BankWest Limited is one of the renowned banks in Australia that provides short, medium and long term loans to the commercial organizations and individuals as well. Being the finance manager of a mining service organization, it is essential to understand the business loan facilities that is offered by BankWest Limited. The assessment of the business loans and the financial principle is ideal for understanding the kind of business that is appropriate.
The main motive of BankWest Limited has been to connect the funding options to the business firms and provide effective and rapid degree of decision making with the help of which the company can expand their business and maintain their competitive edge (Caron, Durand and Asselin 2016). There are various loans and finances that are offered by the bank and the commercial organizations can make undertake any kind loan according to their desires and needs. The loans and finances are segregated according to the rate of loans. It has been observed that the variable rate loans are the flexible variable rate loans that is ideal for various business needs. These loans include Business Low Rate Loans and Business Fee Saver Loans. These loans are ideal for the firms that require medium to long term loans (Bankwest.com.au 2018). These loans have the advantage of switching from variable to fixed loans and even has flexible repayment options.
The next set of loan that is offered by BankWest has been Fixed Rate Loans that manages cash flow against the changes in the rates of interest. These kind of loans include the Business Fixed Rate Loans and the Commercial Advances. The Business Fixed Rate Loan is ideal for the long term and medium term loans and these loans can even be switched from the fixed to the variable loan type (Bankwest.com.au 2018). The Commercial Advances provide advantage for the the short term advances. The next kind of loan involves the Overdrafts that controls the everyday and the unexpected business expenditure. The overdrafts involves the Business Overdrafts and the AgriOne Overdraft.
The fundamental principle of finance are the factors that are assessed and considered by the business organizations with the help of which the organizations can operate effectively in an economy (Gebhardt, Mora and Wagenhofer 2014). There has been an observation that these principles can be associated in a short, medium and long finance and thereby the organizations plan their operations accordingly. The management of cash, and the evaluation of the balance sheet are the short term principles that the company takes into account for most of the time. The financial analysis is a kind of medium financial operations with the help of which the companies can understand the new growth opportunities and key purchases (Kaspina, Molotov and Kaspin 2015).
The long term issues involve the investment decisions in which the the long term loans that needs to be undertaken with the help of which the business can enhance their growth and thereby earn passive and active income (Vom Brocke et al. 2014). Understanding the unexpected risks is even required to be taken into consideration with the help of which the business can construct effective plans and improve their financial position. In accordance to the mining service company the principle that can be related and is important is the investment decisions as the loan that would be taken would be used for the purpose of making significant purchases for the business and expanding the business in accordance to the growth opportunities that are available. This can enhance the future stocks and the prices and accordingly the dividend pay-out can be paid with the help of which the mining business can develop and expand.
The assessment of the various business loans offered by BankWest Limited is helpful in understanding the most appropriate loan for the mining company and by understanding the fundamental principle of finance for the mining company, the kind of loan that is ideal is chosen. This is ideal for the development of the business and thereby maintain competitive edge.
Bankwest.com.au. (2018). Business Loans – Business Finance – Bankwest. [online] Available at: [Accessed 8 Jan. 2018].
Caron, J., Durand, S. and Asselin, H., 2016. Principles and criteria of sustainable development for the mineral exploration industry. Journal of Cleaner Production, 119, pp.215-222.
Gebhardt, G., Mora, A. and Wagenhofer, A., 2014. Revisiting the fundamental concepts of IFRS. Abacus, 50(1), pp.107-116.
Kaspina, R.G., Molotov, L.A. and Kaspin, L.E., 2015. Cash flow forecasting as an element of integrated reporting: an empirical study. Asian social science, 11(11), p.89.
Vom Brocke, J., Schmiedel, T., Recker, J., Trkman, P., Mertens, W. and Viaene, S., 2014. Ten principles of good business process management. Business process management journal, 20(4), pp.530-548