managing finance Essay

managing finance Essay

Length: 1364 words (3.9 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

Managing Financial Resources and Decisions
Assignment Number 1

1.0 Introduction
According to Teachers Network Editors (2012), all business need both short term and long term finance. Short term finance are needed for the very first step of the business, for starting up the business and to cover the daily running cost, while the long term finance will help them to grow, to expand and to buy resources. In addition with this classification, the sources of finance are divided into internal and external finance.
By internal sources we understand the finance that came from business assets or activities while external sources come from outside the business. This report`s aim is to identify the sources of finance available for Mathias Coffee Shop, analyse the cost of those sources of finance and discuss about the implication of those sources identifies.

LO 1.1 Identify the sources of finance available to the business
Mathias Coffee Shop is a local coffee shop located in the heart of Wembley. This coffee shop is ideal for escaping the daily stress of the life, enjoying friend`s company, read a good book while drinking a good coffee. The owners of this shop have secured this location with a three- year lease with an option for extending. They also have provided £140000 from the starting up cost of £170000. For the rest of the capital needed for starting up this business they borrowed money as loans from the HSBC bank, commercial loans. Those loans were split into short term loans, 1 year short term loan 10000 and long term loans, five years, 20000. Nate H (2009).
Looking at those figures we can mention that according to Journal of Small Business and Enterprise Development (2003), small firms have a limited access to external financ...

... middle of paper ...

...x of funding products and it should make sure it will afford the funding certainty. Paul Barrow (2004).

Reference list:
Teachers Network Editors (2012).Sources of finance. Available: Last accessed: 24/10/2013.

Nate H.(2009),Coffee Shop Business Plan, Java Culture. Available: Last accessed: 11/11/2013.
Business finance blurtit Editors (2011). Assess the implications of different financial sources. Available: Last accessed: 11/11/2013.
Paul Barrow (2004), Raising Finance. A Practical Guide to Starting, Expanding and Selling your Business, Kogan Page Limited, London, p.35-38.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Intro to Corporate Finance Chap. 1 Essay

- •Chapter 1 INTRODUCTION TO CORPORATE FINANCE GOAL Today, corporate finance managers must make decision in a much more coordinated manner and generally has direct responsibilities for a control process. Because there are financial implications in virtually all segments of business, she/he must have sufficient knowledge of finance to work these implications into the area. At the end of this chapter, you should be able to: • Undenstand the nature of corporate finance . • Understand financial management framework....   [tags: Finance ]

Strong Essays
2250 words (6.4 pages)

Managing Personal Finances Essay

- Managing Personal Finances Managing personal finances is an important skill to acquire. However, no where in school is this subject taught. As a result of a lack of preparation, our society is subject to a high percentage of people who lack financial success. Those who are successful at managing their personal finances will find that they are successful in many other areas as well. To learn how to manage personal finances there are books and web sites that provide a step by step guide to successfully managing personal finances....   [tags: Argumentative Persuasive Essays Finance]

Strong Essays
789 words (2.3 pages)

Application for Finance Position Essay

- Tell us about your F&C experiences: At Citigroup, I had to develop a new model to forecast revenues from partnerships, using return on investment ratio as proxy for profitability of the partnership and at Nestlé, when setting price and communication strategies, I had to be fully aware and have an understanding about management accounting and the implications of the strategies for the income statement. I feel very comfortable with numbers and I enjoy the challenges associated with financial analysis, which are two of the reasons I am specializing in Corporate Finance....   [tags: Entry Level Finance Cover Letter]

Strong Essays
676 words (1.9 pages)

Job Practice and Training Intern Kuwait Finance House in Bahrain Essays

- CHAPTER 1 COMPANY BACKGROUND 1.1 HISTORY Kuwait Finance House – Bahrain it’s a %100 an Islamic bank that are leading to provide an Islamic and commercial investment banking services. Kuwait Finance House – Bahrain established in January 2002 and its wholly owned subsidiary of Kuwait Finance house - Kuwait . they are an industry leader for more than 30 years and with total assets of KD 3.915 Billions. While the total assets of KFH- Bahrain is BD 291 Million . also , they are specializes in conceptualizing the development and introduction of innovation , plus providing the sharia 'a compliant banking and investment products ....   [tags: Finance, Corporation]

Strong Essays
2074 words (5.9 pages)

Essay about The Corporate Finance Field

- It is commonly known in society that earning money takes effort and hard work. The profession of Corporate Finance follows this theory. It takes enormous amounts of time and determination to be successful in this field. ¬The idea of becoming a businessman may seem as if you will just become another fat, obnoxious person, but that is all just a stereotype. There are many successful businessmen who are neither fat nor obnoxious such as Warren Buffet and Charles Schwab. Being a businessman can be enjoyable....   [tags: Career, Analyst, Skills]

Strong Essays
590 words (1.7 pages)

Essay about Business Finance and Marketing

- Capital investment decisions aim includes allotting the capital investment funds of the firm in the most effective manner to make sure that the returns are the best possible returns. Researchers indicated that there are basically four methods that have been used in practice which are Payback Period (PP),Internal Rate of Return (IRR),Accounting Rate of Return (ARR) and Net Present value (NPV) used by firms to evaluate investment opportunities throughout the world (Atrill & Mclaney, 2008). The Net Present Value (NPV) and Internal Rate of Return (IRR) methods are considered to be discounted cash flow (DCF) methods....   [tags: investments, strategy, returns]

Strong Essays
1956 words (5.6 pages)

Managing Your Personal Finances Essay

- Most individuals are not proficient at managing personal finances. Although, management an easy task, usually only for some people who have the experience with managing their finances. In contrast, others find it a daunting due to lack of knowledge. Because, the economy have transfigured drastically since the1980’s, and the cost of living, insurance rates, and interest rates on student loans have all increased along with health care having doubled, managing money well has become more difficult....   [tags: important skills you should have]

Free Essays
734 words (2.1 pages)

Nokia Finance Department Essay

- Nokia Finance Department Finance department The finance department is responsible for razing the money so that the business can survive or expand. It can do this by a judicious mixture of borrowing, going to the shareholders, reducing costs and managing to increase process marginally. Sources of finance * Tax refunds * Bank * Mortgage * Private loans * Credit cards * Shares * Grants * Overdrafts * Personal investments * Borrowing * Savings * Windfalls The department must record all financial transactions, it must be involved in costing and advise on pricing, and it prepares and arranges for the...   [tags: Papers]

Free Essays
537 words (1.5 pages)

What is Project Finance? Essay

- I) Why Project Finance Firstly it is important to take into consideration the importance of growth and development for the major industries that maintain the economy of countries around the world, and for this matter the constant creation and renovation of infrastructure is totally necessary, in order to facilitate and accelerate the growth period of many industries driving each specific country. The second reason that to choose Project Finance is due to the scope and the necessary means involved in making a successful venture in this type of activity: Project Finance involves not only major capital investments, covered most of the time by different lenders or syndicate groups, but also...   [tags: capital investment, ]

Strong Essays
849 words (2.4 pages)

Finance Essay example

- Milestones or stumbling blocks. Embarking on a quest for a second round of venture financing in late December, Russ Garcia, an Irvine, Calif., entrepreneur, agonized over an offer. The venture fund would fork out the money if his startup, which makes global-positioning satellite chipsets, met certain goals. The pricing was on a sliding scale — upward if the goals were met, downward if they weren't. Fearing that the terms were too stringent, Garcia rejected that first offer. But when u-Nav Microelectronics Corp....   [tags: essays research papers]

Free Essays
1895 words (5.4 pages)