Augusta
VIP Contributor
Using equity financing to fund your business comes with it's unique benefits. You don't need to borrow any money you just have to sell shares of the business to investors and other individuals that want to be part of the business
So what are the real benefits you would derived from funding your business with this mode of financing
Availability of funds for the. business
First, witb equity financing you would have had money to start or expand your business or simply get your desired financial goals for the business
No obligation to repay the money
Like earlier stated money provided by the investors are no loans. So you wouldn't have to pay back but share the business profit with the investors. This comes in form of dividend which is always according to how the money by investors were invested.
No additional financial burden on the company
The business wouldn't have to go through any kind of burden as the business isn't returning or repaying any money that was invested in it. so the business wouldn't experience any financial crisis.
Large investors can provide a wealth of business expertise,
This is what the business will enjoy. Since professional will invest in thr business, the business will enjoy resources and guidance from experts
So what are the real benefits you would derived from funding your business with this mode of financing
Availability of funds for the. business
First, witb equity financing you would have had money to start or expand your business or simply get your desired financial goals for the business
No obligation to repay the money
Like earlier stated money provided by the investors are no loans. So you wouldn't have to pay back but share the business profit with the investors. This comes in form of dividend which is always according to how the money by investors were invested.
No additional financial burden on the company
The business wouldn't have to go through any kind of burden as the business isn't returning or repaying any money that was invested in it. so the business wouldn't experience any financial crisis.
Large investors can provide a wealth of business expertise,
This is what the business will enjoy. Since professional will invest in thr business, the business will enjoy resources and guidance from experts
