Business Resources

A company does not always have sufficient funds to finance all operational activities of the company. A company must obtain fresh funds that can be done in various ways to remain viable.

A. Funding Options For Company:
1. Debt Capital: Debt on external parties with costs and interest on the loan in accordance with the agreement.

2. Equity Capital: Raise internal funds (retained earnings) or sell shares to various parties.

B. Types of Term Funding Source:
1. Short-Term Financing
This type of financing is used for operational activities of daily enterprise that must be returned in less than one year as from internal sources, factoring (factoring), trade credit, commercial paper, commercial banks, money friends, family money, and so forth.

2. Long-Term Financing
Is money / funds acquired companies for various purposes of the company’s long-term creditors, investors, owners, etc. that funds can be returned in due time more than a year as from retained earnings (retained earnings), the financing of debt (debt financing) and equity financing (financing from equity).