BR 4 L - 5

• Debt Capital

  This requires regular repayment with interest.
• Capital

  This is anything that confers value or benefit to its owners.
• Public Equity

  This type of equity is raised by listing the company's shares on a stock exchange.
• Capital

  It is money used for business growth and operations.
• Private Equity

  This type of equity is raised among a closed group of investors.
• Working Capital

  It measures a company's short-term liquidity.
• Banks

  This source of capital offers a range of loan products, including term loans.
• Debt Capital

  This type of capital is obtained through loans, bonds, or other forms of borrowing.
• Working Capital

  It represents its ability to cover its debts, accounts payable, and other obligations that are due within a specific period.
• Collateral

  This refers to assets or property that a borrower pledges to a lender as security for a loan.
• Microfinance Institution

  They provide small loans and financial services to micro-enterprises and small businesses.
• Equity Financing

  This source of capital states that business owners can raise capital by selling shares in their companies to private investors, venture capitalists, or institutional investors.
• Initial Public Offerings (IPOs)

  It is the process through which a private company offers shares of its stock to the public for the first time, allowing investors to buy ownership stakes in the company.
• Capital

  It can come from profits, loans, or investors.
• CAPITAL

  is anything that confers value or benefit to its owners, such as a factory and its machinery, intellectual property like patents, or the financial assets
• Capital

  is money used for business growth and operations.
• TYPES OF CAPITAL

  • DEBT CAPITAL
  • EQUITY CAPITAL
  • WORKING CAPITAL
• DEBT CAPITAL

  is obtained through loans, bonds, or other forms of borrowing.
• DEBT CAPITAL

  For established companies, this most often means borrowing from banks and other financial institutions
• DEBT CAPITAL

  It requires regular repayment with interest.
• EQUITY CAPITAL

  Typically, distinctions are made between private equity, public equity, and real estate equity.
• Public Equity

  is raised by listing the company's shares on a stock exchange
• Private Equity

  is raised among a closed group of investors.
• WORKING CAPITAL

  is the capital used to finance a company's day-to-day operations, such as paying bills, salaries, and inventory costs.
• WORKING CAPITAL

  It measures a company's short-term liquidity.
• Formula of Working Capital

  Current Assets - Current Liabilities
• SOURCES OF CAPITAL

  • BANKS
  • MICROFINANCE INSTITUTIONS
  • GOVERNMENT FINANCING PROGRAMS
  • EQUITY FINANCING
  • ANGEL INVESTORS
  • VENTURE CAPITALISTS
• BANKS

  offer a range of loan products, including term loans, working capital loans, equipment financing,
• MICROFINANCE INSTITUTIONS (MFIs)

  provide small loans and financial services to micro-enterprises and small businesses.
• Microfinance institutions (MFIs)

  These loans are often tailored to the needs of low-income entrepreneurs and may have flexible terms
• GOVERNMENT FINANCING PROGRAMS

  offers various financing programs and incentives to support small and medium-sized enterprises (SMEs).
• Small Business Corporation

  is a government financial institution that has the primary responsibility of implementing comprehensive policies and program to assist MSMEs in all areas,
• EQUITY FINANCING

  Business owners can raise capital by selling shares or equity stakes in their companies to private investors,
• EQUITY FINANCING

  This can be done through private placements, or initial public offerings (IPOs).
• The general criteria for listing includes:

  • Three (3) years of engaging in materially the same business;
  • Minimum net income of Php50 million
• THE BIGGEST IPO EVER IN THE PHILIPPINES

  • Monde Nissin
• ANGEL INVESTORS

  Angel investors are individuals who provide financial backing to startups or early-stage companies in exchange
• ANGEL INVESTORS

  They typically invest their own money and often have expertise in the industry they are investing in.
• VENTURE CAPITALISTS

  Venture capitalists are professional investors who manage funds dedicated to investing in high-potential startups
• VENTURE CAPITALISTS

  They typically invest money from institutions, such as pension funds, endowments, or wealthy individuals.