Most financial instruments are designed to assist any business in the various issues pertaining to the actual functioning of the business entity. These may come in the form of checks, drafts, bonds, shares, bills of exchange, futures, option contracts and many others. These various styles of documentation portray a monetary value, which is both legally enforced and binding. Acting as a form of legal agreement between parties connected to the business entity in one way or another in the payments of monies.
Most companies and businesses today understand the customer’s sentiments, is the one element which eventually dictates the more strategic moves the business takes on.
This focus on the customer or consumer then creates the need to have factual financial information that can assist in making decisions that will impact the business metrics ranging from brand positioning to other elements that seal customer loyalty.
All these financial instruments have the goal of eventually assisting in creating the increased revenue and cost saving formats that will increase the business entities chances of being even more successful.
All the services provided for by the various financial instruments are usually in place or chosen for its specific abilities to facilitate any transactions or agreements between parties linked to the business entity. The convenience of such documentation eases the burden of actually having to deal in real cash and making projections with real cash availability at any given time.
All these contractual obligations will ensure the delivery of financial commitments corresponding to the agreements between parties. Some of these financial instruments may include the listed and unlisted debt securities, listed equity securities, purchased loans, financial assets in help for trading, trade and other receivables, cash or cash equivalents, trading liabilities, current and long term bank borrowing and many other similar contributing elements.