Implement capital investment Assignment Example | Topics and Well Written Essays - 250 words

Implement capital investment - Assignment Example The 20% that remains is the known as the reserve and is held by the factor. The face value of the borrower and reserve difference is the amount that the borrower gets. Factoring is quick and has been adopted by many companies to help them meet their capital investment plans (Alternatives to Loans, n.d.). Mostly referred to as new corporate ATMs, Hedge fund lenders have been the choice for many companies especially the high-risk firms. The size of the loan offered depends on the quality of the pitch that the borrower will make. Due diligence is used to determine whether or not to lend. With Hedge fund, lenders access to money is quick. Companies have turned to merchant cash advance to get money so as to implement their capital investment plans. Merchant cash advance give companies’ cash advanced based on the corporation’s monthly credit card transactions. It best suits companies with high monthly credit card transactions (Alternatives to Loans, n.d.). In some cases, a company may require selling some of the assets that are less useful to the company. In other instances, it may lease out some of its assets at a favorable price. The income obtained will help in the implementation of the capital investment