Sourcing finance may be done for a variety of reasons. Traditional areas of need may be for capital asset acquirement - new machinery or the construction of a new building or depot. The development of new products can be enormously costly and here again capital may be required. Normally, such developments are financed internally, whereas capital for the acquisition of machinery may come from external sources.
A company might raise new funds from the following sources:
- The stock markets:
- new share issues, for example, by companies acquiring a stock market listing for the first time
- rights issues
- Loan capital
- Retained earnings
- Bank borrowing
- Government sources
- Business expansion scheme funds
- Venture capital
- Franchising.
No comments:
Post a Comment