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eNTR 2030. Chapter 11 Affirms sources of financing. The nature of a firm and its financing sources. A firm’s economic potential Company size Types of assets Preferences for debt or equity. Debt or equity financing. potential profitability Financial risk Voting control.
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eNTR 2030 Chapter 11 Affirms sources of financing
The nature of a firm and its financing sources • A firm’s economic potential • Company size • Types of assets • Preferences for debt or equity
Debt or equity financing • potential profitability • Financial risk • Voting control
Sources of financing • Sources close to home • Personal savings • Friends and family • Credit cards • Bank financing • Types of loans • Line of credit • Term loan • mortgage • A bankers prospective • Selecting a banker • Negotiating the loan • Interest rate • Loan maturity date • Repayment schedule • Loan covenants
Sources of financing • suppliers and asset based lenders • Accounts Payable • Equipment loan/lease • Asset based lending • Pvt. Equity investors • Angel investors • Venture capitalists • The government • Small business administration • 7(A.) loan • CDC loan • 7(M. )microloans • Small business investment companies • Small business innovative research program • State and local government • Community-based financials institutions • Other sources • Large corporations • Sale of stock • Private placement • Public sale