Funding

Need cash? 

• Sell off assets: Gadgets, cars, that treadmill collecting dust - cash in!

• Equity swap: Trade company shares for a Cash. This includes Venture Capital and Angel Investors

• Debt Funding: Banks, bonds, loans - borrow your way to boom?

• Crowd-sourcing your fortune: Online cheerleaders: Get funded by the masses, one like at a time.

• Government and Business Grants: Free Cash? Explore grants or subsidies offered by government agencies and big businesses to support specific projects or activities. 

• Factoring and Invoice Factoring: Sell your Accounts Receivables for immediate cash.

• Leaseback (loop-de-loop): Sell, then rent back - double the profit, half the headache.

• Employee Stock Option Plans (ESOPs): Offer employees the option to purchase company stock, providing a source of capital while aligning employee interests with company success.

Remember: Before diving in, consult the money experts. Each path has its own twists and turns, so choose wisely and watch your cash kingdom rise!

Initiated by the buyer, in its simplest forms SCF is where a supplier sells its invoices to a lender at a discount and requires the approval of the buyer. The lender uses the creditworthiness of the buyer, the larger entity. Which should mean the supplier can access finance at a lower cost than if it were to obtain the finance in its own right. The supplier will therefore receive its money earlier and thus improve working capital. 

The aim is to improve access to working capital for SMEs, which traditionally is financed through more costly methods such as overdrafts, invoice discounting, credit card debt factoring or similar products. It also helps address the issue of larger entities paying smaller suppliers late or extending credit terms to the advantage of the larger entity.

Project finance scheme money comes from lenders who rely on the project's future income to get repaid. 

This is best explained in the 2015 movie the "Big Short". "I'm a chef on a Sunday afternoon, setting the menu at a big restaurant. I ordered my fish on Friday, which is the mortgage bond that Michael Burry shorted. But some of the fresh fish doesn't sell. I don't know why. Maybe it just came out halibut has the intelligence of a dolphin. So, what am I going to do? Throw all this unsold fish, which is the BBB level of the bond, in the garbage, and take the loss? No way. Being the crafty and morally onerous chef that I am, whatever crappy levels of the bond I don't sell, I throw into a seafood stew. See, it's not old fish. It's a whole new thing! And the best part is, they're eating 3-day-old halibut. *That* is a CDO."

Quotes from the Big Short (2015)