financing. 3

5 Because owners of SMEs often have relationships with their banks through their personal banking, we encourage them to approach their banker for advice. The banker can leverage their knowledge of the owner s personal situation to set up a number of small business financing solutions such as: introductions to potential customers, suppliers and sources of capital; economic trends and forecasts; specific information on special industries, information on companies for sale or looking for acquisitions; export solutions; and, bank short-term and long-term financing. SMEs can rely on banks short-term, day-to-day lending which includes overdraft, credit cards and lines of credit. Solutions to address unique short-term needs can also be arranged through banks. These include letters of credit to facilitate foreign transactions, bridge loans to close a purchase while permanent capital is sought, and bulge accounts to manage seasonal or cyclical requirements. SMEs can also arrange a variety of longer-term term financing solutions through their banks such as term loans, mortgages, leasing and factoring. Term loans provide the SME with the ability to purchase a new piece of machinery, equipment or technology or to acquire another company or operation, while mortgages allow the SME to expand their operations through the purchase of buildings or land. Leasing is a useful way to utilize equipment that is subject to rapid depreciation while factoring provides financing for accounts receivable. And of course banks provide access to loans through the Canada Small Business Financing Program operated through Industry Canada. Banks also provide non-credit products and services including: business chequing and savings accounts, in both Canadian and foreign dollar denominations; tax payment services; electronic funds transfers; payroll and filing services; and, coaching podcasts, booklets and seminars. 4

6 According to our customers, these non-credit products and services matter. In CBA surveys, a majority of business representatives consistently report that the selection of their main financial institution was driven by non-credit rather than credit products and services. The combination of these credit- and non-credit related products and services bolster and add credibility to a SME s attempts at obtaining venture capital finance from friends, relatives, business contacts, suppliers and private investors. For instance, a SME owner increases the likelihood of successfully attracting this venture capital finance if they can illustrate the cash flow needs of their business. Banks provide the tools, resources and assistance to enable SMEs to manage their cash flow needs. For instance, on-line banking allows SMEs to manage their expenses by monitoring their accounts and transaction details in real time, initiating electronic payments, obtaining foreign exchange quotes, and transferring funds between accounts. Tools such as on-line banking also help a SME owner and advisors (including their banker) to identify efficiencies and potentially reduce the need for those additional venture capital funds, and potential dilution of equity. Conclusion In closing, SMEs are integral parts of a banks business portfolio. Our strength and stability allowed us to finance SMEs throughout the financial crisis at a time when banks in other countries could not. This ability to serve is reflected in businesses satisfaction with the wide range of credit and non-credit products and services. Banks provide these products and services all through a SMEs life stages. While banks are not active capital providers in the early stages of a company s growth, we are able to provide debt financing and non-credit services to support them as they seek out venture capital from a variety of sources. As companies grow and mature, banks play an important role in financing their growth. Thank you for your attention. We would be pleased to answer any questions you have. 5

Banks in Canada Helping our Small and Medium-sized Enterprises Grow and Succeed

Banks in Canada Helping our Small and Medium-sized Enterprises Grow and Succeed Banks in Canada Helping our Small and Medium-sized Enterprises Grow and Succeed October 2013 Overview Small and medium sized enterprises (SMEs 1 ) are a vital part of the Canadian economy and, as a result,

More information

Working with your banker

Working with your banker Working with your banker Business CoaCH series How the system works What your bank expects of you How to maintain a banker-friendly relationship Business Coach series Getting support when you need it The

More information

Finding sources of capital. Secured and unsecured borrowing Selling equity Government programs Frequently overlooked sources

Finding sources of capital. Secured and unsecured borrowing Selling equity Government programs Frequently overlooked sources Finding sources of capital BusineSS Coach series Secured and unsecured borrowing Selling equity Government programs Frequently overlooked sources Business Coach series The fundamentals of finance The situation

More information

Financing a New Venture

Financing a New Venture Financing a New Venture A Canadian Innovation Centre How-To Guide 1 Financing a new venture New ventures require financing to fund growth Forms of financing include equity (personal, family & friends,

