HAVELET FINANCE LIMITED

 Debt Financing and Equity Financing; A comprehensive Overview. Considering the two main types of financing available for companies:  debt financing  and  equity financing . Debt financing is a loan that must be paid back often with interest, but it is typically cheaper than raising capital because of tax deduction considerations. Equity Financing does not need to be paid back, but it relinquishes ownership stakes to the shareholder. Both debt and equity have their advantages and disadvantages. Most companies use a combination of both to finance operations. Types of Financing Equity Financing “Equity ” is another word for ownership in a company. For example, the owner of a grocery store chain needs to grow operations. Instead of debt, the owner would like to sell a 10% stake in the company for $100,000, valuing the firm at $1 million. Companies like to sell equity because the investor bears all the risk; if the business fails, the investor gets nothing. At the same time, giving up equi

  Equity Financing - Survey, assets and liabilities. Equity financing is especially important during a company’s startup stage to finance plant assets and initial  operating expenses . Investors make gains by receiving dividends or when their shares increase in price. What is Equity Financing? Equity financing deals with selling of companies shares to raise funds. Investors who purchase the shares are also purchasing ownership rights to the company.  Equity financing can refer to the sale of all equity instruments , such as  common stock , preferred shares, share warrants, etc. Major Sources of Equity Financing When a company is still private, equity financing can be raised from angel investors,  crowdfunding platforms , venture capital firms, or corporate investors. Ultimately, shares can be sold to the public in the form of an IPO. 1. Angel investors Angel investors are wealthy individuals who purchase stakes in businesses that they believe possess the potential to generate higher re

  Debt Consolidation Loan Benefits You Need to Know At the events of purchasing a car or paying for your education, debt is imminent and can quickly lead to high interest rates and henceforth becomes hard-to-manage monthly bills on your credit cards or loans. While this can sometimes be inevitable, it’s really how you choose to handle your debt that counts. Debt consolidation Loan   is one strategy that exists that can make managing your debt far simpler by by rolling all of your debt into one single payment. It often comes with a lower interest rate than what you were paying out each month before while also giving your credit score a nice boost, among other benefits. Some  effective ways to consolidate your debt  include taking out a personal loan, transferring multiple credit card debt into a single credit card, using a home equity loan, or even a 401 (k) loan. Let’s take a closer look at what debt consolidation can do for you. #1 Turn Multiple Payments into a Single Payment Debt con