MANAGING FINANCIAL RESOURCES

Managing financial resources

Managing financial resources

Introduction

In today's competitive environment, strategic management plays a vital role for organization's success and future stability. In finance, investment is defined as the purchase of an asset with expectation to get higher return in future to increase income or appreciation of value of the asset. This paper aims on identifying various sources of financing, project valuation, budgeting and financial statement analysis of the business.

Task 1

Task 1.1- Identify (i.e. - list down) at least 4 sources of finance available to Blue Mountain Solutions.

Four sources through which blue mountain can arrange finance are listed as follows

Banks - Blue Mountain can get financing from banks. It is the fact that business ins at startup stage therefore Ms. Begum need to share the idea with bank to get loan. It is readily available financing option for the business but costly in nature.

Vendor financing - another source of financing for the business is vendor financing. It is also readily available but it requires credibility of business to get more financing from vendors. Vendor financing is available for the products offered by vendors thus it is limited to vendors products only.

Business cash advances - business cash advances is a form of unsecured loan and it not widely available but it could be a source of financing for the business. It is not widely available comparatively.

Peer-to-peer lending - it is referred as person to person lending and sometimes also known as social lending. It is to mention here that most of the loans under this category are unsecured loans. These loans are provided to small businesses or individuals and it is not protected with collateral. It is available on interest rate set by the lender and sometimes it is higher than normal rate.

Task 1.2-Assess the implications of different sources finance

Among business strategies borrowing money of financing is an important and a positive approach for business decisions. By doing this company can speed up its growth, support seasonal financial slowdowns, and invest in the business opportunities which strengthens the business in the future. In addition to this, a strong financial strategy supports the business towards success and a weak financial strategy hinders the corporate strategies and may result in failure of business strategies (Fields, 2011, pp. 223).

Now a day business and economic environment around the globe is dynamic. The business and global economic environment is constantly changing. Therefore, the strategies for business's financial decision should be dynamic. We cannot say that the strategy company using may not be considerable after a year or six months. Therefore, the most appropriate side of the business to constantly monitoring and redefining company's financial strategies (Fields, 2011, pp. 223).

Financing the business

Among business strategies borrowing money of financing is an important and a positive approach for business decisions. By doing this company can speed up its growth, support seasonal financial slowdowns, and invest in the business opportunities which strengthens the business in the future. In addition to this, a strong financial strategy supports the ...