WORKING

CAPITAL FINANCE
Understanding Working
Capital Finance 1

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 Index Page

Working Capital Management Page -03

Working Capital Finance Page - 04

Working Capital Loan Page - 05

Business Capital Loans Page - 06

Photo Gallery Page - 07

Inventory Finance Page - 08

How To Find Working Capital Page - 10

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 Working Capital Management

Understanding Working Capital Finance

Numerous funds are required to setup a business and get it running.

Working capital funding is the cost of funds that is used for the purpose
of financing a business. Business cannot do without working capital
financing. The cost of capital is dependent on the financing mode used
for the purpose. It means the cost of equity if business is financed
through equity only or cost of debt if debt was the sole means of finance.
Numerous companies use the combination of equity and debt for capital
funding.
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Business Capital Loans

The ratio of the working capital finance shows whether the company
possesses the short term assets to cover the short term debts of the
business. Anything below 1 indicates negative WC and anything over 2
indicates company is not investing in the excess assets. The ratio between
is 1.2 and 2.0 is considered adequate. If company fails to exceed 3 its
current asses from its current liabilities, it could be well on its way to
disaster and have difficulty in paying back the short-term creditors.
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 Working Capital Finance
It is the measure of the efficiency and the short term financial health of a
business. Method of how to find working capital is stated below and can be
understood by the following equation:
Our Services
Working Capital = Current Assets Current Liabilities
The ratio of the working capital finance shows whether the company
possesses the short term assets to cover the short term debts of the business.
Anything below 1 indicates negative WC and anything over 2 indicates
company is not investing in the excess assets. The ratio between is 1.2 and
2.0 is considered adequate. If company fails to exceed its current asses from
its current liabilities, it could be well on its way to disaster and have
difficulty in paying back the short-term creditors.

4
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Working Capital Finance

www.carpenters.sg Page - 04
 Working Capital Loan
The loan that is taken for Our Services
the purpose of financing the daily routine
operations of the business is called working capital loan. Working Capital
Finance loans cannot be used to make long-term investments or buy long-
term assets. They are used instead, to cover wages, accounts payable etc.

Those businesses and companies that have cyclical sales or high

seasonality usually rely on the working capital loans to help the business in
time of reduced business activity. The cash available for financing the
short-term operational needs of a business is called working capital.

Businesses that do not have a sound source of funding may stagger under
the weight of its own debt and capital funding is the fuel on which a
business can run successfully. Different options can be chosen by the
business in order to gain capital funding.

Sometimes, more than one option can be used for capital funding. The
selected mode of funding shall depend on the business desire to remain
5 and
in debt, solvency of business owners at time of founding of company
the amount of money business shall need to launch itself and maintain
through different situations.
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Business Capital Loans
Under the Capital Fund Financing
Program, private capital may be
borrowed by PHA to renovate,
improve and pledge depending on
the availability of adoptions, a part
of its future annual capital funds in
order to make the timely debt
service payments for conventional
bank loan transaction or a bond.

Generally, a time period between

60-90 days can be expected by the
PHA. The overall timeline for
review shall rely on the
completeness of the proposal as
well as the responsiveness of the
PHA team. The PHAs are advised
to anticipate and the unforeseen
issues that might arise.

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information on
Business Capital Loans

They are expected to act

accordingly if unexpected
circumstances surface during the
6
review process so that they are
able to recover and come out of it
efficiently and timely.

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 Photo Gallery

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Business Capital L
oans
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 Inventory Finance

The obligations of PHA are also subject

to the availability of appropriations by
the Congress and compliance with both
the regulatory and statutory requirements.
A written approval by the HUD is
required for all the capital funding
transactions that pledge, obstruct or
provide security interest in other property
or public housing assets including capital
funds and use them for debt payment or
financing costs.

A PHA is required to submit a financial

proposal in order to get the HUD
approval. It includes a term sheet,
complete financial documents and
Visit our website for justification for use of the capital funding
More information on for financing. The guidelines for CFFP
Inventory Finance program are listed below:

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 Inventory Finance
The loan that is taken for the Ourpurpose
Servicesof financing the daily routine
operations of the business is called working capital loan. Working Capital
Finance loans cannot be used to make long-term investments or buy long-
term assets. They are used instead, to cover wages, accounts payable etc.

Those businesses and companies that have cyclical sales or high seasonality
usually rely on the working capital loans to help the business in time of
reduced business activity. The cash available for financing the short-term
operational needs of a business is called working capital. Sometimes
companies lack in having sufficient cash on hand or asset conversion for
covering the daily operational expenses, taking working capital loan acts as
basic corporate debt borrowings which are utilized by the business to
finance the daily operations of the company.

9
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Inventory Finance

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 How To Find Working Capital

Prime Funds approach to financing selection: commitment to

fundamental research, long-term investment, emphasis on
individual decision-making while centered on trust and value to
our clients. Our group consists of a seasoned professional team
Our mission
with decades of is to provide
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and workmanship through every single plank,
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