Zero Fee Credit Consumption
Need a new car?, Has thought to change the furniture in the office or do work at home, you want to do a specialized course or need a new nursery for your child?
With the consumer credit market share of zero .. can do anything they need the funding between 1 000 and € 60,000 without paying any fees to the first three months.
The conditions are:
Amount financed: 1,000 to 60,000 euros
Depreciation: 8 years
No commission charges or redemption or reduction of time and / or monthly fee.
No extra fees survey
Interest rate: fixed or variable of your choice.
Requirements: Address your salary or pension in the state.
An attractive product for a short-term financing, the convenience of not to pay any amount in the first three months and allows the ability to save face additional costs of the purpose of the loan.
Protection for banks
Since yesterday, July 29 and continue until September 8, banks and savings banks may apply the guarantees that allow access to international financing and minimize the risk of their debt issues which are guaranteed by the state for a maximum 64,000 million.
The Economy Ministry has reported that the guarantees have been one of the greatest anti-positive result recorded in the financial institutions, reducing the impact of delinquencies and defaults in the balance sheets of the financial system and making one of the Spanish stronger in this global crisis.
The continuing instability in financial markets abroad and this has prevented the Spanish financial system to access the funding, which has led the government needed to consider the issuance of new state guarantees to facilitate such access while international uncertainty.
The guarantees for the debt issue will allow the entities to extend the deadlines in the range between 3 and 5 years. These releases began in 2008 while in 2009 no new allocations were made due to the intervention of Caja Castilla la Mancha and the bottom bank restructuring.
The conditions for granting of guarantees in relation to the charge that the state commissions have remained unchanged, despite repeated requests from banks to the state to make a cut in the concept.
ADVANTAGES OF CASH FLOW
HELPS IN EFFICIENT CASH MANAGEMENT
Cash flow analysis helps in evaluating financial policies and cash position. Cash is the basis for all operations and hence a projected cash flow statement will enable the management to plan and coordinate the financial operations properly.
The management can know how much cash is needed, from which source it will be derived, how much can be generated internally and how much would be obtained from outside.
HELPS IN INTERNAL FINANCIAL MANAGEMENT
Cash flow analysis provides information about funds which will be available from operations. This will help the management in determining policies regarding internal financial management, e.g. possibility of repayment of long term debts, dividend policies, planning, replacement of plant and machinery, etc.
DISCLOSES THE MOVEMENTS OF CASH
Cash flow statement discloses the complete story of cash movement. The increase in or decrease of cash and the reason therefore can be known. It discloses the reasons for low cash balance in spite of heavy operating profits or for heavy cash balance in spite of low profits. However, comparison of original forecast with the actual results highlights the trends of movements of cash which may otherwise go undetected.
DISCLOSES SUCCESS OR FAILURE OF CASH PLANNING
The exteral of success or failure of cash planning can be known by comparing the projected cash flow statement with the actual cash flow statement and necessary remedial measures can be taken.
UTILITY OF CASH FLOW ANALYSIS
A cash flow statement is useful for short-term planning. A business enterprise needs sufficient cash to meet its various obligations in the near future such payment for purchase of fixed assets, payment of debts maturing in the near future, expenses of the business, etc.
A historical analysis of the different sources and applications of cash will enable the management to make reliable cash flow projections for the immediate future.
It may then plan out for investment of surplus or meeting the deficit, if any. Thus, cash flow analysis is an important financial tool for the management.
CASH-FLOW AND CASH BUDGET-DIFFERENCE
Income statement is called Cash-Flow Statement. It simply reveals the inflow and outflow of cash during the previous period. Such a statement can be prepared for a year, half year, a month, a week or for any other duration.
Its main function is to explain the causes of change in cash balances of the firm for two different dates.
Conceptually, there is no difference between a Cash-Flow statement and a cash budget, statements showing the sources and uses of cash can be prepared on the basis of historical data as well as on the basis of forecasts.