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

Dealing With Your Banker &

Dealing With Your Banker & Dealing With Your Banker & Other Lenders Your financing The success or failure of your business will depend on whether or not you have enough capital to: buy the equipment and inventory you need; pay overhead

More information

Web. Chapter FINANCIAL INSTITUTIONS AND MARKETS

Web. Chapter FINANCIAL INSTITUTIONS AND MARKETS FINANCIAL INSTITUTIONS AND MARKETS T Chapter Summary Chapter Web he Web Chapter provides an overview of the various financial institutions and markets that serve managers of firms and investors who invest

More information

How to Assess Your Financial Planning and Loan Proposals By BizMove Management Training Institute

How to Assess Your Financial Planning and Loan Proposals By BizMove Management Training Institute How to Assess Your Financial Planning and Loan Proposals By BizMove Management Training Institute Other free books by BizMove that may interest you: Free starting a business books Free management skills

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

Commercial Financial Services: Industry Specialization and Solutions for Working Capital Issues. October 6 th, 2014

Commercial Financial Services: Industry Specialization and Solutions for Working Capital Issues. October 6 th, 2014 Commercial Financial Services: Industry Specialization and Solutions for Working Capital Issues October 6 th, 2014 Who we are: Vision Always earning the right to be our clients' first choice. Strategic

More information

Competition, choice and innovation driving the customer experience in banking

Competition, choice and innovation driving the customer experience in banking Competition, choice and innovation driving the customer experience in banking A Speech by Nathalie Clark General Counsel and Corporate Secretary Canadian Bankers Association For MBA Association of Quebec

More information

Policies, Procedures and Guidelines

Policies, Procedures and Guidelines Policies, Procedures and Guidelines Complete Policy Title: Statement of Investment Policies and Guidelines Cash and Short Term Investment (formerly Working Capital) Approved by: Board of Governors Policy

More information

Business Planner. Your small business planning guide

Business Planner. Your small business planning guide Business Planner Your small business planning guide What s Inside the TD Canada Trust Business Planner Glossary...4 Your Business Profile What your business does or intends to do and your competitive advantage

More information

CHAPTER 2: THE CANADIAN SECURITIES INDUSTRY

CHAPTER 2: THE CANADIAN SECURITIES INDUSTRY CHAPTER 2: THE CANADIAN SECURITIES INDUSTRY Topic One: Industry Overview 1. Self-regulatory Organizations (SROs). A. The SROs set rules that govern the operations of investment dealers and market activity.

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

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

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

Business Studies - Financial Planning and Management Study Notes. Financial Planning and Management Study Notes:

Business Studies - Financial Planning and Management Study Notes. Financial Planning and Management Study Notes: Business Studies - Financial Planning and Management Study Notes Financial Planning and Management Study Notes: The Role of Financial Planning: The strategic role of financial management: Organisational

More information

Developing Business Plans and Funding Proposals

Developing Business Plans and Funding Proposals The best source of information and training on Aboriginal finance and management The Aboriginal Finance and Management Capacity Development Series Developing Business Plans and Funding Proposals A Practical

More information

CHAPTER 17. Financial Management

CHAPTER 17. Financial Management CHAPTER 17 Financial Management Chapter Summary: Key Concepts The Role of the Financial Manager Financial managers Risk-return trade-off Executives who develop and implement their firm s financial plan

More information

United States of America. Presentation of financial resources available to US investors in Afghanistan; Financial Tools

United States of America. Presentation of financial resources available to US investors in Afghanistan; Financial Tools United States of America Presentation of financial resources available to US investors in Afghanistan; Financial Tools Kabul, February 2007 Research categories for all countries Finance Categories 1. Equity

More information

Guide for SMEs in Obtaining Business Loan from Lending Institutions. The five steps of obtaining business loans

Guide for SMEs in Obtaining Business Loan from Lending Institutions. The five steps of obtaining business loans Guide for SMEs in Obtaining Business Loan from Lending Institutions Part I. The five steps of obtaining business loans 1. Gather information - Obtain information on the type of loan you are interested

