Financial Backpack

Contains about financial information

Author: blogger

Finance Lease Companies In Canada Experience The Benefits Of Leasing Company Offerings

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Leasing company solutions can be the true ‘ success story ‘ of any business that requires assets and technology. But does the business owner/financial manager really understand how to maximize benefits achieved from this method of asset financing? Let’s dig in.

Over the years the lease finance industry has gravitated to financing every type of asset – they call that from ‘ micro ticket ‘ to ‘ large ticket ‘ which can be an office photo copy machine for 2k or a corporate aircraft for 20M$.

The borrower, aka ‘ the lessee ‘ that knows the differences of applying for and getting approved for different asset categories. Owners/managers can also waste a lot of shoe tread in dealing with the wrong firm when it comes to your company’s credit quality, geographical location, etc.

When it comes to the small ticket market (people disagree on the exact maximum deal size within this market segment) a large part of the financial approval is often based on the personal credit history and guarantees of owners. If your company doesnt have a truly very strong profile (strong = growing sales, growing profits, growing cash flow, acceptable debt levels) it can almost be guaranteed that personal guarantees will be requested.

The one thing we want to mention about guarantees is that owners/managers who can present their company financials properly can often have some ‘wiggle room ‘ in the personal guarantee conundrum. That might mean a ‘ partial guarantee ‘ or a ‘ declining balance’ guarantee. In some cases it might make sense to negotiate the type of ‘ covenants ‘ that are often related to bank loans – i.e. debt to equity / working capital ratios.

Old school credit granting is not quite dead yet also, so traditional criteria such as years in business, usefulness of the asset being financing relative to revenue / profit generation, and commercial credit references also can play a large part in the overall approval process. If there is one good thing happening in financing approvals is that timelines these days are close to instantaneous in the small / mid market – typically same day or 48 hrs max.

We’ve always maintained that clients focus far too much on rate, if only for the reason that that finance lease companies are in a highly competitive environment – ultimately your firm’s credit quality will always drive the lowest rate in a competitive environment. Owners/managers would be cautioned to spend more time on areas such as terms of the lease, renewals, buyout options, and down payments or security deposits that might on occasion be required.

While we’re talking in the main about ‘ lease financing ‘ remember also that term loans for equipment might ultimately make as much sense for your financing needs – Also assets already owned can be refinancing under creative sale leaseback or bridge loan scenarios.

Larger transactions for any leasing company will receive a lot more credit diligence when it comes to financial statement analysis, cash flow reviews, and consideration for nuances in the particular industry your firm might be in. Unfortunately some industries temporarily find themselves ‘ out of favor ‘.

We can’t over emphasize the need for time spent on documents – that might be a ‘ Master lease ‘ scenario, or the rights and obligations you have under and operating lease. The ability to ‘ add on’ to any current lease transaction is typically always available.

Amortization terms for finance lease companies tend to range from 2-7 years, in truth the majority of transactions are on a 3-5 year term which makes sense for a large category of different asset types.

What then are the most touted, and real… benefits of equipment finance they include :
Ability to access other credit facilities other than current borrowings
Rates
Ability to finance 100% of any asset acquisition
If you’re looking to maximize on the benefits of a leasing company solution seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your asset finance needs.

Stan Prokop

Changing Landscape of Financial System

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Changing Landscape of Financial System Ajay Singh Chief Executive Officer Forbes Technosys Ltd

-The Forbes platforms is highly efficient can be readily linked with the Aadhaar Enabled Payment System,- says Ajay Singh. In Conversation with Mohd Ujaley.

You have a strong focus on BFSI sector. How do you look at some of the key flagship programmes of the government such as Direct Benefit Transfer (DBT) and MNREGA? Forbes Technosys Ltd has a wide range of solutions for BFSI sector, all of which are designed with latest technology and by ensuring security standards that are in line with the changing landscape of banking and financial systems. To facilitate the cause of Financial Inclusion, MNREGA and DBT, we have developed an entire range of both centralised and doorstep delivery solutions, which can be utilised depending upon the requirements of the government, and the accessibility related factors in the remote areas. Forbes has installed centralised delivery solutions, which aim to provide solar energy to the rural areas and also provide wide range of banking and other services. A large number of other government schemes can also be linked through these solutions, thereby increasing the viability of these solutions. We are also delivering doorstep solutions which are specially designed for use by BCs in remote areas to provide basic banking services. To increase the scalability of Forbes Solution range, all the Forbes platforms have been provided with multifactor authentication systems, which can be readily linked with the Aadhaar Enabled Payment System (AEPS).

