Surviving Globalization with Business Debt Consolidation

845 Words2 Pages
bulb-icon

Recommended: Impact of globalization on international business

In this day and age, people and businesses are realizing that things have to be done differently. Marketing, global markets and competition itself have changed so much that companies have to be creative and adapt to any situation in order to survive in this world of globalization. Business debt consolidation is just an answer to this global situation.

Globalization is just around the corner, in fact, it is already here, and competition has become tougher, due to the different overseas companies that can access almost any market. National borders now do not stop them anymore, so the risk of getting bulldozed out of the market is real and it is happening everyday. It does not matter how big your company is, but it does matter how financially stable it is. Business debt consolidation teaches how to accomplish this.

Nowadays, due to the growing competition and other influencing factors, businesses have to take out loans and different types of credit to make …show more content…

James Banks:
Business debt consolidation takes into consideration points from within your business on the detailed plan you have to make. On the business debt consolidation plan, we will have to take a closer look at:

- How many employees the company has, and if the company is actually able to pay them because being in a financial crisis means that you have to cut off unnecessary expenses. Although, you, as the owner have to consider that an underpaid employee will reduce his working capacity and in the long run that will mean more problems, starting with a bad reputation.

- Meet with your team of employees and let them know the actual situation of the company, this way you can determine if you can count on them to make serious changes, and let thm know that you will be making use of a business debt consolidation program.

Michael Taylor:
What do I need to do to be able to use the business debt consolidation mechanism?

James

Show More
Related

  • Bestcare Health Maintenance Organization Net Working Capital

    579 Words  | 2 Pages

    Net working capital represents organization’s operating liquidity. In order to compute the net working capital, total current assets are divided from total current liabilities. When there is sufficient excess of current assets over current liabilities, an organization might be considered sufficiently liquid. Another ratio that helps in assessing the operating liquidity of as company is a current ratio. The ratio is calculated by dividing the total current assets over total current liabilities. When the current ratio is high, the organization has enough of current assets to pay for the liabilities. Yet, another mean of calculating the organization’s debt-paying ability is the debt ratio. To calculate the ratio, total liabilities are divided by total assets. The computation gives information on what proportion of organization’s assets is financed by a debt, and what is the entity’s ability to pay for current and long term liabilities. Lower debt ratio is better, because the low liabilities require low debt payments. To be able to lend money, an organization’s current ratio has to fall above a certain level, also the debt ratio cannot rise above a certain threshold. Otherwise, the entity will not be able to lend money or will have to pay high penalties. The following steps can be undertaken by a company to keep the debt ratio within normal

    Read More

  • Reduction in Force

    1533 Words  | 4 Pages

    Cost cutting, discontinuation of product or services ,technological changes, and consolidation due to mergers and acquisitions are commonly legal ac...

    Read More

  • The Debt Snowball

    618 Words  | 2 Pages

    When you get to the point where debt becomes too much you begin to search for a way out. There are many different options to get rid of their debt; one option is the debt snowball. This debt relief option sounds more unusual than it really is.

    Read More

  • The Merger of Two Competing Hospitals: A Case Study

    3362 Words  | 7 Pages

    Gaughan, P. A., 2002. Mergers, Acquisitions, and Corporate restructuring. 3rd ed.New York: John Wiley & Sons, Inc.

    Read More

  • Analysis of Article about EnClean Case

    923 Words  | 2 Pages

    o Identify and start to fold down businesses that are outside of the company’s core competency.

    Read More

  • Debt Settlement Case Study

    700 Words  | 2 Pages

    There’s a lot more to being in debt aside from the fact that you owe more than you currently own. In addition to having balances that you need to pay, you also have to deal with calls from collectors or reminders that the bill is overdue — every single day. This alone is enough of a nuisance to make one want to run away from the debt and forget about it. Fortunately, there are ways to solve the problem of debt. One of these is debt settlement.

    Read More

  • Latin America Financial Crisis Case Study

    888 Words  | 2 Pages

    participate in the debt reschedulings neces- sary to keep the larger banks from folding in

    Read More

  • Debt vs Equity When Starting a Business

    674 Words  | 2 Pages

    Thesis: Businesses deem financing necessary when they are just beginning, expanding, or recovering; Debt financing and equity financning have many advantages and disadvantages but also change the entire accounting method that is to be considered while running the business.