More information

Copyright 2009 FranchisEsource Brands International

Copyright 2009 FranchisEsource Brands International Why are Franchise businesses more successful than independent businesses? There are thousands of franchise opportunities, with proven business systems, that have delivered consistent profitability over

More information

Online Accounting Software FUNDING OPTIONS GUIDE

Online Accounting Software FUNDING OPTIONS GUIDE Online Accounting Software FUNDING OPTIONS GUIDE Why you need to think about funding Every business needs money. Starting a business presents new challenges, many of which will require some financial outlay.

More information

GUIDE TO BUSINESS FINANCE & BUSINESS FUNDING

GUIDE TO BUSINESS FINANCE & BUSINESS FUNDING GUIDE TO BUSINESS FINANCE & BUSINESS FUNDING M3 Corporate Finance M3 Corporate Finance is an independent corporate finance house focused exclusively on mid-market transactions. M3 offers specialist corporate

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

+ What you ll learn from this? Improve your cash flow & learn about Asset- Based Loans

+ What you ll learn from this? Improve your cash flow & learn about Asset- Based Loans Improve your cash flow & learn about Asset- Based Loans + What you ll learn from this? For businesses in need of funding, one option is the assetbased loan. In this guide, you will learn about asset-based

More information

SCORE. Counselors to America s Small Business SMALL BUSINESS START-UP FINANCING OVERVIEW

SCORE. Counselors to America s Small Business SMALL BUSINESS START-UP FINANCING OVERVIEW SCORE Counselors to America s Small Business SMALL BUSINESS START-UP FINANCING OVERVIEW One key to a successful business start-up and expansion is your ability to obtain and secure appropriate financing.

More information

how to finance the business

how to finance the business A DV I C E B O O K L E T how to finance the business HOW TO FINANCE THE BUSINESS Getting enough of the right funding is one of the more difficult tasks that you will face as a new entrepreneur. Typically,

More information

GROWING. FINANCIAL PARTNERSHIPS Discover the Difference with DLC Expert Financial Loan Programs Provided through EQUIS CAPITAL FINANCE COMMERCIAL

GROWING. FINANCIAL PARTNERSHIPS Discover the Difference with DLC Expert Financial Loan Programs Provided through EQUIS CAPITAL FINANCE COMMERCIAL GROWING FINANCIAL PARTNERSHIPS Discover the Difference with DLC Expert Financial Loan Programs Provided through EQUIS CAPITAL FINANCE COMMERCIAL Acquisition Term Bridge Permanent Short Term Mezzanine Acquisition

More information

Solutions Made Simple

Solutions Made Simple Alternative Financing 1 Solutions Made Simple Unlocking The Alternatives March 3, 2011 Presented By: 2 Karlene Sinclair-Robinson Author / Entrepreneur / Speaker / Business Consultant Tel: 703-372-3248

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

Borrowing Money for Your Business

Borrowing Money for Your Business Borrowing Money for Your Business After you have developed a cash flow analysis and determined when your business will make profit, you may decide you need additional funding. Borrowing money is one of

More information

E- Commerce Solutions for Southern California

E- Commerce Solutions for Southern California An Advertising Supplement to the Orange County Business Journal September 29, 2014 KEYS TO ENTREPRENEURIAL SUCCESS ROUNDTABLE Stephen Freeman Partner K&L Gates Larry Gregson Audit Partner KSJG Caroline

More information

Part 10. Small Business Finance and IPOs

Part 10. Small Business Finance and IPOs Part 10. Small Business Finance and IPOs In the last section, we looked at how large corporations raised money. In this section, we will examine some of the financing issues facing small and start-up businesses.

More information

Guideline. Commercial Lending Criteria. No: E-2 Date: June 1992

Guideline. Commercial Lending Criteria. No: E-2 Date: June 1992 Canada Bureau du surintendant des institutions financières Canada 255 Albert Street 255, rue Albert Ottawa, Canada Ottawa, Canada K1A 0H2 K1A 0H2 Guideline Subject: No: E-2 Date: June 1992 This guideline

More information

Interest is only paid on the amount of the overdraft drawn down.

