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Chapter. Financial Management. 18 Condensed. Sources of Funds & Financing. Sources of Funds. Debt Capital Equity Capital. Types of Financing. Short-Term Long-Term. Short-Term Financing. Short-Term Trade Credit 2/10, net 30 Promissory Notes Family/Friends Banks, etc. Secured Loan
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Chapter Financial Management 18 Condensed
Sources of Funds • Debt Capital • Equity Capital
Types of Financing • Short-Term • Long-Term
Short-Term Trade Credit 2/10, net 30 Promissory Notes Family/Friends Banks, etc. Secured Loan Unsecured Loan Factoring Commercial Paper Sources of Funds
Different Forms of Bank Loans • Secured Loans (collateral) • Pledging (accts receivable) • Inventory Financing (raw materials) • Unsecured Loans • Line of Credit (not guaranteed) • Revolving Line of Credit (guaranteed) • Comm’l Finance Companies • Non-banks
Long-Term Debt Term-Loan Bonds Secured Unsecured Equity Stock Retained Earnings Venture Capital Sources of Funds
Bonds • Classes • Unsecured • Debenture • Secured • Mortgage
Sources of Equity Financing Retained Earnings Internal Sources Owner Contributions Sale of Partnerships Equity Capital Venture Capital External Sources Public Sale of Stock