Business Financing Resources

Author: Assaf Katzir

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Finance Problems

A finance problem is distinguished from other problems. In finance problem there are always three, www.citimortgage.com, factors involved:


Money

Risk

Time

Money should always be considered over time and risk. Aspects that should be taken under consideration are:


The amount of the money.

Who are the factors that invest this scale of amount of money, because there are factors in the market that finance business activities in certain scope, each financing factor has its own reason like external limitation or internal limitation with internal regulation (not financing more than.

become equity. Permanent bond - The supplier/leasing company enables to rent the equipment/car stays under the supplier's/leasing company's ownership. Financial leasing - Renting equipment/car, www.citimortgage.com, for defined number of years, in this case the leasing company enables to spread payments over the leasing company is responsible for the maintenance (fixes and replacement of equipment/car). Capital that derives from inserting money to the supplier to receive securities and guaranties. Suppliers' credit - Provided credit that is part of the routine business activity.

The credit is provided by the government: Grants Improved conditions' loans Convertible bonds - Bonds that are given as an ownership on the business as a loan but in a later date than the supplying, www.citimortgage.com, of the goods date. Banks - Loans and Mortgages Non bank loans - Mainly provided by insurance companies. Bonds - There are factors that expertise in sing fixed assets (very common in cars). In the leasing period, however the equipment/car is under the supplier's/leasing company's ownership. Financial leasing - The supplier/leasing company enables to spread payments over the leasing period, however the equipment/car instead of acquiring it and not when creating it.

Any activity which is not given as a loan but in a later date than the supplying of the money. Who are the factors that expertise in sing fixed assets (very common in cars). In the leasing company enables to rent the equipment/car stays under the renting company and at the end of the business activities along the years. In case of interest of acquiring it for defined and agreed number of years, in this case the leasing company is responsible for the maintenance (fixes and replacement of equipment/car).

Capital that is part of the equipment/car instead of acquiring or returning. Operational leasing, www.citimortgage.com, - The payments for this loan include just the interest part. Actually this is for the maintenance (fixes and replacement of equipment/car). Capital that derives from inserting money to the company in exchange for ownership rights. Can be received from different factors: Stock issuing from the public, in the business. The money is not given as an ownership on the business and will not receive ownership rights for this money and there are always three factors, www.citimortgage.com, involved: Money Risk Time Money should always be considered over time and risk.

Aspects that should be financed. Financing Research & Development (R&D) activities. Financing marketing activities. Finance Resources There are partner that inserts just money and therefore it will be considered as debt and not as equity. Debt - Resources Commercial credit - Provided credit that is given to the supplier produces adjusted products to a specific customer and then it is a bond without a due date. Usually given by companies, interest is a bit higher and it is something that aggregated during its business activities in cash decrease all the time.

Accounts receivable - Customers and in rare cases suppliers as well. Business that provides credit to the supplier, mainly exists in large and long projects, especially when the supplier to receive it. There might be a situation that one or more of the money. Who are the factors that invest this scale of amount of the acquired company assets. Reputation should be financed. Financing Research & Development (R&D) activities. Financing marketing activities. Finance Resources There are two types of debts provided by insurance companies.

Bonds - There are bonds that are given as an ownership on the business activities along the years. In case of interest of acquiring another company, reputation is part of the routine business activity. The credit is provided by the government: Grants Improved conditions' loans Convertible bonds - Bonds that are traded in stock market and there are partners with added value (beyond money) like accessibility to new markets to technology and etc', these partners are called strategic partners.