Finance Strategies for Medium-Sized Enterprises

2021 ◽  
pp. 1323-1345
Author(s):  
Chen Liu
Keyword(s):  
Best Practice ◽  
Balance Sheet ◽  
Investment Decisions ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Artificial Intelligent ◽  
Blockchain Technology ◽  
Supply Chain Finance ◽  
Future Work

This chapter discusses how FinTech—technology-enabled financial solutions and services—can optimize finance strategies of medium-sized enterprises. Using a balance sheet model, the chapter integrates medium-sized companies' financing strategies, working capital management, and investment decisions and discusses FinTech solutions in each area to suggest best practice. Specifically, the chapter first discusses how crowdfunding and its different types could provide alternative financing for medium-sized enterprises. Second, FinTech solutions for online payment and transfer, invoice finance, supply chain finance, and trade finance help medium-sized enterprises optimize their working capital management. Third, blockchain technology and artificial intelligent (AI)-based decisions tools could potentially help medium-sized businesses optimize their decision-making process. This chapter also suggests future work that will allow us to better understand FinTech applications in medium-sized enterprises.

Finance Strategies for Medium-Sized Enterprises

2019 ◽  
pp. 162-184
Author(s):  
Chen Liu
Keyword(s):  
Best Practice ◽  
Balance Sheet ◽  
Investment Decisions ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Artificial Intelligent ◽  
Blockchain Technology ◽  
Supply Chain Finance ◽  
Future Work

This chapter discusses how FinTech—technology-enabled financial solutions and services—can optimize finance strategies of medium-sized enterprises. Using a balance sheet model, the chapter integrates medium-sized companies' financing strategies, working capital management, and investment decisions and discusses FinTech solutions in each area to suggest best practice. Specifically, the chapter first discusses how crowdfunding and its different types could provide alternative financing for medium-sized enterprises. Second, FinTech solutions for online payment and transfer, invoice finance, supply chain finance, and trade finance help medium-sized enterprises optimize their working capital management. Third, blockchain technology and artificial intelligent (AI)-based decisions tools could potentially help medium-sized businesses optimize their decision-making process. This chapter also suggests future work that will allow us to better understand FinTech applications in medium-sized enterprises.

scholarly journals Impact of Loan Accessibility on Working Capital Management and Profitability: Comparative Study of Family Versus Non-Family Firms

2020 ◽  
Vol V (I) ◽  
pp. 220-230
Author(s):  
Kanwal Iqbal Khan ◽  
Adeel Nasir ◽  
Aniqa Arslan
Keyword(s):  
Comparative Analysis ◽  
Family Firms ◽  
Investment Decisions ◽  
Sustainable Growth ◽  
Capital Management ◽  
Working Capital ◽  
Financial Cost ◽  
Working Capital Management ◽  
Capital Rationing ◽  
The Relationship

This study is conducted to identify the direction of the relationship between working capital management (WCM) and firm performance of the non-financial sector of Pakistan from 2009 till 2018. This has also looked at the effect of restricted access to loan on the WCM- Profitability relationship. The findings confirmed that restricted loan accessibility impacts the WCM-Profitability relationship. The comparative analysis demonstrated that financially constrained firms are mostly non-family firms that are new, growing, smaller in size, face high risk, maintain high liquidity and tangibility ratios than non-constrained firms. Further, the working capital levels of financially constraint firms is lower because of high operating expenses and greater capital rationing. Managers and scholars may use these findings for the administration of their working capital policies in order to avoid the financial cost and create more opportunities for financial accessibility which is further beneficial for making informed investment decisions, yielding higher profits that contribute towards sustainable growth.

scholarly journals Key factors in working capital management in the Brazilian market

2012 ◽  
Vol 52 (1) ◽  
pp. 55-69 ◽  
Author(s):  
Nathalie Vicente Nakamura Palombini ◽  
Wilson Toshiro Nakamura
Keyword(s):  
Balance Sheet ◽  
Internal Variables ◽  
Capital Management ◽  
Key Factors ◽  
Working Capital ◽  
Public Companies ◽  
Working Capital Management ◽  
Financing Decisions ◽  
Investment And Financing

Many studies have been conducted in corporate finance regarding long-term investment and financing decisions. However, short-term asset investments play a significant role in the balance sheet of companies. Moreover, financial managers dedicate significant amounts of time and effort to the subject of working capital management, balancing current assets and liabilities. This paper provides insights regarding the key factors of working capital management by exploring the internal variables of a number of companies. This study used data from 2,976 Brazilian public companies from 2001 to 2008, and found that debt level, size and growth rate can affect the working capital management of companies.

