Corporate+Finance - Corporate Finance...

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Corporate Finance Getting the Money You Need to Run the  Business
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Corporate Finance Why Do Businesses Need Financing? Business needs money to cover short-term  needs Timing of inflows/outflows of funds is not  coordinated The business is cyclical or seasonal The business wants to expand
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Corporate Finance Seasonal and Cyclical Businesses Retail stores make lots of money in  December before Christmas, but are slow in  many other months Hotels do well in the summer, and possibly in  the winter, but not in the spring Gardening suppliers do well in the spring and  summer
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Corporate Finance Seasonal and Cyclical Businesses Prices of agricultural products rise and fall  (hog/corn cycle) Alberta economy depends on price of oil
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Corporate Finance Finances Needed to Cover These Cycles Money to buy materials Money to pay labour Money for distribution and marketing But collections for sales at the end of the  process, not the beginning
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Corporate Finance Growth Financing Business wants more production capacity Business needs new warehouse or sales  office Business needs new equipment These assets are expensive, and the  business cannot always save to pay for them
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Corporate+Finance - Corporate Finance...

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