The Securities and Exchange Commission (SEC) has asked business owners to look beyond traditional banking for medium and long term credit support.
According to the commission, although the capital market provides a lot of funding opportunities, only a few businesses turn to it to raise funds for their operations.
“Traditionally, Finance Managers often resort to the banks for additional financing for their companies when the need arises. It is an incontrovertible fact that it takes long term finance that is patient capital to finance the growth and expansion of enterprises.
I will, therefore, charge finance managers to seriously explore and tap into the capital market for medium to long term financing especially medium to long term instruments to finance business expansion and also ensure that their businesses achieve the appropriate finance mix or capital or capital structure for profitable operations,” Director General of the SEC, Rev. Daniel Ogbamey Tetteh said at the 2019 induction ceremony by the Institute of Chartered Accountants Ghana.
In the Capital market, companies can raise funds from private investors such as angel investors and venture capital firms. For instance, a startup company can raise some funds by issuing stock on the primary market usually to institutional investors after which shares are traded by investors.
He is confident that will help in reducing the burden associated with access to credit for businesses.
Over 250, accountants were inducted into the Institute of Chartered Accountants. Mr. Ogbarmey Tetteh also charged the professionals not to overlook the ethics and standards in discharging their duties.