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Raising finance - Coggle Diagram
Raising finance
Bank overdraft
Well suited
Seasonal shortage
Temporary cash flow shortages
Size of overdraft
Interest Charged
Fees
conditions imposed
Notice period
Security provided
Working Capital Finance
Value of Stock
Cash in Bank
Receivables - Payables
Negative working capital
Late Payment
Creditors finance business
Loss of discounts
Reputation Damage
Interest payments
Equity Finance
Ordinary Shares
Voting rights
ownership
dividends paid behind preference
Preference shares
Voting in exception
Ownership
Dividend paid first
paid first on banckrupcy
Share Warrants
Nominal (par) Value
issues above = share premium
No shares issues below par value
Bank Facility Finance
Multiple banks (Syndicated)
One primary
3month LIBOR Rate
Margin (basis points)
basis point 1/100%
London InterBank Offering Rate
Setting of LIBOR regulated
Fee paid at drawdown
Committed fee
Drawn Fee
bilateral (single bank)
Private Equity
Venture capital
Buying public companies
returning them to private ownership
Hedge funds
Fund management companies
Wealthy individuals
High Fees / High performance
Riskier investment strategy
lightly regulated
short selling companies
harm affected organisation
Non-public issue of shares
Debt factoring
Sell receivables
discounted invoice 90%
factoring house
Recourse
Non-recourse
higher fee's
reduced credit exposure
prompt payment of debt
improved working capital
Lease Finance
bank aquires asset
Company leases back asset
Defined term
Pay for asset at end
Hand back
Lease new assets
no capital costs
Secured borrowing