Gargi Ranade (CS) (619 Points)
07 September 2012Dear All,
Private Limited Company engaged in the import Export business ( trading Activity) , wants to raise the funds for its business without opting for conversion in to Public Co. What are the all source through which it can raise the funds.
Can Venture Capital Companies / Firms be one of the option for raising funds of Pvt. Ltd.
Regards,
Gargi
Gautam
(CA)
(38 Points)
Replied 07 September 2012
Venture capital mainly invests in high risky companies which with is on its initial stage or on its growth phase. They bring in moneny by equity or convertible debentures. Thier main objective is yielding high returns. Your is a trading company with limited profitability. You would need finance just to fund the working capital and not long term loans to fund ant plant (in most of the cases).
So better opt for cash credit/ export packing credit from bank or short term loans from NBFCs.
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