Tag Archives: firm
Commercial Finance- Hard Money (Page 1 of 3)
Commercial Finance- Hard Money explores the little known world of financing real estate and business accounts receivable with respect to situations that banks and other financial institutions typically avoid. The year 2008 will be known for difficult financial times for large institutions, businesses and individuals. Financing will be harder than ever to obtain.
The Merriam- Webster Online Dictionary defines hard as:
“1 a: not easily penetrated: not easily yielding to pressure b of cheese: not capable of being spread: very firm
2 a: of liquor (1): having a harsh or acid taste (2): strongly alcoholic b: characterized by the presence of salts (as of calcium or magnesium) that prevents lathering with soap
3 a: of or relating to radiation of relatively high penetrating power: having high energy b: having or producing relatively great photographic contrast
4 a: metallic as distinct from paper b: of currency: convertible into gold: stable in value c: usable as currency d: of currency: readily acceptable in international trade e: being high and firm
5 a: firmly and closely twisted b: having a smooth close napless finish
6 a: physically fit b: resistant to stress or disease c: free of weakness or defects
7 a (1): firm definite (2): not speculative or conjectural: factual (3): important or informative rather than sensational or entertaining b: close searching c: free from sentimentality or illusion: realistic d: lacking in responsiveness: obdurate unfeeling
8 a (1): difficult to bear or endure (2): oppressive inequitable b (1): lacking consideration, compassion, or gentleness : callous (2): incorrigible tough c (1): harsh, severe, or offensive in tendency or effect (2): resentful (3): strict unrelenting d: inclement e (1): intense in force, manner, or degree (2): demanding the exertion of energy : calling for stamina and endurance (3): performing or carrying on with great energy, intensity, or persistence f: most unyielding or thoroughgoing 9 a: characterized by sharp or harsh outline, rigid execution, and stiff drawing b: sharply defined: stark c: lacking in shading, delicacy, or resonance d: sounding as in arcing and geese respectively used of c and g e: suggestive of toughness or insensitivity
10 a (1): difficult to accomplish or resolve: troublesome (2): difficult to comprehend or explain b: having difficulty in doing something c: difficult to magnetize or demagnetize
11: being at once addictive and gravely detrimental to health
12: resistant to biodegradation
13: being, schooled in, or using the methods of the natural sciences and especially of the physical sciences
14: of money: contributed (as by individuals or political action committees) directly to a particular candidate or campaign
Synonyms: hard difficult arduous mean demanding great exertion or effort. Hard implies the opposite of all that is easy . Difficult implies the presence of obstacles to be surmounted or puzzles to be resolved and suggests the need of skill, patience, or courage . Arduous stresses the need of laborious and persevering exertion .”
Fast Cash
Cash is the most liquid asset for a business firm. While the proportion of corporate assets held in the form of cash is very small, often between 1 per cent and 3 per cent, its efficient management is crucial to the solvency of the business because in a very important sense cash is the focal point of fund flows in a business. In view of its importance, it is generally referred to as the life blood of a business enterprise.
Why does a firm need cash? There are two primary reasons for a firm to hold cash: to meet the needs of day-to-day transactions and to protect the firm against uncertainties characterizing its cash flows.
Despite its benefits, cash is an idle resource. The trade-off for cash holding is that you get liquidity but sacrifice profits by foregoing alternative investment options. That is why the financial manager should carefully control cash.
Short-term cash budgeting is the principal means by which cash is managed. Cash budgets, routinely prepared by business firms, are helpful in estimating cash requirement, planning short term financing, scheduling payments in connection with capital expenditure projects, planning purchases of materials, developing credit policies and checking the accuracy of long- term forecasts.
Firms use multiple short-term forecasts, of varying length and detail, suited to meet different needs. The commonly used designs for short-term cash forecasts are one year divided into quarters, or months and one month divided into weeks. A firm, hard pressed with liquidity crunch, may even prepare a weekly cash forecast divided into days. The point to be emphasized here is that these multiple formats serve different purposes and should not be regarded as mutually exclusive. The principal method of short- term cash forecasting is the receipts and payments method.