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Showing posts with the label Finances

Advisory Shares: An Explainer (US Law)

Article research by   Shreyas Nair  from WinSavvy's legal research team. Here's  his LinkedIn bio  for more information on him. What are Advisory Shares Advisory shares are a sort of stock option that are granted to business consultants rather than workers. They might be given to start-up company advisers instead of cash. Advisors are typically offered options to purchase shares rather than real shares.   Advisory shares can aid in maintaining confidentiality while avoiding conflicts of interest. They may, however, be pricey for a fledgling firm.   Advisory shares, also known as advisor shares, are financial incentives that take the form of stock options. Advisors who are granted advisory shares are often entrepreneurs who have previously served as firm founders or top executives. They trade their knowledge and contacts for shares in a new firm.   These consultants are not the same as accountants or attorneys. Advisors who get advisory shares are unlikely to be expecte

Finance Lease: The Complete Guide on Lease Financing

Finance Lease Brief Overview A finance lease, also known as a capital lease or sales lease, is a sort of commercial lease in which the legal owner of an asset is a finance firm, and the user leases the property or equipment for an agreed time period. The renting firm, usually a finance company, is referred to as the lessor in this legal contract, while the person who uses the asset is referred to as the lessee. When a lessee signs this agreement, they gain operational control of the asset. They accept liability for all risks and benefits involved with asset ownership although it is just a lease. The lease gives the lessee with the economic characteristics of asset ownership for accounting purposes. The item will be recorded as a fixed asset in the lessee's general ledger. In this case, the lessee will report the lease payment's interest as an expenditure. Finance Lease under US GAAP The agreement must fulfill at least one of the following characteristics to be classified as a f

9 Definitive Ways to Improve and Manage Your Small Business Finance

Growing a startup or a small business is tough. There are so many things that can go wrong and only a few that can go right. You need to be very considerate about spending money, ensure that you can raise money when the need arises, as well as ensure that your business has an optimal working capital balance. And that's why managing your small business finance well, is a very important trait that entrepreneurs must have. That being said, in this post, I am going to show you how you can better manage your small business finance as well as improve your startup's financial condition. So, let's get started! #1. Get Rid of Excessive Stock Try to keep your startup as lean as possible. A small business’ finances are in the best shape when it uses its resources in a more optimal fashion than its larger competitors.   Alex Wan, the co-founder at Vinpit feels excessive stock can strain cash resources, while insufficient stock might result in lost sales and weakening customer rela

How Business Owners Manage their Working Capital: 11 Unique Industries!

Managing working capital of a business is an art and science in and of itself. And, in fact there is a lot to learn if you are new in that regard. While there are several resources on the topic , this article is not for the uninitiated. This article is mainly geared towards those individuals who are already aware of the basics of working capital. This article is meant to show to you how businesses in several different industries manage their working capital. Now, the question you might be asking, is - why is this important? Well, in the present times, with constantly changing business models  and innovations in revenue models , it is of quite importance to be well aware of how different businesses in other industries apart from your own operate as well. Occasionally that may turn out to help you bring the best of both worlds when you are working on your own business. As such, considering the immense importance of a working capital strategy in your startup's finance , it is importan