The various forms of finance, or the investment that will be made to set up a business, is necessary to fund an activity.
In accordance with the needs and objectives, it is also appropriate that the forms of financing as well as medium / long term financing be conditional on the purchase of equipment, equipment and facilities and a capacity for durable goods and different forms of financing. in the short term, based on foreign capital, namely banks, customers, suppliers and others.
Different types of debt have different associated characteristics, as well as different requirements for companies. For example, each type of debt has different market functioning mechanisms, different information requirements or even different depreciation schemes.
Therefore, it is also relevant to analyze the composition of financing of companies. In this context, some studies have explored the different debt components, as well as corporate access to financial Given the relevance of corporate financing in various In these countries, bank credit and commercial credit are two of the debt that have received particular attention.
Funding is crucial for companies to carry out their activity. In this context, it is important to analyze the capital decisions of the companies (capital versus debt), but it is also relevant to analyze the external financing components. Different types of debt have different characteristics and have different requirements associated with companies. This approach becomes particularly relevant in the analysis of the business sector in several countries, such as Portugal, given the high levels of recorded leverage ratios.