StudentShare solutions
Triangle menu

Financial Services - Essay Example

Not dowloaded yet

Extract of sample
Financial Services

Limited equity financing is used by most of the small or growth stage businesses. Whereas in debt financing, funds pour in from different quarters like from friends, relatives, etc. Venture capitalists are the most common source of equity funding. Venture capitalists may be institutional risk takers, financial institutions, wealthy persons, etc. and most of them specialize in industries. Venture capitalists are risk takers and show interest only in three to five year old companies that result in more than average profits. These venture capitalists are called as investment gurus whose interest lies in those companies that have major regional and national concerns.
Commercial finance companies, financial institutions, banks, savings and loans, Lloyds Bank small business, etc. are some of the sources for debt financing. Because of their positive impact on the whole economy local and state government encourage the growth of the small companies. In debt financing additional funds comes from friends, family, relatives, and industry colleagues, etc when capital investment is smaller.
Generally banks formed as a major source for loans for the establishment of small businesses. Banks don't offer long term loans to small firms instead they grant short term loans for machinery and equipment, they also offer demand loans to small firms that reduces the risk of leveraging the funds available.
The Income Statement presents the summary of the income earned and the expenses incurred during a financial year. Position statement presents the financial position of the business at the end of the year.
b) Financing
One of the frequent reasons of business failure is poor management and insufficient and poor management of financing comes second1. For starting or relocating or expanding a business sufficient capital is required. Having good financing is not enough in attaining profits; proper knowledge and planning are required to manage it well. These help in strengthening the management of financing and avoid common mistakes like miscalculating or underestimating the cost.
The Income Statement presents the summary of the income earned and the expenses incurred during a financial year. Position statement presents the financial position of the business at the end of the year.
By Financial Statements, we mean two statements - (i) Profit and loss A/c or Income Statement, and (ii) Balance Sheet or Position Statements. These are prepared at the end of a given period of time. They are indicators of profitability and financial soundness of the business concern. Thus, analysis of Financial Statement means establishing meaningful relationship between various items of the two financial statements, i.e., income statement and position statement.














Applying for a loan
Loan application should be well written, so that the reader could get a clear picture of what your plans are. The presentation should be of the best quality in the initial loan proposal and application. Only industry specific details should be included so that reader can easily understand.
Earning capacity or profitability
The overall objective of a business is to earn a satisfactory return on the funds invested in it. Financial analysis helps in ascertaining whether adequate profits are being earned on the capital invested in the ...Show more

Summary

a) Financing is of two types, equity financing and debt financing. When you are in need of money or looking for capital, company's debt-to-equity-ratio should be considered. It is the relations between the Dollars or Euros that an entrepreneur has borrowed and Dollars or Euros invested in the business…
Author : tsawayn
Financial Services essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Financial Services"
with a personal 20% discount.
Grab the best paper

Related Essays

Financial Services Coursework titles
People have come up with several reasons why the financial crisis occurs and why the impact of financial crisis was so strong. Not only the financial institutions in the country but the overall world economy had to face consequences of the financial crisis.
9 pages (2250 words) Essay
Financial Services
This paper critically examines the general approach to measuring capital adequacy levels of banks as per the new standards implemented by the Basel III. The paper subsequently discusses the drawbacks of the Basel II standards that were exposed during the 2008 worldwide financial catastrophe and which consequently led to the development of the Basel III standards.
12 pages (3000 words) Essay
Financial services
Even though the economic situation is under control in UK, the people blame financial institutions for the destruction of society. Regardless of the current situation, the financial service sector in UK has a promising future due to which most of the organizations are trying to establish their base at UK with an aim to accomplish their goals and objectives.
16 pages (4000 words) Essay
Marketing Financial Services

The conclusion from this review states that Morgan Stanley is a well known in the financial sector and is based in the United States but has offices all over the world. The biggest strength of the company is its brand image and a large base of employees. The company also has experience of many years in the financial sector.

10 pages (2500 words) Essay
Financial Services Marketing

The researcher of this essay aims to pay special attention to types of products and strategies for the development of financial service. There are six types of new products that are in a company and marketplace. These include new-to-the-world, new product lines, additions to existing product lines, enhancement as well as revision of existing products, repositioning and cost reductions.

8 pages (2000 words) Essay
Financial services
The assists their clients to manage the risk and return related to their wealth, thus, optimizing the value of their money. There are different kinds of advisors, tied, multi-tied and independent depending upon the number of firms they provide advises on.
4 pages (1000 words) Essay
Financial services
The underlying factors of the market that determines the value of derivative contracts may be currency conversion rates, interest rates, equity prices, commodity prices, etc. The derivative contracts may take the form of options, swaps, futures, forwards, etc.
5 pages (1250 words) Essay
Financial Services and Markets
With a more or less similar objective of regulating the investment services across all member states of the European Union, Markets in Financial Instruments Directive (MiFID) has been introduced. While replacing the Investment Services Directive (ISD), MiFID proposes to achieve the objectives of protecting the investors in the EU as well as responding to changes and innovations in the securities market.
8 pages (2000 words) Essay
Financial Services

The main intention of the study is to develop an understanding of the concepts of management in the banking and finance industry in general and how the established theories and principles are applied to the industry and some of the organizations. During the study, an effort will be made to observe the general working at some banks and financial institutions to seek answers to the following key objectives.

12 pages (2000 words) Essay
Financial Services
s largely on account of the reduced market entry barriers and a positive swing in demand for investment advice from consumers who need professional guidance in choosing from a wide range of financial products available in the market. The role of financial advisors in such cases
20 pages (5000 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation