All you need to know about equity business loans

1
All you need to know about equity business loans
2
What does equity finance mean?

• The funds are available in exchange for stakes in
  the company's ownership.

3
Understand the working of equity finance

• You can raise funds from the general public or
  big companies.
• You need to share the profit with the
  creditors/investors.

4
Pros of equity loans

• Since it is considered an asset, it poses a zero
  credit risk.
• It can assist in increasing your company's cash
  inflows.
• The financiers assist you in building new
  business relationships.

5
Cons of equity loans

• You need to share the company's ownership and
  profits with the investors/ creditors.
• You must provide the investor with information
  about your company's operations.
• You need to inform the investors of your business
  operations.
• Investors take part in your business decisions.

6
Difference between equity loans and business loans
7

• Equity loans are available for a longer period,
  whereas business loans are short-term loans.
• Equity finance is suitable for start-ups, whereas
  business loans are ideal for established
  businesses.
• Unlike business loans, equity loans require a
  strong company plan.

8

• A business loan is a liability, whereas an equity
  loan is an asset.
• Tax advantages are available for business loans
  but not for equity loans.

9

• Business loans are preferable to equity loans
  since they do not need you to share profits or
  ownership.

10
Thank You
Would Love to hear from you.
Hero Fincorp Limited
09, Basant Lok, Vasant Vihar, New Delhi - 110057
Tel [phone]
Email customer.care_at_herofincorp.com
Website https//www.herofincorp.com/
Know More What Does an Equity Loan Mean in
Business?