Finance1107

Companies have different ways of finance themselves. We are goping to make some differences between big and small companies.
- to begin with, in small businesses the most common way of financing is the capital contribution by the partners. This can be done through an increase in the number of shares, which go on sale to raise funds. This process does not involve any cost to the company and is a quick way to get capital. Another option being done in small businesses is borrowing from banks with high interest rates. If the company performs well is a good way of funding.
- Speaking of big companies, they can be financed by removing part of its capital stock, becoming companies whose value can change due to fluctuations in the exchange. Another form of financing that can perform these companies merged with others or to sign certain contracts with other major companies. These companies also tend to perform subcontracting with small businesses. As a form of financing can also be highlighting the investment share of the profits through leasing transactions or providing credit to small companies with high interest rates. You can also consider funding the advertising campaigns carried out by large companies, but that cost money and generate a large increase of customers and serves as a way to make themselves known in the business world.
In conclusion, regardless of the size of the prevalent forms of business financing are:
• Asking for bank credits, a form of financing relatively easily and quickly.
• Capital, thanks to contributions from the partners.
• stocks and shares.

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