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What should a business look for in a financier?

Posted by sarac on June 25, 2019

Category: Uncategorized
What should a business look for in a financier? Money is just money. A commodity with a variable price depending upon the financial structure, time horizon and risk profile. Yet all too often, businesses just focus on the price of the money. Ignoring the real value financial alignment can bring. Consider a venture capitalist. When they look to invest in a business, they are assessing three key things The business fundamentals: That the company is
Alignment. Who is carrying the risk in your business? When someone goes into business, they take a risk. If it succeeds, shareholders reap the rewards: profits in the form of dividends and increasing shareholder value. When a business borrows money, they are typically doing it to leverage capital and maximise an opportunity. However, the financier is now also carrying a risk. To balance this out, the financier will want some security. To have the right
How business owners can leverage money to grow their business Leverage is the fundamental principle underpinning all business growth. Business owners use resources and then harness them to increase the output of their business. Every business owner will recognise the moment they had too much on their hands and needed to offload work. At that moment, they would either have looked to leverage someone’s else’s time or used technology. Either way, the outcome is the
It was the best of times. It was the worst of times. It was the age of wisdom. It was the age of foolishness. In many ways Charles Dickens nailed the contradictions and dynamics of the business world we live in. Opportunities and challenges. Sometimes both together. Always needing a response, fast. Otherwise the opportunity is snapped up by someone else, or the challenge blows up into a disaster. In many cases access to short-term
“David, that’s it. I’ve had enough. I am ashamed to have friends around for dinner parties and even John & Julie have renovated their kitchen”. So, you acquiesce. After all your wife is right. The kitchen is tired and frayed. Old. And she has been asking for a new kitchen for the past five years. Besides you know it will add value to the house when you come to sell. Except that getting a personal