Merchants PLC Essay Example | Topics and Well Written Essays - 3000 words

Merchants PLC - Essay Example The capacity of raising funds depends on the resources from which funds might be accessible. The company forms of partnership and sole proprietor have limited chances for raising funds. Banks will generally only desire to finance businesses where there is a revenue stream or short risk assets i.e., assets which can safeguard loans. The company can raise money by several ways by increasing short- term and long-term capital; they can also include -issue of shares and debentures, loans from financial institutions, loans from banks, public deposits. â€Å"Capital may also be raised by development taxes levied on either developers or households, or both. For example, a value-capture tax may be levied on the estimated increase in land value due to the development of related infrastructure.† http://www.appliedeconomics.com.au/pubs/papers/pa03_trans.htm The main benefits of the sources of finance for the company includes decreasing the reliance on outside sources of finance; it raises the credit value of the company, allowing the company to withstand complicated circumstances and allowing the company to accept a constant dividend policy. â€Å"Merchants has for many years focused on a simple proposition, to deliver a high and rising income stream, together with long term capital growth through investing predominantly in large UK companies.† http://www.alliancetrustsavings.co.uk/resource/taking-stock/june2012/merchants-trust-plc.htm