What is the process and meaning of Cash Funding?

Thomas Page


What is the meaning of Cash Funding?

Cash Funding is the process of providing money for financial resources by an organization or company. Fundings  can be collected in many different ways, such as:-

  1. Credit – is provided by one party to another with a promise to repay the debt. Usually by banks in form of loans or by companies.
  2. Venture Capital – large firms invest in companies which are in early stages and shows high growth potential. Investment is made in exchange for equity. 
  3. Donations – can be given by anyone who is willing to help someone, just like gifts. No return is desired.
  4. Grants – just like donations no return is desired. Can be given by companies, foundation, trust or government department.
  5. Subsidies – also known as government incentive is provided by government to aid or support business, institution or an individual.

The process of Cash Funding

For cash funding, firstly you have to declare the purpose of funding. Is it for research purpose, starting a business, medical issues, lawsuit or something else.  Then decide what type of funding you were looking for. There is a different process for each type of funding and need. So, you have to decide carefully what are your needs and what type of funding you want. Such as,

  • If you need money for personal use, then you should go for personal loan through bank or lender.
  • If you need money to start a business, then go for investors and business loan.
  • If you need money for humanitarian aid or charity, then you can ask for donations, grants and subsidies.
  • If you need money for medical issues, then you can even apply for a loan or ask for donations and grants.

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