559-479-8477
17035 Road 26, Suite D
Madera, CA 93638
559-479-8477
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Corporate Finance Solutions from TMP Capital
Working Capital
Cash Management
Investment Policy
Business Financing
Retirement Solutions
Insurance
Life Insurance: An Efficient Way to Pay the Estate Tax Bill
Global Depository Reciepts (GDRs)
MicrofinanceOur Corporate Finance activities assist corporate clients to raise and manage working capital, attain business financing, provide retirement solutions, Employee Advisory Services. We work in tandem with affiliated business specialists to offer our combined expertise to meet your corporate needs.
The three most important questions for running successful business are: Where am I now?, Where do I want to be? and How do I get there?
By effectively managing working capital, a business can improve the bottom line without a significant cost add-on. For example, by simply managing their cash, a business that maintains a $100,000 balance in its checking account can earn five percent while the business net margin is 10 percent. This could translate to an equivalent $50,000 in sales!
To achieve this kind of result, all the business need do is monitor idle balances, analyze fees, consider consolidating loans, maximize investment returns and evaluate cash management procedures.
How do you manage money coming in and control money going out? TMP Capital can establish automatic deposits into money market accounts and lines of credit, with optional security investment plans. Outgoing funds from these accounts can help you manage the amount going out and ensure control and accountability
Your investment policy statement is the foundation for all of your investment decisions, identifying goals, creating a system and a discipline for all future investments.There are four basic purposes for the Investment Policy Statement:
- Setting objectives — to establish clear and definable expectations, risk and return objectives, and guidelines for the investment of funds
- Defining the Asset Allocation Policy — to set forth a structure and identify the invesment asset classes to achieve a diversified portfolio. In addition, it determines how those assets are to be allocated toward the achievement of your objectives
- Establishing Management Procedures — to provide a guide for selecting, monitoring and evaluating the performance of those charged with managing and investing the assetss and making changs as appropriate
- Determining Communications Procedures — to provide a concise method of communicating the process and objectives amongst all parties involved with the investments and to assign responsibility for implementation.
To create an effective investment policy for your company, speak with one of the advisors from TMP Capital. Call us today at 559-479-8477.
Financing is one of the most important elements of your cash management systems. The future success of a business often hinges on having the right kind of credit available at the right time.
Do you know the difference custom-tailored financing could make for your business? Your financing arrangement must help you achieve your business goals and save you money to be effective. There are different types of financing options available.
Some reasons a business might need extra capital include inventory build-up, covering business cycles, acquiring real estate, investment or expansion, among others.
Our financing arrangements will ensure that funds are on hand when you need them, minimize your credit costs, enable you to plan for, and pursue, your business dreams, and retain flexibility to handle change.
For how you can achieve the right financing for your business, speak with one of the experienced advisors from TMP Capital, 559-479-8477.
The goal of a good retirement plan is to help attract, retain and reward employees. The plan must be appropriate and cost-effective. Most importantly, it must be easy to understand and manage and must not be overly time-consuming.
At TMP Capital, we can help provide the right retirement solutions for your business. To review different plans and speak with one of TMP Capital advisors to discuss the most suitable options for your business, call us at 559-479-8477.
Insurance is a vital tool for any business. It provides a means to transfer risks that could ordinarily put the company out of business. The key role of life insurance includes:
For key person life insurance:
- Offset recruiting and training costs
- Fulfill existing salary agreements
- Recover lost operating revenues
For Buy/Sell Agreements:
- Guarantee financing
- Receive income tax-free death benefits
- Use cash values for buy-out
Insurance could also be used as additional benefits to reward employees in the form of:
- Executive Bonus Plans
- Executive Split-dollar plan
- Private Split-Dollar
Life Insurance: An Efficient Way to Pay the Estate Tax Bill
IRS Estate Tax Form 706 must be returned with the tax due within nine months of the date of death.
A well-designed estate plan should not only minimize estate taxes but also provide sufficient liquidity to pay any taxes due. Estate taxes generally must be paid in cash within nine months of the date of death. Finding the money can be a problem, particularly when the tax liability is large. Since few estates consist mostly of cash, there are generally three ways to meet the tax bill:
Borrow the money. This is only a short-term solution because the money eventually must be repaid, with interest.
Sell investments to generate liquidity. This is often an unattractive choice, particularly if assets must be sold at distressed prices.
Pay taxes with life insurance proceeds. Life insurance is a highly efficient method of meeting estate taxes, for several reasons:
- Net insurance proceeds are always greater than the premiums paid, which means estate taxes are paid with “discounted” dollars.
- Proceeds are received income tax free; they may also be estate tax free, provided the ownership of the policy is properly structured.
- Insurance premiums may be paid with funds transferred to a trust or to your heirs under the protection of your annual tax-free gift allowance, if the ownership of the policy is appropriately structured.
- Proceeds are paid promptly, providing the cash required to pay taxes and leaving other estate assets intact.
A GDR is a negotiable instrument that represents an ownership interest in securities of a non-US company. GDR are quoted and traded in US dollars, and are settled according to procedures governing the US market. GDR enable investors to invest in non-US securities without concern for often complex and expensive cross-border transactions, and offer substantially the same economic, corporate and voting rights enjoyed by domestic shareholders of the non-US issuer.
Issuers Benefits of organizing a GDR Program
- Broaden US investor base
- Enhance a company's visibility internationally
- Establish and increase international liquidity
- Offer a new avenue for raising equity capital
- Creates acquisition currency
Benefits to the Investors
- Easy to purchase and hold international security
- Trade easily in US dollars and settle through a US clearing house
- Allows diversification of securities of foreign stocks
- Provide FASB accounting and disclosure (for publicly listed GDRs)
- Provide international exposure for institutional investors (mutual funds, pension funds)
- Lower dividend tax rates for exchange-listed GDRs.
Commercial banks have traditionally lent to medium and large enterprises which are judged to be creditworthy, they avoid doing business with micro enterprises because of the associated cost and risks are considered to be relatively high. Microfinance institutions have therefore become the main source of funding micro enterprises in emerging economies and Africa .
To this end, TMP Capital created a West Africa Investment Fund to provide sustainable and innovative solutions for Microfinance Institutions (MFIs) and Small Business Banks (SBBs) in West Africa by providing access to capitals from the West.
As a results of globalization, a shock on one side of the system soon affects the entire system, these has created a need for hedge funds to find investment vehicles that will contribute to the beta of their portfolio.
Microfinance as an asset class is:
- Less correlated
- Socially Responsible
- Promote sustainable growth
- Represent a niche opportunity in a promising growth industry.
Call TMP Capital at 559-479-8477 for more information on strategies to raise and preserve your corporate finance.
Plan for Success
© 2009 TMP Capital, Inc.