商务英语写作课件杨晓斌编著 ISBN9787811343311Section 7 募资融资Raising Finance.ppt

Section 7 募资融资Raising Finance I. 要点概述Main Points 1. What is raising finance in a business or an organization? 1. What is raising finance in a business or an organization? In business, raising finance usually refers to getting money to start a new business or develop an established business. Actually, there are mainly three forms of financing: personal finance, public finance, and corporate finance. Finance is mostly used by individuals, by governments, by businesses, as well as by a wide variety of organizations including schools and non-profit organizations. In general, the goals of each of the above activities are achieved through the use of appropriate financial instruments, with consideration to their institutional settings 2. Why do you have to raise finance sometimes? If you want to have or already have an enterprise of your own, you are likely to need premises, equipment, and you have to hire staff, buy raw materials and stock and so on. In many cases all these things have to be done many months before you are able to start selling your product or service and receiving any money. Remember that the way you finance your business is one of the key factors that will impact on how profitable you are.?There are three main ways to raise capital: shareholders’ equity, yours or other investors’ money, reserves, that is, profits put back into the business, borrowed funds. Raising the capital you need for your business is dependent on the size of the business and where it is in its development. Is it well-established, or is it a start-up? All these questions should be taken into careful consideration. 3. What caution should be taken in raising finance? One thing to be mentioned is that once you have decided to raise capital by borrowing money, you need to take into consideration what source and type of finance will suit your needs. It is of great significance that you match the method of funding and term of the loan to the purpose for which the finance to be use