raising capital

This query is : Resolved

Share Report Follow Query Ask a Query

poornima

poornima (Querist)
Follow

14 March 2011 Please explain the ways and means of raising fund other than shares by a company?

Neeraj Bansal CA

Neeraj Bansal CA (Expert)
Follow

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

poornima

poornima (Querist)
Follow

15 March 2011 means of raising fund other than shares by a company.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
Follow

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now