- This topic has 1 reply, 2 voices, and was last updated 4 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
“Raising share capital is expensive and should be generally used for long-term investment, not short-term cash management.”
How this reason would turn our deficit cashflow to positive?
Please explain the reason thankyou.Share capital is a permanent injection of capital (though it can be repaid if the directors decide).
So, if there is an outflow of $2m required to repay a loan and there is not enough cash a solution is to raise about $2m in share capital and use that cash to repay the loan.
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.