Alternatives and Tips for Working Capital Financing by Banks

Canadian business owners and financial managers who seek finance by banks or other sources generally experience growth in sales and profits. That’s the good news, which of course is offset by the fact that this type of success requires additional working capital.

Liquidity has become the name of the game and ‘money is king’ even today never seems like an old-fashioned cliche? . A recent study by the Conference Board of Canada shows that the main concern of business owners is working capital cash flow. (Also referred to as ‘regulatory and competition issues’)

Alternatives and Tips for Working Capital Financing by Banks

So you have assets … but can those assets generate cash flow by banks or other alternative sources.

For working capital needs, this is all about ‘current assets’ which includes receivables and inventory. When you invest in these two assets to generate sales, your working capital needs increase, and your ability to manage and hand over those assets plays a key role in the provision of working capital by banks, and non-bank institutions.

You don’t need to be afraid to get into traditional or alternative working capital solutions if you have managed your current assets correctly – you only make money for liquidity, and that is rarely a bad thing.

So, Canadian chartered banks are the solution for your needs. Maybe, maybe, maybe our answer, which means that if your company is able to meet the bank’s criteria for a revolving credit line, your needs can usually be met. What is even more concerning for our clients is their ability to not be able to produce enough financing for a sister from receivables, aka inventory.

That then led us into an alternative to bank financing, which is a fast-growing area of asset-based financing, specifically asset-based credit lines. This facility is more expensive, but gives you a total …

Read more

How to Invest Into Initial Public Offering and IPO Investments

Are you wondering which portion of the current marketplace is the most profitable area of the market to place your funds? If you are searching for the areas of market that holds the most promise for investors, you should certainly be investigating the potential of initial public offering/IPO opportunities.

As you likely already know, IPO stocks present a very unique opportunity for anyone who is investing into the open market. If you have the opportunity to invest in one of these stocks, you will be able to purchase the investment before the rest of the market has found the opportunity to do so. For this reason, you can be sure you are entering the stock at a very good time, for the company is about to experience a fairly large surge in the amount of a recognition it receives from the overall marketplace.

Even though the IPO stocks are generally a fairly decent investment when it comes to the timing of your purchase, you should still investigate a few factors to ensure you are entering a valuable investment. The basic premise of your research will be based on uncovering whether or not the stock is being sold for two high of a price and whether or not the stock will increase in value over time.

As you may already know, IPO investments are often the most difficult investments to assess. On many occasions there is a limited amount of information relative to the company’s operations, as well as a lack of data about how the public is going to respond to the company’s stock offerings.

This is why you should certainly access as much background research on the company as you possibly can. As you find out more information about the background of the company, you increase your …

Read more

5 Reasons Why Mutual Funds Is A Good Investment Option For You

When it comes to investment, mutual funds have become amongst the most popular choices in the country. Some of the key reasons behind this are an easy investing method, investment plans that are systematic, and good returns. Mutual Funds are professionally managed investment schemes and funds, which are run by an asset management company.

5 Reasons Why Mutual Funds Is A Good Investment Option For You

Reliance MF, a segment of the Reliance – Anil Dhirubhai Ambani Group, is among the fastest growing mutual funds in the country. This mutual fund provides a variety of products to meet different investor requirements and has a presence in 159 cities across the country. Know more about Reliance MF by reading along this blog.

Five such benefits of investing in the mutual funds

  • Mutual Funds offer Diversification: When a person invests in a mutual fund, it gets spread across a portfolio of assets and stocks. This, in turn, lowers the risk factor. You can invest your money in various companies across sectors. Along with that, your investment can be diversified across assets such as equity, gold, debt, and many more.
  • Managed by Professionals: Investing mutual funds such as debt or equity can be a daunting task if you do not know the associated details. You need a thorough knowledge, research, and expertise. That is where mutual funds help you. Knowledgeable managers with years of experience guide you through the whole process. Along with that, teams of experts are analysts are always available to help you if the need arises.
  • Offers a Wide Range of Choices: A mutual fund comes with numerous investment options such as stock funds, bond funds, sector funds, target-date mutual funds, money market mutual funds, and balanced funds, etc. You can choose one on the basis of your financial goals and how much risk you want to check. If you want to
Read more

Benefits Of The Hong Kong Capital Investment Entrant Scheme

The Hong Kong Capital Investment Entrant Scheme was first launched in October 2003. The objective of the program is to allow reasonably well-off people to come to HK and take up residency without needing to join in or establish an operating business. The Scheme rules are reviewed by the Immigration Department on a regular basis.

To qualify for this capital investment visa, 10 Million Hong Kong Dollars is required to be invested in ‘qualifying investments’ (which does not include real estate).

The essential cut and thrust of the Capital Investment Entrant Scheme (“CIES”) means that if you invest HK $10 million cash into Hong Kong’s economy, you will be able to procure a visa to take up residence in the HKSAR.

Benefits Of The Hong Kong Capital Investment Entrant Scheme

Image Source

In the first instance you will secure a two-year period of stay which is then, subject to having maintained the 10 million HKD in the qualifying investments, extendable every two years for up to seven years. Once you get to 7 years continuous ordinary residence, you can apply for permanent residence.

Even if you have not in fact resided in Hong Kong in all of that time, but have maintained the visa status nonetheless, you will be able to secure ‘unconditional stay’ and in the process free up the HKD10m investment for deployment elsewhere. Namely, by then it will have served the process of procuring your residency in the HKSAR with no further strings attached.

One of the benefits under the Capital Investment Entrant Scheme program is that you are entitled to bring your immediate family along with you (i.e. your legal spouse and unmarried children under the age of 18 – who secure dependent visas,).

A condition precedent to CIES visa grant is that you must have owned the HK$10 million for at least two clear …

Read more

DiversyFund Looks at Long Term Investment Strategies

Long-term investments are the ones that cannot be easily liquidated at a moment’s notice or used for day-to-day expenses. The typical long-term investment is held for a year or more, sometimes with the expectation that the investment will never be sold. DiversyFund is a company dedicated to helping everyday people build wealth like the 1%. Below, DiversyFund’s founder and CEO, Craig Cecilio, shares more about long-term investments that offer diversification to your investment portfolio.

Investing in real estate is an excellent option for long-term investment.  The typical real estate investor purchases a property and holds it for an expected increase in value or rents it out using the rent to bolster his or her income.  Real estate that has been purchased through a retirement plan is also held for a longer period of time in order to realize a higher profit.

For those interested in investing in multifamily real estate, many investors end up buying into Real Estate Investment Trusts (REITs). Some firms pay out dividends, but DiversyFund has a different philosophy with their private REIT. “Instead of paying dividends, we focus on accelerating the growth of wealth by reinvesting the money. We focus on growth and taking advantage of compounding interest to build wealth over the foreseeable future,” stated Mr. Cecilio.

When done well, investing in real estate is one of the most profitable means to build wealth. You can benefit from tax deductions, appreciation of your asset and have a steadfast method of protecting yourself from inflation.

Investing in stocks is also an option for long-term investment.  Stocks have a tendency to fluctuate in value and the ability to bounce back from a drop in value provided that enough time has passed.  Investing in stocks is a popular path due to the quick pace of growth experienced …

Read more