Basic Information On Capital Growth Fund

What are some of the things you need to know about capital growth fund? Primarily, it’s typically an investment option under an insurance plan issued by your financial institution of choice. You won’t be investing in the underlying assets so you essentially do not have rights or ownership over them.

If this is the case, how does your investment benefit you? Your ROI will be calculated based on the performance of these assets, each of which has its own objectives and risks. It will be subject to the charges of your plan and may actually be lower than the ROI choices or the underlying assets.

There are always risks in investment. For this reason, you should refer to the principal brochure of the capital growth fund to read the prospectus of the underlying asset’s objectives and risk factors. Typically, the objective is to achieve a solid capital growth over time, either medium-term or long-term. You should know though that this investment has less risk than a hundred per cent equity-based unit trust. It also aims to get long-term results that keep up with inflation.

The fund normally involved in this investment are a wide spread of bonds, stocks, cash, and other money instruments that are in the currency specified in the policy. It is normally linked to a portfolio consisting of diversified funds. A big chunk of the assets will involve equities and equity-related assets, with the remainder being directly and indirectly invested in high-grade fixed income securities such as bonds as well as other similar securities.

Equity assets such as stocks are more volatile and present more risk than other forms of investment such as high-grade fixed income securities. You may find the growth fund performing poorly at some point when the conditions in the marketplace are not compatible with the fund’s investment style. This could, of course, lead to a significant decline in its value. Securities of companies included in its growth investments may swing rapidly in a time of political and economic uncertainty. Market and regulation changes can also deliver a huge impact.

The financial institution you decide to go with will use its own discretion when it comes to the regions it will invest in and how it plans to reflect its geographical focus based on the currencies used.

As you can gather from the above information, the value of shares in the fund will fluctuate according to the changes in the value of the securities in its portfolio. This is why it’s important to invest in a fund that’s managed by excellent finance specialists.

Ways In Improving Working Capital And Cash Flow

Having good working capital and cash flow is important in order to make business better. However, business owners experience numerous issues in attaining these factors. Thankfully, there are ways in improving working capital and cash flow. To know more, below are some of the following.

Consider alternative funding

One of the best ways in improving working capital and cash flow is by considering alternative funding. Of course, some business owners may have sufficient finances for their business. However, there are still cases when these finances are not enough. Because of this, delays can be experienced which can ruin your business performance. Because of this, it is important for business owners to look for alternative funding. Luckily, financial institutions can provide business owners with numerous financial options that can cater to their needs properly.

Pay and negotiate with suppliers properly

Another good way to improve working capital and cash flow is to pay and negotiate with suppliers properly. When paying suppliers, it is imperative that you pay them on time. In this way, you can build better relationships with your supplier. And, having good relationships can help you make create payment agreements that can benefit both parties. Meanwhile, business owners must also negotiate with their suppliers to ensure that all tasks are completed effectively from providing them with good prices up to delivering of their goods. With this, businesses can improve their performance.

Manage your stocks actively

It is also essential for business owners to manage their stocks actively. Surely, having a lot of stocks can help you reduce manufacturing costs. However, this can also pose some issues most especially if you cannot sell of your products. Therefore, you need to make sure that you can manage your stocks. The best way to deal with this issue is to analyze revenue and sales of individual products and decide which items must be made to stock and made to order.

Work with financial experts

Finally, if you still experience issues on your working capital and cash flow it is best to work with financial experts. With these experts, you can monitor and manage your finances. Other than that, these experts can also provide financing solutions that can assist business owners.

These are only some of the ways business owners can opt for in order to improve their working capital and cash flow which can make business profitable and successful.

By: Ricky Anderson – Info Source From: www.business.hsbc.ae/en-gb/capability/working-capital

Freeing Money in the Sales Cycle with Finance Accounts Receivable

One of the most common financing problems that businesses experience is when money becomes stuck in the sales cycle. “Sales” is not cash, and cash is what truly fuels the growth of a business. When businesses cannot liquidate money that is technically theirs because of their customers’ financial woes, preventing negative cash flow becomes the companies’ objective. Therefore, directing money toward new and necessary purchases or taking advantage of expansion opportunities is prevented, which can be very frustrating for business owners.

In today’s highly competitive business scene, no enterprise can afford to miss opportunities for growth or operational improvement simply because their money is caught in the sales cycle. These opportunities rarely strike twice – if a business misses the chance to take advantage of them, they are lost forever. This is why commercial banks have various solutions for clients that will allow them to get hold of the cash that is necessary for the advancement of their operations. These solutions include ideas on better payment schemes for customers, an improved collection system, and finance accounts receivable.

