There are several means through which cosmetic companies can source funds for future expansion. To begin with, is equity financing, whereby companies issue stock to raise money for investment and expansion. When equity financing is done the company gets funds to take care of its needs. A company can use provisions in their periodic accounting systems, for example, they can create one such as, provision for expansion account. In this account, money will be credited every time the companys accounts are prepared. With time, the money will be enough to undertake the expansion. The company can even use credit lines to source money for expansion. Bank loans have been the prime source of funds for long.
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