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BTF Chap 7: Business Finance - Coggle Diagram
BTF Chap 7: Business Finance
Why is business finance important?
The risks to borrowers of short-term finance
Making the decision between short-term and long-term finance
The cost of short-term finance
Financing current assets
Balancing short-term and long-term finance
Investing surplus cash in the short term
How is business financed
Equity holder
I(người góp vốn): High risk => High return
A business is financed
Debt
Equity +Debt
Equity
Debt holders
(người cho vay, vd: Bank): Low risk => Low Return
Financing exports
Reducing credit risk
Letters of credit
Export credit insurance
Bills of exchange
Trading risks
credit risk
trade risk
physical risk
liquidity risk
The banking system
The bank/customer contractual relationships
Bailor/bailee relationship
Principal/agent relationship
Receivable/payable (debtor/creditor) relationship
Mortgagor/mortgagee relationship
The bank/customer fiduciary relationship
The bank's duties to the customer
The customer's duties to the bank
The rights of the bank
Banks
Financial stability
Monetary policy
Forms of money transmission
Fintech
(Financial Technology)
Financial intermediation
Sources of debt finance
Term loans
Loan stock
Def:
Redemption value
Redemption date
Coupon (interest) rate
Recipient
Debt factoring: bán nợ
services typically offered by a debt factor
Insuring receivables
Managing the running of
the receivables ledger
Finance against sales
Def:
Disadvantages of using debt factors
Leasing
Overdraft
Disadvantage
Cost
Control
Risk
Advantage
Flexible
Cost
The money markets
Money market financial instruments
Certificates of deposit (CDs)
Gilts
Deposits
Bonds
Treasury bills
Commercial paper
Def
:
The
capital market
for business finance
Def
Financing a growing business
Venture capital (VC): đầu tư mạo hiểm
AIM (Alternative Investment Market)
Businessangels and crowdfunding
Crowdfunding
Business angels
Sources of equity finance
Rights issues of shares
Factors to be considered when making
rights issues
Shareholder reactions
Control
Issue costs
Unlisted companies
New issues of shares
Placings (phát hành riêng lẽ)
Drawback
Benefit
Public offers (phát hành đại chúng)
offer for sale/
lnitial Public Offering (IPO): phát hành thông qua nhà phát hành
direct offer (offer for subscription): phát hành trực tiếp -
không
thông qua nhà phát hành
Pricing of new issues
underwriting the issue: thẩm định
offer for sale by tender: chào thầu
Retained earnings
Preference shares
Drawbacks
Benefits
def: No voting right & No right to share in exeess profits
Going public
Disadvantage
Advantage
Green finance
Green bonds
Market for Green Bonds
Green Bond Principles
Green Finance Institute