You will need
- The company with sufficient equity capital, desire to increase capital.
Change of own capitaland depend on the involved capitaland borrowed capital. For the normal functioning of enterprises need sufficient cash capitalto carry out financial operations. Private capital is determined by the total value of the assets of the company. The aggregate deposits of shareholders represents the share capitaland reserve capital is guaranteed protection for creditors. Revaluation of fixed assets and unfinished construction is the increase in the value of the property, which is called incremental capitalohms. The net profit is distributed between shareholders as dividends or used for working capital and the accumulation of property. The growth of own capitaland depend on retained earnings, which is increasing every year.
Some organizations placed their profit in banks on call deposits. Very easy to use program designed specifically for legal entities in almost every Bank in the country. The point is that the funds can be removed from the escrow account at the time when they are needed. In exactly the same way the amount can be increased to the desired level. The Bank monthly or 2 times per month is credited to the company interest on the Deposit to the current account. To manage the funds better use of client-Bank not to go to the Bank several times a day for the transfer of funds.
To increase private capitaland enterprise may surrender their property to rent, accept financial aid, to attract investors. The increase in turnover rate leads to an increase in capital, but at the same time requires high labor productivity, improvement of management, supply and demand. Also have to reduce cycle time and reduce the complexity of the product.
Think over every decision, risk needs to be justified.
Periodically perform analysis of capital, in order to detect loss and to prevent further.
Advice 2 : How to increase the profitability of
The most accurate assessment of the functioning of any company is profitability, which is not just a calculated, statistical parameter, but a complex socio-economic complex criterion. He describes, in contrast to the profit efficiency of financial activities of each individual economic entity. Profitability means profitability, profitability of the enterprise. It is calculated by comparing net profit or gross income to the resources used or costs.
The profitability shows how profitable is the business, therefore, the higher the profitability index, the more effective the activity itself. Accordingly, the company should always strive for the highest performance, and the leadership needs to be defined ways of enhancing profitability.One of the conditions of effective activity of the organization is the market expansion of products offered by reducing the prices of manufactured goods. Also of special note are the internal factors of the company: increase production, reduce production costs, increase the return of assets.
The low profitability in the enterprise need to accelerate the turnover of assets. Return of equity capital can be improved by increasing in the total capital share of borrowed funds. At the same time, profitability of assets is higher when is higher and the profitability of the products will also be greater the yield of all non-current assets, turnover rate of current assets data, will be lower when the total cost per unit of output and costs by main economic elements (materials, tools).
It is impossible to consider abstractly and the influence of individual factors because the impact on the dynamics and level of profitability the totality of production and economic factors: the level of utilization of all production resources; the level of organization of management and production; structure of capital itself and the sources; quality, structure and volume of production; costs of goods and production; direction of use of net profit.
The profit can be directed on education, consumption funds and accumulation funds, contributions to the capital reserve of distraction to charity to expand the activities of the organization at the expense of own means. However, there is another alternative is to invest its own funds in securities of other larger companies, for example, to create an investment portfolio and correctly manage to have some time to get the income that you can invest in your company to improve competitiveness and financial condition of the company.
Advice 3 : How to increase working capital
The process of obtaining a loan in the banking institutions acquired a particular poignancy, and also became a matter of survival for many businesses. While many banks with great care lend. In turn, the most important requirement is the ability to return the debt by the potential borrower. Not the last role is the ratio of the company's own working capital funds.
Count the amount of working capital ratio of own funds that relates to the financial stability of the company. It characterizes the amount of working capital in the company, which are necessary for its financial sustainability. Calculate this ratio using the following formula: subtract from the amount of equity capital the ratio of current assets non-current assets.
Please note that when the indicator of sufficiency of own means will be low, your chances of getting credit will be low. However, there are various ways to make changes in the structure of accounting report thus, to achieve a growth of this ratio.
Reduce the value of the ratio of current assets to increase working capital own funds. It will also help you increase the amount of own capital and to reduce the amount of non-current assets.
Use other methods to increase own funds. This can be attributed to the income of all available or a specific part of accounts payable. In this case, the amount of equity will increase. However, this method is permissible only in respect of outstanding loans, for which the period of limitation is expired.
Contract for purchase and sale of the shares with deferred payment. Such an agreement will help you reduce the amount of non-current assets and to increase the amount of working capital. If in practice it turns out that the company does not intend to alienate its own shares in favour of other persons, then the specified documentation needs to include additional terms for deferment of payment and to specify that in the case of non-payment of the amount equal to the purchase cost of these shares in a certain (specific) period of time, they will be refundable by the company to the seller.