Besides the well-known forms of loans, credit, and credit lines, there are other methods to obtain financing for our company. On one hand, there are internal financing options, meaning those generated by the company itself. Among these, amortization funds stand out, which involve accumulating capital to offset the depreciation of an asset over time (for example, if we purchase a machine with a ten-year lifespan that costs 20,000 euros and expect to sell it for 2,000 at the end of its service life, we would accumulate 1,800 euros annually in a fund to compensate for its loss of value); and reserve funds, which come from undistributed profits. The law requires a minimum reserve, but this can be increased by statute or at the discretion of the partners.
Other forms of external financing, different from loans and credit, include leasing or financial leasing, which allows acquiring capital goods without making large initial payments or committing to a loan; discounts, where a financial institution pays us outstanding promissory notes, deducting a commission; or factoring, which involves selling unpaid invoices.
In recent years, new financing methods have become popular, such as crowdfunding, which combines publicity and financing without generating debt; or business angels, a type of business mentor who, in addition to providing funding, gets involved in the project by contributing their experience, know-how, time, etc.
Don’t hesitate, request advice from our experts.
CC Xunta de Galicia. Información mantida e publicada en Internet pola Xunta de Galicia
