DTC specialises in business finance and assists in managing & implementing the finance process for SMME’s from start to end. We have South Africa’s largest network of finance partners that include venture capital companies, private equity firms, government BEE initiatives, banks, angel funds, crowd funds, Silicon Cape investment companies and rent to own funding initiatives. National fund parameters vary and range from R50,000 from institutes such as the Gauteng Enterprise Propeller up to R250 million through institutes such as the KZN Growth Fund.
Strategic Business Finance
Financial decisions affect both the profitability and the risk of a firm’s operations. An increase in cash holdings, for instance, reduces risk; but, because cash is not an earning asset, converting other types of assets to cash reduces the firm’s profitability. Similarly, the use of additional debt can raise the profitability of a firm (because it is expanding its business with borrowed money), but more debt means more risk. Striking a balance—between risk and profitability—that will maintain the long-term value of a firm’s securities is the task of finance.
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Strategic Planning
Business finance is an important tool for strategic planning, providing the financial grounding for your projections and plans. If you intend to introduce a new product, it can tell you how much you’ll have to spend to get things off the ground, synthesizing information about research and development, marketing upgrades and equipment costs. Business finance also helps you make forecasts and calculate how much of this new product you’ll have to sell to recoup your startup costs, and also how long it will take to break even on the venture. The strategic plans you create as a part of business finance help you determine whether or not your company is meeting short-term and long-term financial goals.
Finance and Financing
If your business encounters cash flow difficulties, business finance is an important tool for understanding and managing your financing options. By calculating interest and principal payments, and incorporating this information into current and upcoming financial statements, you can make savvier choices about how much to borrow, which borrowing options make the most sense for you and how to plan your repayment schedule. This planning and strategizing will leave you with more money in the long run, which you will be able to manage most successfully if you’re skilled at business finance.