Unless shareholders have cash resources or set-up a company as an investment, it is most likely that the first consideration, or as part of ongoing expansion or funding plans, will be the method of funding to be relied on by the company.
The methods of funding a company are varied and dependent on the business and finance needs.
Often directors will be asked to guarantee such liabilities from their personal assets and so caution should be taken when considering the loan period, the amount, who will control the lending and the charges and interest applicable.
The finances of a company are the bedrock for continued trading and to ensure the company can carry on as a going concern it is essential to maintain an adequate cash flow and a solvent balance sheet and choose the funding model that is appropriate to the company, its business plan, the shareholders’ wishes and, most of all, is realistic.
