Funding Strategies at the Level of an Entity

Abstract

Funding entities refers to the financial resources necessary for their functionality, meant to be materialized in uses. The range of these resources is a very diversified one, being different in terms of the weight from one company to another. Long-term funding stands out, being based on own sources, like retention self-funding, the net/increase self-funding and issuance of shares, but also external sources, like bond issuance, bank lending or other loans. Short-term funding is just as important, being based on one’s own sources and external sources, like the surplus of resources in the short term, the attracted sources materialized in exploitation debts or the borrowed sources, namely bank lending. Long-term funding defines the company’s financial structure. Also, assimilating short-term funding, it results the company’s funding structure. The existence or non-existence of some of the sources, as well as the supremacy of certain categories corresponding to them differs from one entity to another according to the legal form of organization, the economic dimension, the field of activity or the economic sector in which it operates.

Keywords

• funding
• own sources
• external sources
• attracted sources
• borrowed sources