Financing sources are classified as internal and external.
Some internal sources of financing are limited by the capacity that the company has organically to execute them. Some are:
Increases in current liabilities such as pensions and taxes or reduction in current assets such as inventories (generated and managed by the company)
Retained earnings
Partner contributions
Sale of assets
The external sources of financing are:
Increases in current liabilities such as suppliers or advances, or reduction in current assets as customers (external to the company)
subsidies
Financing
Bank or extra-bank credits
Leasing
Factoring (discount of documents such as invoices or contracts)
Issuance of debentures or bonds
Mezzanine credits or similar
Issue or sale (when the value of the sale is capitalized) of shares
The ability of a company to obtain financing and the associated costs are linked to the clarity of its business plan, the team that manages it, the stability of its operation, the guarantees it can provide and the growth of its sector.
Either way, your debt/equity ratio is generally limited.
At Heritage Financial Advisors we accompany you to find the right leverage for your company.
In many circumstances it is necessary to resort to new capital to sustain the growth of the company. This can be contributed by its partners or by new investors. There are different types of equity investors depending on the stage the company is in and the amount of resources it needs.
The following diagram describes the different sources of capital depending on the situation of the company.
Heritage Financial Advisors focuses on accompanying medium and large companies in the expansion stage with transactions between USD 5 millions and USD 300 millions.