Some solutions to raise money for activities of the company

Some solutions to raise money for activities of the companyNhóm: Gvhd:Lớp:IntroductionNhóm Đại học Thương MạiThe capital in the business is an important factor to decide the existence and the development of a business. The faster economics grows, the more the capital of businesses raises. “What ways can company or businesses raise money?” That is the problem that our group want to discuss with you today: "Some solutions to raise money for activities of the company”.Nhóm:Đại Học Thương MạisolutionsThe capital from relatives1Raise money from customers, partner 2Nhóm:Đại hoc Thương MạiThe capital from relativesThis is a good method for businesses because they won’t lend interest rate. To borrow from relatives, businesses need to create a trust. Begin, businesses must develop a business plan which is clear target, specific direction, assess the costs, expected to loans. In particular, it is highly feasible. Then, based on the relationship with parents, siblings, uncles, friends, businesses can raise money.Nhóm:Đại Học Thương MạiThe capital from relativesAdvantagesFree or small interest rate Unlimited time or the time refund is longCharacteristicsDisadvantagesTo create a trust. It is very hardObject is limited and lenders are lessThe loan is less and only 1 or 2 times not the same as bank loans.Raise money from customers, partner Extending the time of payment which don’t pay interest rate is the best way raise moneySigning contract with customers whom must deposit before getting the goodsLoaning of customer with interest rate is the same as bank interest rate.www.themegallery.comCompany LogoNhóm:Đại Học Thương MạiRaise money from customers, partner AdvantagesIt is an effective way for raising moneyIt helps to determine the loyal customers with your companyCharacteristicsDisadvantagesconsumption goods, time loan, capital contribution depends strongly on customer trustIssuing SharesThird, companies require money and resources in order to expand their products and services and to reach more consumers. The public, in return, often benefits from the offerings from a company. But sometimes the capital needed to provide these products and services is too great for a company to fund alone. When a corporation decides to go public and become listed on a stock exchange, it offers shares of stock to any individual or institution who wishes to invest in the company. The initial public offering (IPO) immediately raises a large amount of capital quickly. A company can have millions or billions of dollars at is disposal nearly overnight after selling its shares to the public. This money is then used to develop new products and services which will hopefully influence society positively. The manufacture of goods is often an expensive process that requires the kind of capital that only public investing can provide.www.themegallery.comCompany Logowww.themegallery.comCompany LogoIssuing Shares12Advantages:For a company that has reached a certain size and has a strong reputation, an IPO can be a good route to raise a large sum of capital that will enable it to expand, or invest in assets that will enable it to grow in the future.The company does not need to repay this share capital, but instead agrees to distribute future profits to stockholders in return for their investment.www.themegallery.comCompany LogoIssuing Shares12Disadvantage Disadvantage of issuing shares through an IPO is that a company’s owners no longer have full control of the business and become accountable to stockholders. Stockholders can block plans if they believe they pose too great a risk to their investment.By issuing more stock to the public, a company can bring in more capital from the addition of extra shares. Unfortunately, this often dilutes or decreases the share price of outstanding share prices, so a company might not want to issue more shares unless it needs to raise capital quickly.Bank loansBusiness bank loans come in a variety of flavor, from a variety of source.Bank loan can help funds of your company growth or finance a business initiative with a low interest rate. In addition, it helps raising capital easier and faster.This loan facility offers the flexibility of fixed and variable interest rates, with a choice of repayment options to suit your cash flow requirements.www.themegallery.comCompany LogoBank loansThese extra requirements on banks may be a good thing or a bad thing, depending on who you listen to. There are some arguments that banks are simply whining, and they just don't want to have to comply with regulations that will protect everybody else.Mortgage lenders say that things are only going to get worse. Several new laws are in the works that will make it more difficult for them to lend, especially to less-than-stellar borrowers. Loans that are considered "risky" -- because homeowners have little equity or low income -- will require that banks do more than they have in the past. Because of this, banks say they'll approve fewer loans.If you're thinking of refinancing or buying early next year, it's a good idea to keep an eye on these stories so you don't get caught by surprisingwww.themegallery.comCompany LogoConclusionsTo summarize, companies and businesses could raise their businesses money by many ways. It depends on abilities and relations of business as well. Money is one important factor to raise capital for the development of business. I hope our presentation would help you have more experiences and success. Good luck! www.themegallery.comCompany Logonhóm:Thank You !