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The nature of a business affect from its sources of financing are by a firm's economic potential (high growth and large profits yields more possible sources of financing), the company size and maturity (firms with established track record have more financing options than startups; e.g., bankers loan based on past performance), types of assets (firms with tangible assets have an easier time borrowing money than do those with intangible assets), and owner preferences for debt or equity (the mix is a matter of preference).

A great way for a small to medium sized business to solve their financing and cash-flow problems is to have their invoices factored and get 80 to 90% of the invoices value paid up front.

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Esta McGlynn

Lvl 10
2y ago

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