3a Sources of Finance

3a Sources of Finance - Sources of finance Sources Family...

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Sources of finance Sources Family, friends and credit cards Trade credit Bank overdraft Bank loans (asset based, cash-flow backed) Invoice discounting / factoring Sale and lease back Leasing Hire-purchase Flotation / AIM / IPO Grants, soft loans, special schemes Business angels / venture capitalists
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Bankers Lending Decision Character Ability Management Purpose Amount Repayment Insurance / security
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Going Public (IPO) Advantages Ability to obtain equity capital Enhanced ability to borrow Enhanced ability to raise equity Prestige Personal wealth Disadvantages Expense Regulation of corporate governance policies and procedures Discipline of information Pressure to maintain growth pattern Loss of control
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Stages of Business Development Funding Early-Stage Financing •Seed Capital •Start-up Relatively small amounts to prove concepts and finance feasibility studies
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This note was uploaded on 10/13/2009 for the course MGT 3150 taught by Professor Ken during the Spring '09 term at Al Akhawayn University.

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3a Sources of Finance - Sources of finance Sources Family...

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