Terms

Having access to the right type of funding or capital on flexible terms is crucial for business growth and success. There are various reasons why businesses raise capital, such as working capital for growth, acquisitions, new product development, service or market development, capital expenditures, and restructuring.

The source of capital and its type that a business chooses will depend on several factors such as the nature of the project, the amount required, the type of business, market characteristics, business growth ambitions, size, and timing of cash flow, and the stage of business growth.

For instance, if a business needs to finance a new product development project, it may choose equity financing, a type of financing that involves selling shares of the company to investors. On the other hand, if a company needs to purchase new equipment, it may opt for debt financing, which involves borrowing money that will be repaid with interest over time.

It is imperative to remember that securing the right type of funding or capital is the key to long-term growth and success. Failure to do so may result in missed opportunities and even business failure. Therefore, businesses must be assertive in seeking specialist professional advice and identifying the most suitable source and type of capital to secure their future.