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OPTIONS FOR BUSINESS FINANCING:

Suppose a business in the trading industry is facing below conditions:- Making new sales contracts/agreements with customers for future business- Already reached its external finance limits and need to settle its commitments in every month of the upcoming year - Internal cash flow generation is very low- New borrowing/financing is hard to get based on the Company's current financial positionNow, for making sales as per new agreements, it has to purchase new stock in large volumes.But the problem is financing...There are few ways like increasing credit from suppliers or liquidating existing stock...Suggestions for practical and do able actions is required which can help to resolve this situation...

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Question added by fahad nazir , Financial Analyst , Datawind Inc.
Date Posted: 2015/03/21
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P A Cariappa Appaiah
by P A Cariappa Appaiah , back office executive , Inspire Hond

Loan, fro the bank. Personal asset's, increase credit from suppliers, liquidate existing stocks.

Mohammad Hanif
by Mohammad Hanif , Senior Accountant , Canadian Family Futures Inc.

There are four obvious solutions two of them are already suggested that1) increase credit from suppliers,2) liquidate existing stock,3) Find opportunities to reduce overhead expenses,4) Find opportunities to increase sales with existing customers and find new market/customers for increasing sales (also try some aggressive sales techniques).

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