In order to expand its business and meet market demands, a private enterprise must have sufficient financial resources to finance its activities, as well as to undertake the necessary investments that would enable it to increase the scale of its business.

During the 25-year transition period (1990–2015), the most commonly used means of business financing in Albania were financing through the reinvestment of profits or through new capital contributed by shareholders. In recent years, private entities have also begun to use other financing instruments, such as the issuance of private debt securities.

There are two main ways of financing a business: through equity and debt financing. Traditional methods include the reinvestment of profits, additional capital contributions from shareholders, and bank loans. The use of capital markets through the issuance of equity securities and private debt securities is still at an early stage of development in Albania.

The lack of a developed capital market and a well-established securities exchange has prevented businesses from making use of these financing alternatives. International best practices show that the use of financial instruments (shares and bonds) to finance business activities is significantly less costly than borrowing through the banking system.