From time to time businesses find themselves in need of financial assistance to help them operate efficiently and compete with others. They result in obtaining loans from banks and other money lending institutions to assist them when faced with such predicaments. The kind of credit that they can access is limited as it has no need of collateral and hence the amount may not be substantial to cater for the long term financing of their goals and projects. Relying on the short term loans to develop projects such as expansion and land acquisition may take years and has the possibility of yielding minimal or no results at all.


This course offers broad knowledge in business-wise and in the world out there. However, I will be eternally grateful to it for instilling in me knowledge about capital structure, what are efficient financial market, and the importance of financial management in a business. With these three concepts in mind, I have all that I need to prosper and succeed in the world. Understanding the capital structure will help me allocate funds to projects accordingly while financial management will guide me through all the important decisions that I have to make. Some decisions should be thought and accessed before being implemented. By also understanding how efficient a market can be will help me understand when to exit the industry or diversify.


When funding your own business one should develop a system of financing their short term needs. One of the most efficient ways of doing this is plowing back the profit. After the sales of the goods and/or services, you should not take all the profit away from the business. Instead you should invest it in the business to allow it generate more revenue with time. This will help you avoid the hustle of borrowing money and paying interest to banks. This money can in turn be used to fund other project and hasten their progress and completion. 

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