Among the three, finance accounts receivable provides the most certainty. It has long been known to improve cash flow and enhance forecasting. And for qualified clients, banks can provide up to 90 percent of invoice values. Other advantages provided by this financing solution include the availability of receivables finance in most major currencies and the assurance that they can be provided the day after application.

Now, when it comes to operations, receivables finance will not only ensure that the business can quickly grab profitable opportunities or investments; it can also help maintain good relations with suppliers because the money owed can be paid sooner and effective negotiations can be carried out to improve rates and terms. Business relations are very important, especially for companies that remain operational due to steady supplies.

It’s important to mention as well that with receivables finance, there’s always the option of only getting the amount of money that the business needs. This can definitely help in the improved management of resources.

Therefore, if your business has made sales but you’re having trouble liquidating the value of those sales (and as such, you are at risk of compromising your relationship with suppliers or you are prevented from implementing growth initiatives), consider finance accounts receivable. Set up a consultation with a banking representative who can thoroughly explain this financing solution’s terms and conditions, as well as the complete range of advantages it can provide for your business.

Banking Services That Can Help Business Growth And Expansion

Business growth and expansion are some of the common goals of business owners. Surely, by growing their business, they can obtain better profits that can help improve their business reputation. On the other hand, business expansion allows business owners to gain better benefits which can help them increase their profits. However, achieving these goals are quite hard most especially if you do not have a solid plan. Because of this, some business owners seek for services that can help them. Luckily, banking institutions like HSBC can provide you with amazing services that can help you grow and expand your business. Below are some of the following.

Working capital solutions

One of the main services offers by banking institutions to help business growth and expansion is working capital solutions. With these solutions, business owners can manage cash and trade flows more efficiently. Not to mention, opting for working capital solutions from banks can help you reduce debt, expand your business reach or enhance your balance sheet. As a result, you can accommodate your financial needs properly.

Payments system for local and international transactions

The next service banking institutions offer that can help improve business growth and expansion is payments systems for local and international transactions. When running a business, you most likely deal with local and international clients. Therefore, there are some issues that may arise in your transactions. Luckily, with the help of banking institutions, business owners can make use of payments systems for local and international transactions. Apart from making your tasks easier, payments systems can also increase your security as well as reduce overhead expenses like expensive charges or even legal problems.

Risks management services

Another banking service that can help business owners improve their growth and expansion is risks management services. Risks always occur in ay business which can surely affect your finances. That is why some business owners are looking for ways to easily manage these risks. Fortunately, banking institutions these days offer risks management services. These services allow business owners to handle, control and manage these risks properly to deliver positive impact.

Solid investment strategy

Lastly, banking institutions can also provide a solid invest strategy for business owners to help them grow and expand their business. By working with banking institutions, business owners can find the right investment channels which will allow their business to choose this smarter path on how to multiply their returns from existing efforts.

With these amazing services from banking institutions, business owners can improve their business performance and increase their profits easily and efficiently.

About the author: Vincent Porter is a writer and a follower of HSBC. It is a banking institution that offers reliable banking services. In addition, HSBC also offers other services to help business grow and expand.

The Benefits Of Efficient Corporate Liquidity Management

By Delfin Notele – Content Info Resource from business.hsbc.com.qa

Liquidity is indeed a crucial financial concept for any company in any industry. This pertains to the amount of cash it has on hand, or perhaps that it can generate for a short time frame. This is a significant indicator of the overall financial health of the company. It must be capable of settling debts easily or perhaps doing all of its financial obligations whenever a crisis arises.

During the recent global financial crisis, the need for efficient corporate liquidity management gained attention. The norm was for organizations to build a very strong relationship with just one banking institution that can manage their cash management and funding requirements. But the crisis showed just how serious the impact could be on enterprises when their banking provider collapsed, and how lending by such institutions could be cut short. Thus, corporate treasurers must rethink of their liquidity management strategies so they can efficiently reduce risk as well as optimize the cash they have.

Apart from that, corporate liquidity management concerns other important functions like dealing with credit lines, managing debt capacity, and using derivatives for hedging. The result them would be a higher level of financial flexibility that will allow companies to sustain their operations at the best possible level.

Benefits Companies Can Enjoy With The Right Liquidity Management Solution In Place

• Aggregated Balance – If the aggregate cash position increases in size, there will certainly be better interest terms.
• Stable Balance – The volatility of the overall net balance can be reduced when multiple accounts will be brought together in a bigger liquidity structure. This further means that unexpected cash flow events will be absorbed better and cash on hand can be distributed across investments a lot easier.
• Consolidated Balance – The cost of maintaining cash deficits and surpluses can be minimized, if not, eliminated.

