Formas Para Crear Tu Negocio

Name: Christopher Moran Escobar
Course: 7/14

International Business

How many forms are there to finance a business?

Let's look at the different ways we have to fund the creation of a newbusiness:

* Using your own capital
* Receive credit from suppliers
* Obtain lease financing
* Obtain bank loans
* Issue bonds
* Issue stock
* Factor Business DebtsUsing your own capital
The most common way to finance the creation of a new business is using its own capital, i.e., using the money we have, either getting it from our savings, or any otherpersonal source, for example, using the credit cards, selling personal assets, etc..
This type of financing is the most recommended since we are not obliged to pay interest or have to pay it back.
It isalways advisable to start a business, using its own capital, at least in the stage of creation, and later, when the business begins to grow, just start looking for outside sources of funding.Supplier credit

This is the easiest way that companies obtain funding. Companies buy goods and services and have anywhere from seven days till 6 months to pay for them; when companies need more creditfrom suppliers the financial controllers will negotiate longer credit terms or larger credit lines. The payment terms can also be stretched and this can work well because the creditors do not wantthe customer to go into bankruptcy taking their money with them.

Lease financing

Instead of buying equipment, many companies choose to lease equipment - this is a form of financing. Cars,computers and heavy equipment can be financed for short periods or indeed longer periods.

If it is a short period it is referred to as an operating lease and at the end of the lease the property is stilluseful and is returned to the finance company.

Long term leases are, in substance, ways are ways of funding a purchase rather than buying the temporary services of a piece of equipment. These are...