Advantages of using ordinary share capital in financing.

1. They facilitate projects especially long-term projects because they are permanent..
2. Its cost is not a legal obligation.
3. It lowers gearing level – reduces chances of receivership/liquidation.
4. Used with flexibility – without preconditions.
5. Such finances boost the company’s credibility and credit rating.
6. Owners contribute valuable ideas to the company’s operations (during AGM by professionals).

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