Businesses need capital if they are to grow, and sometimes need finance solutions to raise capital. If you are unable to raise capital through a loan, equity may be an alternative solution.
With equity you’re giving away a percentage of future profits, rather than a fixed percentage on what you’re borrowing.
Equity can be a very good solution for businesses where they need capital to grow, it can allow them to obtain future contracts, or increase sales that they otherwise couldn’t achieve because they were constrained by cash.
Generally, equity solutions should only be explored if a loan is really out of the question, and are most suitable for a business with relatively high turnover.
An experienced finance broker is particularly useful for those considering an equity solution, as it is a lengthy and complex process with a considerable amount of due diligence.
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