
Everyone know that starting a business is not easy and financing decision is critical part of every business. Finance is life blood of the business. Finance can be arranged by the promoter himself and that can also be borrowed from third parties. Finance arranged by promoters from their own sources is called capital.
In this video, You shall be able to learn about What is exact meaning of Capital, What are different types of capital in the business and finally Why capital is required in the business.
In Continuation of our topic, This video shall be focused on working capital finance requirement in the business. Through this video, I will explain the different scenarios under which requirement of working capital arise in the business that too with the help of a very simple examples.
In previous video, We have discussed two scenarios under which working capital shall be required. In this video, We shall go into further depth and discuss two more circumstances which are basically extensions of previous two and are more practical oriented if we consider from banker/financer point of view.
Operating cycle is total time taken in the business to covert cash to cash. We all know the definition, Let us try to understand it in more practical way from banker's point of view.
Learn practically how to calculate operating cycle from banker's point of view. Operating cycle involves calculation of inventory cycle/Inventory holding period, Debtor cycle/Debt collection period and creditor cycle/Creditor repayment period. Have explained with the help of simple example. Further, As we learn about it, I have also explained the key disadvantages of operating cycle due to which it could be unreliable for making lending decision in the banks.
This is the last video- In this video We shall further try to learn the working capital need and will prepare the balance sheets of the entity at different point of time in our case study. This will help you in getting more clear picture and you will also be able to understand the funds requirement through balance sheet itself.
Everyone knows that starting a business is not an easy task especially when it comes to financing decision of the business. Finance is life blood of the business. Finance can be arranged by the promoter himself and that can also be borrowed from third parties.
The videos in this course shall be focused on Working capital finance in the business covering the need, types, different scenarios, operating cycle and many more with the help of simple examples.
The whole course shall be covered in 6 videos with total less of less than 2 hours content. So, you will be able to understand the whole thing in a very short span of time itself.
Whether you are a student/finance manager/Individuals who are looking to kick start their career in banking and finance, This course is for you. I have incorporated all of my practical experience of banking and finance in building this course. I am confident that you will find it useful.
By the end of this course, You all shall be able to easily understand the working capital meaning and the exact reasons why this is required in the business. You shall also be able to understand as to exactly when the working capital is required and why we should plan for the requirement well in advance so that the business does not go in any disruptions and all the operations of the business keep on running smoothly.