Debt & Equity Financing
Debt financing occurs when a firm raises money for working capital or capital expenditures by selling debt instruments to individuals and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise that the principal and interest on the debt will be repaid.
Debt financing is the opposite of equity financing, which includes issuing stock to raise money.
Equity financing is the process of raising capital through the sale of shares. Companies raise money because they might have a short-term need to pay bills or they might have a long-term goal that requires funds to invest in their growth. By selling shares, they sell ownership in their company in return for cash, like stock financing.
Equity financing comes from many sources; for example, an entrepreneur's friends and family, investors, or an initial public offering (IPO). Industry giants such as Google and Facebook raised billions in capital through IPOs.
While the term equity financing refers to the financing of public companies listed on an exchange, the term also applies to private company financing.
Signature Group has multiple financing sources that we can employ.
Please contact us to set up a meeting to discuss how we can help with your financing needs.