raising capital
This query is : Resolved
14 March 2011
Please explain the ways and means of raising fund other than shares by a company?
Neeraj Bansal CA
(Expert)
14 March 2011
Hiii
you can raise the funds from many sources
like
1. Loan from bank , directors, etc
but give me some detail of purpose then i can be able to give you more detailed over this
you can raise the funds from many sources
like
1. Loan from bank , directors, etc
but give me some detail of purpose then i can be able to give you more detailed over this
19 July 2025
1. Borrowings / Loans
Bank Loans: Term loans or working capital loans from banks.
Financial Institutions: Loans or credit facilities from NBFCs, SIDBI, etc.
Debentures / Bonds: Company issues debt securities to investors and pays interest.
Inter-corporate Loans: Borrowing from other companies.
Loan from Directors/Promoters: Funds lent by company’s own directors or promoters.
2. Retained Earnings / Internal Accruals
Profits kept in the company instead of being distributed as dividends.
Used to finance growth or new projects.
3. Trade Credit
Delayed payments to suppliers, effectively interest-free short-term financing.
4. Lease Financing
Acquiring assets by leasing rather than buying outright.
Saves upfront capital expenditure.
5. Grants and Subsidies
Funds or incentives provided by government bodies or agencies for specific projects.
6. Factoring and Invoice Discounting
Selling receivables or invoices to a financial institution to get immediate cash.
7. Convertible Securities
Debt or preference shares convertible into equity at a later stage.
Bank Loans: Term loans or working capital loans from banks.
Financial Institutions: Loans or credit facilities from NBFCs, SIDBI, etc.
Debentures / Bonds: Company issues debt securities to investors and pays interest.
Inter-corporate Loans: Borrowing from other companies.
Loan from Directors/Promoters: Funds lent by company’s own directors or promoters.
2. Retained Earnings / Internal Accruals
Profits kept in the company instead of being distributed as dividends.
Used to finance growth or new projects.
3. Trade Credit
Delayed payments to suppliers, effectively interest-free short-term financing.
4. Lease Financing
Acquiring assets by leasing rather than buying outright.
Saves upfront capital expenditure.
5. Grants and Subsidies
Funds or incentives provided by government bodies or agencies for specific projects.
6. Factoring and Invoice Discounting
Selling receivables or invoices to a financial institution to get immediate cash.
7. Convertible Securities
Debt or preference shares convertible into equity at a later stage.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- EPF ECR NEW FILE SEP 17TH 2026
- Under marginal scheme
- Non filing of I T Returns
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- Oct 2025 Invoices
- TAX AUDIT ON PROFESSIONAL INCOME
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- Import of Software Service.
- Capitalgain tax purposes for valuation report compulsory
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
