Chapter 12 Debt and other forms of financing. The topics discussed in this chapter are: Explain the key components of the balance of payments, explain the growth in international trade activity over time, explain how international trade flows are influenced by economic factors and other factors, explain how international capital flows are influenced by country characteristics, introduce the agencies that facilitate the international flow of funds. | Entrepreneurship Canadian Edition William D. Bygrave, Andrew Zacharakis, Sean Wise 1 DEBT AND OTHER FORMS OF FINANCING Chapter 12 2 3 Learning Objectives Getting Access to Funds—Start with Internal Sources Learning Objective Describe some of the first places entrepreneurs should seek funding. Cash Conversion Cycle Learning Objective Explain what the cash conversion cycle is. Working Capital: Getting Cash from Receivables and Inventories Learning Objective Explain what working capital is. Using Accounts Receivable as Working Capital Learning Objective Explain how accounts receivable is used as working capital. Sources of Short-Term Cash: More Payables, Less Receivables Learning Objective Identify the sources of short-term cash for entrepreneurs. Obtaining Bank Loans Through Accounts Receivable Financing Learning Objective Explain how entrepreneurs can obtain loans through accounts receivable financing. 3 4 Learning Objectives (continued) Other Loans and Financing Learning Objective Identify the ways entrepreneurs can use inventory to secure loans. Short-Term Financing Learning Objective Describe the traditional short-term bank loan for entrepreneurs. Equipment Financing Obtaining Early Financing from External Sources Learning Objective Identify the early sources of external financing available to entrepreneurs. Planning Cash Flow and Planning Profits Learning Objective Differentiate between cash flow and profit. 4 5 Financing Is A Continuing Activity Factors within, and outside of, your control impact your cash needs & can change suddenly Cash needs must be frequently forecasted with a margin of error Plan for the most likely case Be prepared for the worst case (maintain access to a reserve) Remember the 3 “Rules of Cash” More cash is better than less cash Cash now is better than cash later Never run out of cash (#1 killer of new ventures!) 5 6 Align Your Sources And Uses Of Funds Uses of funds Start-up costs . | Entrepreneurship Canadian Edition William D. Bygrave, Andrew Zacharakis, Sean Wise 1 DEBT AND OTHER FORMS OF FINANCING Chapter 12 2 3 Learning Objectives Getting Access to Funds—Start with Internal Sources Learning Objective Describe some of the first places entrepreneurs should seek funding. Cash Conversion Cycle Learning Objective Explain what the cash conversion cycle is. Working Capital: Getting Cash from Receivables and Inventories Learning Objective Explain what working capital is. Using Accounts Receivable as Working Capital Learning Objective Explain how accounts receivable is used as working capital. Sources of Short-Term Cash: More Payables, Less Receivables Learning Objective Identify the sources of short-term cash for entrepreneurs. Obtaining Bank Loans Through Accounts Receivable Financing Learning Objective Explain how entrepreneurs can obtain loans through accounts receivable financing. 3 4 Learning Objectives (continued) Other Loans and .