Interest is only paid on the amount of the overdraft drawn down. Overdraft By enabling you to overdraw from your cheque account, an overdraft is particularly useful at times when income is temporarily insufficient to meet payments that are due. Overdrafts do not require

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

Creating a financial proposal

Creating a financial proposal Creating a financial proposal Business Coach series Presenting your company Targeting your strengths Making the approach BusineSS Coach series Seeking serious money The situation When your company requires

More information

Managing your surplus cash

Managing your surplus cash Managing your surplus cash Savings and investments BusinESS Coach series Establishing a plan Putting your plan to work Thinking long term Business Coach series Your money should work as hard as you do

More information

SOURCES OF SME BUSINESS DEBT FINANCING IN ATLANTIC CANADA. By Theresa Shutt & Pierre Vanasse The Conference Board of Canada Ottawa, March 1999

SOURCES OF SME BUSINESS DEBT FINANCING IN ATLANTIC CANADA. By Theresa Shutt & Pierre Vanasse The Conference Board of Canada Ottawa, March 1999 SOURCES OF SME BUSINESS DEBT FINANCING IN ATLANTIC CANADA By Theresa Shutt & Pierre Vanasse The Conference Board of Canada Ottawa, March 1999 TABLE OF CONTENT Overview and Executive Summary....1 Introduction...8

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

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

Successful Accounting/Financing for Small Business Financing Overview

Successful Accounting/Financing for Small Business Financing Overview Successful Accounting/Financing for Small Business Financing Overview Department of Economics Finance, and Decision Sciences University of North Carolina at Pembroke ramin.maysami@uncp.edu 910-987-2311

More information

Assessing Viability and Feasibility of Business Ideas. Dr. Neeraj Pandey Assistant Professor LM Thapar School of Management

Assessing Viability and Feasibility of Business Ideas. Dr. Neeraj Pandey Assistant Professor LM Thapar School of Management Assessing Viability and Feasibility of Business Ideas Dr. Neeraj Pandey Assistant Professor LM Thapar School of Management WHY NEW VENTURES FAIL Lack of Objective Evaluation No Real Insight into the Market

More information

The Gardens At Callaway CARE Seminar Financial Solutions for your Business. Richard Fairey, SVP Market President May 10, 2005

The Gardens At Callaway CARE Seminar Financial Solutions for your Business. Richard Fairey, SVP Market President May 10, 2005 The Gardens At Callaway CARE Seminar Financial Solutions for your Business Richard Fairey, SVP Market President May 10, 2005 Page 2 Page 3 Page 4 Page 5 About Wachovia Assets - $507 billion Deposits -

More information

A primer in Entrepreneurship

A primer in Entrepreneurship Prof. Dr. Institutefor Strategy and Business Economics Chapter 10: Getting Financing or Funding Table of Contents I. The Importance of Getting Financing or Funding II. III. Sources of Equity Funding Sources

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

CHAPTER 9: BANKING DOING BUSINESS IN GREATER PHOENIX, U.S.A. 9.1: THE U.S. BANKING SYSTEM 9.2: ESTABLISHING A U.S. BANK ACCOUNT

CHAPTER 9: BANKING DOING BUSINESS IN GREATER PHOENIX, U.S.A. 9.1: THE U.S. BANKING SYSTEM 9.2: ESTABLISHING A U.S. BANK ACCOUNT CHAPTER 9: BANKING 9.1: THE U.S. BANKING SYSTEM Unlike banks in many countries, U.S. banks are not government-owned and managed. They provide deposit facilities for the general public, provide loans for

More information

SMALL BUSINESS DEVELOPMENT CENTER RM. 032

SMALL BUSINESS DEVELOPMENT CENTER RM. 032 SMALL BUSINESS DEVELOPMENT CENTER RM. 032 FINANCING THROUGH COMMERCIAL BANKS Revised January, 2013 Adapted from: National Federation of Independent Business report Steps to Small Business Financing Jeffrey

