Financial Planing

Категория реферата: Топики по английскому языку
Теги реферата: собрание сочинений, мир рефератов
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II. Find the English equivalents.
Финансовые потребности; арендная плата; стоимость; изготовитель; оптовый торговец; розничный торговец; (торговая) сделка; доход от продажи; припасы; товары; слияние (предприятий); определение; товарные запасы; оборудование; продажа; доход; прибыль; расход; срок; краткосрочное финансирование; долгосрочное финансирование; денежная наличность; движение наличности; обеспечивать; изменяться; покупать; быть в наличии; предлагать; заменять; влиять (на); конечный; устарелый; неэффективный; непредвиденный; тщательный.

III. Fill in the blanks.
1. Financial management begins with a determination of the firm's... .
2. Temporary financing may be needed when ... are high and ... is low.
3. In these cases the firm must look for outside ... of financing.
4. Short-term financing is ... that will be used for one year or less and then ....
5. Cash flow is the movement of ... into and out of an organization.
6. A firm that offers credit to its customers may find an imbalance in its
... .
7. A second major need for ... financing that is related to a firm's cash- flow problem is ... .
8. The borrowed money is used to buy ... and ... , to pay ... and to cover
... until the goods are sold.

IV. Translate into English.
1. Финансовый менеджмент состоит из тех видов деятельности (activities), которые относятся к получению денег и эффективному их использованию.
2. Краткосрочное финансирование — это деньги, которые будут использоваться в течение одного года или менее (less).
3. Существуют (there are) многие потребности краткосрочного финансирования, но движение наличности и товарные запасы представляют (are) две основные проблемы.
4. Товарные запасы требуют значительного инвестирования для большинства производителей, оптовых торговцев и розничных торговцев.
5. Занятые деньги возвращаются (is repaid) из дохода от продаж.

V.. Answer the questions.
1. Is money needed to start a business?
2. When may temporary financing be needed?
3. What kinds (виды) of financing do you know?
4. What is short-term financing?
5. What is cash flow?
6. What is the ideal cash flow?
7. What can cause a cash flow problem?
8. Does inventory require considerable investment for most manufacturers, wholesalers and retailers?
9. Why do manufacturers often need short-term financing?
10. For what purpose (цель) is the borrowed money often used by the manufacturers?
11. When is the borrowed money usually repaid?
12. What is long-term financing? , .:
13. For what purpose is long-term financing needed?
14. Are the amounts of long-term financing greater than those of short-term financing?

VI. Make up a written abstract of the above text.

VII. Retell the prepared abstract.

Unit 6

Sources of Unsecured Financing

Unsecured financing is financing for which collateral is not required.
Most short-term financing is unsecured. Sources of unsecured short-term financing include trade credits, promissory notes, bank loans, commercial papers, and commercial drafts.

1. TRADE CREDIT

Wholesalers may provide financial aid to retailers by allowing them thirty to sixty days (or more) in which to pay for merchandise. This delayed payment, which may also be granted by manufacturers, is a form of credit known as trade credit or the open account. More specifically, trade credit is a payment delay that a supplier grants to its customers.
Between 80 and 90 percent of all transactions between businesses involve some trade credit. Typically, the purchased goods are delivered along with a bill (or invoice) that states the credit terms. If the amount is paid on time, no interest is generally charged. In fact, the seller may offer a cash discount to encour-. age prompt payment. The terms of a cash discount are specified on the invoice.

2. PROMISSORY NOTES ISSUED TO SUPPLIERS
A promissory note is a written pledge by a borrower to pay a certain sum of money to a creditor at a specified future date. Unlike trade credit, however, promissory notes usually require the borrower to pay interest.
Although repayment periods may extend to one year, most promissory notes specify 60 to 180 days. The customer buying on credit is called the maker and is the party that

issues the note. The business selling the merchandise on credit is called the payee.
A promissory note offers two important advantages to the firm extending the credit. First, a promissory note are negotiable instruments that can be sold when the money is needed immediately.

