Singapore - what do u need money for

In this short article I would like to explain the idea of the need of the money in the company and the way you shall be asking for it. Ocasionally it might be used vice versa, but it doesnt break the main principle.

1. I need money for anything I store, I keep to sell within one year or do not really touch before I sell it. It is considered as a short term asset, or opposite to liability. As a liability is a foreign debt I did no pay yet due to the payment terms you may also consider short term asset to be an foreign asset I hold as I did not sell iz yet.

For this purpose we seek a working capital financing. Or working investment. It is an amount of money company needs to cover its short term assets before they are sold.

Do not seek for a investment financing or IPO for such an purpose. Why?
a) the risk is calculated diffetently in the financing institution
b) money are much more short term
c) usually it is not comnected with the growth of your company to new locations

2. Company needs money to open new branch, reconstruct current building, buy a new technology that will be used in production, cell phones for the managemenet, cars....

Than seek for the investment financing, IPO, ....

This money is for much longer period and the current and projected profit is the main principle to provide the cash. Profit is meant the cash flow generated from profit. Usually it is an accounting profit together with interest expenses other than once connected with working capital plus depreciation, as it is a non cash flow operation in Profit and Loss statemenet. If there are extraordinary items happening theese items shall be withdrwawn too.

What is the main objective of this simple article?

Currently I mezlt investors that were pushing our company to isse shares and go IPO or even sell a part of company for our working capital. That is really an expensive solution, as working capital is just an issue of deffered payment for the asset I hold for certain time on stock and the time I need to pay for such a stock. Very expensive way of financinf of company would thetefore investment financing be.