Excuse me, the company is short of funds, and the boss asks my advice: which is better, borrowing money from shareholders or increasing capital? thank you

1. If you use too complicated financial management analysis, it is estimated that your boss can't understand it either.

Then you can give the boss a popular analysis of the main aspects.

First of all, in terms of bearing the loan interest, will this interest have an impact on your company's operation? Secondly, what should I do if the worst result of the loan is not up? How long will it take for the best result to be returned? How will the shareholder's personality affect your operation? Think about what other aspects will affect it, and these all need to be considered.

Second, consider increasing capital. Capital increase should first consider the impact of shareholder capital increase on equity and whether it will affect shareholders' rights and interests. If it is a joint stock, not every shareholder can agree. If so, how to increase it involves future rights and interests, risk sharing and so on.

3. You need to know the corresponding procedures of borrowing or increasing capital, such as the signing of contracts and the changes of various departments.

Think clearly and give the boss an answer as soon as possible.

Personal opinion, for reference only.