How to finance the company

To  meet current production costs (purchase of raw materials, energy costs, compensation to personnel, payment of suppliers, etc.) and to invest in medium and long-term growth  (machinery, real estate, shareholdings, etc.),  l the company  continuously requires financial resources .

The turnover on the sale of goods and services in the majority of cases it is not enough to offset the exits and then produce a profit, especially if there are half a significant investment. What then can the sources of coverage be? There are several ways in which a company can meet its financing needs:

  • the ‘ self-financing :  at year-end shareholders may decide not to divide the profits, ie the difference between revenues and costs incurred during the period of exercise, but to reinvest in the business;
  • increase in share capital : shareholders may decide to confer new shares or issue new shares to be placed on the market if necessary;
  • financing : the company can apply for loans to banks or other professional investors, paying periodic interest on the amounts lent, but also to directly address the public with the issue of bonds . In the latter case, the financing will come from the underwriters of the bonds, of which the company will become debtor in the manner and within the terms established in the offer.

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