More information

ALL NATIONS TRUST COMPANY SAMPLE BUSINESS PLAN

ALL NATIONS TRUST COMPANY SAMPLE BUSINESS PLAN ALL NATIONS TRUST COMPANY SAMPLE BUSINESS PLAN WHAT MAKES A GOOD BUSINESS PLAN? A business plan is a written document, which outlines: the business and owner s background the proposed resources to be used

More information

OSC EXEMPT MARKET REVIEW OSC NOTICE 45-712 APPENDIX C CAPITAL RAISING IN CANADA AND THE ONTARIO EXEMPT MARKET

OSC EXEMPT MARKET REVIEW OSC NOTICE 45-712 APPENDIX C CAPITAL RAISING IN CANADA AND THE ONTARIO EXEMPT MARKET OSC EXEMPT MARKET REVIEW OSC NOTICE 45-712 APPENDIX C CAPITAL RAISING IN CANADA AND THE ONTARIO EXEMPT MARKET 1 1. Introduction As a securities regulator, the Ontario Securities Commission is committed

More information

CAREER OPPORTUNITIES IN FINANCE Department of Finance, Real Estate, and Insurance

CAREER OPPORTUNITIES IN FINANCE Department of Finance, Real Estate, and Insurance CAREER OPPORTUNITIES IN FINANCE Department of Finance, Real Estate, and Insurance PURPOSE OF THE ACADEMIC MAJORS The Bachelor of Science in Business Administration at CSUN offers options in Finance, Real

More information

What s on a bank s balance sheet?

What s on a bank s balance sheet? The Capital Markets Initiative January 2014 TO: Interested Parties FROM: David Hollingsworth and Lauren Oppenheimer RE: Capital Requirements and Bank Balance Sheets: Reviewing the Basics What s on a bank

More information

The transfer between levels of hierarchy (i.e., from Level 2 to Level 1) in 2010 was due to the listing of the SMC shares in December 2010.

The transfer between levels of hierarchy (i.e., from Level 2 to Level 1) in 2010 was due to the listing of the SMC shares in December 2010. 24 In accordance with this amendment, financial assets and liabilities measured at fair value in the statement of financial position are categorized in accordance with the fair value hierarchy. This hierarchy

More information

Sources of Funds: Equity and Debt

Sources of Funds: Equity and Debt Sources of Funds: Equity and Debt The Secrets to Successful Financing 1. Choosing the right sources of capital is a decision that will influence a company for a lifetime. 2. The money is out there; the

More information

A primer in Entrepreneurship

A primer in Entrepreneurship Prof. Dr. Institutefor Strategy and Business Economics Chapter 10: Getting or Financing Table of Contents I. The Importance of Getting Financing or II. III. IV. Sources of Equity Sources of Debt Financing

More information

SOURCES OF CAPITAL. 1. KINDS OF MONEY When you plan the capital requirements of your new firm, you can consider two forms of money.

SOURCES OF CAPITAL. 1. KINDS OF MONEY When you plan the capital requirements of your new firm, you can consider two forms of money. SOURCES OF CAPITAL New businesses must be capitalized carefully. Entrepreneurs must identify their start-up capital needs and their cash flow through their break-even point. The total of the two, plus

More information

Notes to Consolidated Financial Statements Note 1: Basis of Presentation

Notes to Consolidated Financial Statements Note 1: Basis of Presentation NOTES TO CONSOLIDATED FINANCIAL STATEMENTS to Consolidated Financial Statements Note 1: Basis of Presentation Bank of Montreal ( the bank ) is a public company incorporated in Canada having its registered

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

SMALL BUSINESS OWNER S HANDBOOK

SMALL BUSINESS OWNER S HANDBOOK SMALL BUSINESS OWNER S HANDBOOK PART II: FINANCIAL PLANNING FOR SMALL BUSINESSES Introduction Financial Planning Methods of Financing Your Business Other Types of Funds & Financing How to Approach Lenders

