Financial Mathematics

If you want to calculate rates or the economy or to correct previzionezii is good to have a business idea and the figures and calculation formulas and percentages and all but if not sure it will reusiii you better chose another career in this life that can not be done with mathematical approximation and probably so-so but if you want to learn the result aiun derost all formulas and you can imcepi what is below

 
1. Financial Mathematics
1.1 percent. Percentage ratio. Determine the percentage of a number
Percentage ratio call report form p/100 p> = 0.
Manufacturer P numjeste percentage. Note: p%
To find out the water% of a given number is the number that made p/100 p/100 ie multiplied by the number given.
Example:
A television costs $ 160. At Christmas there is a discount of 15%. How much will be paid for television?
Answer: The buyer pays with 15/100 * 160 = $ 24 less. So, for a sum paid television 160-24 = $ 136.
Determining a number when a percentage of it is known.
Required to determine if we have a number that p% of it (ie p/100 * s) is t, ie there is equality p/100 * s = t and hence s = (100 * t) / p is the number determined
Example:
A student read 180 pages of a book, which represents 60% of the total number of pages of the book. How many pages does the book?
Answer: If you marked it with x number of pages of the book, then the statement (60/100) * x = 180. Hence x = 300. So the book has 300 pages.
1.2 Interest. Simple interest
Getting financial mathematics is interest. Interest is the amount of money that is paid by the debtor to the creditor a cash loan.
Easiest to bring investment income is depositing money in a bank or ERC for a certain period with some interest (which represents a certain amount of money a saver receives after a while). This is simple interest.
But if this amount is added to the original and it calculates interest for a similar period of time, adding at the end of this period, etc.. When we speak of a compound interest.
To distinguish the two types of interest: interest paid, which is interest paid by banks or CEC depositors for amounts deposited and interest received, which is interest received from banks or CEC from borrowers for amounts borrowed.

          Interest is the amount on a unified monetary unit for a year, is rated 'unsatisfactory' on Interest i. 100 monetary units for a year is called a percentage, noted p. So p = 100i
For S monetary units (MU) during a year get interest:
D = And = Sp/100
For S u.m. time of t-years interest, simple interest is called:
D = S * i * t = (S * p * t) / 100
where S is the amount deposited, t number of years that sum has been made, and p is the percentage dobanziicare represents the amount paid for deposit by 100 monetary units (MU) for a period of one year. S/100 is the number of sets of 100 contained the sum S (S/100) * p is a year interest on deposit, and D is n-year interest on the sum S. The formula here is on interest pm Monday formula
D = (S * p * m) / (100 * 12)
Note. In finance, marketing year is 360 days and each month has 30 days.
If S 'is the initial deposit period t and then sum-rate unitary
final or final value is:
St = S '+ D = S' + S'it = S '(1 + it)

          Example:

            1. Depositor at a bank put a sum of 100,000 lei a rate of 15% interest. What is the interest obtained after one year? But after three years?

            Answer: After a year the interest is equal to 100000 * (15/100) = 15000 lei, after three years its value is equal to 3 * 15 000 = 45 000 lei.

            2. Interest rate to determine if an amount of 12 000 um six years without an interest rate of 2.880 u.m.?

            Answer: here S = 12 000 u.m., D = 2880, t = 6. Result of simple interest formula p = (100 * D) / S * t = 4, which means that the annual interest rate is 4%.

           
1.3 compound interest
A sum of money is dealt compound interest (capitalized) if, at
sfsrsitul first period, simple interest is added to that period amount to produce, in turn, interest in the near future: Whether S 0 initial amount, the percentage p, and p = 100 unitary interest, the amount of investment duration t S 0 (number whole) and S t the final amount after t periods, then:
If 1 + i = u fruition will be a factor found in the financial tables for t = 1,2,3, ... for different percentages when the final sum will be:
Interest will be made for t-all:

          Initial amount deposited will be:
1.4 Value Added Tax
VAT is a tax that covers all phases of the economic circuit, namely production, and distribution services to the retailer to final consumers, including.
As to the state budget VAT is an indirect tax that is established on property transfer operations on the supply of goods and services. It is a flat tax that is levied in the corresponding fractional value added at each stage of the economic circuit. Value added is equivalent to the difference between sales and purchases related to the same stage of economic circuit.


