Expansion Financing is a capital used to extend the size of a corporation through a variety of means. Expansion financing can be used for internal growth via organic measures such as launch of new products or the achievement of new customers. Expansion financing can also be used for external growth through execution of mergers and acquisition.In its most simple application, expansion financing is money used by a corporation to increase its working capital or productive capacity to promote growth. While not directly connected to any one form of capital, expansion financing can be a loan, an equity investment of a combination thereof.
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