There are many reasons a company may need funds, whether they be to refinance existing debt or to even grow the company.

There are two main types of funding for companies, these include:

• Debtor funding.
• Capital raising (issue of securities).
• Hybrids.

Debtor funding is simply through a loan or a promissory note etc. and usually involves regular repayments and an interest rate.

Capital raising through the issue of securities is when a company issues shares to the public in order to raise funds. There are extensive restrictions on the raising of capital under the Corporations Act and by the Australia Securities and Investment Commission (ASIC), however if done correctly it can be a great way to grow a business.

A hybrid is a combination of debtor funding and securities and includes things like convertible notes etc.

To find out more about Corporate Funding click here