3. UNSECURED BANK LOANS
Commercial banks offer unsecured short-term loans to their customers at interest rates that vary with each borrower's credit rating. The prime interest rate (sometimes called the preference rate) is the lowest rate charged by a bank for a short-term loan. This lowest rate is generally reserved for large corporations with excellent credit ratings.
Organizations with good to high credit ratings may have to pay the prime rate plus 4 percent. Of course, if the banker feels loan repayment may be a problem, the borrower's loan application may be rejected.
Banks generally offer short-term loans through promissory notes.
Promissory notes that are written to banks are similar to those discussed in the last section.

4. COMMERCIAL PAPER
A commercial paper is a short-term promissory note issued by a large corporations. A commercial paper is secured only by the reputation of the issuing firm; no collateral is involved. It is usually issued in large denominations, ranging from $5,000 to $100,000. Corporations issuing commercial papers pay interest rates slightly below those charged by commercial banks. Thus, issuing a commercial paper is cheaper than getting short-term financing from a bank.
Large firms with excellent credit reputations can quickly raise large sums of money. They may issue commercial paper totaling millions of dollars. However, a commercial paper is not without risks. If the issuing corporation later has severe financing problems, it may not be able to repay the promised amounts.
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5. COMMERCIAL DRAFTS

A commercial draft is a written order requiring a customer (the drawee) to pay a specified sum of money to a supplier (the drawer) for goods or services. It is often used when the supplier is insure about the customer's credit standing.

In this case, the draft is similar to an ordinary check with one exception: The draft is filled out by the seller and not the buyer. A sight draft is a commercial draft that is payable on demand -whenever the drawer wishes to collect. A time draft is a commercial draft on which a payment date is specified. Like promissory notes, drafts are negotiable instruments that can be discounted or used as collateral for a loan.

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Exercises

I. Translate into Russian.
Source; unsecured financing; promissory note; commercial draft; trade credit; loan; commercial paper; transaction; delayed payment; credit terms; pay interest; interest rate; invoice; amount; prompt payment; written pledge; sum of money; borrower; repayment period; buy on credit; deliver; provide aid; maker; payee; offer loans; credit rating; prime interest rate; questionable credit rating; large denomination; raise large sums of money; drawee; drawer; credit standing; sight draft; time draft; collateral; commercial draft.

II. Find the English equivalents.
Ссуда; давать ссуду; процент; процентная ставка; необеспеченное финансирование; покупать в кредит; условия кредита; счет-фактура; основная сумма; деловая операция; торговый кредит; долговое обязательство; коммерческая бумага; тратта (переводной вексель); условия; обеспечение
(залог) ; заемщик; трассат (лицо, на которое выставлена тратта); трассант
(лицо, выписавшее переводной вексель-тратту) ; кредитоспособность; тратта
(вексель) на предъявителя; срочная тратта.

III. Fill in each blank with a suitable word or word combination.
1. Trade credit is a payment... that a supplier grants to its customers.
2. The invoice that's ....
3. A promissory note is a written ... by a borrower to pay a certain sum of money at a specified date.
. 4. The customer buying on credit is called ... and is the party that issues the promissory note.
5. The business selling the merchandise on credit is called ....
6. Most promissory notes are... that can be sold when money is needed immediately.
7. The prime interest rate is the lowest rate charged by a bank for... loan.
8. A commercial paper is ... issued by a large corporation.
9. A commercial paper is secured only by the ... of the issuing . firm.
10. Issuing a commercial paper is ... than getting short-term financing from a bank.
11. A commercial draft is a written... requiring a drawee to pay a specified sum of money to the ... for goods or services.
12. A sight draft is a commercial draft that is payable on ....
13. A ... is a commercial draft on which a payment date is specified. 14.
Like promissory notes drafts can be used as ... for a loan.

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