Asset Loans and Accounts Receivable Financing Solutions

Asset Loans and Accounts Receivable Financing Solutions

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

Components of Contributed Capital: Explanation & Examples of Business Owner’s Actual Contribution

Components of Contributed Capital: Explanation & Examples of Business Owner's Actual Contribution

    What’s Inside Steward Carlson’s Accounting Office?

      “Different forms of business organizations have different components of contributed capital, Miss Tecson,” says Kelly, the accounting trainee.

    “Yes, and in a corporation, the contributed capital is different from its legal capital,” answers Miss Tecson, the accounting supervisor. Read more

Are You a Working Capital Whiz? Find Out

Are You a Working Capital Whiz? Find Out

     

    Working capital is a key financial concept, which almost works around the acid test ratio of comparing the proportion between current asset and current liabilities. However, under this liquidity measurement, current assets include only the cash and its most liquid equivalent, namely, accounts receivable and short-term investments. Read more

Capital Gains Tax – The What and the Why

Capital Gains Tax - The What and the Why

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

Managing Business Growth – The Problems With Overtrading

Managing Business Growth - The Problems With Overtrading

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

Inventory Turnover and Debt-to-Total-Capital Ratio

Inventory Turnover and Debt-to-Total-Capital Ratio

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

Bad Credit Small Business Loans – Sorting Out Real Options

Bad Credit Small Business Loans - Sorting Out Real Options

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