finance_1357

One of the key activities of the employer or of its board is financing, it consists of all financial resources necessary to carry out an economic activity. Taking a number of ways to do so, given its size, features…:
Firstly, one of the more typical forms of financing are loans, and in our case the commercial loans. This is an amount granted by the bank to a company to meet the needs of capital, labor, etc., and normally negotiated their return in the short term (usually 1 to 4 years).
Then we have the debt financing, where we can find the elements which are called bonds, mowadays is usually that companies prefer using bonds than asking for money banks, that´s why bonds usually are cheaper. There are a lot of types of bonds depending of the conditions of the company´s financial situation, they are usually issued by companies, public authorities, credit institutions… their maturity is in long term, and the interest terms are fixed.
Another type of financing is the equity one, where the main key is the share. The share is an unit of account which take part in limit partnerships. When we talk about shares, we have to think in limited partnerships and their method of financing. The incomes that the shares produce are the asset performance that you obtain for being shareholder, but if the shares decrease, you have missed
Are all financing methods useful for every company? At first we can see that loans are compatible and suitable for every kind of companies, but we can see that the debt financing is offer securities, this means that we are talking about a technic useful for many companies which don´t like the risk and their possible consecuences. On the other hand the equity financing has got other features like the value of the shares is valued according to different principles in a lot of markets, so you have to value the risk of that situation.
What is clear is that today companies have a lot of financing options that make in times of crisis such as we live, not all break and find a breath of air.

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