MANAGING FINANCE

Managing finance in health and social care



Managing finance

Sources of Finance Available to Winsbeach Children's Home Limited

Winsbeach Children's Home Limited must meet the challenges of ensuring expanded reproduction. It is, therefore, timely and to the extent necessary venture funding from various sources allows the company to meet the challenges of doing business and their own development. However, to attract such funding entity, Winsbeach Children's Home Limited should have identified the sources of funds and must determine the best funding source. For the source of finance, Winsbeach Children's Home Limited can go for the internal and external source of finance (Drury, 2009).

In order to determine the best sources of finance Winsbeach Children's Home Limited need to undertake some analysis of the company. Literate and informed choices of sources of funding will increase the impact of the use of funds and will not cause undue additional burden on business of having to refund. Companies offer the following when choosing a offering the finance, that is study of the enterprise and determination of its needs in the long and short-term financing; proposals in terms of optimizing the composition and structure of the company's assets; counseling to improve the financial sustainability of the enterprise; proposal to increase the impact of financing the company and reduce costs further.

Bank loans

In the event of insufficient equity, Winsbeach Children's Home Limited can borrow from a financial institution. It is important to know that the amount of bank loans which come under the category of external source of finance that will be granted will depend on the quality of the project and guarantees Winsbeach Children's Home Limited can offer (Seal, 2007). It will also depend on Winsbeach Children's Home Limited personal contribution. It also consider leasing, which can be an interesting way to fund certain investments by avoiding cash flow problems related to payment. Winsbeach Children's Home Limited need to maintain a minimum cash to fund its daily operational activities, the long-term financial situation may depend on the resources that are achieved in the short term which is why financial managers should take steps to secure these resources, so they must know which are the entities that at one time can help them out of a potential liquidity problem.

Overdraft Facility

Winsbeach Children's Home Limited uses the overdraft facility; overdraft is crediting the bank checking account to pay for their client settlement documents in case of insufficiency or absence on the current account of the borrowing client funds. In this case, the bank debits the money from the customer's account in full, that is, automatically gives the client a loan in an amount exceeding the remainder of funds.

Overdraft facility differs from the usual overdraft loan so that debt repayment sent all amounts received on account customer. Sometimes given a grace period to use an overdraft facility in which interest for the use of credit is not calculated (Neale & McElroy, 2004). It depends on the monetary policy of the bank. For individuals interpretation of the described concept is ...