Sample 1 - Blog #equitySample 1 - Blog #equityhttps://lololol.zohosites.com/thoughts/tag/equityThu, 08 Aug 2024 19:52:36 -0700http://zoho.com/sites/<![CDATA[Why ROE is Important to Small Businesses]]>https://lololol.zohosites.com/thoughts/post/Why-ROE-is-Important-to-Small-Businesses

What is Return-on-Equity, and How is it Used in Finance?

What is Return-on-Equity (ROE)? How can it be used to measure business success?

In this blog post, we'll explore the answers to these questions. ROE is a financial ratio that measures the profitability of a business. It can be used to assess the health of a business and to compare the profitability of different businesses.

There are a number of different ways to calculate ROE, but the most common is to divide net income by shareholders' equity. This ratio measures how much profit a business generates for each dollar of shareholders' equity.

There are a number of different interpretations of ROE. Some investors believe that a high ROE is indicative of a well-run business, while others believe that a low ROE can be a sign of a business that is undervalued by the market.

ROE is an important ratio for investors to consider, but it is just one piece of information that should be used when making investment decisions.

When trying to analyze a business, ROE gives valuable insights on how well the management is using the invested capital to generate profits. 

  • A high ROE means that the management is doing a good job at growing the business and making money for shareholders. 
  • A low ROE could mean that the management is not efficient at using the capital to generate profits or that the company is in a growth phase and reinvesting profits back into the business.


Conclusion

Return-on-Equity (ROE) is a profitability ratio that measures the percentage of profit that a company generates from its shareholders' equity. In other words, it shows how much profit a company generates with the money that its shareholders have invested.

  • A high ROE means that a company is profitable and efficient at generating profit from shareholder equity. 
  • A low ROE means that a company is not as profitable or efficient at generating profit from shareholder equity.

ROE is a important ratio to look at when evaluating a company because it shows how well a company is using the money that its shareholders have invested.

If you're looking to invest in a company, be sure to look at its ROE to get an idea of how profitable and efficient it is at generating profit from shareholder equity.


ROE is not the only ratio that should be considered when making investment decisions, but it is a good starting point. Other ratios, such as price-to-earnings (P/E) and price-to-book (P/B), can be used to supplement ROE. It is important to remember that ratios are only one tool that can be used to assess a business. They should be used in conjunction with other information, such as the company's financial statements and valuation, to get a holistic view of a business.

Maximizing the return-on-equity of your business and investments has never been easier thanks to GIC Capital! 
With our quick & hassle-free process and competitive rates, you can get the loans and finance you need to take your business to the next level #GICCapital #BusinessLoans #PropertyFinance
]]>Mon, 02 Jan 2023 06:34:28 -0800<![CDATA[Traditional Lenders vs Alternative Specialist Challenger Capital Providers... ]]>https://lololol.zohosites.com/thoughts/post/Traditional-Lenders-vs-Alternative-Specialist-Challenger-Capital-Providers...
Whether you are an established trading business (manufacturer, hospitality business, etc), property investor or house builder, why would you, or why are businesses turning to non-bank lenders for financing - and in many cases paying a premium on the cost of borrowing - even with high-quality assets and or have a solid established profitable businesses? 


There are many reasons why creditworthy borrowers with strong track records and desirable assets turn to non-bank lenders, for which we explore a few reasons below. This also applies to other not so creditworthy companies or investors across entire business sector spectrum. 

Within the Real Estate sector, although not exclusive to real estate, these broad trends driving borrowers toward non-bank lenders, creating high-yield credits that are senior in the capital structure and backed by strong assets and stable cash flows in the UK and around the world are:

We aim to deliver much needed capital for SME’s and Property Developers.

1. Regulation and Regulatory Constraints 

Rigorous and stringent underwriting criteria with banks demanding specific loan-to-value ratios, occupancy rates and average lease lengths etc are some real estate specific examples even when circumstances mean there are significant compensating de-risk factors.

2.  Timing & Simplicity 

Red tape and strict criteria that often doesn’t reflect the nature of SME business models means that the UK’s smallest businesses are often turned away empty handed when they approach mainstream lenders such as banks. 


Fewer questions, less paperwork and instant approval or decline decision with in some cases adverse credit not even negative factor nor none home owner status as is often the case with high street main banks is one big positive factor for alternative lending capital providers. An example of this being "Merchant Cash Advance" or " Bridging Loans".   

3. Business and or Investors' Need For Flexibility 

In the case of Merchant Cash Advance as an example 

This is cash flow finance or funding solution perfectly suited to businesses that have a high volume of customer card payment transactions, such as those firms operating in the retail and hospitality sector. 


Rather than having restrictive monthly payment obligations, you’ll pay a percentage of what you earn - improving cash flow - and loan can be paid off faster, or with time, and in either case not putting pressure on limited cash-flow.   


With Bridging Loans and or Development Finance, these often have options such as, 
    • Differed interest, allowing for lower monthly payments therefore more monthly cash flow 
    • Rolled up interest therefore no monthly payments during loan term 
    • Interest only options 
    • Conversion to longer term finance if for example unable to sell a property on the market etc

All having being said, it’s best to do your homework to find lenders to best suite your business or property funding requirements and will underwrite and structure a loan tailored to your specific needs. Look for those that can offer flexibility and move quickly as often market opportunities require investors and businesses that can conclude transactions within limited timeframes. 


At GIC Capital we understand that there’s no one size fits all policy when it comes to your business or your property finance requirements and circumstances. Your business model, sector, ambitions, and numerous other factors all play a role in deciding which finance option is the right one for you and is the reason why we are here to guide and facilitate your growth capital requirements so you can focus on your business and business growth... 


We are here to assist and facilitate growth capital for all UK Business sectors and some of those listed below 
  • Commercial Real Estate / Property Sector 
  • Product Wholesale 
  • Manufacturing 
  • Engineering / Fabrication 
  • Transport / Haulage 
  • Recruitment 
  • Marketing / Advertising 
  • Printing 
  • Security / Man Guarding 
  • Reactive Maintenance 
  • Cleaning 
  • Telecommunications 
  • Food/drink 
  • Breweries 
  • Computers / Technology 
  • Recycling / Waste management 
  • Clothing / Fashion 
  • Events management 

By CEO, GIC Capital 

]]>Sat, 16 May 2020 07:11:59 -0800