scholarly journals EFFECT OF WORKING CAPITAL MANAGEMENT AND LEVERAGE ON COMPANY VALUE WITH PROFITABILITY AS MODERATING VARIABLES

2021 ◽  
Vol 1 (1) ◽  
pp. 41-53
Author(s):  
Rico Nur Ilham ◽  
Majied Sumatrani Saragih ◽  
Andri Saifannur
Keyword(s):  
Firm Value ◽  
Investment Decisions ◽  
Capital Management ◽  
Working Capital ◽  
Moderator Variable ◽  
Working Capital Management ◽  
Moderating Variables ◽  
Company Value ◽  
The Relationship ◽  
Made In

This study aims to determine how the influence of working capital management and leverage on firm value with profitability as a moderating variable. The research method used is quantitative data method. 1) Working Capital Management variable has a positive and significant effect on Firm Value. 2) Leverage variable has no significant effect on firm value. 3) Working Capital Management and Leverage variables have no simultaneous significant effect on Firm Value. 4)Profitability variable is a moderator variable that affects the relationship between Working Capital Management and Firm Value. 5) Profitability variable is not a moderator variable that can moderate the relationship between Leverage and Firm Value.Company value can be used as the basis for making investment decisions because this aspect measures the ability of the company's assets to generate a return on investment made in the company's asset instruments.

scholarly journals Supply chain finance solutions in joint working capital management

2020 ◽  
Vol 13 ◽  
pp. 252-295
Author(s):  
Yana I. Kuzmina ◽  
◽  
Nikolay A. Zenkevich ◽  
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Supply Chain Finance ◽  
Supply Chain Costs ◽  
Inventory Financing ◽  
Managerial Perspective

The research is devoted to joint working capital management in supply chains aiming to improve joint working capital management methods through minimization of financial supply chain costs on working capital using Supply Chain Finance (SCF) Solutions. Though SCF applicability in Financial Supply Chain management has recently been studied to relieve access to capital sources, managerial perspective of SCF solutions is still uninvestigated as well as few other areas. The research suggests a managerial algorithm that contains four developed models: the model of Collaborative cash conversion cycle two models of SCF solutions and the model of Joint Working Capital optimization. The models imply using such SCF solutions as Factoring, Reverse Factoring and Inventory Financing to improve Joint Working Capital in terms of costs on it and liquidity of both supply chain members and entire chain, providing the optimal conditions of SCF solutions. Quantitative optimization with SCF solutions demonstrates on the cases of supply chains the improvement of financial position and liquidity of all chain members. The research has a potential to de applied in businesses since the algorithm represents a comprehensive managerial tool for Joint Working capital management in supply chains. It might be used to achieve optimal cash conversion cycle values for minimal supply chain costs on working capital constrained by liquidity and profitability target levels.

scholarly journals Supply Chain Finanzierung in der Automobilindustrie

Controlling ◽  
2020 ◽  
Vol 32 (2) ◽  
pp. 12-20
Author(s):  
Philipp Wetzel ◽  
Erik Hofmann ◽  
Felix Köpple
Keyword(s):  
Supply Chain ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Supply Chain Finance

Unternehmensübergreifendes Working Capital Management (WCM) eröffnet Unternehmen vielfältige Möglichkeiten, um ihre Ziele im WCM gemeinsam mit Lieferanten und Kunden zu erreichen. Mithilfe von digitalisierten Supply Chain Finance-Lösungen können Unternehmen nicht nur ihre eigenen Bilanzkennzahlen, Abwicklungsprozesse und Finanzierungskosten nachhaltig verbessern, sondern auch die Wettbewerbsfähigkeit ihrer Supply Chain Partner stärken. Anhand des Beispiels der Automobilindustrie wird in diesem Beitrag verdeutlicht, wie ein unternehmensübergreifendes WCM unter Einbezug von Supply Chain Finance zum Erfolgsfaktor für die gesamte Supply Chain avanciert.

scholarly journals A Study on Working Capital Management at EID Parry

2020 ◽  
Vol 6 (7) ◽  
pp. 37-41
Keyword(s):  
Balance Sheet ◽  
Secondary Data ◽  
Vital Role ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Turnover Ratio ◽  
Business Operations ◽  
Current Asset ◽  
Asset Turnover

