Why equity funding could be best for your business.

[Etini]

Equity funding is when you let investors into your business in exchange for part ownership of the business. I believe equity funding is helpful to a business that needs capital but doesn't have the means to raise it. Below are the reasons equity funding could help an entrepreneur:

1) When you acquire equity funding it takes the burden of financing your business off you. You can focus on being creative to generate ideas for the business. It is not easy to run from pillar to post to find funding.

3) Equity funding can make the task of expanding your business much easier Investors are always ready to commit to a thriving business. You won't have to stress to find funds for your business.


2) Equity funding keeps you from loans that may have high interest. There is a unique peace of mind one has when he/she runs a business without debts. It takes financial pressure off your business

 

[Suba]

Equity funding means that your business is open to receiving capital or capital participation from outside parties, whether from family, friends, etc. by issuing proof of capital participation. Apart from that, you can also issue an IPO by selling shares on the stock exchange. Apart from that, your business can also not distribute retained earnings in the form of dividends but provide new shares to shareholders. One of the advantages of equity funding is that it is not debt, so if the business goes bankrupt there is no obligation to return the capital. But if the investment capital is more than 50%, the business owner will lose control of the company.

 

[Activator230822]

The equity funding is indeed a game changer for the business funding. Most entrepreneurs that usually face constraints in raising the required capital for the business growth and sustainability they are covered by the equity funding for that matter.
With the equity funding, the businesses benefit from the free offered capital by the investors that may be paid only a fraction of the profits generated by the entire business. The most challenging thing for that kind of funding is the qualification for the equity funding.

 

[Yusra3]

Equity funding provides business owners with access to investor capital without incurring debt or high interest rates associated with conventional bank loans; it speeds up development beyond the bootstrap efforts. Tradable part ownership increases capacities, infrastructure, and market standing significantly when venturing with strategic partners that provide operational guidelines, networks, and scaling know-how together with the infusion of cash. The balance is dilution for exponential growth.