The success of any business is dependent on the proper selection of sources of financing its operations.
Having a strong financial position or s – suitable to the company size and structure not only allows to conduct operational and investment activity, but also provides financial security, ie maintaining liquidity in the short and long term.
The main obstacle to the development and strengthening of the market position of companies are capital constraints. Access to financial instruments that meet the needs of company in this area is a source of competitive advantage.
There are the following basic forms of corporate financing. Financing from own funds: the retained earnings of depreciation allowances and of shareholders surcharges
Funding from external sources: investment loan from the factoring, leasing, franchise and from alternative sources (Business Angels, Venture Capital, Private Equity, etc.)
An important criterion for the selection of the financing strategy of the company are cost of obtaining the capital financing company’s assets. These costs have a significant impact on the final results of its operations.
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