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Hello sir,
Can you please explain me what is the difference between GAP funding and maturity funding Which is in business source of finance. How we can determine which one is GAP funding and maturity funding?? Can you please explain me. Thanks in advance.
Gap funding (it is not in capital letters) is when a company wants to invest in a new project but does not have enough cash. The difference (or gap) between what they need and what they have is the finance that needs to be raised.
Maturity funding is when they have redeemable debt in issue that is coming due for repayment. If they do not have enough cash to repay the borrowing then they will need to raise more finance.
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