This week’s article is by Arthur F. Rothberg, Managing Director, CFO Edge, LLC.
Given the different types of business capital – such as loans, equity and retained earnings – and their benefits and drawbacks, a critical factor in every company’s success is a comprehensive understanding of how to structure business capital.
Included in this week’s capital structure review…
…are looks at six types of debt, investor equity and organic growth driven by retained earnings, as well as examples of pros and cons of each capital type.
The right capital structure is grounded in carefully weighing decision factors related to capital costs, ownership stakes, control and agreement terms.
Also discussed is the importance of maintaining accurate, timely and credible financial reports and statements – regardless of capital structure.
Greater Los Angeles and Southern California executives who are deliberating a capital-raising initiative or restructuring their capital can benefit from talking with a provider of outsourced CFO services.
An on-demand enterprise CFO brings both client-side and services-side expertise in determining which type of capital is most advantageous, as well as in developing financial reports, statements and presentations that provide the exact information bankers and investors need to make funding decisions.