Cash flow is basically the incomings and outgoings of cash of your business. It is not profit and loss, although trading clearly has an impact on cash flow. Its effect is real, immediate and, if not managed properly will have its negative results. Why manage the cash flow? It is greatly advantageous if you know where your businesses’ cash is tied up, unsettled invoices, inventory and many others, what and when cash is coming in and what cash obligations you have coming up: you can immediately identify possible cash flow gaps and respond to minimize their impact, for example, by discussing new terms with vendors, apply for a new loan or hire debt collection agencies to chase those overdue invoices Read More...
Understanding Escrow
January 29th, 2012
Probably some of you are curious what an Escrow arrangement is and how it works. I hope this can help and give you an idea of what it is. Escrow is an arrangement where funds, a deed or other instrument is held by a third party called an escrow agent on behalf of the principals or parties to the transaction Read More...
Difference Between Trust Services and Banking/Financial Transactions
January 25th, 2012
When I was hired 12 years ago in the Trust Department, my first question was "What is Trust?" "What do they do in the Trust Department?" I really wasn't aware of what's going on inside there. I only knew of the basic bank products like the deposits and loans. And many ask how does it differ from Deposits in bank? "Doing business WITH you vs Read More...
Computing Interest Using the Average Daily Balance
January 22nd, 2012
I know many of you already know how to compute for Simple Interest where Interest=Principal x Rate x Time. For those who have a Savings Account, do you ever wonder how you earned the interest for that month? Most banks compute interest based on its Average Daily Balance (ADB). First, we will define what is Average Daily Balance Read More...
Merchant Cash Advance as Option to Small Businesses
January 10th, 2012
Having worked in a bank for more than a decade, I've seen how tedious it is to process a loan application. Whether a business needs a $250,000 additional capital or $50,000 initial capital, applying for a loan requires a lot of documents. Preparation of financial and tax records, documents necessary for the collateral, some legal documents like the business licenses and registration for the conduct of business, personal and business credit report are just some of the paper works required by the bank Read More...
Mercatura Aalen: Our Shopping Center
December 28th, 2011
A very late post, if I may say. We here at Aalen City, Germany has a brand new commercial establishment, the Mercatura Aalen. A 2-level shopping center near the city train station, it houses a variety of stores that cater to every Aalener needs. Retail clothing stores, shoe shops like ShoeTown and Tamaris, boutiques like Esprit and Gerry Weber, a mini supermarket for organic food, a drugstore, a café, and a lot more Read More...
What It Means to Be a Social Company
December 23rd, 2011
One aspect of a company's external communication that often gets overlooked is management of the company's image in social media contexts. Managing messages and images are very important in the social media sphere. At a very basic level, you need a Twitter account and a Facebook page. Here's a sampling of what you need to ensure your company has an effective social media strategy Read More...
