raising capital

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poornima

poornima (Querist)
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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)
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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)
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15 March 2011 means of raising fund other than shares by a company.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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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.

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