Factors That Affect Capital Structure Availability of securities – This influences the company’s use of debt finance which means that if a company has sufficient securities, it can afford to use debt finance in large capacities. Cost of finance (both Read More …
Day: October 4, 2020
Venture Capital Notes
Venture capital is a form of investment in new small risky enterprises required to get them started by specialists called venture capitalists. Venture capitalists are therefore investment specialists who raise pools of capital to fund new ventures which are likely Read More …
Debenture Finance Notes
A form of long term debt raised after a company sells debenture certificates to the holder and raises finance in return. The term debenture has its origin from ‘DEBOE’ which means ‘I owe’ and is thus a certificate or document Read More …
Plastic Money (Credit Card Finance) Notes
This is finance of a kind whereby a company will make arrangements for the use of the services of a credit card organisations (through the purchase of credit cards) in return for prompt settlement of bills on the card and Read More …
Overdraft Finance Notes
This finance is ideal to use as bridging finance in sense that it should be used to solve the company’s short term liquidity problems in particular those of financing working capital (W.C.). It is usually a secured finance unless otherwise Read More …
Lease Finance Notes
Leasing is a contract between one party called lessor (owner of asset) and another called lessee where the lessee is given the right to use the asset (without legal ownership) and undertakes to pay the lessor periodic lease rental charges Read More …