But apart from these benefits, a company can likewise enjoy other perks. These include improved counterparty risk management, a decreased dependency on credit facilities, and better cost and time savings management.

Different Techniques For Efficient Corporate Liquidity Management

Cash Concentration – This is considered the highly recommend option under physical consolidation. This is otherwise known as zero balancing or physical cash pooling. It works by making transfers between the master account and subordinate accounts. Aggregating the balances physically is the purpose of this technique.

Notional Pooling – This is under notional balance consolidation. It works by making an interest calculation on designated accounts. This technique will help maintain the original ownership structure due to the fact that there is no physical movement of funds.

Interest Enhancement – This is also under notional balance consolidation. It is somewhat similar to notional pooling wherein there is no physical movement of funds. The difference is that this technique applies preferential pricing on various accounts based on pre-determined criteria, which is often based on a net aggregate balance threshold.

Benefits Of Choosing The Best Bank To Open A Business Account

If you want to become your own boss, you may achieve financial freedom. Along with this, you may create a real career for you.

Bear in mind though that being a business owner is both challenging and exciting. The most exciting part is that you can capitalize on your creativity, be in control, and enjoy what you are doing. On the other hand, the daunting part is the many requirements that you must meet to make your new enterprise operational based on the standards of the industry you have joined.

And when it comes to requirements, you may need to open a business account. Experts emphasized that this is a must, most especially when you need to maintain a complete separation of the funds you use for business activities with that of your personal purposes. If you make the wisest decision in terms of choosing the best bank to open a business account, you make a huge difference in how you manage the financial movements of your business.

Why You Must Open A Business Account In The Best Bank

Choosing the best bank to open a business account is the general rule to follow here. Bear in mind that not all banks are created equal. There are banks that your fellow entrepreneurs prefer and recommend in terms of business loans. There are also those which are not offered by small local banks. Be very meticulous in choosing which bank to work with. Here are some of the advantages of opening an account with the most respected and competitive banking institutions:

1. You will be able to trade directly with organizations having a good financial status and recognizing the excellent financial status of your business through its open account solutions.
2. If you are selling on open account terms, the bank has receivables financer products, which can deliver the collection and financing services you need. Experts have emphasized that these products will help you in keeping your business “consistent” so that your business operations and relationships are well protected.
3. The bank will have reliable supply chain solutions. These solutions are meant specifically to minimize your expenses, optimize your working capital, and have better control and visibility over receivables.
4. It allows you to take full advantage of export and import finance even without an underlying documentary credit, which makes the process easier and simple for your operations.

When your bank covers all of these, then you have found the best where you can open an account with and you can be very sure that your enterprise is in good hands.

About the author: Leonard Monroewe is a business owner who just started his business in the UAE. He is very thankful to www.business.hsbc.ae for providing him different information and tips about proper cash management.

The Benefits Of Using Customer Service Training Modules

Just like technology and other essential items in a business, employees need to continuously improve their skills and knowledge in order to cope with the changing needs of clients. Because of this, some employees are now enrolling in training courses offered by reliable institutions.

Apart from enrolling in courses, employees can also make use of online modules. For instance, employees who deal with clients can make use of customer service training modules. By using such modules, employees can attain the following benefits that can help with their tasks.

Improved communication and interpersonal skills

One of the best benefits of using customer service training modules is you can improve your communication and interpersonal skills. Communication is an essential part when dealing with customers in order to provide them with the best services they are looking for. Additionally, improved interpersonal skills also allow employees to identify the needs, wants, and expectations of clients. Luckily, using customer service training modules can help employees to learn about these skills. As a result, you are rest assured that you can accommodate the needs of your clients properly.

Deliver better results

The next benefit of using customer service training modules is employees can deliver better results. When talking about results, most business owners think of their sales and revenues. However, customer service training modules allow employees to have better insights on how to measure customer satisfaction, which can help them determine issues that need to be changed or solved.

Enhanced problem solving and decision making skills

Making use of customer service training modules can also help employees to enhance their problem solving and decision making skills. There are cases when employees need to make urgent decisions when dealing with clients that can make or break a deal. Apart from that, there are also issues that may occur unexpectedly when talking to clients. By using training modules, employees have sufficient knowledge to solve problems and make decisions easily.

Build stronger relationship

Finally, customer service training modules also help employees to build stronger relationship with their clients. In order to gain better sales and to generate leads, it is important that you build a business-client relationship. Luckily, customer service trainings help employees to improve their listening skills to accurately deal with their client’s queries. Other than that, employees can also make use of feedback to improve their performance.

With all of these benefits, business owners are rest assured that their employees can provide clients reliable services that can match their business goals.

Source: Focus On People is a company that offers reliable and effective training courses to help employees become better and more efficient.