More information

A Survey of SME Finance and the Emerging Alternatives for Access to Capital

A Survey of SME Finance and the Emerging Alternatives for Access to Capital A Survey of SME Finance and the Emerging Alternatives for Access to Capital Jim Faith Trade and Export Finance Online Global California December 3, 2014 2014 TEFO. All Rights Reserved Agenda Section 1:

More information

Sources of Short-Term Financing C H A P T E R E I G H T

Sources of Short-Term Financing C H A P T E R E I G H T Sources of -Term Financing C H A P T E R E I G H T Figure 8-1 Structure of corporate debt, 1998 PPT 8-1 35% 30% 25% 20% 15% 10% 5% 0% Accounts payable Bank loans Other short term loans term paper Bonds

More information

advertise to announce that a product is for sale or that a service is offered in order to encourage people to buy it or to use it

advertise to announce that a product is for sale or that a service is offered in order to encourage people to buy it or to use it Aa Acquisition process by which a company buys another company advertise to announce that a product is for sale or that a service is offered in order to encourage people to buy it or to use it advertiser

More information

Finding and Financing Your Small Business. Hosted by Susan Strong 77

Finding and Financing Your Small Business. Hosted by Susan Strong 77 Finding and Financing Your Small Business Hosted by Susan Strong 77 Welcome! we will begin the webinar at the top of the hour Finding and Financing A Business... Find out the benefits and facts Agenda

More information

Your Business, Your Money Business Financing Options

Your Business, Your Money Business Financing Options Your Business, Your Money Business Financing Options When your business needs financing for growth, acquiring new equipment, adding a new product or for any reason, you probably go to your local bank or

More information

Finance for Business Growth

Finance for Business Growth Finance for Business Growth A Presentation by Clive Lewis, Head of Enterprise, Institute of Chartered Accountants in England & Wales (ICAEW) Finance for Growth Businesses Presentation will cover: Do you

More information

INDUSTRIAL-ALLIANCE LIFE INSURANCE COMPANY. FIRST QUARTER 2000 Consolidated Financial Statements (Non audited)

INDUSTRIAL-ALLIANCE LIFE INSURANCE COMPANY. FIRST QUARTER 2000 Consolidated Financial Statements (Non audited) INDUSTRIAL-ALLIANCE LIFE INSURANCE COMPANY FIRST QUARTER 2000 Consolidated Financial Statements (Non audited) March 31,2000 TABLE OF CONTENTS CONSOLIDATED INCOME 2 CONSOLIDATED CONTINUITY OF EQUITY 3 CONSOLIDATED

More information

Thomas Kloet Chief Executive Officer TMX Group. The Economic Club of Canada May 27, 2014 **CHECK AGAINST DELIVERY**

Thomas Kloet Chief Executive Officer TMX Group. The Economic Club of Canada May 27, 2014 **CHECK AGAINST DELIVERY** Thomas Kloet Chief Executive Officer TMX Group The Economic Club of Canada May 27, 2014 **CHECK AGAINST DELIVERY** Show Me the Money An Exploration of Capital Raising in Canada Thanks very much, Natasha,

More information

Franchise Financing Made Easy. How do you decide which type of financing is best for you?

Franchise Financing Made Easy. How do you decide which type of financing is best for you? How do you decide which type of financing is best for you? A Proven Business Model Why are Franchise businesses more successful than independent businesses? There are thousands of opportunities, with proven

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

GENWORTH MI CANADA INC.