         SUBJECT OPERATIONS Value Added Tax
         Subject to value added operations are divided into two categories: a) operations which have the effect of transferring property ownership however is this: sale, exchange of goods, company capital of a company and in some cases even free delivery. b) operations involving the provision of services Taking into account the nature and origin of goods subject to value added operations are divided into law: a) deliveries of goods b) the transfer of property ownership between businesses and between them and institutions or individuals. c) providing services d) importation of goods and services

         Supplies of movable property
         Includes all operations which made the ownership of movable goods in whatever form in which this transfer of ownership is achieved.
         Special cases of transfer of ownership that comes within the scope of the VAT law are: a) Exchanges of goods - A manufacturer of engine change a car manufacturer for 20 to a car engine. Each operator is deemed to have made a good delivery and is liable to pay the VAT even if the transfer of property assets was not made against payment in U.S. dollars. b) rental of goods under a contract clause property passing to the goods after paying the final installment or on a certain date. c) Acquisition by a trader of goods purchased or manufactured by him for their use in any form for personal use or to be made available to other individuals or d) legal charge, with some exceptions provided by lege.Exceptiile refers to goods donated to support humanitarian and social activities, cultural, sports, or entertainment, advertising and publicity in value ceilings set under the budget law.
1.4 Profit

         Profit (denoted by P) represents the difference between revenue (denoted by V, or receipts) and expenditures (or total cost noted CT)
So P = V-CT
All profit we can calculate the difference between production value and total cost. In this case P = P * Q-TC where p is the unitary price (the price of a product), and Q is the production (in number of pieces)
If P is calculated on a piece (unit) when talk of profit product unit, and if P is calculated for the entire production, then say it's all profit. We call such profit calculated gross income. Dacxa of this income minus income taxes to get what is called net proftul.

            The normal profit (or unitary) intelegm profit entity that provides the probability to continue their work.

            Call rate of return, noted rp, the ratio of profit (P) and total costs (TC).

Finanteaza-te eficient

 

I capitalize to meet a minimal need to have some knowledge of accounting, fianate, banks, credit, law, or tricks and Business mafieie well organized and very dangerous today. It is a novelty or something used to be told step or ITPA do business with strangers but if it is a reality. if you study or people easily find the truth and if not going to risk and you can win more or lose all but some risk that they want someone back, it is advisable to have mimimul certainty to be assured that you did everything you could to be but do little bien gidul investor or school or read the article below and it will be something better.(pentru a te finata intrun mod derizoiu trebue sa ai cateva cunostinte de contabilitate, fianate, banci, credite, drept, sau chiar siretlicurile mafieie si businesului bine organizat si destul de periculos astaz. Este o noutate sau poate ceva obisnuit sa ti se spuna pas sau tiapa dar daca faci afaceri cu necunoscuti asta este o realitate. daca ai studii sau oameni afli usor adevarul iar daca nu mergi la risc si poti castiga mult sau pierde tot dar uni vreau riscul ca au in spate pe cineva, este indicat sa ai mimimul de certitudine ca sa fi linistit ca ai facut tot ce sa putut ca sa fie bien insa fa putina scoala sau citeste gidul investitorului sau articolul de mai jos si va fi ceva mai bine.)

* Home
    *

    * News
    * Business News

    * Tutorial
    * Business Plan Guide

    * Articles
    * Business Analysis

    * Forum
    * Questions and Answers

    * Experts
    * Experts Forum

    * Contact
    *
Business financing sources
The potential sources of funds for financing activities are:
- Own funds and borrowed funds from family and friends; - Bank loans; - Issue of shares; - Issuing bonds; - Funding of special programs; - Cfapital venture funds; - Leasing; - Credits from suppliers and customers; - Effects of trade credits (factoring and discounting)

