CapitalLocat - Capital & Location, Location, Location...

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1 Location, Location, Location Capital Sources Debt — Capital is borrowed or rented and must be repaid to the lender Equity — Capital Subsidy/Grant — Capital Earnings — Capital Asset Sales — Capital Reorganization — *self explanatory is exchanged for ownership rights is gifted and does not have to be repaid is generated from operating income* is exchanged for property (usually at a discount) All or a portion of debt is forgiven* Debt: Secured — An asset is pledged in exchange for the loan and is forfeited in the event of default Collateral Loans — Specific, unrelated to borrowing, asset(s) Accounts-Receivable Loans — Specific receivables Warehouse-Receipt Loans — Specific inventory items Certificate Loans — Specific equipment or rolling stock Guaranteed — Loan is made upon security pledge of credit-worthy third party Friend or Family Government or Governmental Agency (SBA) Unsecured — Loan is made upon the borrowers demonstrated credit- worthiness (status and history) Bond — By financial markets (usually with underwriting) Credit Line — By financial institutions (non-binding, revolving) Commercial Loans — By financial institutions (90 days +/-) Term Loans — By financial institutions (1 year +)
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2 Equity: • Personal Wealth • Private Placement • Venture Capital (Conversion) • Stock Market(s) • Partnerships and Joint-Ventures
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This note was uploaded on 11/10/2011 for the course MGMT 4199 taught by Professor Robertdesman during the Fall '11 term at Kennesaw.

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CapitalLocat - Capital & Location, Location, Location...

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