GENWORTH MI CANADA INC. Condensed Consolidated Interim Financial Statements (In Canadian dollars) GENWORTH MI CANADA INC. Three and six months ended June 30, 2015 and 2014 Condensed Consolidated Interim Statements of Financial

More information

Who Are We? I Objectives I Rewarding Experiences I Strong Relationships I A Successful Company I Closing

Who Are We? I Objectives I Rewarding Experiences I Strong Relationships I A Successful Company I Closing As a Scotiabank Specialist you will be part of our National Mortgage Sales Team, Alternate Mortgage Delivery. This channel is a key component of Scotiabank's customer acquisition strategy. "As a channel,

More information

Access to finance for. SMEs. István NÉMETH European Commission DG for Internal Market, Industry, Entrepreneurship and SMEs

Access to finance for. SMEs. István NÉMETH European Commission DG for Internal Market, Industry, Entrepreneurship and SMEs Access to finance for SMEs István NÉMETH European Commission DG for Internal Market, Industry, Entrepreneurship and SMEs Why EU intervention needed? EU financial instruments for SMEs Building on success

More information

> > A global banking presence, dedicated to providing truly personal service to clients big and small

> > A global banking presence, dedicated to providing truly personal service to clients big and small Metropolitan National Bank is a chartered national bank and a member of the FDIC. We are an equal opportunity lender and have developed prudent lending standards that can be applied in an innovative and

More information

Guide to Public and Private Funding

Guide to Public and Private Funding Guide to Public and Private Funding Introduction to public and private funding Key Public Funding Opportunities Key Private Funding Opportunities Which funding opportunity is right for my business? Do

More information

Helping businesses source finance

Helping businesses source finance SUPPORTING BUSINESS - SOURCING FINANCE Helping businesses source finance Helping businesses source finance These are challenging times for every business. The economic environment has changed and many

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

Investment policy Adopted 28 May 2014

Investment policy Adopted 28 May 2014 Adopted 28 May 2014 our our community future Background The Local Government Act 2002 requires Council to adopt a policy for the management of investments including; The mix of investments. The acquisition

More information

account statement a record of transactions in an account at a financial institution, usually provided each month

account statement a record of transactions in an account at a financial institution, usually provided each month GLOSSARY GLOSSARY Following are definitions for key words as they are used in the financial life skills resource. They may have different or additional meanings in other contexts. A account an arrangement

More information

Investing in mortgage schemes?

Investing in mortgage schemes? Investing in mortgage schemes? Independent guide for investors about unlisted mortgage schemes This guide is for you, whether you re an experienced investor or just starting out. Key tips from ASIC about

More information

CONSOLIDATED STATEMENTS OF OPERATIONS

CONSOLIDATED STATEMENTS OF OPERATIONS CONSOLIDATED STATEMENTS OF OPERATIONS For the years ended December 31, (in millions of Canadian dollars except for per share amounts) 2015 2014 Revenue Premiums Gross $ 16,824 $ 15,499 Less: Ceded 6,429

More information

A Structured Approach to Business Financing, Part 3: Putting It All Together A Case Study

A Structured Approach to Business Financing, Part 3: Putting It All Together A Case Study A Structured Approach to Business Financing, Part 3: Putting It All Together A Case Study By MARK EIKELAND, CGA Case study Review of financial statements Normalized statement of cash flow Uses and sources

More information

Module 1: Corporate Finance and the Role of Venture Capital Financing TABLE OF CONTENTS

Module 1: Corporate Finance and the Role of Venture Capital Financing TABLE OF CONTENTS 1.0 ALTERNATIVE SOURCES OF FINANCE Module 1: Corporate Finance and the Role of Venture Capital Financing Alternative Sources of Finance TABLE OF CONTENTS 1.1 Short-Term Debt (Short-Term Loans, Line of

More information

Finding Your Place in Space: The Reality of Starting Your Own Business

Finding Your Place in Space: The Reality of Starting Your Own Business Finding Your Place in Space: The Reality of Starting Your Own Business Presented at: Attitudes/ Skills/ Knowledge- Workshop November 30 th, 2005 Presented by: Ian Goodall-George, Chief Executive Officer

More information

Financing Options for Companies at Each Stage of Growth

Financing Options for Companies at Each Stage of Growth Financing Options for Companies at Each Stage of Growth Nia Stefany Managing Partner Contents Introduction to Who We Are What is an Investment banker? Investment Bankers Value Proposition Investors Expectations