You have been working for the government for quite some time now. How has been your experience? Other than BFSI domain, we are catering to sectors like power and telecom. We have deployed self service bill payment kiosks in almost all the major power utilities and telecom companies.More than `1000 Crores is being collected annually through our systems. Forbes Technosys has Government (DGS&D) certified information kiosks and various G2C (Government to Citizen) kiosks, which are deployed at various Municipal Corporation and Government departments like Tourism, etc. Our ATVM (Automatic Ticket Vending Machines) and POET (Passenger Operated Enquiry Terminals) machines are active in majority of metro railway stations. Forbes Technosys has developed Enterprise Mobility solutions and Canteen Management applications. We cater to many PSUs, which have large employee base. We have also developed HR leave management solutions and tourism kiosk. These kiosks can act as point of information and action for employees of those organisations and also for the visitors. Forbes has also developed cash and cheque collection solutions for insurance companies, and tax departments. For environmental awareness, Forbes also has developed Carbon Footprint Kiosks, which are placed at various government institutions, thereby offering a unique experience to visitor, for calculating his Carbon footprint and making him aware for reducing these. We have developed self-service solutions, through which citizens can interact with the government departments.

In order to facilitate financial inclusion of people from remote areas across the country, government has developed the plan to introduce micro-ATM and Business Correspondents. Do you see this space as a business opportunity? As a first step towards driving these unbanked masses into the banking stream government is looking for various initiatives like micro-ATM, Business Correspondents, etc. This is indeed a noble initiative and it will help in bringing more transparency in the way financial subsidies are managed. However, the system has its own constraints. In my opinion, the best possible way to check leakages and ensure safety of the payment system is through Electronic Cash Transfer. In this case the beneficiary gets access to his entitlement only after authenticating himself through the Aadhaar Enabled Payment System.

Aadhaar is indeed a revolutionary step forward, however de-duplication of the data seems to be the biggest challenge. What is the best way forward? The data captured through the Aadhaar System should be linked with different government organisations like banks, NIC, Police department, Municipal Corporation, RTO etc., for maximum advantage. The data captured should be fragmented and disseminated to the involved government departments. The government should also promote and deploy self service platforms and solutions, which are based on biometric authentication along with user account details, this will certainly lead to more efficiency and transparency.

Find the Correct Vibrational Place to Attract Financial Abundance

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The universe can provide a steady stream of abundance and if you believe and attain a vibrational alignment with this abundance you will receive your share and it won’t be difficult to do and it doesn’t have to take much time because you are already well along the way.

What often happens with most people is they unwittingly provide resistance to their natural financial well-being. If they could shift their vibration around money from worry and concern to enthusiasm and fun their financial well-being would be assured. As your resistance is replaced with allowing and your doubts replaced with belief your abundance will become obvious and real. When that emotional shift occurs, immediate financial manifestations will be the evidence of that shift. If I can convince you that the path to financial abundance is simply an emotional path, in other words when you focus on how you feel and care about how you feel and you feel good most of the time your abundance and in fact anything you desire will become a reality.

Your work is not to go out and try and make this happen through action and effort but simply to allow and relax into a comfortable and gradual rediscovery of your natural state of relief and ease and well-being.

When you attain financial abundance it does not mean that you deprive someone else of theirs. Because the way the universe works is that abundance expands proportionately to match all desires. If you can find joy and happiness when you see the success of another then your resistance disappears and your own success will soar. The fastest way to get an improved financial condition is to look for pleasing things that you already have. For in focusing on that which is already working in your life, more success will come and it will come quickly.

Financial abundance does not occur in one’s life through hard work or good luck or favouritism. Financial abundance is simply the universe’s response to consistent thoughts and feelings of abundance. When you are able to accomplish the feeling of abundance within yourself before the evidence has shown itself to you, the evidence must come and it will continue to come as long as you maintain the feeling of abundance. I know this because I have created financial abundance in this way in my own life.

