Overview
ABSTRACT
In this article we deal with analyze financial assets, investments and working capital, as well as funds such as equity capital borrowed from markets or banks. Undertaking and managing require a realistic financing plan. The notion of maximum growth linked to the profitability of equity excluding capital increase is introduced. Faced with the identified risks, insurance provides secure financial funding. Emphasis is placed on the necessity for Companies to have stable resources in order to ensure their independence.
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Philippe TARDY-JOUBERT: Board of Directors - Former associate professor at Panthéon Assas University, Paris II - Honorary Chairman of the French Society of Financial Analysts (SFAF)
INTRODUCTION
The question of financing is an essential one for any company. The aim is to ensure that assets and liabilities are properly matched, and to provide stable resources at the lowest possible cost. New investments, business development, currency fluctuations and economic difficulties are all opportunities to set up or adapt financing. Financing an investment will require long-term resources, and this decision will condition the life of the company for many years to come. Financing the operating cycle, or a temporary cash-flow shortfall, will require appropriate solutions.
After identifying the wide variety of needs associated with the company's tools and operating cycle, we'll look at the sources of financing available: equity capital and funds borrowed on the markets and from banks.
Drawing up a financing plan will enable the company to measure its borrowing capacity. This is directly linked to the amount of cash flow the company will be able to generate.
Finally, in the face of the many risks we identify, the question of insurance contracts will be raised, in terms of "emergency financing". Here too, the aim is to ensure the independence and even, in some cases, the survival of the company.
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Company financing
Assets to be financed – Sources of financing
Bibliography
Websites
• Center des Professions Financières http://www.professionsfinancieres.com
• Financial executives http://www.dfcg.com
• Corporate treasurers http://www.afte.com
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