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ITU Centre of Excellence/AFRALTI For Somalia Telecoms Companies

ITU Centre of Excellence/AFRALTI For Somalia Telecoms Companies. Business Strategy. Training Objectives Understand “debt” and “equity” as sources of finance Know the importance of “credit ratings” in debt finance. Business Strategy. Finance Options. ?. External. Internal.

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ITU Centre of Excellence/AFRALTI For Somalia Telecoms Companies

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  1. ITU Centre of Excellence/AFRALTI For Somalia Telecoms Companies

  2. Business Strategy Training Objectives • Understand “debt” and “equity” as sources of finance • Know the importance of “credit ratings” in debt finance

  3. Business Strategy Finance Options ? External Internal

  4. Business Strategy Internal Financing • Cost control • Additional investment from owners • Retained earnings

  5. Business Strategy External Financing • Equity • Debt • Aid

  6. Business Strategy Equity • Share of ownership • Medium to long-term • Rewarded through added value • Requires “professional management” • Pays for major development

  7. Business Strategy Debt • Loan • Short or medium term • Contractual/repayable • Pays for inventories/capital investment

  8. Business Strategy Credit Ratings • E.g. Moody • Country and company • “Investment”, “Junk”, “Default” • Determines interest on debt

  9. Business Strategy Gearing Debt:Equity

  10. Business Strategy Aid • A gift……non-repayable Tied? Conditions? Unpredictable?

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