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Capitalization
CAPITALIZATION

Definitions:

i. (business) The process of providing a company, etc. with the money it needs to function.

ii. The permanent liabilities of a business, including outstanding stock.
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* All eight elements should be in.


1. There is/was a request or demand from the company, etc. that needs or needed money.

2. Request or demand is/was professionally assessed and adjudged as genuine, feasible and/or realistic.
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3. Sources of funds are legal. That is, providers are legally permitted to loan funds to distressed company (= business).

4. Amount sourced is/was the exact sum required by business to stay afloat or continue business (connect to #2).
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5. Terms of the provision - tenor, interest rate, currency mix, disbursement timings, repayments, etc. - are acceptable to the business given support.

6. Business manages or uses/used the funds for the purpose(s) they were meant for (see definition).
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7. Spending by business is/was monitored by fund provider(s), as appropriate (to emphasize, connect to #6).

8. Business (= company, etc.) is/was able to stay afloat as a result of the financial lifeline (connect to #5).
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