If a Start-Up Company Cannot Get a Loan and Does

question 72

Essay

If a start-up company cannot get a loan and does not want to use venture capital,what is another method it could try for raising equity?

---

Definitions:

Budget Surplus

The financial situation in which a government's revenues exceed its expenditures over a specified period of time.

Foreign-Currency Exchange

The process of exchanging one currency for another, enabling international trade and finance.

Real Exchange Rate

A measure comparing the relative price levels of a basket of goods between two countries, adjusted for differences in price levels.

Real Interest Rate

The interest rate that has been adjusted to remove the effects of inflation to reflect the true cost of funds to the borrower and the real yield to the lender.