A strategic financial plan for South Asialink Finance Corporation

EXECUTIVE SUMMARY: South Asialink Finace is a lending entity under the financing company operations industry, whose purpose is to provide financial services through a strong branch network located in its area of operations. It is the former division of Asialink Finance Corporation. On May 2007, the entity was primarily registered to engage in business under the implementing rules and regulations of the Lending Company Regulations Act. According to the proposed five-year strategic financial planning, South Asialink Finance Corporation is suffering from insufficient equity. This is mirrored in the entity’s statement of financial position, wherein the entity’s current assets were not able to cover their current liabilities. Consequently, the entity’s borrowed funds were not used efficiently to generate income. With this, it is evident that the entity has insufficient funds. After scrutinizing all these findings, the analysts were able to formulate the best course of action to impose. In order for the entity to impose its equity position, SAFC will undergo initial public-offering. By implementing this chosen course of action, the board of the directors will agree and the rest will take effect. The firm’s shares of stock will be traded in the stock market, thereby acquiring new investors. This proposed alternative course of action will increase the collection of the receivables and the generation of returns from borrowed funds while decreasing the entity’s liabilities, thus improving the entity’s equity position

EXECUTIVE SUMMARY: South Asialink Finace is a lending entity under the financing company operations industry, whose purpose is to provide financial services through a strong branch network located in its area of operations. It is the former division of Asialink Finance Corporation. On May 2007, the entity was primarily registered to engage in business under the implementing rules and regulations of the Lending Company Regulations Act. According to the proposed five-year strategic financial planning, South Asialink Finance Corporation is suffering from insufficient equity. This is mirrored in the entity's statement of financial position, wherein the entity's current assets were not able to cover their current liabilities. Consequently, the entity's borrowed funds were not used efficiently to generate income. With this, it is evident that the entity has insufficient funds. After scrutinizing all these findings, the analysts were able to formulate the best course of action to impose. In order for the entity to impose its equity position, SAFC will undergo initial public-offering. By implementing this chosen course of action, the board of the directors will agree and the rest will take effect. The firm's shares of stock will be traded in the stock market, thereby acquiring new investors. This proposed alternative course of action will increase the collection of the receivables and the generation of returns from borrowed funds while decreasing the entity's liabilities, thus improving the entity's equity position.

Filipiniana

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