Menu

Our Furry Family

All Facebook ? The Unofficial Facebook Resource

Cash Flow Problems

Analysis: Corporate cash may not all flow back with recovery

U.S. one-hundred dollar bills are seen in this photo illustration at a bank in Seoul August 2, 2013. Picture taken August 2, 2013. REUTERS/Kim Hong-Ji Some weeks ago, I noticed a sign, printed in large and enticing letters above a bank's cash dispenser, offering "Free Cash Withdrawals". Always ready to take advantage of a bargain, I slipped my bank card into the slot and withdrew a small amount of cash. I would have taken more but had no immediate need for the money and thought I should leave some for others whose financial plight might well be worse than mine. On checking my bank statement some weeks later, however, I found that an amount equal to the sum I had withdrawn had been deducted from my account. I wrote immediately to the bank to inform it of the error. "Dear sir, madam or any combination of the two, I recently took advantage of a 'free cash withdrawal' offer at a branch of your bank and am now shocked to see that the amount has been deducted from my account.

Bank Loan Covenants And Clauses Entrepreneurs Regret Most

To be sure, some of this money has been eked back to shareholders via buybacks and dividends over the past year or so and there was also a small flurry of mergers and acquisitions late last year. But M&A as a share of market capitalization remains lower than it was in 2002, JPMorgan data shows, and share buybacks are also below historical averages. The extremity of the cash bias remains. According to this week's monthly fund manager survey by Bank of America Merrill Lynch, a record number of investors think companies are under-investing and some 58 of respondents want firms to deploy their cash on capital expenditure.

In fact, if the loan is backed by the Small Business Administration under the 7(a) program, securing the line of credit requires a personal guarantee of any equity owner with 20 percent or more ownership in the business when other assets are insufficient to fully collateralize the loan. In many cases, this means the SBA loan is ultimately secured by the equity in the entrepreneurs personal residence. Personal Guarantees From Husband and Wife, Joint and Several Similar to the need to use a second (or third) mortgage on the entrepreneurs home for collateral purposes, this covenant is used to meet the banks collateral and cash flow requirements. When the business does not have sufficient cash flow to support a line of credit or loan, the spouses discretionary personal income may be used to hold up or augment the businesss cash flow deficiency. In many cases, this covenant is required by the bank even when the second spouse does not own or work in the business. Often this covenant becomes a big problem when a divorce is pending because banks dont like to release this covenant unless the line of credit or loan is paid in full.

US Fed cash-flow data called underused weapon in war on drugs (Complinet Special Report)

Guest Contributor 31 The consumption of illegal drugs generates tens of billions of dollars for Mexicos drug cartels each year, and the fight against it creates significant challenges for those who oversee and participate in the US financial system. The river of money flows into Mexico mostly in the form of cash, often hidden in secret vehicle compartments. The money feeds https://www.resume.com/mikedillard cartel operations and stokes conflicts with the government and with rivals that have killed an estimated 35,000 people get the elevation group during the past four years. US authorities have bolstered their efforts to halt the cross-border cash shipments, but their progress has been limited.

Go Back

Comment