Private Finance
In Private Finance, For CompaniesAbout BMS Finance in relation to private finance
Most people are familiar with ‘public finance’ securities such as bonds. Private financing typically occurs when a company needs to borrow, but is either unable or reluctant to source financing from a bank, and does not have the infrastructure, the credit rating or the inclination to approach the public market. The borrower may need funds to finance its business inventory, or may have a temporary or seasonal need for cash while awaiting payment for goods/services already delivered. In the private finance arena, those who understand the prevailing business and legal environment, can offer funds to a borrower with collateral or asset-backing. Typical collateral includes inventory (e.g. stock, equipment), real estate, accounts receivable, contract receivables and the intrinsic value of the company.