managing financial resources

Essay by alonelystar1College, UndergraduateB, August 2014

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British Institute of technology and E-Commerece

Unit 2

Managing financial Resources and Decisions

Level: Level 4 - HNC and Level 5 - HND

Task 1


The business world is currently facing a plethora of pressures in terms of finding credit to finance their business. Currently there is a great short fall in money in the markets. As a result most companies and fighting to stay afloat. The business world is facing the biggest credit crunch since the late 1940s.

In this report the Living wood furniture Retail Company will be taken as an example to show the sources of financing available for businesses, implications of finance as a resource within a business, make financial decisions based on financial information and analyses and evaluate the financial performance of a business.

1a.)Identify the sources of finance available to Living wood

Finance plays an important part of modern business world. Financial resources are every business success point.

Without a financial backup whole company will be unproductive. There are two main finance types in business that are long term and short term finance. The definition of Short term financial sources is that a company that will able to gain finance in a shorter time. They are, bank loans, over drafts, trade credit, leasing, credit cards. Loan term financial sources are Bank loans, Share capital, Debentures, Asset sales, Venture capital, owner's capital.

When it comes to living wood same financial sources are help to living wood authore will mention some of important finance for living wood,-Getting lease -it's good idea for the living wood because this case study they describe about getting two machines but financial manager told that they don't have money to buy it so getting lease is better to boost the production.-Credit facility from the supplier - ask the supplier...