Financing methods and sources of entities. Advantages and disadvantages

Silvia Taulea ()
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Silvia Taulea: Universitatea Valahia

No 2009/107, Papers from Osterreichish-Rumanischer Akademischer Verein

Abstract: Any entity found in the development phase of its activity, or in phase of maintenance of production capacity, needs to attract resources to finance its activities. One of the issues the management has to deal with is related to the type of financing to which it should make use of: external sources or their own. Choosing appropriate financing sources for the entity’s activity requires a balanced analysis of several factors: the period for which financing sources are needed, the cost of financing sources, the flexibility of the financing contract, the impact of taxation on the financing policy of the company, etc.. The management of an entity ought to understand that attracting a financing source means more than getting a sum of money!

Paper: http://ccefa.spiruharet.ro/materiale/dder.pdf

Keywords: financing sources; self-financing; capital increase; cost of credit; cost of equity (search for similar items in EconPapers)
JEL-codes: A11 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2009-12-12
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Persistent link: https://EconPapers.repec.org/RePEc:ris:sphedp:2009_107

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