Liquidity Ratios

Working Capital: Working capital compares current assets to current liabilities, and serves as the liquid reserve available to satisfy contingencies and uncertainties. A high working capital balance is mandated if the entity is unable to borrow on short notice. The ratio indicates the short-term solvency of a business […]

Sources of Finance For Startups

Start-up businesses often have a difficult time finding sources of start-up business financing for their initial financing needs. It is often not possible to get bank loans because financial institutions aren’t interested in unproven businesses. Even with the best possible business plan, in the world of business and finance, […]

Ratio Analysis

Ratio analysis is the quantitative analysis of financial information from a company’s financial statements or share price. Ratios are key to financial analysis, as they provide input for evaluating and comparing a company to its peers, or to an industry benchmark. Ratios provide the vital signs used to measure […]

Letters of Credit

A letter of credit is essentially a financial contract between a bank, a bank’s customer and a beneficiary. Generally issued by an importer’s bank, the letter of credit guarantees an exporter will be paid once the conditions of the letter of credit have been met. Use: Letters of […]

Smart Ways of Managing A Start-Up

Market evaluation Do your homework on the market needs and how these needs are satisfied today. Who are the main players? What are the products and services available? What are the current prices? If you are launching a new product or service, do some market research to evaluate the size […]

Creating A Saving Culture

Which one do you do? <Earn, Spend, Save> OR <Earn, Save, Spend>? It is often said, that the only way to make money is to either inherit it, to marry into it or to steal it. But in all fairness, the majority of us cannot fall under any […]

Frugal Habits of the Super Rich

We’ve all dreamed of striking it rich and never having to worry about money again, but anecdotal evidence suggests the wealth elite live surprisingly frugal lifestyles. Whether it keeps them grounded or simply comes by force of habit, here are the cost-cutting habits of the super-rich: Mark Zuckerberg […]