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 t...

  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 potenti...

  Understanding Corporate Finance and Its Main Activities Corporate finance departments are charged with governing and overseeing their firms’ financial activities and capital investment decisions. Such decisions include whether to pursue a proposed investment and whether to pay for the investment with equity, debt, or both. They also include whether shareholders should receive dividends, and if so, at what dividend yield. Additionally, the finance department manages current assets, current liabilities, and inventory control. What is Corporate FINANCE Corporate finance is the subfield of  finance  that deals with how corporations address funding sources, capital structuring, accounting, and investment decisions. Corporate finance is often concerned with maximizing shareholder value through long- and short-term financial planning and the implementation of various strategies. Corporate finance activities range from capital investment to tax considerations. Activities that G...