What is the measurement of liquidity demand? How is the measurement of liquidity loan demand? See the details below。
The measurement of the need for liquidity loans means that the firm's use of liquid funds is scientifically measured and based on the characteristics of the enterprise's production operations, and that the reasonable demand for liquidity loans over time is determined in order to increase the efficiency of the use of funds and ensure their rational use。
I. How to measure the need for liquidity loans
The need for liquidity loans should be determined on the basis of the difference (i. E., the liquidity gap) between the borrower's operational requirements for day-to-day production operations and existing liquidity. Generally, the key factors affecting liquidity requirements are inventory (raw materials, semi-finished products, finished products), cash, receivables and accounts payable. It is also influenced by important factors such as the trade to which the borrower belongs, the size of the operation, the stage of development and the status of negotiations. The banking financial institutions measure their liquidity loan requirements based on current financial reports and business development projections of borrowers as follows:
Estimates of borrower operating funds
The impact factors on the borrower's operating capital include, inter alia, cash, inventory, receivables, accounts payable, advances received, advances, etc. On the basis of the survey, a reasonable estimate of the borrower's operating capital is projected for changes in the liquidity times. In actual measurement, the borrower's operating capital requirements can be consulted in the following formula:
Operating capital = previous year's sales income x (1 - prior year's sales profit) x (1+ projected annual growth of sales income)/ operating capital turnover
Of which:
1 operating capital turnover = 360/(inventory turnover + accounts receivable + accounts payable = advances = advances = advances = advances = = accounts received)
Operating capital turnover = net sales income/ (average current assets - average current liabilities)
Neither of these formulas is problematic, and individuals prefer formula 2
Number of days = 360/swing
Number of working days receivable = sales income/average receivable balance
Number of advances received = sales income/average balances received in advance
Inventory turnover = sales cost/average inventory balance
Number of advances = sales cost/average advances balance
Number of turnovers of accounts payable = sales cost/average accounts payable balance
Estimating additional liquidity loan lines
Estimating the level of additional liquidity loans by deducting the borrower's own funds, available liquidity loans and other financing from the estimated operating capital requirements of the borrower。
New liquidity line = operating capital - borrower-owned funds - existing liquidity loans - operating capital from other sources
Other factors to consider
(i) banks and financial institutions should reasonably forecast the borrower's turnover of accounts receivable, inventory and payable, depending on the circumstances and future developments (e. G., the borrower's trade, size, stage of development, status of negotiations, etc.) and may take into account a certain insurance factor。
(ii) for group-linked clients, a consolidated statement can be used to estimate the level of liquidity loans, and the total of member enterprise liquidity loans included in the consolidated statement in principle cannot exceed the estimate。
(iii) in the case of small business financing, order financing, prepaid rent or temporary large debt financing, the level of liquidity may be determined on the basis of the authenticity of the transaction, ensuring effective control of use and recovery, based on actual transaction needs。
