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Expansion Financing

Expansion Financing is defined as capital used to enlarge the size of a corporation through a variety of means. Expansion financing can be used for internal growth through organic measures such as launch of new products or the acquisition of new customers. Expansion financing can also be used for external growth through execution of mergers and acquisition.In its most simple application, expansion financing is money used by a corporation to increase its working capital or productive capacity to facilitate growth. While not directly related to any one form of capital, expansion financing can be a loan, an equity investment of a combination thereof.

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