Question

Your business has been ordering supplies, equipment and inventory for the manufacturing operation. Your vendors are expecting payment net 30 days. Unfortunately, all you have to work with is the shareholder capital at this point, and that is rapidly being depleted; already your company's liabilities are exceeding cash flow. Research and think about ways to meet your company's financial obligations, including the following (although you are not limited to these): Negotiating with vendors for more time to pay; Securing a line of credit; Starting a Kickstarter campaign; Seeking Angel investors Bring for discussion the options you’ve identified as having the best potential to raise capital quickly.

Answer 1

In this case the there is necessary of raising fund without making more debt.

The best way in this is to raise finance through the merchant banker which helps firm for their project and give time to gain profit.

By this firm can ask vendor to give around 10 days more foe papment and they will have sufficient amount of fund to make vendors trust and give leverage. By that time production will also started.

And if merchant benker has funding our firm then investors will also invest in our organization with the way of shares.

All investors should be get information regarding this way of raising fund is secure and can get profit in small spain of time.

So, by taking help of merchant baker we will be able to gwt new more fund