Raising Finance
Raising finance is an important business conversation topic that involves understanding different types of financing options, negotiating with investors or lenders, and managing financial risks associated with debt and equity financing.
For advanced English learners, discussing topics related to raising finance can be beneficial in several ways. Firstly, it can help learners develop their vocabulary related to finance and business, which is essential for effective communication in a business setting.
Secondly, it can help learners improve their fluency and confidence in speaking in English by providing them with opportunities to practice expressing complex financial ideas.
About Raising Finance
In the business world, raising finance refers to the process of acquiring funds for a company’s operations, expansion, or investment in new projects. Raising finance involves identifying and evaluating different sources of funding, such as debt financing (e.g., loans, bonds) and equity financing (e.g., issuing shares, venture capital).
The goal of raising finance is to obtain the necessary capital to finance a company’s growth and development while minimizing financial risk. This requires careful planning and analysis of the costs and benefits of different financing options. Companies must consider factors such as interest rates, repayment terms, collateral requirements, and the impact of financing on the company’s financial statements and credit rating.
The process of raising finance typically involves negotiations with investors, lenders, and other stakeholders. Companies must present a convincing business plan and financial projections to attract potential investors and secure financing. Companies also need to comply with legal and regulatory requirements related to financing, such as disclosure requirements and securities laws.
Instructions:
Go through the vocabulary below with your students and ask them to try and use this vocabaulry where possible when discussing the different conversation questions.Useful Vocabulary
Try and use the following vocabulary when answering the question. Click to look up the definition in the dictionary
Conversation Questions
- What are some of the different ways that businesses can raise finance?
- What are some of the advantages and disadvantages of equity financing and debt financing?
- How can businesses ensure that they obtain financing at a reasonable interest rate?
- How important is it for businesses to have a good credit rating when trying to raise finance?
- What role do venture capitalists and angel investors play in raising finance for startups?
- Should governments provide funding to startups and small businesses?
- Would you say it's better for businesses to finance growth through debt or by reinvesting profits?
- What are some of the risks associated with raising finance? How can businesses mitigate these risks?
- Should businesses be allowed to raise funds through crowdfunding platforms?
- Can businesses rely solely on internal funding (e.g. reinvesting profits) or is external financing necessary for growth?
