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Compare and contrast the method of raising capital and finance in an organisation.?


Compare and contrast the method of raising capital and finance in an organisation.?

You can increase the capital in the company by:
Increasing the amount of shares and offering them to either the existing shareholders or new ones.
Ask that the existing shareholders contribute money to increase the worth of the existing shares.
Sell the company to new investors that are willing to put more capital into the company.
You can increase cash in the company by:
Increasing the loans through banks or investors.
Sell your receivables to loan companies.
Extend your terms on payables to the most allowed by vendors.
Sell your equipment to companies that lease them back to you.
Some are riskier than others. Certainly the increasing capital with existing shareholders keeps the look of the company the same only with more capital. The various financing issues can have effects on your reputation and credit rating. Refinancing your equipment is probably the longest term solution that doesn't affect credit ratings.

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