Sources of long-term financing of Business Husenov Muhriddin MMT-60i
Table of contents 01 04 02 05 03 Introduction Internal sources External sources Innovative & alternative sources Case studies
Introduction Imagine you invented solar-powered car and now you’re CEO of your company. Your company needs 10 years to start making profit with mass produce The problem is: Where do you get money to cover losses? Is your borrowings short-term or long term? Are you going to sell your company? Are you opening new business?
What is long-term financing? Short-term Bakery takes 1 year loan to buy inventory Bakery secures a 10 year loan to build new factory and its facilities BAKERY Long-term
Why long-term matters Can you enter new markets? Will interest rates or investor demands sink you? Do you answer shareholders, banks, or yourself? Growth Risk Control
Sources 02
Employer 3 What people say about me “I have been impressed by the quality, attention to detail and creative approach brought to every project made” “Projects and campaigns are always taken to another level with ideas that come from this person. Business and economics experience is quite evident” “This person has a strong technical understanding in order to develop successful strategies. Highly recommended for any kind of project or task” This person is an invaluable asset to our investment banking team, consistently delivering exceptional results and demonstrating deep expertise in complex financial transactions" Employer 1 Employer 2 Employer 4
Pros & cons of RETAINED EARNINGS No dillution Identifying objectives No interest Research and preparation Flexibility Developing strategies L imited by profitabiltiy Shareholders might prefer
Apple Vision P r o headsets Result of reinvesting 20 billion USD
External sources Corporate bonds Bank loans Debt financing Venture capital IPO Equity financing Grants Low-interest loans Government & Institutional Convertible debentures Preferred shares Hybrid Instruments