Statements prepared on the basis of historical data are called Cash-Flow statements while based on projected data for future are known as Cash Budget.
The Cash-Flow budget is used to project cash needs: to identify cash surpluses and to highlight possible critical points in the income and outgo of cash. Thus cash-flow statement is a useful technique of historical financial analysis while cash budgets is an indispensable technique of financial forecasting.
Fund - definition
The term 'fund' has been defined in a number of ways. Some financial experts interpret 'fund' as 'cash' only and fund-flow statement - prepared on this basis is called a cash flow statement.
In this type of statement only inflow and outflow of cash is taken into account. On the other hand, some experts interpret 'funds' as money value in whatever form it may exist in the company.
It is conceived as 'all financial resources' and it extends the concept include all the current assets or financial resources. Thus, the narrow definition of fund, such as cash- flow, leads us to the concept of hard cash It omit, such items which do not directly affect cash or working capital.
But in a broader sense, the assets of a firm represent the net uses of funds and its liabilities and net worth represent net resources.
OBJECTS OF CASH-FLOW ANALYSIS
The main object of cash-flow analysis is to show the causes of changes in cash balances. The Funds-Flow Statement reveals the causes of change in net working capital and informs the management on the liquid position of the company.
But, when management is interested to know about the movement of cash and the availability of cash, the cash-flow analysis provides this information to management.
Cash-flow analysis is not only concerned with the good or bad management of cash, it is deeply concerned with the liquidity position of the firm.
In a cash-flow statement, the term 'fund' is used to mean only cash and does not include even most liquid current assets (but not cash itself) like readily reliable account receivables. Since cash-flow statement is made to show the impact of financial policies and financial procedures on the cash position of the firm, it takes into consideration all transactions that have a direct impact upon cash.
The next main object of cash-flow analysis is to throw light on the factors contributing to the reduction of balance of cash inspite of increase in profits of vice versa. Cash-flow analysis is of particular importance in short-range planning.
It helps the management in short-term financial decisions relating to liquidity and ways and means position.
current management accounting literature
The current management accounting literature uses the term `cash-flow' in two different ways. Some use 'it to refer to the movement of cash in and out of the business.
They are interested in accounting for the change in the cash account by subtracting the cash disbursements of the period from the cash receipts..Other use this term t represent funds provided from operations.
It is a concept of cash flow ;:prevalent in financial analysis that is net income plus non-fund charges such as depreciafica, amortization and depletion.
Adding back such items as depreciation does not convert the net income to something which can properly be called cash-flow or cash income.
The later concept of cash- flow does not represent the net change in the cash account during the period under study, but rather the change in net working capital due to operations.
Hence the first concept of cash-flow is more useful for financial analysis. We shall also use this term in our analysis in the first sense of the term.
STATEMENT OF CHANGES IN WORKING CAPITAL
The statement of changes in working capital denotes the movement of working capital. The variation or change in working capital is shown by a format of working capital.
As working capital represents the excess of current assets over current liabilities the format of working capital shows the aggregate of current assets, current liabilities at the end of two years and then the increase or decrease in working capital is measured by comparing the net working capital. Its proforma is as follows:
A transactions will cause net flow of working capital only when one of the accounts arrested is a current account (current asset or current liability) and another account is a non-current account (non-current assets or iron-current liability).
The concept of working-capital flow may be summarized as follows:
1. The net working-capital increases or decreases when a transaction involves a current account and a non-current account.
2. The net working-capital remains unaffected when a transaction involves only non-current accounts.
The concept of the flow of working capital is further illustrated in Fig. 4.2. The matrix in the figure illustrates very clearly that the amount of working-capital will be affected only with a combination of current account and non-current account.
There will be no impact on the amount on the amount of working if the combinations of accounts affected are only current or only non- current.
Application of Funds
1. Trading Losses
2. Redemption of Preference Share Capital or Debentures
3. Repayment of long-term debts
4. Purchase of any fixed assets
5. Non-trading payments
6. Increase in Working Capital Total