Finance 4.1

• Short term funds - used for business operations' working capital.
• Banks - are usually your good source of short-term funds.
• Short term funds - funds that you may use as working capital for your daily business operations.
• Entrepreneur - when you need to finance accounts receivables or inventory, they usually turns to the banks for short term financing.
• Sales - are bought on credit or inventory needs to be paid, business may turn to banks while cash has not yet been paid.
• Working capital - current assets less current liabilities.
• Working capital - helps carry out normal operations of business.
• Working capital - used to generate sales and profits for a business.
• Cash - churned to either invest in inventory or to pay off short term obligations to reduce cost.
• Marketable securities - used to generate investment income through capital appreciation in stock investments or bond.
• Accounts receivable - increase sales by making buying more attractive with availability of credit.
• Inventory - is your product roster. The more interesting it is, the greater sales for your business.
• Long term funds - usually used for start up business, capital expenditures, or business expansion for existing business.
• When a business owner sees the need or the opportunity for his business to grow more, he may invest in a building or equipment that will sustain the growth of operations.
• Long term funds - may include a five year or a twenty year loan.
• Corporate setup - long term funds may come from two major sources: debt and equity from investing public.
• Corporations - may acquire debt by issuing bonds, or may raise capital by issuing preferred stock and common stock.
• Bank - a financial intermediary that brings together depositors and borrowers.
• Bank - are a major source of funding for working capital requirements.
• Commercial bank - are mostly retail customers.
• Commercial bank - they are the moms and dads in the neighborhood who are either employed, self-employed, or have small businesses.
• Commercial bank - its main business is lending.
• Commercial bank - transactions are many and usually not very large.
• Commercial bank - to be able to reach more cliente, they puts up many branches in different locations.
• Commercial bank - some examples are Banco De Oro (BDO), UnionBank, MetroBank, BPI.
• Universal bank - are licensed to do more sophisticated banking services than commercial banks.
• Universal bank - their clients comprises of the top corporations of the country and global businesses.
• Universal bank - transactions are usually bigger in size that commercial bank transactions, multicurrency, and global in nature.
• Investment banks - similar to universal banks in terms of sophisticated services.
• Investment banks - they do not have branches all aroud the country.
• Investment bank - they are more specialized with top corporations, global businesses, and governments.
• Investment bank - they perform market making activities such as trading, fund management, and portfolio management.
• Nonbank - financial intermediaries that are supervised and regulated by another government body, the SEC.
• Bank - regulated by its central bank; the Bangko Sentral ng Pilipinas (BSP)
• Investment companies - they pool your money together with the money of other investors and invest these in financial instruments: stocks, bonds, currencies, commodities, derivatives.
• Mutual funds - pool of funds; are not covered by deposit insurance.
• Mutual funds - are sold based on a net asset value per unit.
• Insurance companies - sell coverage or protection from events such as death, fire, accident.
• Insurance premiums - are paid by owner/buyer over a time period sucg as 5-10 years.
• Private equity funds - funds of private investors used to finance lucrative projects that are projected to give good returns.