Financing plan and cash management

Ace p.

Order the writing of a tailor-made Finance Term papers

Free quote online

Thesis Format .doc

Financing plan and cash management

Download

Read an extract

Reader
Abstract
Contents
Extract

Abstract

Each year, when investments are planned, the company must monitor the medium-term balance of funding and coverage of its invested capital.

It is the financing plan that makes this control and forecasting possible. A financing plan usually refers to the means by which cash will be acquired to cover future expenses. It allows financial managers to assess the company's overall consequences on debt and financial stability.

The financing plan is a forecast of the future cash flow. It reflects the economic and fiscal strategy provided by the company. It allows the company to assess the balance between jobs and resources and the cash forecasting situation.

The financing plan
1. Introduction
2. Presentation of a financing plan
3. Developing a financing plan
4. Balancing the financing plan
5. Benefits of a financing plan
6. Negative aspects of financing plan
Managing cash
1. Introduction
2. The objectives of cash management
3. The structure of cash budgets
4. Decisions under cash management

Get this table of contents for free after login.

Extract

[...] At the same time, the financing plan does not: Allow assessment of situations and developments; Provide information on the level of debt or the importance of stable resources; Assess developments within a year. B. Balancing the financing plan Striking a balance involves revising the financing plan in such a way that it is closer to the ideal objective, namely the equality between jobs and resources Benefits of a Financing plan A Financing plan is broadly balanced. a. It has very large surpluses In the case of surpluses from the operation, the company may consider increasing jobs (make additional projects or pay off loans in advance). [...]

[...] However, it is possible to determine the main lines of the budgeting of cash by: Fixing forecast horizons; The determination of cash receipts and disbursements; The choice of methods of financing or investment of cash balances. I. The objectives of cash management The objectives of cash management arise from two elements: Operational budgets (sales budget, budget of purchasing, procurement budget). Payment Offsets The budget cash: resultant of other budgets The cash budget is directly dependent on various other operating budgets. [...]

[...] Decisions under cash management A. The terms of balancing the cash 1. The methods of financing deficits a. Discounting the effects of trade The procedure is for the company to sell completely or a part of it effects to a banker, who credits the amount of expected funds. b. The terms of mobilization of credit Credit debt-recovery business is based on creating an order on a commercial paper to be issued to a bank for the amount claimed. The claims are included in a list whose formalism has the effect of producing a comparable standard to those of the law of negotiable instruments. [...]

doc