Important Factors to be Considered While Raising Funds

A corporation has to consider various primary and secondary factors while raising
the required funds.
‘They are as follows:
1, Rate of interest or dividend to be offered

2. Amount of fund
3, Period (tenure) for which the fund is required
4, Security or mortgage to be offered
5. Foreign exchange ratio of today and tomorrow for a foreign fund
6. Conversion of loan into equity time, price for conversion, changed rate of
return, etc.
7, Periodicity for payment of interest or dividend
8, Instalments of repayment of the fund procured
9. Government's rules, subsidies and other conditions and exemptions
10. Flexibility of the rate of interest or dividend
11. Other sweeteners to be offered to the investor
12. Premium at which shares and debentures are to be issues and redeemed
13, Voting right for the investors
14, Impact of income tax and other tariffs or taxes
15, Complexity of the instrument to be used for raising the fund
16. Maturity of the investors
17. Increase/decrease in the ownership and control by the promoters