This post will explore the internal financing sources that small firms can turn to save or
expand their business.
Share capital
If you have a limited company, one option for you is to access share capital, which would allow you to
raise funds internally. For instance, one of the founders may offer to finance
a greater portion of the firm’s shares. Nonetheless, he will have an equal number
of shares which may create co-ownership or him having a controlling stake as
the majority shareholder.
However, you must be very cautious when choosing this solution. It might not be appropriate for you if you do not want to lose ownership or control of your company or its operations. Thus, you must make sure to find someone trustworthy that has the best interests of the business in mind.
Sell assets
This is a common way of freeing up some sources of internal
finances. The assets that are sold are those that are no longer in
use or are rarely used by the business. In some cases, even those that are
often utilised are put on the market to fund a more modern asset. For
example, a company may sell its corporate car to have money for a project that
will bring more return on investment once completed.
Sell some non-valuable assets for funding © Royalty-free
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