Any time you are feeling good no matter the reason you are a vibrational match to the feeling of abundance. In your absence of resistance everything that you have ever asked for is making its way to you through the law of attraction. With each passing day your vibrational point of attraction will continue to improve until there will be an obvious tipping point. For a while the only evidence of your financial progress will be your improved emotional state of being. And if you let that be enough, not focusing on where your finances are at the moment, financial improvement will come.

Know that you are doing extremely well and abundance is flowing to you and the abundance that you seek is coming One of the best ways to do this is to feel gratitude and appreciation for where you are and excitement and enthusiasm for what is next.

Accountancy Candidate Recruitment Key To Effective Financial Management

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Indeed, managing its accounts and finances is of the crucial importance for any organisation irrespective of its nature and size. And this is where the Accountancy Candidate Recruitment becomes indispensable for an organisation. The Accountant takes care of the accounting system of the organization and enables it to have effective financial management which is one of the prerequisites for the overall development of an organisation. This write-up focuses on an accountants core responsibilities making it vital for any organisation to opt for Accountancy Candidate Recruitment.

Core Responsibilities Of An Accountant:

Contributes in the development and implementation of the organisations accounting system in compliance with the established accounting principles and auditing procedures.

Prepares and supervises categorical program reports and grants to lessen the agency disallowances.

Examines the categorical program and grant expenditures for conformity with the district policy so as to ensure the acceptance of reports.

Checks the categorical reports and grants for appropriateness of expenses to enable the auditing procedures

Supports in the preparation of yearly district budget for categorical programs and grants to ensure that the expenses are balanced to the revenues.

Prepares monetary year-end concluding entries so as to facilitate clean audit.

Arranges and interprets the reports related to grant expenses to the district program managers in charge.

Interprets accounting policies and set of laws from the Local and Federal agencies.

Serves as link to the granting agencies and district departments to obtain and provide constant information regarding the regulations.

Arranges financial statements and reports, and studies them to provide chronological information, exact fiscal projections and reports, etc.

Manages the record of financial transactions such as deposits, journals, transfers, etc. and verifies and posts the closing entries in the end of the fiscal year for preparing the yearly financial accounts for reporting and auditing purposes.

Analyses and interprets the investment activity; assigns dividends, interest, losses, gains, fees, and beneficiary payments; for preparing yearly financial statements.

Evidently, an accountant has a crucial role in an organisation. Thus the selection of an accountant must be done carefully and if needed professional assistance of a recruitment agency should be taken.

McBarron Wood International is counted amid the Best Accountancy Recruitment Agency in the UK. It is specialised in rendering services such as Finance and Accountancy Recruitment, Group Finance Recruitment, Executive Recruitment, Financial Management Recruitment and Executive Search Services. Visit http://www.mcbarronwood.com and find the best solution for Accountancy Recruitment in London.

Invest In Mutual Funds Or Bank Fixed Deposits

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I have often seen people planning to Invest in bank Fixed Deposits rather than Equity related Mutual Funds inspite of the growing Indian Economy and rising stock market. Though the times are changing and people have started looking at Equity Investment schemes, but still its only the minority of people savings going into the equity market.

Indians are skeptic about investing in Equities. Reason behind so is lack of knowledge and general awareness of the benefits. One needs to understand that stock markets are the best way to benefit from a country which economy GDP is growing over 8.5% year on year. Stock market basically resembles a Nation’s financial condition which of India is going to get better n better.

Indian Money Is Way Too Conservative

Fact figures suggests that 48% of total American savings goes for investing in schemes related to equities. On the other hand the fact figure for Indian savings money routed to equities stands at a merely small total of just 2%. No wonder, both the Indian Government and leading Indian Stock Exchanges are always keen to generate interest and awareness within the common people indicating towards the benefit of investing in equities for the long term.

Its the lack of Financial Education which keeps Indian savings money away from the Equities, since they are not ever formally introduced to financial planning and Investing. Majority of people believes that small investors cannot earn money from stock market, which absolutely is just a myth and nothing more.

