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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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Related Questions

How does the nature of a business affect its source of financing?

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.


What type of business is Bridging Finance?

Bridge Financing is a business with a method of financing used by companies to obtain necessary cash for the maintenance of operations. Bridge financing is designed to cover expenses associated with IPO and is typically short-term in nature.


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The Small Business Development Center does not provide financing. Their help is technical and educational in nature. They work with banks and other lenders and agencies to help in setting together financial projections, but the real business financing comes from outside resources.


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