Right now, corporate funding is changing from an indirect method to a direct method. Issuing company bonds through private personal sources does not require registering them with the Securities Exchange Commission since it avoids regulations under the Securities Exchange Act. This direct method of raising capital is, therefore, more effective, efficient and easier.

The globalization of banking business in recent years has transformed traditional wholesale banking business to investment banking. Until recently, this direct method of raising capital was practiced by small to medium-size companies, which experienced tighter loan controls than commercial banks.

Lately, the federal legislature signed into law various modifications to banking laws easing the use of this direct method of raising capital. As this direct method mortgages the issuer's credibility, company bonds are rated according to the level of a company's credit ratings.

Now, this direct method of raising capital is called "family private issuance of bonds," and a company can publicly or privately raise capital by utilizing this method.