My very first exposure to business financing was when my dad lent money to my uncle to start his new textile business. In return, my dad became a shareholder and when the business blossomed a few years later, my dad multiplied his returns many times over. There were other financing options my uncle could have used at that time, but getting help from relatives was definitely an easier option than taking a loan from the bank.
These are the two traditional types of financing most people are familiar with: You either raise capital from shareholders in the form of equity or you raise capital by borrowing from creditors (like banks) in the form of debt.
But as I continued on my journey as an investor, I discovered other ways that big, listed companies are using to finance their business – without having to rely on debt or equity. They are ......