Finance

State Council approved the scale of four banks to refinance 287 000 000 000 – bank financing, finance – Pump Industry

HC Valve Network: Closely-watched industry, construction, medium, size of the four lines refinancing, has finally been set.

Reporter has learned from authoritative sources, the State Department has agreed to the four major listed banks to refinance the total size of 287 billion yuan.

Reporter also noted that, while some bank financing options might change, but the banks will not change the size of refinancing.

2870 strict measure It is reported that the financing of large commercial banks and then high-level attention by the State Council. Earlier this year, the State Council held a special supplement in 2010 large commercial banks capital conferences. Since then, the CBRC held the big banks to refinance the forum, and then after the banks financing the scale of rigorous measurement.

State Council’s requirements, according to “A shares to raise that point the credit constraint, H shares a little more resolve, innovative tools to solve that old shareholders a little more” principle, the proper solution to larger problems of refinancing, and asked four banks to “put the number of loans and reduce the cash dividend rate, to maintain state-controlled status, the capital adequacy ratio of not less than the minimum standards, to consider the capacity of capital markets,” such as five prerequisites for specific data estimates.

In four banks to report the amount of refinancing, the State Council approved ICBC, China Construction Bank, Bank of China, Bank of refinancing amounted to 287 billion yuan.

The size of banks refinancing came out, respectively. Bank of Communications announced that it will in the two “A + H” allotment of shares for 42 billion yuan; Construction Bank announced the refinancing of the scale not more than 75 billion yuan; Bank of China and ICBC has not yet announced the refinancing of their size, but according to total 287 billion yuan scale projection, Bank of China and ICBC total size of the refinancing for the 170 billion yuan. According to the sources, the Bank re-financing scale of 100 billion yuan, the bank re-financing scale of 70 billion yuan.

As ICBC and Bank of China, the current program is “A + H shares of stock convertible bond placement” approach, in which Bank of China issued 40 billion yuan of convertible bonds, convertible bonds the bank issued 25 billion yuan, according projections If the Bank of China and ICBC refinancing program change, two lines from the Hong Kong market was 105 billion yuan refinancing size. Limit the scale of change

Refinancing Program before the end, some banks may refinance program has changed, but they are in the scale of the State Council approved the refinancing period.

To CCB patients, CCB refinancing programs through a number of sets of contrast and argument, the first selected program is non-public issuance of A shares finance 45 billion yuan, H share placement financing of 30 billion yuan lightning, but the election set is “A + H” two places at the same time allotment, according to every 10 existing shares allotted not more than 0.7 unit. A, H shares, respectively be placement of shares not more than 630 million shares, 157 million shares and A shares and H shares for shares of the same proportion, the maximum financing amount not more than 75 billion yuan.

CCB refinancing program changes, its size is always limited to the refinancing of 75 billion yuan. Therefore, even if the program ICBC and Bank of China has changed, the total size of the financing will not change.

Learned in the discussion of the various lines of re-financing options, maintenance of the status of state-owned controlling shareholders has been followed. Outside financing, the allotment is the only required in the financing of state-owned Shares, so the banks are for the maintenance of the status of state-owned shareholders to consider, in the possibility to reconsider the allotment of shares.

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The Only Disadvantage Of Factoring Receivables And Why Confidential Accounts Receivable Finance Work

Looking for a creative, ‘outside the box’ Canadian business financing solution? You may have investigated factoring receivables already but either didn’t understand how accounts receivable financing works, or, probably more to the point weren’t comfortable with how it works for your firm on a daily basis.

We’ve got the perfect solution for those worries, and its called confidential receivable financing, in Europe its more commonly known as C I D, confidential invoice discounting .

Let’s examine why this type of business financing works in general, and then let’s focus in on why our solution makes a solid solution even better.

In general terms when you ‘factor ‘ your receivables you essentially sell them to the factoring firm. That can be done on a one of basis, on a periodic basis, or all the time. That’s one of the key advantages of this type of financing, you only use what you need, and… More importantly, you only pay for what you use!

Paying for what you use in accounts receivable financing is key because factoring, in general terms can be a more expensive type of financing. We say ‘ can be ‘ because quite frankly if you use it properly it actually could be a cheaper method of financing than your bank. That’s a point our clients are always amazed at when we discuss this type of Canadian business financing.

The cost of factoring receivables can be significantly offset, or in some cases removed completely by your firm using these funds to take supplier discounts and purchase more efficiently and at better prices .

