Methods of business financing
internal financing external financing
self financing
outside financing
(by loans)
self financing
financing by third parties
(capital market issues)
- share capital - net cash flow

- capital from statutory and
free reserves

- capital from special items

- creation of capital from
amortization and hidden assets

- capital from shareholder loans with subordination clause
Non-voting equity
- capital from silent partners
(silent capital)

- capital from participation certificates (participation capital)

Voting equity
- issuing shares to partners/
investors/ employees
(capital from capital increase)
- capital from bank loans, working capital credits etc.

- capital from the issuing of bonds leasing shareholder loans

- other private loans
© Dr. jur. Horst S. Werner, Gerhard-Gerdes-Straße 5, D-37079 Göttingen