Debt finance in us of small companies, Finance Basics

Debt Finance in US of Small Companies

Why It CAN Be Difficult For Small Companies to Raise Debt Finance in US

  1. Lack of safety
  2. avoidances of finances available
  3. Most of them are dangerous businesses like there is no feasibility studies done as chances of failure have been place to 80%.
  4. Their size being small tends to create them UNKNOWN that is they are not a important competitor to the big companies.
  5. Cost of finance may be high - their market share may not permit them to safe debt.
  6. Small loans are expensive to extend via bank via administration costs are very high.
  7. Lack of business principles such is sound and not easy in evaluating their presentation.

Solutions to the Above Problems


  1. There should be diversification of securities as an example of to accept guarantees.
  2. Education of those businessmen on sound business principles.
  3. The government must set up a special fund to assist the jua kali businessmen.
  4. Encourage configuration of co-operative societies.
  5. To ask for bankers to follow up the need of these loans.


Posted Date: 1/29/2013 4:47:09 AM | Location : United States

Related Discussions:- Debt finance in us of small companies, Assignment Help, Ask Question on Debt finance in us of small companies, Get Answer, Expert's Help, Debt finance in us of small companies Discussions

Write discussion on Debt finance in us of small companies
Your posts are moderated
Related Questions
Holding Company Such holds more than a half of the equity share capital of other company or is a member and or controls a big percentage of Directors of the Board of one or mo

Example of Valuation of Bonds and Debentures K is contemplating purchasing a 3 year bond worth 40,000/= carrying a nominal coupon rate of interest of 10 percent.  K necessary

Interest Rate Levels and Stock Prices Interest rates contain two effects on corporate profits: a) Since interest rate is a cost, and like the higher the rate of interest the

Acceptance Rule of Accounting Rate of Return or ARR ARR procedure will accept those projects whose ARR is higher rather than that set with management or with bank rate and it

Commercial Banks - Banking Institutions These are financial institutions such accept deposits of money from the universal public, safeguard the deposits and create them availa

What are the tasks of a financial system? Three Tasks of a Financial System are as follows: 1. Decreasing transaction costs 2. Decreasing financial risk 3. Giving liqu

why prospective buyers need to see accounting information

Define and explain the credit multplier

Last year Nymphe Technologies had $450 million of sales and $270 million of fixed assets, so its FA/Sales ratio was 60%.  However, its fixed assets were used at only 75% of capacit