FUNDING
Financing is the process by which capital is provided to a company or person to use in a project
or business, that is, resources such as money and credit so that it can execute its plans. In the
case of companies, they are usually bank loans or resources provided by their investors.
INTERNAL FUNDING
SOURCES
If we opt for self-financing or internal financing,
we will use our own resources. The company will
enjoy greater independence by not depending on
foreign capital. However, your investments will
be much more limited. On the other hand, self-
financing will allow the company to avoid paying
the onerous interest generated by debts with
third parties.
Retained earnings of the company that can
be used for capital increases.
Provisions to cover possible losses in the
future.
Amortizations, which are funds used to
Example
prevent the company from being
decapitalized due to the aging and loss of
value of its assets.
ACCORDING TO THEIR
MATURITY
EXTERNAL FUNDING
SOURCES
Capital contributions from partners. We can also classify the sources of financing
Loans, where a contract is signed with a natural or legal according to their maturity into 2 types:
person (company) to obtain money that must be repaid within
a certain period of time and at an interest rate.
Credit line.
Leasing, which is the contract by which one company
transfers the use of a good to another in exchange for the : The return period is less than one year.
payment of periodic rental fees for a certain period of time. Examples include bank credit and the discount
Factoring, which consists of one company assigning the line.
collection of its debts to another. Long-term: Maturity will be greater than one
Confirming, which is a financial product where a company year. Noteworthy among this type of source
(client) delivers the comprehensive administration of are bank loans, capital increases or bond
payments to its suppliers (beneficiaries) to a financial or issues.:
credit institution.
Commercial discount, where they assign the collection rights
of the debts to a financial entity,
Promissory note, which is a document that implies a promise
of payment to someone.
Crowdfunding, also called crowdfunding, which consists of
financing a project through collective donations.
Reciprocal Guarantee Society. REFERENCES:
Venture Capital Company. https://economipedia.com/definiciones/fuente-de-
State credits (ICO for example). financiacion.html
Capitalize public payments (single payment of unemployment https://concepto.de/financiamiento/
benefits, for example). https://e.economia.gob.mx/guias/financiar-la-empresa/
Public subsidies.