2006-07-21 20:29:46 · 6 answers · asked by Anonymous in Business & Finance ➔ Corporations
Working capital should be coming from your companies ongoing profits... Start up capital on the other hand could come from Angel Investors, Venture Capital Funds, Partners, Grants, Family Loans and personal finances.
For more information on some tools that could "protect and grow" your business check out my yahoo360 blog of the same title...
Good luck
2006-07-21 21:25:51 · answer #1 · answered by mallicoatdd 4 · 3⤊ 1⤋
If we have an incorporated body, where the the company is a separate entity from its shareholders, one of the significant forms of capital raising is from shareholder and investers.
1. Share Issues or Options. These can be issued on just about any basis depending on the "Memorandum and Articles of Association" and can generally be issued at a premium or discount. Shares may be ordinary or preference. They be be fully paid or subject to call.
Options are generally issued at a 'low' price giving shareholders an option to acquire shares, at a specified price, at a future date.
Public subscription is a valuable tool for any public company.
2. The company could issue debentures, either ordinary or preference, for a fixed term and maybe secured or unsecured.
2006-07-21 20:48:06 · answer #2 · answered by hubertxiv 3 · 0⤊ 0⤋
loan from family and friends
personal savings
mortgaging own property
making the company a public limited corporation so that shares of the company can be sold.
by selling personal assets
those are the easiest ways...
2006-07-21 21:49:00 · answer #3 · answered by atharva_is_great 2 · 0⤊ 0⤋
Loans from sister concerns
issue of debtentures/shares/bonds
loan from financial instutions
2006-07-21 20:49:10 · answer #4 · answered by arooon 2 · 0⤊ 0⤋
Working capital is defined as current assets less current liabilities. To increase it, you can increase current assets, equity, and long-term liabilities and/or you can decrease current liabilities.
Activity
A. liquidate unproductive or uneconomical fixed assets -- increase current assets
B. increase sales/margins/profits and/or equity (such as venture capital, getting new investors, etc.) -- increase equity
C. shift current liabilities to long-term liabilities (taking longer-term debt to pay for maturing ones) -- decrease current liabilities and increase long-term liability.
2006-07-21 21:21:25 · answer #5 · answered by puppy 3 · 0⤊ 0⤋
Trade credit from suppliers, advances from customers, commercial paper.
2006-07-21 20:36:22 · answer #6 · answered by NC 7 · 0⤊ 0⤋