FINANCE FOR MANAGERS

Finance for Managers



Finance for Managers

Introduction to Assignment

This assignment is divided into two sections: the first one deal with identifying and evaluating the sources of long-term funds for a specific organization

Development Securities PLC (1383 words)

Major Sources of Long-Term Finance

Funding is a key condition for success of a project or an investment, an aspect often underestimated by the contractor (Teale et.al, 2003, pp. 50-98). Fundraising is important for the success of the organization and its ability. Fundraising should not be specific, a means which is used when the money runs out and must be continuous, systematic and sustained.  

To have a positive outcome, fundraising must have:

A robust organizational and maintained

A clear and shared vision

Commitment and support of all volunteers, staff and members, teams, and administrators.

Fundraising does not only mean asking for money. For a positive outcome, fundraising requires good communication, a responsible attitude, confidence, credibility to attract investors, and a positive and inspiring attitude towards overall management (Geddes, 2002, pp. 57).

About half of the companies created disappear after a few years, including for financial reasons. Deep reflection is essential to determine the needs and sources of bank financing and banking off in advance (Bernstein, 2007, pp. 23-100). Funding sources are divided into two main parts:

Internal financing, i.e. resources within the company;

External funding, namely third-party resources.

Major sources of Long-Term finance for Development Securities PLC include:

The equity financing

Capital contributions

Grants and subsidies

Quasi-equity

Debt financing

Bonds

Bank loans

Leasing (Alexander, 2008, pp. 190).

The objectives areof utilizing long-term finance options by the company includes the aim to predict cash flow, allow decision-making related to investment and credits provide administration support in the early stages of planning, organization and management of the company. In addition to this, it is aimed to be the basis for determining the price of products and services offered by the company, allow control of financial operations carried out by the organization, assist in the evaluation of the benefits and contribute to the social impact that the company has in the environment where it operates. At the base of each funding raises the question of the source and type appropriate to the achievement of the creation or takeover of companies, investment or financing of working capital needs.

Development Securities PLC should have identified the sources of funds and must determine the best funding source. For the source of finance, Development Securities PLC can go for the internal and external source of finance. In order to determine the best sources of finance Development Securities PLC need to undertake some analysis of the company (Teale et.al, 2003, pp. 50-98). 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; counselling to improve the financial sustainability of the enterprise; proposal to increase the impact of financing the company and reduce costs further.

Implications of Sources of Finance

Development Securities PLC can have implications like ...