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Equity Finance

The meaning of the term Equity Finance is where a private individual or equity company gives capital investment in return for a share of your business' equity and often they are given an element of control in the business.

There are a number of different ways of securing funding in this way. Start-up businesses can look for Angel Investment whilst companies looking for a much larger amount invested usually turn to Venture Capital Companies.

Raising funds through Equity Finance is generally thought to be a medium to long term solution and can greatly increase your cash flow providing the right investor is found.

Some of the benefits of equity finance are that the investors can often provide expert advice to help you fund the business in addition to the release of seed capital and also, unlike business loans which are repaid monthly, private equity companies earn dividend payments which furthers their dedication and commitment to the success of your company. You can control just how much of a say they have by how much of a share they are offered. Additionally Turnaround Capital can give a boost to the company's cash flow.

Which type of finance would you require? See our handy guide below:

Angel Investment primarily funding for new and growing businesses seeking less than £2million of seed capital

Venture Capital for companies who need a minimum investment of £2million

Growth Capital where capital investment is needed specifically to help your business expand, in return for shares in the company. Can also supply additional capital to fund acquisitions, management buy-outs, mergers and management buy-ins.

Turnaround Capital is for helping a company to overcome any (immediately threatening) cash flow problems and the investor often is able to provide support and financial management to Turnaround the company.

We can help you to find the right Equity Finance for your company. Call 01892 552696 or email us on today and look forward to a brighter future.

Next Step:

Please contact us if you need further advice, have any questions about our services, would like a free consultation or a fixed fee quote.

 

Shaikh & Co Accountants

10 Decimus Park, Kingstanding Way, Tunbridge Wells, Kent, TN2 3GP - Tel:01892 552696