Good, fast, and cheap: pick any two. This tongue-in-cheek warning from business and project management circles points out that decisions often involve trade-offs. If you want it good and fast, it won’t be cheap; if it is fast and cheap, it may not be good, and so on.
There is a similar trinity of factors in financial asset management: Safety, liquidity and yield. Smart cash managers seek to find the best balance to match their business goals and risk appetite.
When you’re faced with an opportunity to grow your business, it’s a good idea to review the financing options available to fund your expansion. Whatever your opportunity entails— whether it’s adding a new location, buying more equipment, hiring additional personnel, moving into a new market, or acquiring a competitor— the same four basic financing options apply. Let’s review each of them and look at some of the benefits to each:
Cryptocurrency, such as Bitcoin, Quark and others, has grabbed a lot of attention recently. I think that a lot of that is due to its apparent rise in value as speculation has taken hold. This enthusiasm for cryptocurrency from investors may be obscuring a more profound and long lasting phenomenon, the development of blockchain, the underlying technology that makes it possible.
Run a quick Google search and you’ll find thousands of articles on how to properly manage your your company’s finances. There’s so much information on the topic, in fact, that it can be difficult for business owners to know where to start. But sometimes, simply looking at the challenge from a different angle can offer new insights on how to improve.
Topics: Accounting & Finance
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As a business executive, cash management is a vital skill. Cash is one of the top five financial variables by which business are evaluated for potential investment, commercial loan approval and the sale of the business. It is the fuel that drives growth, and managing cash incorrectly can have a negative impact on the success of your business.
Back in the day when I was new to banking and I first heard about people taking out loans secured by their own bank deposits it seemed, well, illogical. If a borrower already has the money, why does he need to borrow at all? It’s a good question, and sometimes the answer is that it is better just to use the money on hand and not borrow. There are circumstances, however, in which borrowing against one’s own money on deposit makes perfect sense, even to Mr. Spock.
Topics: Bank Customer Tips
As a small business owner, you may be too busy with an endless list of daily tasks to spend much time staring at numbers. Or maybe it’s just that while you enjoy the actual work you do, you dread the accounting activities necessary to keep your business running. Whatever the reason, many business owners dread and put off the important work of examining their business’s financial health.
While it’s understandable that frequent deep dives into the nitty gritty of your business’s finances might not be your favorite task, it’s incredibly important to regularly take stock of how well your business is doing. Sustainable growth requires the ability to understand and articulate your financial history, current standing, goals, and strategies.
The first money market mutual fund, The Reserve Fund, was established in the U. S. in 1971. These funds were set up to allow investors to earn a small rate of return while keeping their money safe and liquid. They were designed as an alternative to bank accounts. At that time Regulation Q prevented banks from paying interest on demand accounts and capped the rate of interest that could be paid on other deposits.
The idea was that the funds would invest only in short-term, high quality securities such as U. S. Government securities and high-grade commercial paper. They would have a net asset value (NAV) of exactly $1.00 per share at all times. For the most part, money market mutual funds have been stable and safe investments since they were first formulated, with just a few exceptions.
Topics: Bank Products