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List: Posted: 12/10/10
When considering the financing options for your small business, you might consider the benefits of equity and debt financing. Finding the solution that works for you can help you to better manage your business debt and find a more secure financial future.
Put simply, debt financing is a simple way of taking out a loan that is held for a certain period of time, during which you pay the money back in installments. Debt financing can be either short term or long term. Most banks will offer several options for small businesses to take out loans to help deal with debt, and this particular option allows the business to get help with less risk assumed.
Many business owners prefer debt financing because the lending party doesn't stand to gain any part of the business and there is usually a fixed repayment schedule. The main disadvantage of this option is that it can come with a very high interest rate.
Another way for businesses to deal with debt aside from debt financing is with equity financing. This involves the business owner selling off an ownership interest in your business in exchange for money. When compared to debt financing, there is less interest to pay, but the disadvantage of giving up partial ownership of your company. Equity financing can be a great way to get access to the cash flow you need relatively quickly.
Equity financing and debt financing both offer viable ways to get help with some of your business debt. The main things to consider are the interest rates of debt financing and the fact that equity financing requires you to lose partial ownership of your business. with this in mind, you can make a more informed choice.
Horizon Ridge Wealth Management is a holistic wealth management firm. We focus on helping our clients invest wisely and plan for life events such as retirement, divorce, senior care, and much more. It is our belief that financial planning is more than just numbers, it is your roadmap through each stage of life.
Fast Title Lenders was started to provide consumers with a more affordable, reasonable, and transparent alternative to the Title Loan companies that charge the maximum allowable interest rates and operate to make as much money from each of their customers as possible. Most of us have either had a title loan at one point, or know someone that has. We believe that a Title Loan should be a solution to a short term financial problem; not the beginning of a longer term financial problem. Our mission is to provide our customers with emergency cash when they need it at the lowest interest rates we can with no hidden fees, no tricks, no hidden agendas, no hidden anything. We are as transparent as possible. When you call us to ask us what interest rate we charge we will give you an answer; we have a Title Loan Calculator on our website where you can find out yourself exactly what we charge. We do not make up a reason to give you a different number when you come visit us. For Virginia residents we even pay the lien fee for you. We do not lend more than 50% of the Fair market Value of the vehicle. This is a Virginia law, and helps ensure your title loan is affordable. We offer our customers after hours, Sunday, and Holiday appointments to accommodate those who cannot make it during our office hours. We realize many people have hectic schedules and will be as accommodating as possible. Finally, we do not sell or share your information with any third parties that will try to sell you something. We protect our customers privacy. We do not check your credit nor do we report any of your transactions with us to any credit agencies. If you need a Title Loan, don t hesitate to give us a call. We ll do our best to answer all your questions and earn your business.
Behrens & Banks, CPA is a full service tax, accounting and business consulting firm located in Ashburn, VA
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