Finance and funding

P4.1 Sources and distribution of funding of capital projects
Government Funding:Government has various
norms regarding providing of fund to the capital
projects for different industries. These funds are
based on the nature of projects. Government has
fixed criteria for providing of fund based on a fixed
percentage.
European social fund: is also known as regional
development fund, a program initiated by European
government. Under this the investments are focused
on priority areas that are known as “thematic
concentration”. Following are the priority areas:
 Innovation and research
 Low- carbon economy
 The digital agenda, etc.
Capital projects are those projects that help
in maintaining or enhancing the value of
assets of any organization. Likewise, merlin
entertainment will also need to initiate
many capital projects to smooth running
and enhancing the profit capacity of the
company.
Equity Funding: Merlin entertainment for its
capital projects can raise funds from by raising
its shares in the market. This is called raising
funds from equity capital. Every company has a
subscribed capital up-to which company can
raise equity capital.
Debt funding:Another option of raising funds for
capital project is Debt funding. Like raising
equity capital, merlin entertainment can also
raise funds by issuing the debentures in the
market. Debt capital must not exceed beyond
fixed ratio.
Private funding: Funds can be raised through
private funding by:
 Banks
 Financial institutions
 Separate individuals
 Insurance companies
 Capital lenders, etc.