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Matching sales and production cycles
Ensuring a closer match between sales and production cycles can help avoid overtrading.
What is overtrading?
How insufficient finance and resources to sustain a business’s level of trading can lead to overtrading.
Example of overtrading
A case study of a situation of overtrading and the potential disaster it causes.
Avoid the problems of overtrading
How expanding businesses can match production and order cycles using gearing, working capital or quick ratio tests.
Borrow money for capital investment from pension schemes
How small self-administered pension schemes allow a business to borrow money with certain restrictions.
Claim loan interest against tax
If you deduct loan interest from your profits you can reduce your business tax bill.
Venture capital
How the venture capital investment model applies to small and medium-sized businesses seeking funding.
Using a venture capital scheme to raise money
How venture capital schemes work, who can apply and what tax reliefs are available for investors.
Who can apply for a venture capital scheme?
Eligibility criteria businesses must meet to qualify for a venture capital scheme.
Qualifying for a venture capital scheme
There are qualifying conditions for each venture capital scheme and limits on the money raised.
Types of venture capital schemes
Each of the three types of venture capital schemes have their own criteria for businesses to qualify.
The relationship between balance sheets and profit and loss accounts
How transactions in the profit and loss account can affect balance sheet entries and vice versa.
What is a balance sheet and why is it used?
Limited companies and limited liability partnerships must produce a balance sheet as part of their annual accounts.
Use accounting ratios to assess business performance
Liquidity, solvency, efficiency and profitability ratio analysis can be used to assess business performance.
What you need when applying for a bank loan
Banks have a number of core criteria which they will take into account in assessing your finance application.
Is your business ready for bank financing?
Even before seeking finance, you need to be clear in your own mind about why you need it, and how much.
Advantages and disadvantages of bank loans
What loans are, their advantages and disadvantages, and how to know when they are suitable for your business' needs.
Interpreting balance sheet figures
Liabilities, assets, debtors and intangibles can all give you a picture of a business' financial health.
Types of bank finance for businesses
Sources of short- and long-term bank finance for businesses, including overdrafts, bridging finance and mortgages.
What is in a balance sheet?
Fixed and current assets and liabilities are important contents of a balance sheet.