    Read More

  • Monitoring Bad Debt Essay

    1112 Words  | 3 Pages

    5 Steps to Easily Manage and Monitor Your Bad Debt A recent study shows that over 76% of UK’s SMEs are forced to write off the outstanding debts due to one or the other reason. Researchers at Amicus Commercial Finance interviewed 500 business owners and concluded that over £134 million are written off every day. In a separate study, Federation of Small Businesses concluded that 30% payments to SMEs are late, which lead to serious cash flow problems for the sector.

    Read More

  • Consolidated Financial Statement Essay

    717 Words  | 2 Pages

    A consolidated financial statement can be defined as the financial statements of a parent and its subsidiaries combined to form a single economic entity (AASB 10, 2011). The entity, which acquires the other entity, is known as the parent and the entity, which has been acquired, is known as the subsidiary. Consolidation financial reports arise when one entity purchases another entity, to then form a group. The purpose of preparing the consolidated financial statements is to combine the identifiable assets and liabilities (and contingent liabilities) and equity of two separate entities. At the date of acquisition, assets and liabilities are measured at their fair value in order to ensure that assets are not overstated and liabilities not understated and also ensure more relevant information (IFRS 10, 2012).

    Read More

  • How to Use a Company’s Annual Report to Ace Your Interview

    865 Words  | 2 Pages

    The company's financial growth is very important to both the company and to your salary requirements.  You may not want to crunch the numbers yourself, but you will want to understand the balance sheet, the status of the company's finances at a given date.  On the left are the assets, all of the organization's valuables.  Current assets are those that the company can convert quickly to cash.  On the right are the company's liabilities-what they owe.  Current liabilities are the company's debts due in one year, paid out of current assets.

    Read More

  • Overdraft Advantages And Disadvantages

    1422 Words  | 3 Pages

    This would be useful to Sports Direct if they are unable to generate enough money to pay off debts towards manufactures. An advantage to factoring is that it allows the business to pay of the remaining sum of the debt which couldn’t have been paid before. Another advantage to factoring is that it saves a lot of time; the business could be wasting too much time in getting sums to pay the debt and can’t focus on other aspects of the business. A disadvantage to factoring could be that it can take a while for it to be put through, which can be time which can be used much more productively within the business. Another disadvantage to factoring is that factoring companies tend to charge a higher interest than a typical bank

    Read More

  • The Pros And Cons Of Trade Credit

    936 Words  | 2 Pages

    We often hear that companies that sell their product allow their customer to enjoy the goods before full settlement is being made. This best explains the definition of trade credit where the customer gets their products and the payment is postponed to a later date. According to Murray (2008), it is a term where the buyers buy now and pay later. In order to accomplish various business objectives, many forms of trade credit are used to achieve collaboration of business to make the usage of capital more efficient. Nowadays, people tend to rely more on trade credit rather than getting loans to finance their business. Peavler (2014) mentioned that small businesses might only have trade credit as their financing method and researches has shown that more than 40 percent of their financing comes from trade credit.

    Read More

  • Extinguishment Of Debt Essay

    748 Words  | 2 Pages

    The accounting concept of extinguishment of debt has come a long way through the past years. This the fascinating aspect of accounting where things are constantly changing to adapt to the current times. The extinguishment of debt in broad terms, is to eliminate debt by paying the outstanding debt owed or exchanging it with another debt instrument. Extinguishment of debt comes to life with its various different specifications of transactions. Two ways debt can be extinguished are be paying off the total owed in full before the maturity date or by converting the debt for a company’s own stock and becoming shareholders.

    Read More

  • Adidas-Salomon Case Study

    1844 Words  | 4 Pages

    The debt used to acquire Salomon has been an important issue for the finances of the company. Although financially storng and unlikely to default, the company needs to look into reducing its debt to increase its profitability.

    Read More

More about Surviving Globalization with Business Debt Consolidation

Open Document