The RAE defines ‘argument’ as Reasoning to prove or demonstrate a proposition, or to convince what is affirmed or denied.
The arguments vary depending on what or who applies or needs them. Applied to the scope of specialty to which we dedicate ourselves, the Management business, on many occasions we have to test certain arguments of the companies we work with, or on the contrary, help them To build them. Applying the definition, we will point out the arguments as the financing of the company. And, it needs financial resources with which to finance investments to carry out their productive activity or to deal with the payment of current expenses originated by it, that is, it has that argue its daily existence before all the fronts you have open.
Financing sources in the company
Apart from self-financing-an important aspect that we will address in another post-we find two large groups of sources of external financing of a company: in the short term and in the long term. As a general rule, short -term financial resources must be used to finance the typical or normal business activity, such as the purchase of raw materials, the payment of supplies, etc. .. long -term resources, on the contrary, The company’s fixed structure should be financed, for example, the acquisition of machinery or equipment. This is what is technically called: “The axiom of financing.”
External short -term financing is usually a bank, but other short -term resources must not be disagreed, such as the negotiation of the lengthening of the payment term to suppliers and creditors. On the contrary, the external resources of the long -term foreign come from financial entities, when they grant loans in terms of more than the year.
External sources of external financing are very numerous, then we mention some:
1. The loan and the mortgage.
2. credit lines.
3. The commercial discount.
4. Leasing.
5. rent.
6. Factoring.
7. Confirmg.
8. Other sources of financing: Mutual Risk Capital.
Without forgetting that the best financing is self -financing, that is, the one that generates the company through the management of its business.
Since we founded Verum Management, we have helped many companies find the best financing, both based on their costs, and in adaptation of it to the particular structure of each business. If you want to know what is the most appropriate financing for your company contact us at info@verumasesores.com
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