Is There a Space for an Innovative Approach to Sources of Business Financing in the Czech Republic?

Innovation is supposed to be something new, original, or improved that generates value. No matter if it is a product, service, or a process, It can be Just Innovative thinking. Innovative thinking may help businesses to increase profit, together with efficiency, quality, or human experience. Innovation may be radical or gradual, and can happen in any department of an enterprise. The aim of this paper is to find a possible space for innovative approach to sources of business financing in the Czech Republic Could the use of innovative source of financing bring additional profit for the company? Would be the innovative approach to the corporate capital structure more profitable? The article analyses selected sources of financing from the two perspectives: first perspective is the examination of various sources of financing as of products suitable for Innovation, and the second perspective includes exploring of possible changes in the corporate capital structure with increased or a reduced utilization of the particular source of financing, which would represent an innovative approach of companies to financing. The article focuses on selected traditional (bank loans and borrowings, leasing) and Innovative sources of financing (share and bond issues, factoring, export financing). Findings of this paper indicate substantial potential for innovations of capital structure of Czech companies, which rely primarily on own sources of financing (owner's equity, profit and reserve funds), and among external sources prevail bank loans and other long-term liabilities. An increased use of the capital markets for financing, while it is more expensive for companies, may bring significant benefits for the companies and the whole economy as well in the long term.