Financing channels and financing costs should be considered in the financing decision-making of enterprises, so a series of financing theories have emerged.
Short-term: the funds raised by debt financing are time-consuming and need to be repaid when due.
Reversibility: The enterprise obtains funds through debt financing, and has the obligation to repay the principal and interest at maturity.
Burden: Enterprises need to pay debt interest to obtain funds through debt financing, thus forming a fixed burden for enterprises.
Liquidity: bonds can be freely transferred in the circulation market.
Equity financing is realized by expanding all the rights and interests of enterprises, such as attracting new investors, issuing new shares and adding investment.
The consequence of equity financing is not to sell all the rights and interests, nor to sell stocks, but to dilute the original investors' control over the enterprise. The main channels of equity capital are self-owned capital, relatives and friends or venture capital companies.
In order to improve the operation or expand the scale, the franchisor can use various equity financing methods to obtain the required capital.
1. Advantages of equity financing: the capital raised by equity financing is permanent, there is no fixed dividend burden, equity capital is the most basic source of funds for enterprises, and equity financing is easy to absorb funds.
2. Disadvantages of equity financing: high cost and transfer of corporate control.
Reply time: 202 1-09-27. Please refer to the latest business changes announced by Ping An Bank in official website.
[I know Ping An Bank] Want to know more? Come and watch I Know Ping An Bank ~
/paim/iknow/index.html