The Lighthouse | banking

When Businesses expect a period of Low Cash Flow

By Erik Zimerman On May 16, 2017 · Add Comment · In The Whiskey Room

As many an experienced businessman knows, being great at what you do is only part of managing a successful business. From successful marketing to human resource management, there is a lot required for your success. Perhaps nothing is as fundamental however, as proper cash flow management. Many otherwise successful businesses fail because of a failure in cash flow management. Small and medium businesses can often find themselves fully occupied, selling their goods or services at a profitable margin, with their owners working hard day in and day out happy to see so much profitable activity, only to find themselves unable to pay basic expenses at the end of the month; and then descending into a death spiral as cash becomes less and less available. Proper accounting, administration and long-term cash flow management are incredible important, and necessary to match up income streams with expenses (who often have very different cycles and schedules), but also to be able to recognize what is and is not working in the company. Very often orderly analysis of the numbers will reveal very different profitability or even loss of different parts of the business than what one would expect. When we do accounting, and cash [...]

[Continue Reading...]

Selling or Liquidating your Notes on Lending Club (and some other P2P insights)

By Erik Zimerman On May 2, 2016 · Add Comment · In The Whiskey Room

Lending Club, among other players in the industry such as Prosper, is one of the great success stories in the peer-to-peer revolution, or the “share economy”. The idea is simple enough, the internet is ideal for cutting out middlemen, so why not banks? In the idealized (and fictitious) scenario, a bank is an institution that takes and safeguards deposits from people in exchange for an interest rate, say 2%, and then uses those deposits to make loans to people and businesses that need them at a higher interest, say for example 6%. The Bank is thus simply an intermediary that facilitates a market in which some people have money they wish to save, and others need loans to invest or purchase goods and services with. Lenders and borrowers. The margin between the two rates, 6 and 2 percent respectively, is the gross profit of the bank, in this case 4%. And of course, out of that 4%, the bank presumably has to pay its many expenses such as rent, insurance, marketing, staff salaries (a really high-tech secure vault like in the movies) and the like. And finally, like in any business, if there is some profit leftover after all these [...]

[Continue Reading...]

S	M	T	W	T	F	S
	1	2	3	4	5	6
7	8	9	10	11	12	13
14	15	16	17	18	19	20
21	22	23	24	25	26	27
28	29	30

When Businesses expect a period of Low Cash Flow

Recent Posts

Top Posts & Pages

Halls

Archives

Subscribe to Blog via Email

When Businesses expect a period of Low Cash Flow

Selling or Liquidating your Notes on Lending Club (and some other P2P insights)

Recent Posts

Top Posts & Pages

Tags

Halls

Archives

Subscribe to Blog via Email