Criteria For Selecting The Company Financing Method

Author:Assistant PhD. Sebastian ENE

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Keywords:financing cost, financing method, financing beneficiary, complex final product, financial rentability

Abstract:
Selecting the method for a firm financing is based on an analysis of a series of indicators, as for example: financing control, financial rentability, real payments and the cash flows exceeding. Also, a series of other factors are used in establishing whether to choose a financing source or another, which are shown in details in the article:\r\na) The administrative and legal costs of the actual financing increase;\r\nb) Financing Services;\r\nc) The level of the obligation to make payments with an interest;\r\nd) The level of the obligation to reimburse the financing;\r\ne) Tax deductibility of the financing costs;\r\nf) The effect of a new financing on the control level of the firm.\r\n

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