Page 169 - 5.2 i. Manac Finance ITC Summarised Notes

THE FINANCING DECISION

Uses of foreign finance

• Foreign finance is used predominately by large

companies, for the following reasons:

• To obtain access to finance, where local sources of

finance is limited.

• To diversify the sources of finance.

• To refinance existing debt.

• Foreign finance may be more affordable than local

finance.

• To act as a natural hedge, where the company earns

foreign income.

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