The Principles of Sound Borrowing (in Banking and Finance) скачать в хорошем качестве

The Principles of Sound Borrowing (in Banking and Finance)

Nick Ralph, is your cash flow solutions provider for businesses across Australia. The principles of sound borrowing are much the same as those for sound lending. *Have you seen my video on this topic yet?* ... But there is one thing as a borrower you need to consider that the lender will have less interest in. Lending money involves securing against assets and lending against cash flow. If you want to know more about this, take a look at my video on the Principles of Sound Lending. But as the borrower you need to consider another aspect too. That aspect is the impact of borrowing on your margin and free cash. Every business must at some stage generate free cash – cash that is available to service debt, replace capital assets and pay dividends. If a business only ever generates enough cash to pay its creditors and service the interest on its borrowings, it will never generate a return for its owners and then what’s the point of that? Understanding the impact of borrowing on free cash means understanding the interaction of margin, cash flows, contribution and timing within the business and it is only by understanding these in full that a business will be able to assess whether taking on a loan makes financial sense or not. Just because you can borrow money does not mean that it makes sense for you to draw down on that finance. Spending the time to work out how the various aspects of the business and the loan will interact could be the difference between working for your finance provider or making your finance work for you. If you would like to know more about the processes I use to assess loans, feel free to reach out.Thanks for watching.