There are sources of loans other than from banks. Companies usually resort to these financial institutions as a last resort because their interest payments are fixed and if inflation falls, this will make the borrowing very expensive. These financial sources can include pension funds, insurance companies, merchant banks, the European Investment Bank and the ICFC. (Investment and Commercial Finance Corp[oration)

There is also the “medium term note” open as an alternative which is a promisory note issued by the company promising to pay a specified amount on a specified date. The procedure is for the company to write the note and then to sell it in the market place. The interest rate can be fixed or may fluctuate and the maturity dat

Some topics in this essay:
Loan Stock, Securities Market, Stock Exchange, Finance Corporation, Issues Market”, , Stock Market, Companies Acts, Butterfly Economics, Greed Risk, preference shares, raising finance, company issue, stock exchange, secondary market, debenture holders, specified date, raise finance, loan stock, ordinary shares, purchasing raw materials, cost debt limited, bond loan stock,