  RAISING CAPITAL  Bank Loan Applications Procedure  The Bank Loan Applications Procedure provides guidelines for determining suitable lending requirements and format and preparation of loan proposals. This procedure applies to bank loan applications but can be used for alternate forms of financing. Proposals can be used for loan applications for one or more banks or lending institutions.  (0 pages, 0000 words)  Bank Loan Applications Responsibilities:  The CFO (Chief Financial Officer) is responsible for directing the Finance Department in developing borrowing and financial plans to meet the needs of the company's operations.  The Board of Directors is responsible for authorizing the raising of capital through bank loans.  Bank Loan Applications Definitions:  Collateralization - Securing a debt in part or in full by a pledge of collateral (an asset pledged as security to ensure payment or performance of an obligation).  Covenant - Condition that a borrower must comply with according to the terms of the loan agreement; if the borrower does not act in accordance with a covenant, the loan can be considered in default, in which case the lender has the right to demand payment, usually in full.  Credit scoring - Measuring and evaluating creditworthiness of a loan applicant; profitability, solvency, management ability, liquidity, and other information may be factored into an applicant's credit score.  Securitization - Pooling of non-traded assets for the purpose of issuing standardized securities backed by those assets, which can then be traded like any other security; bundling and resale of debt instruments to investors, permitted only for parties licensed and regulated by the SEC; process of selling non-conventional loan packages to investors (public or private) who represent an interest in the cash flow generated by asset-backed loans.  Takedown - Transfer of money from a lender to a borrower under a loan agreement, loan commitment, or line of credit.  Bank Loan Applications Procedure Activities  Assessing Capital Requirements  Preparing Bank Loan Applications  Applying for a Bank Loan  Closing the Bank Loan  Bank Loan Service and Reporting  Bank Loan Analysis  Bank Loan Applications Procedure Forms  Loan Application Checklist Form  Business Valuation Procedure  The Business Valuation Procedure describes how to regularly conduct business valuation assessments in order to monitor valuation and multipliers in relation to valuation and multiplier targets, provide general and industry specific economic information that affects the business; provide information for business strategic planning, and use worth in equity to raise capital. This procedure applies to Top Management and the Finance Department.  (00 pages, 0000 words)  Business Valuation Responsibilities:  Top Management is responsible for setting valuation schedules, setting valuation targets, for reviewing valuation results in relation to targets, and for monitoring and adjusting business plans and strategies in order to reach valuation targets.  The CFO (Chief Financial Officer) is responsible for executing the valuation process, recording valuation plans, results, improvement plans, and for providing all needed information for the valuation process.  Business Valuation Definitions:  Valuation - The process of assessing or estimating the value of a business. There are several valuation approaches, including income (based on expected future cash flow), market (based on value of similar businesses), and asset (based on the net equity of the value of the business assets). The most appropriate method depends on the context or reason for the valuation. Generally, the income method of valuation is most practical for solvent, ongoing businesses.  Multiplier - Generally, the profits/earnings ratio of a business that plays an important role in income method valuation.  Business Valuation Procedure Activities  Business Valuation Plan  Business Valuation Steps  Company Valuation Review  Reaching Valuation Targets  Business Valuation Procedure Forms  Business Valuation Plan Template  Company Valuation Improvement Plan Template  Valuation History Template  TREASURY MANAGEMENT  Foreign Exchange Management Procedure  The Foreign Exchange Management Procedure ensures thoughtful and intelligent decisions are made about foreign currency exchange. The procedure minimizes the associated risk of less than expected returns or higher than expected costs due to fluctuations in exchange rates. The Foreign Exchange Management Procedure applies to the Finance and Accounting departments.  (00 pages, 0000 words)  The CFO should analyze risk or exposure from accepting or disbursing foreign currency annually or as needed, due to conditions and opportunities. Converting or translating currency (to/from US dollars, euros, yen, etc.) can diminish sales income or lead to higher-than-expected costs because of rate fluctuation - this is referred to as currency risk or foreign exchange risk.  Foreign Exchange Management Responsibilities:  The CFO (Chief Financial Officer) is responsible for assessing risks and exposure due to business conducted in foreign currency. The CFO should prepare a report and recommendations for dealing with foreign currencies and should follow and execute the established foreign exchange management plan.  Top Management and the Board of Directors should review and access foreign exchange risks and policy options, and then set the company foreign exchange management policy.  Foreign Exchange Management Definitions:  Foreign exchange risk - Risk that currency movements alone may affect the value of an investment; also called "currency risk".  FX - Common abbreviation for "foreign currency exchange".  Hedge - Insure against lost revenue due to foreign currency fluctuations.  Translation - Actual act or method of converting one form of currency to another.  Foreign Exchange Management Procedure Activities  Foreign Exchange Management Plan  Foreign Exchange Management  Reviewing Foreign Exchange Management  Improving Foreign Exchange Management  Foreign Exchange Management Procedure Forms  Foreign Exchange Management Plan Example  Foreign Exchange Results Form  Letters of Credit Procedure  The Letters of Credit Procedure develops and builds best practices in processing a letter of credit quickly and efficiently. The procedure allows processing of foreign transactions where a known or unclear level of risk prohibits normal purchasing and sales processes. The procedure applies to Finance, Accounting, Purchasing, and Sales department, or other departments involved in using documentary credit to process transactions.  (0 pages, 0000 words)  Letters of Credit Responsibilities:  The 