Key Financial Concepts and Business Aims

Financial Instruments

Loan

• In a loan, the bank makes available to the customer a fixed amount, and the customer becomes liable to repay that amount plus commission and interest by the agreed deadline.
• A loan is usually a medium to long-term operation, and amortization is typically done through regular payments (monthly, quarterly, or semi-annually). Thus, the client has the opportunity to organize their finances better when planning payments.
• Generally, personal loans are granted to individuals for private use. Therefore, they usually require personal guarantees or collateral (such as pledges or mortgages).
• The granted loan amount is usually deposited into the customer's account, and interest must be paid from day one, calculated on the full amount granted.

Bank Credit

• In bank credit, the bank makes available to the client, in a credit account, the funds needed up to a maximum amount.

Factoring

Factoring is a financing system that involves the transmission of commercial receivables from customers to a factoring entity, which takes charge of managing them and, where applicable, advances a percentage of their value.

Receivables can be documented and transmitted in any form permitted by law: bills, notes, receipts, invoices, certificates, and generally, any collection document accepted in trade.

Factoring operations can be performed by financial institutions or other credit providers.

Business Objectives

Company Objectives

Functions

• Encourage, guide, and coordinate decisions.
• Provide a basis for evolution.
• Motivate company members.
• Communicate company intentions externally.

Features

• Objectives should be clear, concise, realistic, and measurable.

Hierarchy

• Objectives require coordination over time and should be implicit in every action.
• Coordination of objectives is needed between decision-making levels.

Economic and Financial Objectives

Return

• Maximizing benefit (economic and financial types).

Growth

• Increasing company size, typically measured by increased sales.
• Vertical and horizontal development.
• Acquiring or participating in other companies.

Flexibility

• Capacity for change and reaction (structural and management types).

Social Economic Objectives

Internal Stakeholders

• Employees, management, and shareholders.

External Stakeholders

• Customers, suppliers, and financial institutions.

Community Relationship

• Contributing to education and public goods.
• Supporting national economic independence.

Marketing Definition

Marketing is the internal process of a company in which it plans in advance how to grow and meet the demand for its products and commercial services through their creation, promotion, exchange, and physical distribution.