Capital for growth – without unnecessary limitations

Ways of raising capital

Funds can come from various sources. Internal capital, i.e. assets or liabilities that the company already possesses, is often used. However, it’s more desirable for an organisation to be able to raise external capital. There are various ways of doing this:

• Issuing shares or bonds
• Acquiring a shareholder
• Grants
• Credits
• Loans
• Invoicing
• Leasing

and much more. When raising finance for a specific project, it is worth using various sources – this reduces risk and often allows you to obtain more funds. But how do you know which forms of capital to choose?

Equity or debt capital?

Equity capital takes various forms. It can be funds from shareholders or profits from the organisation’s activities. Debt capital, on the other hand, refers to funds that remain at the company’s disposal for a specified period of time. After this period, they are subject to repayment. These are therefore all types of company loans and credits. It is also possible to combine these sources of resources within the framework of so-called hybrid capital. This allows financial shortfalls to be made up for while maximising the potential of existing resources.

Which source of financing should I choose?

Choosing the best source of financing depends on many factors. The internal situation of the organisation must be analysed, which requires a financial audit. It is also necessary to make a risk forecast. The most common solution is to raise external and internal capital, as external capital allows for an increase in the organisation’s development potential. However, their ratio should be adjusted to the individual situation of the enterprise – otherwise, the investment may end in failure and leave the company in debt.

Capital consulting – who is it for?

Due to the complexity of the fundraising process, many companies decide to use capital consulting services. This involves entering into cooperation with an external expert who has knowledge and experience in finance. This solution lets you enrich your organisation’s resources with specialist know-how, enabling you to make the best possible decision. Such an adviser will not only select the best ways to obtain financing but will also act as an intermediary, e.g. in relations with the bank in order to obtain a loan.

Finding an adviser you can trust is no easy task. They have access to confidential data, and the future of your business depends on their decisions. That is why Redegate was created, a service that easily connects business owners with certified experts. All you need to do is specify the scope of your project and your budget, and experienced specialists will suggest advisers who are ready to work with you. Contact us and we’ll help you obtain financing and grow your company.