MANAGING FINANCIAL RESOURCES

Managing Financial Resources

Managing Financial Resources

Introduction

Travelex Group is a company which is founded by Lloyd Dorfman. It's headquarter is at London. Travelex Group's main business includes international payments. It issues credit cards to the travellers. It has been considered one of the world's largest foreign exchange bureaus. (Robinson, J. 2006 pp. 28-29)It is the main donor and supporter of the Royal National Theatre. In 2007, they have planned a space currency which is known as Quasi Universal Intergalactic Denomination as part of a viral marketing campaign.

Travelex history

Lloyd Dorfman has founded it in Central London in 1976. They bought Thomas Cook's worldwide foreign exchange business on November 8, 2000 for pound 444m that considerably extended its international operations. There was a buy-out firm called Apax Partners that has bought a majority stake in the organization in Feb 2005.

Travelex disclosed in early 2010, significant loss of interest payments due to its huge debt. (Nofsinger (2008) Pp.11-55)It back the year before the stock market flotation, and said it was considering the potential scope of the financing structure. Later this year the sale of its card program management for two hundred ninety million pounds MasterCard to help reduce its debt. Travelex in April 2011 was appointed the edge of the bank to manage the sale of its global business division of income and expenditure.

Travelex with the world's largest retail foreign exchange network, and more than 720 retail outlets around the world in different airports, seaports, railway hub, city shopping malls and major tourist destination. (Dyer, J. 1997pp. 535-56)Calculated by the global traffic, Travelex in the global top 30 of the 18 international airports are equipped with outlets, an average of once every 2 seconds for the retail trade.

The world's largest foreign retailer:

Foreign exchange retail business and ATM products;

Prepaid travel cash card - Travelex cash passport;

Traveller's check

International money transfer (Western Union);

International phone cards

The Travelex Group is a private company; its capital is owned by Apax Partners to the tune of 57%, Lloyd Dorfman with 28% and Standard Chartered Bank with 7%. The Executive Committee holds the remaining shares. The company operates in 30 countries and employs more than 5,700 people around the world.

TASK 1

The sources of finance available to a business

Most of the businesses begin life as proprietorships or partnerships, and if they become successful and grow, at some point they fine it desirable to become corporations. (Fromlet, H. 2001 pp. 63-69) A business requires generating funds in order to expand its operations. These funds can be generated by way of equity financing or debt financing.

Equity financing is a way of raising funds through the shareholder deposits or by shareholders with the purchase of shares. Equity financing involves initial public offerings (IPOs), issuance of preference shares and rights issue. There is no interest incurred if the funds are raised through equity financing.

Debt financing is another way of raising funds for various capital requirements that may arise in a business. Debt financing, however, depends upon external help rather ...