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BF Continuation 2
BF Continuation 2
BF Continuation 2
Solution:
Q1 Q2 Q3 Q4
Cash receipts 1,775,000 2,200,000 2,475,000 3,400,000
Debt Financing
Debt financing entails borrowing money and repaying it with interest. A loan is the most common
type of debt financing. Debt financing may impose restrictions on the company's activities, preventing it
from capitalizing on opportunities outside of its core business.
Debt financing options include traditional bank loans, personal loans, lending from family or
friends, credit cards, government loans, lines of credit, and more.
Short-term Financing
Short-Term Financing is a need for money for a short period of time, i.e., less than a year. It is one
of the primary functions of finance that manages the demand and supply of capital for an interim
period, and these funds can be secured or unsecured. To use such funds total financing funds should be
driven by the company, and the company gets directed by the risk-return trade-off for this decision.
Long-term Financing
Long-term financing means financing by loan or borrowing for more than one year by issuing
equity shares, a form of debt financing, long-term loans, leases, or bonds. It is usually done for big
projects, financing, and company expansion. Such long-term financing is generally of a high amount.
Equity Financing
Equity financing entails selling a portion of a company's equity in exchange for funds. For example,
Company ABC's owner may need to raise capital to fund business expansion. In exchange for capital,
the owner decides to sell 10% of the company's stock to an investor. That investor now owns 10% of
the company and has a say in all future business decisions.
Equity financing places no additional financial burden on the company. Since there are no required
monthly payments associated with equity financing, the company has more capital available to invest in
growing the business.
Written Works
09-28-22
Name any 5 Banks and Nonbank institutions in Cavite. Name five of their loan products
Collect from different bank institutions some flyers, and requirement lists on how to apply for
banking loans.