Canadian business, during its search for new and innovative financing solutions keeps hearing about asset loans and accounts receivable financing solutions. These two types of financing for Canadian business owners and financial managers are a subset of what is known as an asset based line of credit.
The financing is newer to Canada, growing in traction and popularity, and still widely misunderstood as a total financing strategy for your company. Read more
In the UK when we profit from selling something, or even from giving something away, there is a tax attached to that profit; this tax is called ‘Capital Gains Tax’ and every time we dispose of things like shares or property there is a chance that we may need to pay it. When we get rid of an asset and make a profit, whether we sell it, gift it, put it into someone else’s name, swap it for something else or receive a payout in lieu of something that has been stolen or destroyed, the profit that we make may be subject to Capital Gains Tax.
However, the assets subject to CGT do not include our personal car or the home where we live or any personal possessions up to 6,000. Read more
Overtrading and the problems it can create can be quite difficult to comprehend. Surely, if a business is selling many of their products and their customer base and profit are growing rapidly, how can this be a problem? Indeed, not only can it be a problem but in some extreme cases, it can lead to a business having to cease trading.
The fundamental reason why overtrading is a problem is that it can put a huge strain on the resources of a business, particularly cash flow. Read more
In examining a company’s liquidity, one important item to look at is the inventory. Is it turning over relatively quickly, thereby generating a steady flow of cash? Or is it stagnant, and in danger of becoming obsolete? A convenient measure that is applicable to these questions is the inventory turnover.
Inventory turnover is calculated by dividing the average cost of goods on hand during the period, i.e., the average inventory into the total cost of goods sold during the period. Read more
Today, small and medium businesses find themselves in a tough position Many businesses have been severely restricted or cut off from their traditional sources of capital, while at the same time needing this capital due to a difficult economy. Commercial Banks and the Small Business Administration have tightened lending standards while many businesses credit has declined due to hard economic conditions. Read more