And… Think about this carefully, if you can finance your receivable the days you issue the invoice (that’s what factoring does) then you are in a position to generate funds to sell more products and services to your customers, generating additional margins and profits. Or, of course, you could take the non factoring approach and wait for your customers to pay you in 30, 60, or… dare we say it, 90 days. And that hasn’t worked for you in the past, which is why you are looking for a better solution.

So lets examine how factoring works, and lets get you over the hump, so to speak, on why our preferred type of accounts receivable financing is confidential invoice discounting .

When you generate an invoice under a factoring receivables agreement you receive 90% of the invoice in the form of immediate funds the same day. The other 10% is a holdback, and is remitted back to you promptly when you customer pays, less the financing charges, which are typically 1.5 – 2% for a 30 day period.

In 99% of traditional factoring arrangements the factor company verifies your invoice with your customer and actually collects it. Under confidential invoice discounting you bill and collect your own receivables, and are in a position to finance your firm without your customers and suppliers having anything to do with how you finance your business.

Speak to a trusted, credible and experienced Canadian business financing advisor on why confidential accounts receivable financing will work for your firm, allowing you to supercharge that cash flow and those profits!

Stan Prokop is founder 7 Park Avenue Financial ; Originating financing for Canadian companies,specializing: working capital, cash flow, and asset based financing , the 6 year old firm has completed in excess of 45 Million $ of financing for companies . For info / free consultation on Canadian business financing / contact details see:
http://www.parkavenuefinancial.com/factoring_receivables_accounts_receivable_finance.html

The Truth About Business Factoring And The Real Factor Cost Of Ar Finance In Canada

You can’t handle the truth! Or can you ? We think you will be able to once we review the basics around business factoring in Canada, what is the true factor cost of AR finance (ar = accounts receivable).

Your firms ability get financing around the most liquid and accessible business asset you have, your receivables, is what can make or break many small and medium sized businesses . The big corporations seems to have this down quite well already , as they have large sophisticated infrastructures for credit and collections, as well as access to corporate borrowing and securitization facilities that smaller companies just don’t have .

But you still have access to business factoring – all we can warn you about is that it’s important to understand your true cost – (it’s not what you think it is!) and, even as critical – picking your partner in this method of Canadian business financing.

Is your firm eligible for a business factor facility? If you can answer yes to one single question – ‘ Do you have accounts receivable?’ then, you guessed it, you’re eligible! In many cases if you are working with the right firm you can blend in receivable and purchase order financing into the same facility – the names tend to change then, as we refer to that as asset based lines of credit and working capital facilities.

So, it’s always about cost, right? We don’t think so, but our client’s sure do, so let’s invest some time to discuss the real factor cost of ar financing in Canada. Part of the problem in addressing the cost issue is the perception by clients, totally understood of course, that factoring costs are viewed as interest rates by the borrowers.

That’s not how the industry views it; they are buying something you are selling, at a discount. That discount rate is often (99% of the time!) interpreted as an annual interest rate. So while the factor firm buys your receivables at a rate of between 1-3% (on a monthly basis) our clients gasp and view that as 12 – 36% annual percentage rates.

So, how do you assess the factor cost then? Here are the elements you should consider in assessing business factoring in Canada. First of all, if you don’t have some decent gross margins on your products or services then even bank financing or carrying your own receivables is expensive. So a solid gross margin is important.

To calculate your margins of course simply take your gross income and divide that number by your sales revenue and express it as a percentage. The number of course shows you how much you are making considering the costs you incur in actually producing that product. Naturally service companies have usually great margins, because there is no direct cost of sales.

Other issues to consider in understanding the true cost of factoring is how long it takes to collect your receivables, as well as the actual cost it is taking you to carry that investment . And don’t forget the concept of lost opportunity – you can take you factoring cash and turn that into additional sales and profits, as opposed to waiting for a cheque to come in 60- 90 days later.

Our final point is that the cost of factoring can be significantly offset by your ability to take discounts and purchase in a smarter fashion, in quantity, etc.

In summary, the true factor cost of AR finance is probably not what you think it is. Thousands of firms that use and offer this service can’t be wrong. Speak to a trusted, credible and experienced Canadian business financing advisor for assistance in understand the real cost of business factoring in Canada. You might just be surprised, and find you can handle the truth!

Stan Prokop is founder 7 Park Avenue Financial ; see http://www.7parkavenuefinancial.com

Originating financing for Canadian companies,specializing: working capital, cash flow, and asset based financing , the 6 year old firm has completed in excess of 45 Million $ of financing for companies . For info / free consultation on Canadian business financing / contact details see:
http://www.7parkavenuefinancial.com/business_factoring_factor_cost_ar_finance.html

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