Funding for Capex or Capital expenditure is to be incurred by a business from time to time, either to maintain the current production capacity or to expand for future growth.
These expenses are such that once incurred, their benefits are gained over the years, and hence, instead of writing them off in the year of incurrence, they are written off over the years. Investment in plant and machinery, building, patents, other intellectual property, are some of the examples of capital expenditure.
Most ongoing businesses plan and provide for Capex needs in advance, but still, at times the amounts are huge and extra provisions for funds need to be made.
Whatever your needs, consult with us before making decisions. Our team of experts will guide you to the best possible option for raising funds for your capital expenditure needs.
The major avenues to raise funds for capital expenditure include:
- Internal financing
- External finance vis bank loans or equipment lease
- Structured finance
- In the case of a company, through the issue of bonds and debentures
For each type of fundraising, a project report is to be prepared, financial records are to be shared with the financers. ABV Debt team can guide you through all of these, to smoothen the process of funding the capital expenditure on time.
