Thursday, December 13, 2007
yeah..
agressive strat vs conservative strat.
Average seasonal funding needs = (Add up all ) / 12
Average permernant funding needs = lowest month.
Conservative strat = LT Finance * Highest Month in Total Funding needs
Agressive Strat = (LT Finance * Permerment Average funding needs ) + (ST Finance * Average Seasonal Funding Needs)
Cost of giving up cash discount =
CD *
360
(100-CD) N
Cash Discount is an implicit cost.
Tightening Credit Terms "
Sales Decrease
Investment in a/r Decrease
Bad Debts decrease
Profit wise :
Sales Negative
Inv in a/r Posative
Bad debts Posative
The 5 C's
Capacity
Character -->
Capital -->
Collateral -->
CHAM ~ FORGOT
