The financial stability of an enterprise is the state of the enterprise's accounts, which guarantee its constant solvency. In turn, insufficient financial stability can lead to a lack of funds for development and insolvency of the company, and excessive financial stability can hinder its development, burdening the costs of this company with excessive reserves and reserves.
Instructions
Step 1
To increase financial stability, first of all, it is necessary to change the structure of the balance sheet towards an increase in the share of own funds (capital) (to carry out an additional issue of shares, and to sell part of the main unused funds in order to pay off creditors).
Step 2
Second, it is necessary to reasonably reduce the level of inventories and costs of the company.
Step 3
Thirdly, it is necessary to find out the reasons for the increase in circulating material assets: inventories, finished goods or work in progress.
Step 4
Fourthly, the personal ties of the given firm with creditors are very important for increasing the financial stability of the company. A bank guarantee is one of the ways to secure the fulfillment of obligations. The essence of this method is as follows: a credit institution (bank) issues, at the buyer's request, a written commitment that guarantees payment of a certain amount of money to the seller. Thus, by shipping the product to the buyer with a deferred payment, the seller provides the buyer with a certain commodity credit, and reduces the risk through a bank guarantee against non-payment of funds.
Step 5
There are other ways to increase a firm's financial strength, such as merchandise credit insurance. In this case, an agreement is filled out between the seller and the insurance company, which insures transactions related to the provision of a certain deferral (commodity credit). Here the insured risks may be included: insolvency, bankruptcy or disappearance of the counterparty, late payment. If such an insured event occurs, then the compensation will be up to 80% of the amount owed by the counterparty itself. However, there is a significant drawback - this is the presence of a waiting period. This period is given to the counterparty to fulfill all its obligations before this insurance company recognizes such an event as insured. Therefore, if the deferral of payment lasts 90 days, as a rule, it can then be extended by 30 days, and then the waiting period is extended to another 150 days, and then another 30 days is needed for the insurance company to transfer the money. The manufacturer can see the real money only 300 days after the shipment. Of course, this is better than completely losing the amount of delivery, but then the financial strength of such a manufacturer should be quite large.
