Indebtedness:
Own Capital:
The first source of capital used by entrepreneurs. Although advantageous, as there is no loss of autonomy for decision-making, this type of capital has its disadvantages, such as limiting the prospects for expansion and the growth of the enterprise that is based on the reinvestment of profits.
Funding and subsidy lines:
The Bodies and Development Agencies are public institutions whose mission is to financially support research and solutions in science, health, technology and innovation. Research new lines, understand how they work, develop projects, submit them for approval and, once approved, commit to the schedule and accountability.
Indebtedness:
One of the risk agencies that analyzes the countries' investment grade, Fitch, calculates that the average leverage of Brazilian companies should close the year 4.5 times.
For some other researchers, the debt x the profit of the companies is already 5 times. In other words: companies owe 5 times more than they are profiting.
Capital of Family and Friends:
Also known as 3F, from English friends, family and fools, it has low cost and is very based on trust. It is an easier or faster form of borrowing, but care must be taken not to damage personal relationships.
Bank Credit Lines:
In addition to the fact that interest expenses are deductible for income tax purposes, financing a business with credit lines is one of the safest ways, as there is no loss of equity interest. In contrast, the disadvantages are the requirement for equity guarantees, high interest rates and the increased risk of the company, which can be an obstacle to getting new loans.
Risk Capital:
Investors invest capital in companies hoping to gain profit sharing and increase the company's value. The dynamics are risk and reward and, of course, they expect a greater return than commercial banks.
There are several types of risky investments, such as auto investors, venture capital and private equity, and each has a different way of contributing to the success of the business and the care of its counterparts
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