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Why So Many Different Loan Types Exist

Strategy Driven

When it comes to business, there’s one thing everyone needs to get started: financing. If you’re not looking to finance a business, getting these small amounts is beneficial. Credit scores dictate what you can and can’t get because of your payback period or payment rate. What about the amount of variance in these things?

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A Refresher on Payback Method

Harvard Business Review

There are a variety of ways to calculate a return on investment (ROI) — net present value , internal rate of return , breakeven — but the simplest is payback period. What is payback period? ” The shorter the payback period, the better. Finance & Accounting Article.

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Hospital Budget Systems Are Holding Back Innovation

Harvard Business Review

Despite a one-year payback period and a highly positive net present value (NPV) from this investment, the department will often reject the attractive opportunity. Instead, the finance office can allow the department to keep some of the savings it created, in excess of the original acquisition cost, in future year budgets.

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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. This notion, that risk is a desirable feature, can seem like sacrilege to anyone who’s taken an introductory finance course.

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How to Better Manage Your Company’s Utility Bills

Harvard Business Review

In our experience, well-designed retrofits can deliver 20%-50% energy savings with fast payback periods. Second, major capital events such as renovations or retrofits, which companies typically undertake every few decades, provide the opportunity for even deeper savings given recent advancements in green construction.

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How GE Stays Young

Harvard Business Review

People in finance at GE, typically focused on return on investment and payback periods, love FastWorks because they get a better throughput of ideas. And it has helped not only provide a new product development process, but a role model for a new culture based on a venture model. Partnering: getting ideas from start-ups.