Bons Or Credit

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Bonds or credit , the instrument a Company should finance itself |
Subject: Corporative finance |
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19/01/2013 |

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INDEX:

* Introduction page 1
* What is the funding? page 2
* Business financing page 5
* Characteristics of headings of business financing page 6
* Bank credit page 8
* Bondspage 10

INTRODUCTION
One of the main problems that hit our businesses today is the lack of advance time to assess economic and financial decisions which can have direct impact on the development of the organization. In response to this specific problem, you can appreciate those associated to the identification of financing needs, presenting problems for this concept in their cash-flowprojection, impacting negatively on the implementation of the operations of the company and its relations with financial institutions. This situation is caused by poor care and importance being given to the financial planning in the short term, as an essential tool that will allow forward in time to many of the problems that may arise in the future and for which the company must be prepared incondition to deal with them in the best possible way. Today we live a time of financial stress worldwide, so for any company is fundamental the availability of funding (short and long term), because largely they usually have a very limited financial allocations that allow you to develop their operations and therefore need to know what are the financing options, once it has incurred related to yourworking capital investments.

WHAT IS THE FUNDING?
The financing is not more than the monetary financial resources to carry out an economic activity, with the essential characteristic which generally is taken for loan amounts that complement its own resources. Loans, obligations under the subscription or issue of securities of credit or any other document payable term can be employed inside andoutside the country through credits. A good financial management is a vital element for optimal planning of economic resources in a company, and to deal with all the economic present and future commitments certain e uncertain to allow him the company reduce your risks and increase profitability.
The funding falls in:
* Internal funding: is one that comes from the own resources of the company,such as: contributions from partners or owners, the creation of reserves for liabilities and capital, i.e. retention of profits, the difference in time between the reception of materials and goods purchased and the date of payment of the same.
* External funding: is that which is generated when it is not possible to continue working with own resources. when the funds generated by normaloperations more contributions from the owners of the company, are sufficient in coping with expenditure required to maintain the normal course of the company, it is necessary to resort to third parties such as: Bank loans, financial factoring, etc. One of the main ways of obtaining financing is the credit, which is nothing more than the money received to cope with financial need and which the entityundertakes to pay in a period of time, at a specified price (interest), with or without partial payments, and offering guarantees of satisfaction of the financial institution that would ensure the collection of the same. The answer to where obtaining a credit is not difficult but it is very large, because there are various institutions responsible for granting it, hence, there are two types ofcredit: banking and non banking, as well as various sources of funding, which referred to below.
The classification of funding depending on time is divided in:
* Long term: are those obligations is expected to mature over a period of time exceeding a year.
* Short term: are those obligations that are expected to expire in less than a year, which is vital to sustain most of the company's...