Other Methods of Raising Finance, Including the Use of Special Institutions
So far in this section on business capitalisation the way in which we have discussed the various topics has been determined very broadly by the organisation’s size and stage of development. We have progressed from a sole trader and partnership to a limited company and discussed how the latter may obtain finance from outside the ambit of the family and friends and what form this finance should take. In this chapter it is our intention to discuss the financial sources and facilities available to the more established company. Fairly obviously such companies can use the bank, tradecredit and hire-purchase facilities discussed in Chapter 2 as being suitable for the new business, but the established company can also benefit from sources of finance made available only to those companies with a successful record. To some extent this has already been explained in connection with long-term finance, i.e. access to the capital market via the Stock Exchange. In the following pages we discuss other sources including the principal specialist finance corporations. Finally, part of this chapter is reserved for discussing the finance of a special situation or industry, i.e. death duties, agriculture and shipbuilding.
KeywordsCapital Market Commercial Bank Finance Corporation Bank Rate Business Finance
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- Association of Certified & Corporate Accountants, Sources of Capital (1965).Google Scholar
- Most of the special institutions mentioned supply up-to-date literature on their activities. The organisations mentioned in this chapter and their addresses areGoogle Scholar
- Agriculture Mortgage Corporation Ltd, Bucklersbury House, 3 Queen Victoria Street, London E.C.4.Google Scholar
- The Charterhouse Group Ltd, 30 St Swithins Lane, London E.C.4.Google Scholar
- Finance Corporation for Industry Ltd, 4 Bread Street, London E.C.4.Google Scholar
- Industrial & Commercial Finance Corporation Ltd, Technical Development Capital Ltd, Ship Mortgage Finance Co. Ltd, Estate Duties Investment Trust Ltd, Piercy House, 7 Copthall Avenue, London E.C.2.Google Scholar
- National Research Development Corporation, Kingsgate House, 66–74 Victoria Street, London S.W.1.Google Scholar
- Safeguard Industrial Investments Ltd, 63 Brook Street, London W.1.Google Scholar