A. own funds and those borrowed from people close
These are the most common starting point in the case of small businesses and new. Financial institutions are less open - especially in times of economic instability - at first only those firms with a "history" already well delineated. This decision is based on high rates of "mortality"? Register new business.
Own funds offer the advantage of larger fuses - will not be withdrawn when deteriorating financial situation, that if a bank loan. No need exposure detailed business plan in front of external partners, nor their approval for important decisions.
This source of funding thus ensuring flexibility, safety and independence. Also, the prospect of attracting external financing sources of equity firm commitment is a guarantee of entrepreneur motivation for business success.
Disadvantages own sources of financing are also important: - Own funds are generally quite limited and may inhibit the development of business; - In case of failure, loss will be borne entirely by the entrepreneur (or his relatives); - Company is little known financial institutions and can raise capital more difficult in special situations.
Given the economic situation that characterized the evolution of Romanian economy in transition, most entrepreneurs had sufficient reserves and did not always have the opportunity or courage to seek bank loans.
Almost without exception, friends and acquaintances were one of the most important sources of initial capital for lending business examples presented in this course.
B. Bank Loan
Bank credit is a major source of funds, especially for small and medium. In Romania's case, access to credit new small businesses is more difficult.
Benefits bank loan: - Obtaining additional funds from the own; - Establishing a relationship with a known financial institution, easier access to other services provided by the bank; - Obtaining a loan can function as a signal that certify business viability before other potential investors; - For certain types of credit there is a degree of flexibility in terms of amounts involved, dates of hire money, interest rates and repayment periods; - Need to convince the bank or filling the business viability of a credit application can "force" entrepreneur objectively analyze their business, to obtain a clear picture of its financial situation and an array of weaknesses, strengths, opportunities and threats that characterize the situation of the company.
Disadvantages of bank credit: - Reluctance of banks regarding the financing of new firms, banks needing money certainly will get back pay as a loan, while the newly-established firms not offering it for various reasons (no history, no experience, no have many elements of these companies make stable elements in the economy); - Risk of losing warranties made or even non-reimbursement risk of bankruptcy if the credit; - Involvement of a factor "external" management company, the occurrence of restrictions; - Exposure to new risks - such as interest rate risk; - Cutting the risk of lending in the event of bad for business.
C. Issuance of stocks and bonds is an important source of financing for large firms, but firms are less accessible at first.
D. Special Financing Programs
Firms have access to various grants programs. Potential sources of funding are EU programs, the Romanian Government, USAID, etc.. (A comprehensive source of information in this area is www.finantare.ro website).
Obtaining such funding requires: - Permanent information on existing programs; - Study eligibility criteria, documentation requirements, deadlines for submitting applications for funding and ongoing conditions of financing and project evaluation; - Selection of appropriate alternatives to the activity profile of the company; - Composition of the necessary documentation and filing project.
We recommend a rigorous assessment of the chances of successful funding application before it start, can thus be avoided inefficient consumption of time and money. Program itself is likely to suggest the possibility of extension / diversification of company activity.
Before embarking on this path, the entrepreneur will need to correctly estimate the effects of such strategic moves. Funds granted on a theoretical problem may prove advantageous if the company is unable to use them as provided by the financier.
In addition, the entrepreneur must be aware of the important conditions for its contribution in this project, as well as any warranties.
Moreover, contracting a consultant to undertake an application for funding is in it yourself, the activity involves some risk: besides privacy risks on the company, sometimes the consultant has no intention to achieve at least the required documentation.
