What is the difference between equity, a loan and grant funding for my business?

/What is the difference between equity, a loan and grant funding for my business?

What is the difference between equity, a loan and grant funding for my business?

These are 3 types of capital we assist businesses to raise:

Equity – capital raised through the sale of shares in your business, with shareholders investing capital for an expected financial return over a given period. This is the most expensive but most patient type of finance.

Loan/Debt – capital is lent to a borrower with a set of agreed terms for repayment – varying in length and cost on a case-for-case basis – based on the strength of the SME, its “bankability”, the lender and various other requirements.

Grant/Incentive – is typically a non-repayable investment made by a government body or institution to specifically eligible businesses in exchange for a particular set of social or economic objectives, in accordance with strict guidelines. This is the least expensive form of finance, but it can take longer to raise and is highly regulated.

By |2018-12-24T11:29:36+02:00Dec 13th, 2018|0 Comments

About the Author:

Leave A Comment