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Show 5 - utilized banks, insurance companies, leasing companies, non-taxable trusts and pension plans, lending agencies of the United States government, our customers, our suppliers, our competitors, other corporations, and wealthy individuals. We are holding in reserve for future needs such promising sources as the building and loan societies, the investment banker, and the general public and we will welcome any suggestions of additional sources known to you and unknown to us. Essentially it seems to me that the basic steps in handling your financial problems break down into two main categories. The first group is internal and largely matters of decision for company management. First and most important is to make sure that your management house is in order, for in the field of financing "pretty good" is not good enough. It is not prudent to attempt outside financing until you can be certain that your organization has the depth and the ability to employ the funds efficiently. Sound operating management is absolutely essential, but it is equally important that the financial branch of your company be competently manned and in a position to perform the responsibility entrusted to it. Too often top management tries to get the task done by calling in an individual who has had no voice in policy or planning and whose experience is entirely of an accounting nature. Accounting and finance are not synonymous, and skill in the one does not necessarily imply skill in the other. The corporate officer charged with the financing responsibility should be competent and experienced in the field, should have a strong voice in policy and planning, should be able to speak for the company on financial matters, and his commitments should be scrupulously honored. |