Financial Controlling Factors

 

Why do I need Bank in the first place? Is Bank good? But they charge interest right?

 

 * Credit Card & Personal Loan is For Temporarily Usage
  [ Conveniences & 0% Installment Product ]

  Credit Card                                RM30,000                     1.5%                 RM450.00         20 day free interest.

                                                                                    1.25%                 RM375.00         20 day free interest.

 

  Personal Loan                           RM30,000                      1%                   RM300.00        

                                                                                     0.7%                  RM210.00

 * BA / LC / OD / CGC / Term Loan is For Working Capital & Business.

  [ Loan :- Working capital, this working capital lets you make a living, covers your salary ]

 

OD (BLR 6.75 + 2%)

Monthly = 0.729167%

BA (6.0935%)

Monthly = 0.50779%

Saves

30 days RM60,000

437.50

304.67

132.83

90 days RM60,000

1312.50

901.50

411.00

  

  BA/LC                                       RM60,000 (min)             3 months bank 0.50779 x 3 = 6.0935%, OD = 8.75%

                       For Paying Supplier Saves 2.6565% + saves cash discount X.XX% pay lumpsum

                       * or bad management with original Supplier Term 3 months added X.XX% higher price + 6.0935%

 

  OD                                           RM30,000                    

                       For Debtor                     3 months 0.729167 x 3 = 2.18%              RM654.00

                       For Creditor                   Paying Cash Saves %?

 

   Term Loan (Land)                                   RM100,000                    60% of Valuation

                                                                                                    Rate = BLR + 1.60

 

   Term Loan (Commercial Building)            RM100,000                    BLR – 1.70

   Term Loan (Housing)                              RM100,000                    BLR – 1.90

 

    * Refinance should be made for Commercial Building & Housing for Interest Rate > 6.75%.

 

 

Bank Functions :

a) When your business is good, they give you loan?

    This is the time you need to double or triple your business. Therefore get the loan.

    When the economy is good, if you are not double or triple your business, then when?

 

b) When your business is bad, will they give you loan?

   This is the time you need to slow down the business. Get back all the debts first.

   You may get the loan with terms and conditions, but they will think twice.

   When the economy is bad, do not hit the sales target, but to hit the collection target.