Usually, people who try such actions fall within a "portrait": - It looks very safe on them; - It boasts relationships that runs the program of financing institutions; - I try to get money to guide the applicant or other documents of the information package, available free at the Agency and the Internet; - Require all the money before: usually, if real consultancy, requesting some money before - the percentage of grant amount, around 2% - and a success fee - for example, 5% - if the project is approved; - The amounts required vary greatly from one customer to another; - Can I practice dumping prices, very low compared to competitors or, on the contrary, may require a lot.
[Example 3-2] Games Trading Company which imports from Germany accessories, hardware and sliding door systems. Increasingly, business customers have requested the entire product. Company owners have decided to expand their business and produce a range of door locks to include classical and sliding doors. For production, was founded a new company, Arcade Doors, it was decided to solicit grants PHARE.
The project was developed in collaboration with a consulting firm but, unfortunately, auction result reached by director Alexander Dinu event. Anyway, however, program funding was a very good side, namely the fact that Arcade Doors received the first tranche of 80% of funds requested, no need to submit your own co.
In this way, costs could be better installments, there can more easily get money which is co-operation required of profits from the company.
Although total investment required to start business Doors Arcade was about 160.000 EUR, the amount reimbursable EU funding was welcome, prompting the company owners decide to participate in these auctions by the European Grant projects.
PHARE 2000 European Union has funded projects ranging SC Pora Ltd - Production line of sports socks, SC Mogoş Med Ltd. - Small cabinet surgery, SC Caselle Impex Ltd. - production line performance and wood furniture, SC Fanirom Com Ltd - setting up a bakery and confectionery factories, SC Til Montana Cerna Village - The leisure for tourists and sportsmen, SC Striking Ltd. - Processing and preserving of fruit, vegetables and mushrooms, SC Auto Group Ltd - center repair, car maintenance and inspections, Philip SC Group Ltd - Abattoir and meat processing factory, etc.. (Source: adapted by Capital magazine no. 11 of March 13, 2003)
[Example 3-3] Two companies, Publipres Com and Marcos S. Ltd. accused who would be hired to offer advice but not to fulfill the commitment. Proofs are but few, indeed, none of the companies has signed a contract with S.
Ionut Lucan, project manager authorized by the Director Publipres Com, said: "The day before the deadline expires, the company stayed all night S and I rebuilt the project. What looks like an essay they had worked. If not paid that money, I did draft the beginning and I submit it. Great mistake was that I left them to submit it, and then, after crossing the deadline for submitting "It had been several weeks and not I knew nothing of project and consulting firm with the answer we all procrastinate. Eventually, we gave a copy of the registration number of the project.
Without contracts, S. She can disclaims any responsibility regarding the submission of projects and in terms of quality, always remain the place of discussion. One of the associates said first company S as a contributor has submitted plans and that he handed the registration numbers. After one day, said the company handed out delegate Publipres project beneficiaries.
Regarding firm Marcos representative Elijah Ionita says getting paid 2.000 USD for PHARE funds, the money would be paid without receipt. He says he contacted an advertisement S. ago, believing that this company is developing and recording project funds equivalent to receiving banilor - of course, without knowing of the existence of the Regional Development Agency.
In both cases, registration numbers presented beneficiary firms were just some fakes, the numbers were changed and in addition, registration receipts are only children and not originals.
In other cases, consultants claim to be "agreed by the Development Agency (or other financier or implementing agency for a specific financing program) A - information that some clients do not check directly to the source, or trying to sell papers of information packages (funding application, the applicant guide, matrix logic, rating scale, etc..) - offered free by other financiers. (Source: adapted by Capital magazine no. 45 of November 8, 2001)

