The Receipt of Revenue does not always coincide with costs that are incurred to create product or pay employees. Companies have to borrow money or seek investors in order to purchase needed supplies or raw materials, before they can actually offer a product or service. There are several ways to do this: borrowing from creditors(including the issuance of bonds), selling off other assets, or seeking out infusions of cash through investors. Each of the many methods for financing business activities has its advantages and disadvantages.

For this discussion list some of the different ways you could finance the purchase of additional assets to be used in the business. Which of these methods would you prefer and why?

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A sort of borrowing involving a companys assets is known as asset finance In asset financing the business obtains shortterm financing by using its cur... View the full answer