Indian Investors still prefers the traditional way of Investment like Fixed Deposits. In fact Fixed Deposits are so famous and traditional that, during daughters marriage, father often gifts Fixed Deposits!

What Is A Bank Fixed Deposit?

A fixed-income debt security issued by banks. A Fixed Deposit is like loaning the bank your money and in return, they pay you interest which is currently between 8-9.5% p.a.

At this interest rates your money will double approx in 7-8 years. Too less, too late? Read on

Why You Should Not Be Investing In Fixed Deposits?

The most unusual characteristic of a fixed deposit is that the funds cannot be withdrawn for a specified period of time which is usually 3 years since deposit for any reason.

Changes in the going interest rate may also rise to a point above and beyond the interest rate applied to existing deposits done with the banks. This means account holders are actually earning less interest with fixed deposits than with other types of products.

What is a Mutual Fund?

A Mutual Fund is a investment scheme maintained and run by professional fund managers working under the name of a Financial Institute or a Fund House. Money is being collected from different and many investors and then collectively put in a pool account from where the fund managers makes Buy and Sell trades according to there own group research and investment objectives.

Dalal Street people prefers you thinking that what they do with your money is some rocket science and you are absolutely not the right person to take your own financial decision so that they keep earning fat commissions for themselves you being entrusting them your hard earned money.

Though its a different case that of course you can also invest your money yourself with little bit of research and with the help of expert Indian stock advisory services like Winfromus which generates higher returns than the different Mutual Fund schemes.

But never the less, there are some real good fund managers out there too, doing what they are best at and most of the good names has been successfully generating 13-15% Compounded Annual Growth Returns (CAGR) since the past 5-6 years.

CAGR Projection over the next 3 years from Indian Stock Markets

Conservative projection suggests that the Indian markets can deliver CAGR of 15-18% over the next 3 years and optimistic like me expects 20% CAGR over the next 3 years with the right selected stocks and sectors.

20% CAGR is not just a dream, but it is also fundamentally backed by growing GDP, country’s financial condition and over all economical and business development which is on course and expected to grow at a descent pace.

Fixed Deposits Returns are Guaranteed, Mutual Funds Are Not – What about my money safety?

Well, for a matter of fact nobody can guarantee you returns while investing in equity via any possible way, since it involves risk. But theres a way to cut the risk virtually to Zero levels and still get benefited the most. The secret is Systematic Investment Planning (SIP).

Systematic Investment allows you to stay invested without worrying to time the markets or about the volatility we see in stock market. In fact SIP works out best when markets are volatile. The funda of systematic investing works on a simple formula invented by world’s most genius ever Albert Einstein – Power of Compounding.

While SIP, rupee cost averaging and compounding of returns/interest earned on principle over a period of time compounds together and puts significant impact on wealth creation over the long run and stock market being a cyclical asset, it is very likely that you will see a higher end where you may take profits and then go conservative.

Do you know how much money can be made on investment of just Rs 10,000/- per month at a CAGR of 20%? I have done the maths, here’s the result –

* Rs 10k/month Invested for 5 years at 20% CAGR to become 10 lacs
* Rs 10k/month Invested for 10 years at 20% CAGR to become 35 lacs
* Rs 10k/month Invested for 15 years at 20% CAGR to become 95 lacs
* Rs 10k/month Invested for 20 years at 20% CAGR to become 2.4 crore

Eventually In 25 years 10000/month @ 20% CAGR (compounded annual growth rate) to become 6.1 crores and in 30 years 10000/month @ 20% CAGR to become a whopping 15 crores. The longer you invest, the higher would get your returns.

Think Mature, Aim Higher, Plan and Set A Goal…

Fixed Deposits cannot generate the kind of returns stock markets will and theres no doubt about it. If you are young and want to Invest and grow your money big, equities are the way to go. Don’t be skeptic and look at the brighter side of investing in Stock Market, you don’t get such money making opportunity in a lifetime.

Returns of fixed deposits may not even beat Inflation rates, then whats the use of saving money in them and allowing money to sit idle to generate lesser returns on investment when a simple SIP in equities can do a better performance for your money? Think about it..

Happy Investing!!

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