E. Funds are venture capital funding sources who specialize in investment if the probability of failure is higher - but successful cases are enough to offset losses.
Fund invests in venture capital firm - usually as a minority shareholder - and will withdraw their stake after a certain period (usually 3-5 years). Risk fund gains the difference between the value of holdings between the time of investment and shareholdings in the company's liquidation.
The main advantages of this form of financing are: - Receiving an infusion of capital over a long period, during which not paid interest (or dividends are not a priority for this type of fund); - Receiving an amount not included in company records as debt but as their financial sources. Therefore, the ability of company debt is not affected; - Along with money, the fund brings its specialists who will assist the entrepreneur in business management; - Keep majority control of the company capital; - The existence of a signal on the medium-term business viability.
There are disadvantages to this form of financing, such as: - Difficulty in obtaining funds (generally in developed economies, it is estimated that only 1% of funding requests are approved); - Need to participate with considerable equity in business (hedge funds are usually minority shareholders); - Involvement of a foreign partner in the firm's management; - Need for further efforts on the regular presentation to the investment fund business situation; - Need to find an alternative source of financing to fund the venture when it was withdrawn and can interpret the withdrawal as a negative signal on the company.
In Romania, venture capital funds are not intended in particular for SMEs, but also large companies seeking a capital injection for a certain period. Obviously, there is the possibility of a risk fund to be willing to partner with a newly established company.
F. Leasing
Lease - is a special form achievement of the operation of medium and long term credit for the purchase, usually for industrial equipment.
Equipment is bought by the leasing company and then rent the applicant. Often, the claimant is instructed on behalf of the leasing company to buy equipment they need.
The leasing contract is concluded between the leasing company and then required under this contract the applicant receives the equipment in use. This form is also called lease commercial leasing, and leasing is the main form.
Special forms are leasing and lease-back time-sharing:
- In the form of lease-back, the owner of the equipment to be confused with the applicant who is in urgent need of money. In this case, he selling equipment to leasing companies, then rented it from it; - In the form of time-sharing are more applicants who want to use the same equipment, but each uses a certain period of time.
Whatever the form in which it is leasing at the end of the period the applicant has several options: 1. Termination; 2. Continue for a further period of time; 3. Buying equipment at predetermined prices.
G. credits from suppliers and customers
Once the company has received the goods / services delivered by providers and until actual payment, the entrepreneur actually receive a credit from the supplier. A similar situation occurs if the company's clients pay in advance.
Obviously, this type of financing is mutual between business partners for each other that shows confidence and Rumors amounts are not huge, but enough to optimize cash flow of a company for a short time.
Business interest is to extend the payment of suppliers and at the same time, collect their debts as quickly. This "optimization" should not however affect the company's business relationships.
Accumulation of excessive debts between partners can lead to financial bottlenecks. Knowledge of alternative methods of payment and negotiating advantageous contracts in this regard may prove extremely useful in business management.
H. factoring and discounting
Factoring is a form of short-term loans granted by commercial banks by the credit provider compensation. The loan is guaranteed by a bill before maturity arising from a contract of sale between a supplier and a buyer.
From a legal perspective, factoring is a contract between the bank (factor) and client (sticky) by factor (bank) undertakes to pay upon presentation of documents for a commercial claims a certain amount of money in exchange for a fee.
The amount of money that a bank pays the bill presentation called immediate financing or factoring available. The amount of money that banks pay when cashing a bill called the collection or factoring financing available.
If there is a bill paid at maturity, but need money before maturity occurs, then the bill will be paid by the bank at a lower price than shown on the invoice, following the bank to charge the total price.
The difference between the price paid by the bank and cashed it in due bill, bank covers its costs and its profit is formed. The Bank will buy practically bill a lower price.
Factoring in Romania has a low propagation is available for companies with a reputation already established and assumed important safeguards required by the bank.
Discounting is a form of short-term loans granted by commercial banks through the payment before maturity of commercial paper (drafts, notes, etc..).
Discounting is a transaction to buy the banks of bills held by their customers a discount in exchange for credit by the bank and retain an amount called the agio consists of value discount rate plus commissions.
Like any loan transaction, discounting implies a guarantee deposit agreed and embodied by a percentage of the nominal value of the expected effects.
A commercial greenhouse is a commitment that it takes a drawer in the name of a shot for a beneficiary.
For example, a payer (drag), depositing money in a commercial bank (drawee) and issue a check (commercial effect) by a supplier (the beneficiary), following the supplier (beneficiary) to recover money from the commercial bank (drawee) to Cheque presentation maturity (commercial effect).
If the beneficiary needs the money before maturity, he may be expected that the commercial effect in a commercial bank, following the bank to meet him at an amount lower than that recorded on the commercial effect, and to recover the money due pulled, or before maturity resconteze commercial effect in another bank or National Bank.
Internet References http://www.finantare.ro http://www.finantare.ro/ghid-finantari.html

