Republic of the Philippines

Ramon Magsaysay Technological University

Iba, Zambales
GRADUATE STUDIES

Course: School Finance and Business Management

Professor: Esmen M. Cabal, Ed.D.
Topic: The Needs for Funds Availability
Reporter: MILLETTE B SARMIENTO
The Needs for Funds Availability
A business without a funding source will flounder under the weight of its own debt. Funding is the fuel on which a
business runs. A business can take different avenues to attain funding, and more than one option can be used. The
chosen funding will depend on the business' desire to be in debt, how solvent the business owners are at the time
the business is founded and the amount of money a business will need to launch and maintain itself through a
variety of events.
Seed Money
Materials, office supplies, equipment, a website and business cards all cost money and it has to come from
somewhere. Seed money, from an investor, a small business loan or the owner's savings account, must be raised
to get the business started.
Cash Flow
A business owner needs to draw a salary to survive. If the business has employees, they must be paid. There are
utilities to pay, insurance to buy and a laundry list of other expenses that must be paid for the business to survive.
When a business first starts, profits are going to be low so business funding is needed to allow for the cash flow to
meet expenses until profits pick up.

Financing Daily Operations

Day-to-day operations
Setting goals and successfully managing the ups and downs of daily operations is what constitutes the backbone of
any business. This information can help you manage your finances, your supply chain, your operations, your risks,
and more.
Managing your finances
You can use these resources to help you understand financial concepts and learn about tasks like budgeting,
financial analysis and bookkeeping.
Operations planning
Take steps to increase productivity, improve quality, and effectively manage the day-to-day operations of your
business.
Protecting your business
Your company is your greatest investment. Discover safeguard options that will help keep your business secure.
Benchmarking
How does your business measure up to others in your industry? Benchmarking allows you to evaluate your
performance and ensure that your business is operating at an optimum level.
Supply chain management
Effective management of your supply chain can help you create a seamless process from pre-production right
through to delivery and consumption.
Management leadership
Learn how to build strong management for your organization, and to lead by example.
Organizational design
Set up your organization — employees, information and technologies — to best meet your business objectives.
Environment and business
Find environmental programs and resources that could help improve your business.
Exiting your business
Know your options and obligations before you exit your business, whether you are closing for good, handing your
business over to someone else, or selling it.
 
Financing the Firm Credit Services
Financial services are the economic services provided by the finance industry, which encompasses a broad range
of businesses that manage money, including credit
unions, banks, creditcard companies, insurance companies, accountancy companies, 
consumer-finance companies, stock brokerages, investment funds, individual managers and some government-
sponsored enterprises.Financial services companies are present in all economically developed geographic
locations and tend to cluster in local, national, regional and international financial centers
 The financial services industry plays a vital intermediary role in the world economy as it moves money
from entities with excess funds to those with a need for funds. It includes firms that are engaged in activities such
as investing, lending, insurance, securities trading, and securities issuance. Its clients are individuals, businesses,
nonprofit organizations, and agencies of government.
The industry as a whole encompasses and integrates numerous components and services in interlocking
and codependent parts.
Bank deposits provide the capital for bank loans. The sale of stocks and bonds to investors supports the
operations of businesses and governments who issue those stocks and bonds. Insurance contracts help to pool
and manage risks.
Types of Businesses in the Industry 
This is not an exhaustive list of businesses or services that contribute to the industry by any means, but
the financial services industry usually encompasses companies in one or more of the following lines of business:
Banking
Insurance
Securities brokerage or financial advisory services
Investment banking
Securities trading
Investment management or money management
Securities analysis
Financial planning
Wall Street
Financing Purchase of Inventory
Purchase and Inventory Management automates and monitors
your procurement process thereby optimizing your total purchase and
inventory workflow. The solution supports the entire purchase workflow
from request through purchasing and receiving the goods, as well as the
entire inventory workflow from spare part management to warehouse
configuration.
KEY FEATURES
• Create, maintain and route purchase requests for approval
• Evaluate suppliers, compare discounts offered
• Maintain, update and route purchase orders
• Follow up on purchase order status
• Monitor deliveries
• Maintain complete control of stock and suppliers
 • Generate automated orders
• Complete Monitoring and Reporting
Financing Purchase of Major Assets
In contrast to a stock purchase, in an asset purchase the buyer and the seller choose the assets of
the business to be sold to the buyer while the selling entity remains intact. The buyer typically purchases the
majority of the seller's assets such as equipment, accounts receivable, client lists, and other items.
Asset financing refers to the use of a company’s balance sheet assets, including short-term investments,
inventory and accounts receivable, in order to borrow money or get a loan. The company borrowing the funds
must provide the lender with security interest in the assets. This differs considerably from traditional financing, as
the borrowing company must simply offer some of its assets in order to quickly get a cash loan.