The working capital management has an important role for the firm’s success or failure because of its effect on firm’s performance and liquidity. A well designed and implemented working capital management is expected to contribute positively to the creation of a firm’s value. “Working Capital” is the capital invested in different items of current assets needed for the business, viz, inventory, debtors, cash and other current assets such as loans & advances to third parties. Those current assets are essential for smooth business operations and proper utilization of fixed assets. The study is descriptive in nature. The secondary data is used for this study and four years balance sheet. The Working Capital Turnover Ratio, Current Asset Turnover Ratio, Probability Ratio. It was concluded that the working capital is a vital role of an organization

scholarly journals The Multi-Objective Model of Working Capital Optimization

2021 ◽  
Vol 14 ◽  
pp. 155-182
Author(s):  
Anastasiia Ivakina ◽  
◽  
Mariia Smirnova ◽  
Nikolay Zenkevich ◽  
◽  
...  
Keyword(s):  
Supply Chain ◽  
Optimal Solution ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Multi Objective ◽  
Supply Chain Finance ◽  
Concurrent Use ◽  
Collaborative Working ◽  
Objective Model

In recent years, the topic of supply chain finance has gained a lot of attention from academia, but still, there are a lot of unexplored areas. For example, the literature demonstrates a clear gap of adequate application of numerous supply chain finance solutions for collaborative working capital management (Gelsomino et al., 2019). This issue becomes more and more important, specifically in terms of globalization and growing competition between supply chains when liquidity and profitability improvement is of paramount relevance. Companies focusing on their individual supply chain issues and taking their own interests into account rather than understanding the whole supply chain and collaborating with their partners are missing fruitful areas for improvements (Wuttke et al., 2016). The authors address this gap by developing a model for collaborative working capital management through supply chain finance adoption for the case of the three-stage supply chain. At the same time, the process of working capital optimization is received as a multi-objective problem. The results obtained indicate that the model of working capital optimization with concurrent use of multiple supply chain finance solutions is able to provide an optimal solution for all the cases considered in the research. It allows to decrease the total financial costs on working capital and supply chain finance solutions making individual ones not worse and at the same time achieve greater liquidity.

scholarly journals Utilization of Cash Flow Ratios in Financial Management

2021 ◽  
pp. 8
Author(s):  
Keyword(s):  
Capital Structure ◽  
Cash Flow ◽  
Financial Management ◽  
Dividend Policy ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Capital Budgeting ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management

Cash flow ratios are the ratios are calculated using balance sheet, income statement, and the statement of cash flow. The statement of cash flow is used to calculate all of the 28 cash flow ratios. These ratios may be used in financial management. The financial managers can utilize the ratios in especially the seven functions of the financial management. They are financial analysis, working capital management, capital structure, capital budgeting, dividend policy, leverage, and valuation. All of the cash flow ratios could be used financial analysis and working capital management functions of the financial management. 14 ratios in capital structure, 10 ratios in capital budgeting, 8 ratios in dividend policy, 8 ratios in leverage, and a ratio in valuation may be used.

scholarly journals An Analytical Study of Working Capital Management of Selected Cement Companies in India

2021 ◽  
Vol 2 (4) ◽  
pp. 56-65
Author(s):  
Ahmed Mahdi Abdulkareem ◽  
Alok Kumar Chakrawal
Keyword(s):  
Data Analysis ◽  
Analytical Study ◽  
Balance Sheet ◽  
Capital Management ◽  
Working Capital ◽  
Short Term ◽  
Current Ratio ◽  
Working Capital Management ◽  
Test Hypothesis ◽  
Near Term

This article is to analyze and evaluate working capital management of selected cement companies.  The main purpose of this study is to find out the liquidity position of selected cement companies in India, five companies were selection .The duration of study is five years start from 2015-16 to 2019-20. Two ratios were used for the analysis of data: current ratio quick ratio. To test hypothesis ANOVA was used. The major findings of the study indicate that there are significance difference in the quick ratio and current ratio of selected cement companies. Based on the data analysis, there is a mixed trend in the current ratio during the year 2015-16 to 2019-20. The analysis also shows the ups and down in the quick ratio of the selected cements companies during the period of 5 year. It indicates that there is mixed trend in quick ratio during the year 2015-16 to 2019-20. Removing short-term debt from balance sheet allow companies to have better  quick and current ratios and allow to save some of liquidity  in the near term and put in to better use.  Companies are suggested to adopt more aggressiveness in maintaining their current rasio.

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