Discussion thread: company cash flow | BUSI 530 – Managerial Finance | Liberty University
When it comes to obtaining funds for a company to stay afloat, there are various approaches one could take such as: securing debt/equity financing from banks or venture capitalists etc., seeking out investments from family & friends, applying for grants/loans from government agencies etc..
When choosing which route is best though – factors like the amount of capital needed and the timeline for repayment should be taken into consideration. For instance; if a large sum of money needs to be raised quickly then debt financing may be more suitable whereas if a smaller amount is required and longer durations can be negotiated then equity investments may be preferable.
In addition, other alternatives worth considering are crowd-funding campaigns (e.g. Kickstarter) or even leveraging existing assets such as tradeable securities etc., in order to bridge any financial gaps without taking on too much additional risk.
Overall then it is evident that each approach has its own unique pros & cons attached – meaning careful thought & preparation will need to go into selecting the right option going forward.