financing mechanisms

Financing mechanisms are methods used to raise funds for projects or expenses. They include borrowing money through loans or bonds, where organizations commit to repay with interest over time. They can also involve attracting investors who provide capital in exchange for future returns or ownership stakes. Additionally, grants or subsidies from governments or organizations can provide funds without repayment. These mechanisms help organizations manage cash flow, fund growth, or complete large projects, balancing cost, risk, and access to capital in a strategic manner.