Company Financing and Investment Strategies
Classified in Economy
Written on in English with a size of 2.63 KB
Financing Your Company
Obtaining the necessary funds is crucial for the optimal functioning of a company.
Types of Financing
Self-Financing
- Capital contributed by partners
- Reserves and undistributed profits (self-financing):
- From enrichment: Legal Reserve, Statutory Reserve, and Voluntary Reserve
- Maintenance: Depreciation and provisions
External Financing
- Based on Term:
- Short Term: Commercial loans, factoring, discounting of bills, financial credits, and bank loans.
- Long Term: Loans, leasing, renting, loans for fixed assets, bonds or obligations.
- Based on Origin:
- Internal Funding: Reserves or undistributed assets.
- External Funding: Other sources.
- Other External Funding:
- Grants and aid: Economic quantities that governments provide to entrepreneurs who meet