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Posts Tagged ‘Finance’

One of the functions of finance in a company, is to seek funding.

This search for funding is given basically for two reasons:

* When the company is lack of necessary liquidity to meet daily operations, for example, when you need to pay the debts or obligations, buy supplies, maintain inventory, pay salaries, rent the premises, etc..

* When the company wants to grow or expand, and does not have sufficient equity capital to meet the investment, for example, when you want to buy new equipment, when you want to have more teams, get more goods or raw material for increase the volume of production, enter new markets, develop or launch a new product, expand the local, open new branches, etc..

Let’s look at what are the main sources of funding for what we can in search of money or funding that we may need to continue operating as a company, or to invest and make it grow: Read the rest of this entry »

In the interest of”fast”growth of your business, some entrepreneurs turn to factoring.

Factoring is a financing option. The results are short term. Contacting a factoring company has the opportunity to sell their existing accounts to ensure growth of the same.

Can sometimes also in administrative support, collections, market research and other services.

What does a factoring company?

• The factoring company will buy the accounts receivable and will pay in advance.

• You will investigate the debtors, and provide a report with data on their current state of solvency to know the possibilities of recovering the debt.

• It takes over the collection process of the portfolio of debtors who bought: the management and control.

• Continually being briefed on how the company is the collection process, and the status of accounts receivable.

A day after its creation, the Council of Financial System Stability perform its functions only with the resources authorized by each of its authorities, prescribed in the agreement published by the Ministry of Finance in the Official Journal of the Federation (DOF).

Given these guidelines, the council will not have additional budget allocations, the structure will consist of nine members, among which are: the Secretary of the Ministry of Finance, Undersecretary of the same unit, the Chairs of the National Banking and Securities the National Insurance and Finance and the National System for Retirement Savings.

In this way, the board will be chaired by Ernesto Cordero, Secretary of the Treasury, and in his absence will be Agustin Carstens, Governor of the Bank of Mexico (Banxico).

Meetings should be quarterly, although special meetings may be convened only by the president or three members, also an annual report should be published, which will specify the state of the country’s financial stability and activities in this regard.

The council will have a Technical Committee to prepare proposals and recommendations on risks to financial stability for resolving crisis situations.

At this, the Technical Committee, to obtain economic and financial information required for the analysis and evaluation, it must be sought from the financial authorities. Read the rest of this entry »