When getting a project started what is the one thing that is need the most is money. Without it nothing gets off the ground and nothing happens. There are unlimited amount of ways to finance a project but the one I talk about are the more well known ways of doing it.

Probably the most used and best known way of obtaining money is through a bank. A company can go to a bank and get a loan for the amount that they need. The company is going to have to outline the how the project is going to go and how they are going to make money from it (Shapiro, 2009, 478). Also, there needs to be a projection of how much money they will make in the future and at what rate. This is to ensure the bank that this project will make money so the company will be able to pay off the loan in a timely manner. The downfall for the company is the interest that is charged on the loan, but if the project is going to be very profitable it may be worth it. For publically traded companies they can sell shares of their stock in order to obtain financing. By selling the shares they retain cash for the project but on the down side they lose some ownership of the company. Again, if the project is projected to be very profitable then it may be worth it for the company to lose those shares in order to fund the project. In the future they may even be able to by those shares back with the excess money from the project.

These two ways are just scratching the surface of the possibilities a company has in funding projects. These projects can be risky due to the debt that is created from them but that leverage may result in a more profitable company and a larger market share in the industry of the company.