Liquidity and risks management solutions are one of the financing services offered by leading banks. These are financial solutions that are geared towards effectively managing cash flows for organisations and businesses. To get the most out of this financing solution, it is crucial to choose a bank that is known for efficiently managing its liquidity position. Below are some ways and tips for you to know if a bank you are interested to get liquidity management solutions from can manage its intraday liquidity position well: The bank should have the capability to measure projected daily gross liquidity inflows and outflows, expect the intraday timing of these flows whenever possible, and forecast the range of potential net funding shortfalls that can crop up at various points during the day. For a bank to do these properly, they must first understand the rules of all payment and settlement systems in which they participate. They must also be able to recognise key counterparties and their correspondents which act as the source of incoming or outgoing liquidity flows. In addition, the bank should be capable of identifying key times, days, and instances where liquidity flows and potential intraday credit requirements may be particularly high. It must have the ability to monitor intraday liquidity positions against anticipated activities and available resources including balances and remaining intraday credit capacity. This is an important capability of the bank to have so that they will be able to correctly judge when to acquire additional intraday liquidity or restrict liquidity outflows to meet crucial payments. This monitoring feature can also help a bank allot intraday liquidity efficiently among the bank’s own needs and those of its customers or clients. The bank should be capable of managing and mobilising collateral when needed to acquire intraday funds. Banks offering liquidity management solutions should have adequate collateral available to acquire the level of intraday liquidity needed to meet its daily goals. They must have working arrangements in place so that they can pledge or deliver this collateral to central banks, clients, custodians, and counterparties. In addition, the service provider should also understand the timeframes needed to mobilise different forms of collateral, such as collateral held on a cross-border basis. The institution should be sufficiently ready to deal with unforeseen disruptions to its intraday liquidity flows. The bank should have effective stress testing and contingency funding plans that must reflect intraday considerations. They should also be able to understand the level and timing of liquidity needs that may come up as a result of the failure-to-settle procedures of payment and settlement systems. Keep in mind that vigorous suitable operational risk management and business continuity arrangements are also essential to the effectiveness of a bank’s intraday liquidity management efficiency. Source: The website of HSBC offers more details about liquidity and risks management solutions.
0 Comments
For several years, you have been working as a recruitment specialist. For those many years, you certainly have built an excellent reputation for yourself. Still, you feel that there’s still something missing. Maybe you want to be in control, to gain the flexibility to balance life and work or you no longer feel challenged at work. In other words, you want to start your own recruitment business. In terms of starting your own recruitment business, you need to know where and how to get started. Good thing experts have shared some great tips. How To Start A Recruitment Business Consult an accountant – Regardless of what business you may be planning to start, it is always advisable that you consult with an accountant who is well-versed in starting a company. Be aware that an accountant will guide you in preparing the necessary requirements. Also, he will surely answer the questions you might have in your mind. Choose a business name – Among the crucial steps you must take so you can gain real ownership of your staffing firm is to figure out its name. Besides, your company’s name will become an asset that you will use, either offline or online. Locate the best work space – With the advancement in technology, anyone who wants to start their very own recruitment agency can establish their company just about anywhere. Regardless of whether you choose the modern option of working from your home or the traditional route of leasing an office space, it is very crucial for you to have your own work space. This will actually help you establish the line between your business and work life. Be aware of the hardware requirements – Most of the tasks you need to accomplish in running your business will entail the use of computers. Aside from having a dependable laptop or computer, you also need to invest in several other pieces of equipment like a reliable phone and an internet connection. Check out relevant reports – Educate yourself about your target sector by checking out industry and job market signaling reports. This will actually provide you with enough room to ascertain if there will be opportunities in the niche you want to get into or perhaps you are better off entering into the foray of another sector. Set you budget – You need to know how much capital you are willing to invest. This will entail knowing how much you must spend on various operations – from marketing your new company to recruitment to employee benefits to overhead expenses. It is also a wise idea for you to make allowances in your budget to make sure that you will have sufficient funds to cover all your expenses before your company will take off. About the author: Marshall Morine wants to establish his own recruitment agency. Good thing there are experts who helped him out. He recommends checking out wearessg.com for more info on how to successfully setup your very own recruitment business. Companies will certainly need reliable and steady access to funds so they can pay for necessities such as goods and services, along with rewards and perks such as entertainment and travel. If you are a business owner, you need to find a way on how you can allow yourself and your employees to efficiently and freely make payments as well as facilitate transactions that can boost the overall financial performance of your organization. Your goal must be to secure the best corporate credit cards. Be aware that these cards will let you have access to funds even if your employees are in different parts of the world. With the help of a reputable bank, you can actually get 2 global corporate credit card solutions for the benefit of your company. These are the corporate card and the purchasing card. Corporates cards will let your employees to pay for services, goods, entertainment, and travel. Moreover, this will allow them to withdraw cash from ATMs wherever they are in the world. On the other hand, purchasing cards will help you gain control over the expenses of your business. Also, it allows you to monitor spending patterns or purchases online. Features Of A Corporate Card
Capabilities Of A Purchasing Card
Source: Business HSBC is among the leading institutions offering excellent financing solutions to various businesses today. Businesses are always open to the idea of attracting more investors and acquiring additional fund. If you are in the process of working on this, keep in mind that two of the first things that potential investors and money lenders will look into your business are your working capital and cash flow. It is essential that they look into these two since these are good indicators of your company's financial health and its ability to fulfil its obligations. In general, most businesses are capable of generating good profit. However, some are unable to generate enough cash. If your company's cash flow and working capital are analysed by the potential investors and lenders, they can predict whether your company can pay its financial obligations with ease or with difficulty. Working Capital And Cash Flow To understand these two financial concepts, it is best to understand what they are first. Working capital pertains to the difference between your company's current assets and liabilities. Current assets refer to assets that can be converted to cash; current liabilities, on the other hand, refer to obligations that are due within the year. If a business has a huge working capital, it usually means that it has enough resources to cover its financial obligations. Conversely, if a company has little or negative working capital, it may encounter various difficulties to meet its financial obligations. Cash flow, on the other hand, refers to all money that a business generates within a given time frame. However, cash flow is rarely equal to your company's net profit since it is highly likely that you sell on credit and borrow money. In addition, you may also use the cash that your company generates through sale for other purposes such as the acquisition of supplies or assets. It is therefore not recommended that you compare your cash on hand at the beginning and end of an accounting cycle. Your accounting department should prepare a statement of cash flows. But what exactly are the differences between the two? To begin with, working capital can easily give you, your lenders and possible investors with a quick insight into your company's current financial situation. Cash flow, on the other hand, is an efficient indicator of your company's ability to generate cash within a period of time, whether monthly, quarterly or annually. In simpler terms, your company’s working capital will show how easy or difficult it will be for your company to pay pending liabilities over the short term while cash flow is more geared toward the future or the long run. By Calvin Modine, a business financing advisor, with additional details about working capital and cash flow from the website of HSBC Qatar. |
AuthorArchivesCategories |