Stock Financing as an Alternative Financing Technique and its Applicability in Turkey

Banks are important institutions that finance economies by collecting deposits and lending those deposits as creditors. Today, most of the businesses that need funding sources primarily apply to the banks for receiving loan. Loans provided by banks are classified according to the nature of the loans and the cost of each varies according to their attributes. The important thing is for businesses using the most appropriate loan with the least cost.The concept of “stock financing” which is often heard recently emerges as an alternative financing technique. Here the main aim is minimizing the cost of seeking new funds and trying to find new funds at the financial value of current inventories of business. In this respect in the study the applicability of stock financing techniques, appearing very attractive for business, in Turkey are discussed.