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Essay / National and International Funding Sources
National and International Funding Sources There are several private and public sectors that provide financial assistance to global business enterprises. Denim Trends will utilize financial professionals who understand Denim Trends' global business and operations. Hiring financial professionals with a good understanding and knowledge of domestic and international financing will help Denim Trends manage organizational risks. Denim Trends will design a presentation and meet with potential investors to demonstrate how Denim Trends can improve Puerto Rico's economy. It is imperative that Denim Trends develops a proposition that provides high protection against danger. The essential and reliable source of national financing for Denim Trends will be self-financing. According to the Business Dictionary (2011), self-financing is defined as “a business or project that has generated its growth capital from its own income” (self-financing, 2011). Denim Trends can reinvest the profits of the organization in the form of retained earnings. Denim Trends uses its retained earnings as a smart resource because investment can be made without involving shareholders or stakeholders. Bank loans are another source of domestic financing that Denim Trends will select. Denim Trends will rely on short, medium and long term financing. The short-term funding will allow Denim Trends to pay for office supplies, utilities and payroll. With short-term financing, Denim Trends can arrange a short-term line of credit with our local bank. Obtaining the line of credit will help Denim Trends manage the organization's operations. Examples of sources of short-term financing are: trade credit and commercial banks. Medium-term financing will allow Denim Trends to acquire ...... middle of paper ...... contributes assets and receives a share of profits. The sponsor is excluded from management and is exempt from any personal liability.Works CitedDoral Bank. (2011). Doral. Retrieved from http://www.doralbank.comGovernment Of Puerto Rico. (2011). Government Development Bank of Puerto Rico. Retrieved from http://gdb-pur.net/subsidiaries/development-fund.html Government Development Bank for Puerto Rico. (2011). Welcome message. Retrieved from http://www.gdb-pur.com/about-gdb/welcome.htmlSelf-financing. (2011). In the business dictionary. Retrieved from http://www.businessdictionary.com/definition/self-financing.htmlVaughan, J. (2011). What is a joint venture. Center for International Finance and Development at the University of Iowa. Retrieved from http://www.uiowa.edu/ifdebook/faq/faq_docs/Venture.shtml.