EU money to finance SMEs

banks published in the January 22, 2010, 18:01
Grants are available even for business start-ups (start-ups) Hundred million in the bank waiting to be borrowed by the Romanian companies, on favorable terms, with interest rates lower than standard, but which keep men-still too high, especially in U.S. dollars. Funds are provided by European credit institutions such as EBRD and EIB, which will help entrepreneurs affected by the crisis. Even if access to money implies acertain bureaucracy, procedures for funding have been simplified. In addition, recipients may receive a grant and free membership to prepare investment projects. Metaplast Ltd., a manufacturer of automotive equipment and plastic parts, is one of the companies that succeeded last year in the middle of the crisis, to obtain a loan on favorable terms of financing from EBRD and EIB through BCR. The company became the supplier of the Renault-Dacia, so had to make large investments, million to build a new plant with state of the art equipment, meeting the French car manufacturer's standards. The company has several advantages that accessing credit. First, received free technical assistance provided by consultants for EBRD investment project preparation and documentation verifying its implementation. In addition, he received a financial incentive (grant) representing 20% of eligible project funded by the EU and Romanian Government.
Can finance up to 100% of eligible costs Is that the rates of loans of the European banking funds may be awarded funding to cover full project costs, excluding VAT component to be provided by the developer. But that, say bankers, firms must have to be sure that they can obtain financing from the Bank's own funds at least 15% of the investment. And business start-ups (start-ups) can apply for financing sources EIB or EBRD bankers saying that already has such loans. Obviously there are restrictions imposed by international financial institutions, making it impossible to grant credits for sensitive areas such as financial, estate, or those affecting the environment. Another problem is the guarantees necessary for entrepreneurs to obtain credit. One alternative for those who lack sufficient collateral can represent Credit Guarantee Fund for SMEs, but entrepreneurs should be aware that these costs and not be granted without a thorough analysis of business viability, states Ramona Ivan, Executive Director Department of Financial Institutions of the BCR.
Currency risk has become a problem Interest credit sources from the European Investment Bank (EIB) is slightly smaller than a standard loan, whose cost, national currency, however, were very high last year and still remain at levels too high . NBR data show that the average interest on credits in MDL extended by banks to companies rose over 21% in early 2009, down from 15% to end. More affordable financing in the euro, whose interest has increased from 9% last year but have now fallen to 5% for loans of over one million euros and 7.8% for loans with lower values. Foreign currency loans remain as two times cheaper than the national currency, which is why the euro funding an overwhelming share of total corporate loans. And funds provided by European banks come in euros, Romanian banks sharing their so easy to pass on benefits customers lower costs. Currency risk has become a bugbear for many but, as major fluctuations, over 15% of the national currency over the past three years. "Appropriation of funds EBRD or EIB can provide both RON and euro, but it is important that the recipient understand the risks that faces a loan in foreign currency, especially if its revenues in local currency," says Ramona Ivan. It states that the loan currency decision is taken only after the bank and customer currency risk calculations for evidence to assess whether funding in euros with interest lower than the actual benefit to the recipient. BCR EIB signed a new agreement worth 75 million euros. The costs of such a loan is at least one percentage point lower than those of a regular credit, it is a requirement imposed by the EIB to support companies to grow under stress conditions. The Bank has funds available from European resources of around 300 million euros. Other conditions for accessing funding from international financial institutions refer to their use for the creation of new jobs and investing in safe areas and the future, and production, environmental protection or energy efficiency. "For example, the EIB loan of 50 million developed by BCR in the past two years, over 40% of finance firms have been awarded projects in agriculture and 70% of funds were provided for co-funded projects non-reimbursable European funds, BCR representative stated. It says that BCR has funded so far around 3,000 projects from EU funds, representing approximately 30% of total loans granted by Romanian banks in this area.
Viable projects yet to be taken Cheap money or grant of the European Union may be an attraction for companies, but they fail to burst banks in difficult economic conditions and the reluctance to launch new investment. But there are areas of high potential business, and environmental projects, energy efficiency or agricultural, little known in Romania and which banks are willing to finance them, but leave the expected projects. The key to success in financing such projects is finding entrepreneurs and conviction about the benefits they can obtain information and financial education in the field is quite poor, bankers say. But the main problem in post-accession EU funds absorption is the inability of managers to size projects depending on interests, the business plan and the resources necessary to carry out investment projects. "There are many companies that fail to obtain approval from the European fund management authority, if they are forced to quit because they find the necessary resources and guarantees the project", says Ramona Ivan. Difficult economic context has led entrepreneurs to display oatitudine "standby" conservative regarding long-term investment, state and representatives of Alpha Bank, the bank involved in EIB and EBRD projects. "Even in these conditions but there are companies that have failed to manage the business through the crisis and to maintain a good situation, which will enable further development and thus accessing new credit. Credit application companies will begin to rise, are already signs. In addition, the EIB facility is addressed and the public sector, municipalities, which certainly will access investment loans in 2010, say representatives of the institution. Alpha Bank contracted earlier this year, a loan of 50 million from the EIB to finance small and medium enterprises. SME loans granted by EIB loan has many advantages, one of them and that will reduce the interest rate of 0.25% compared to standard state bank. And Piraeus Bank signed a financing agreement with EIB worth 50 million euros to finance SMEs. "We intend to use the entire feature in the next 18 months", says the bank's representatives. They noted that offers customers a range of benefits, including costs under the standard, fast loan approval and credit consulting the documentation. BRD offers SMEs and type EIB and EBRD loans.