If a company takes all of its short-term assets (e.g. cash in the bank, receivables invoices, stock, etc) and pays all its short-term liabilities (e.g. suppliers, staff, etc) the remaining balance is their working capital position. If the working capital position is positive, it is more than likely that the company is adequately capitalised and is self sufficient. If… Continue reading Calculate Working Capital
Tag: bank
Weighted Average DSO [WADSO]
As explained in the Day Sales Outstanding [DSO] article, there are only two technical terms we refer to in the programme DSO (pronounced D-S-O or D-SO) and WADSO (pronounced WAD-SO). Once you’ve read and understand how DSO is calculated, WADSO is the tool that measures performance i.e. how effective your cash collections are. WADSO is short for Weighted Average Day… Continue reading Weighted Average DSO [WADSO]
Day Sales Outstanding [DSO]
There are only and two technical terms we refer to in the programme DSO (pronounced D-S-O or D-SO) and WADSO (pronounced WAD-SO). Don’t get distracted with all the other cash/credit control jargon like Collection Effectiveness Index, Transaction Turnover per Cash Applicator, etc. They’re too complicated and aren’t used in this programme. This programme is focused on real results that are… Continue reading Day Sales Outstanding [DSO]
Low Cost Capital
Exchange Overview Credebt Exchange® provides an unrivalled and unique form of Low Cost Capital specifically for organisations in the micro-medium business sector. The Exchange model is substantially different from any other type of traditional working capital/lending model. A summary of the principal differences is highlighted below: Selling model, as opposed to a lending model No… Continue reading Low Cost Capital
The Smart Cash Flow Programme
From 25 years of owning and operating small companies (and some large ones too), one of the hidden costs of doing business has always been our bank charges, fees and, of course: the lending/borrowing interest rate charges. These can be prohibitively expensive so we devised a simple smart cash flow programme to ensure we kept bank fees,… Continue reading The Smart Cash Flow Programme
2013-Q4 ETR Briefing
Exchange Traded Receivables [ETR], are invoices issued under Contract for goods and services supplied to investment quality† companies, or credit insured invoices from Investment Grade [IG] insurers. As at Q4, Credebt Exchange® held RPA of €4.3m, with €2.7m allocated during the quarter. The full spectrum of available ETR was utilised and all currency exposure was… Continue reading 2013-Q4 ETR Briefing
How to use risk to your advantage
As explained in the previous article “It’s all about Risk…” you’ll now understand that larger organisations get preferential treatment from banks. That’s the status quo and isn’t likely to change any time soon. So what can you do to improve the banks perception of your business, so that you achieve ‘next best’ status? The answer… Continue reading How to use risk to your advantage
It’s all about Risk
Once you understand risk, then you’ll begin to understand banks and how banking works. Banks, investors, shareholders, managers, financial markets, brokers and other investment/lending professionals all learn about risk. That’s not to say they necessarily understand risk in all its guises, but they must understand the principal that high risk is bad risk. Think of it like parenting.… Continue reading It’s all about Risk
It's all about Risk
Once you understand risk, then you’ll begin to understand banks and how banking works. Banks, investors, shareholders, managers, financial markets, brokers and other investment/lending professionals all learn about risk. That’s not to say they necessarily understand risk in all its guises, but they must understand the principal that high risk is bad risk. Think of it like parenting.… Continue reading It's all about Risk
ETR Overview
Credebt Exchange® was founded in 2011, specifi cally to address two important issues in the economy: 1. liquidity in the micro-medium business sector; and 2. providing a strong, stable, cash equivalent alternative to bank deposits for Investors. Trading commenced in July, 2013 and Credebt Exchange® continues to deliver on its commitments to both businesses and Investors.… Continue reading ETR Overview