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COMPANY FINANCE-p Point

The document discusses different ways a business can finance itself including through shares, short-term credit, and borrowing money from banks or members. It also discusses debentures as a way for companies to borrow money through public investment.

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Grace Mwende
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14 views

COMPANY FINANCE-p Point

The document discusses different ways a business can finance itself including through shares, short-term credit, and borrowing money from banks or members. It also discusses debentures as a way for companies to borrow money through public investment.

Uploaded by

Grace Mwende
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Loan Capital

A capital many finance its business in a


variety of ways :-
money subscribed by members for their
shares
obtain goods and services on short-term
credit
borrowing money
 bank overdraft is repayable on demand
 short- or medium-term loans for fixed
periods
 members provide a proportion of the
required capital as lenders not as
shareholders
 offer of debentures to the public as investors
 Debentures
 a debenture means a document which
either creates a debt or acknowledges it
 includes debenture stock, bonds and any
other securities of a company
 is any document which sets out the terms of
a company borrowing
 similarities between share and loan
capital
 a lender is a creditor
 whereas a member is a proprietor
 Interest on loan capital is a debt which must
be paid

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