More information

BANKERS GUIDE TO SECURE LENDING

BANKERS GUIDE TO SECURE LENDING BANKERS GUIDE TO SECURE LENDING WAREHOUSE RECEIPTS, ORDER OR STRAIGHT BILLS OF LADING, OTHER NEGOTIABLE AND NON-NEGOTIABLE DOCUMENTS OF TITLE, INCLUDING WAREHOUSE AND BAILEE OR DOCK RECEIPTS Lending Rationale

More information

The International Certificate in Banking Risk and Regulation (ICBRR)

The International Certificate in Banking Risk and Regulation (ICBRR) The International Certificate in Banking Risk and Regulation (ICBRR) The ICBRR fosters financial risk awareness through thought leadership. To develop best practices in financial Risk Management, the authors

More information

Funding Your Business

Funding Your Business Page 12 County of Bucks Community Services Division Lynn T. Bush, Executive Director and County Chief Clerk Community and Business Development Department Vitor A. Vicente, Director Neshaminy Manor Center

More information

Consolidated Financial Results April 1, 2001 - June 30, 2001

Consolidated Financial Results April 1, 2001 - June 30, 2001 Consolidated Financial Results April 1, 2001 - June 30, 2001 August 3, 2001 In preparing its consolidated financial information, ORIX Corporation and its subsidiaries have complied with accounting principles

More information

What Kind of Funding Can My Business Most Easily Qualify For?

What Kind of Funding Can My Business Most Easily Qualify For? What Kind of Funding Can My Business Most Easily Qualify For? FUNDING TYPES Businesses pass through several stages and there's funding to be had at every stage of their development. The information you

More information

Plan and Track Your Finances

Plan and Track Your Finances Chapter 9 Plan and Track Your Finances 9.1 Finance Your Business 9.2 Pro Forma Financial Statements 9.3 Record Keeping for Businesses Ideas in Action Electronic Safekeeping Katelin Shea addressed the unmet

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

Funding Options In a commercial a few years ago, baseball legend and philosopher Yogi Berra said they give you cash, which is just as good as money. In typical Yogi fashion, there is some wisdom behind

More information

RISK FACTORS AND RISK MANAGEMENT

RISK FACTORS AND RISK MANAGEMENT Bangkok Bank Public Company Limited 044 RISK FACTORS AND RISK MANAGEMENT Bangkok Bank recognizes that effective risk management is fundamental to good banking practice. Accordingly, the Bank has established

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

Oct '12 (percent) 3. To what extent is your business having difficulty obtaining financing for desired long-term uses such as capital expenditures?

Oct '12 (percent) 3. To what extent is your business having difficulty obtaining financing for desired long-term uses such as capital expenditures? October 27, 2014 SPECIAL QUESTIONS Data were collected Oct. 6 9, and 183 Texas business executives responded to the survey. 1. How do borrowing conditions facing your firm compare to those six months ago?

More information

This strategy gives a person the ability to take advantage of the tax-sheltering ability of a life insurance policy.

This strategy gives a person the ability to take advantage of the tax-sheltering ability of a life insurance policy. Insuring the Future In this Newsletter: Supplementing Retirement Income Who should be looking at this strategy? The Registered Savings Problem John Jordan, CFP CERTIFIED FINANCIAL PLANNER Phone: (519)

More information

PRESS RELEASE. Ana Botín: Santander is well positioned to face the challenges. We will lead change GENERAL SHAREHOLDERS MEETING

PRESS RELEASE. Ana Botín: Santander is well positioned to face the challenges. We will lead change GENERAL SHAREHOLDERS MEETING PRESS RELEASE GENERAL SHAREHOLDERS MEETING Ana Botín: Santander is well positioned to face the challenges. We will lead change Banco Santander has room for growth within our customer base and in our ten

More information

MANUFACTURERS: Access to financing and specific needs. BDC ViewPoints study May 2013

MANUFACTURERS: Access to financing and specific needs. BDC ViewPoints study May 2013 MANUFACTURERS: Access to financing and specific needs BDC ViewPoints study May 2013 SURVEY HIGHLIGHTS: Manufacturers access to financing > Manufacturers who answered the survey seem to generally be in

More information