Growth capital is a very flexible type of financing. The field of finance refers to the concepts of Time, Money and Risk and how they are interrelated The money borrowed under a growth capital line of credit can be used for any corporate purposes. In Economics, capital or capital Goods or real capital refers to items of extensive value Credit is the provision of resources (such as granting a Loan) by one party to another party where that second party does not reimburse the first party immediately thereby generating A corporation is a separate legal entity usually used to conduct business There are no requirements to provide invoices or other backup material when borrowing under this type of facility, so administration is simplified as well. An invoice or bill is a commercial document issued by a seller to the Buyer, indicating the products quantities and agreed Prices

Growth capital can be a beneficial way to extend a company’s runway between rounds of financing. The extra time can be used to complete additional milestones that will raise the company’s valuation, or as insurance to ensure that all intended milestones are successfully accomplished.

References

• "What is Growth Capital?", Industry Canada
• "The growth capital market in the US", Alliance
• "Herb Greenberg" for The Street

See also

• Hybrid security
• Convertible bond
• Preferred stock
• Mezzanine loan
• Private equity
• Mezzanine debt
• Senior debt
• Debtor-in-possession financing

'"Hybrid securities"' often referred as "hybrids" are a broad group of securities that combine the elements of the two broader groups of securities Debt and In Finance, a convertible bond (or convertible debenture is a type of bond that can be converted into shares of Stock in the issuing company Preferred stock, also called preferred shares or preference shares, is typically a higher ranking stock than Voting shares, and its terms are negotiated In Finance, private equity is an Asset class consisting of equity Securities in operating companies that are not Publicly traded on Mezzanine capital, in Finance, refers to a Subordinated debt or Preferred equity instrument that represents a claim on a company's assets which is senior In Finance, senior debt, frequently issued the form of a senior note, is debt that takes priority over other debt securities sold by the issuer Debtor-in-possession financing or DIP financing is a special form of Financing provided for companies in Financial distress or under Chapter 11

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