New tools for financing businesses: A Review study with emphasis on the life cycle

In Iran, more than 95% of organizations are small and medium enterprises, which face many challenges. One of the most important of these challanges is how to finance and the tools available in it. Traditional financing tools in these businesses (capital and debt or sale of assets) do not have the necessary flexibility, and create a high cost for the business. Therefore, by using new financing tools, an attempt has been made to create the necessary flexibility in financing these institutions and reduce their risk. On the other hand, there must be correspondence between the financing tools and the life cycle of these businesses. Therefore, the purpose of this study is to introduce new financing tools, determine the characteristics of each of them and their function in the business life cycle. The research method in this research was documentary and library. Library resources were used to collect information. Research findings suggest that nano-financing can be used for small and home-based businesses, micro-financing can be used for small and medium-sized enterprises, and macro-finance can be used to finance large enterprises. On the other hand, according to Scott’s and Bruce’s business life cycle, nano-financing is used at the time of business introduction, micro-financing at the time of growth, and collective or macro-financing at the time of maturity. Therefore, it is suggested to establish specialized financing centers for small and medium companies.