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| Name | Debt vs Equity Financing | Advantages & Disadvantages | Key Differences |
| Video Uploader | Video From WallStreetMojo |
| Upload Date | This Video Uploaded At 31-08-2019 12:12:09 |
| Video Discription | In this video, Debt vs Equity Financing we will study its key differences along with advantages & disadvantages. ๐๐ก๐๐ญ ๐ข๐ฌ ๐๐๐๐ญ ๐ ๐ข๐ง๐๐ง๐๐ข๐ง๐ ? ------------------------------------------ Debt means taking the money and debt financing means taking money without granting away your rights of ownership. ๐๐๐๐ญ ๐ ๐ข๐ง๐๐ง๐๐ข๐ง๐ ๐๐๐ฏ๐๐ง๐ญ๐๐ ๐๐ฌ --------------------------------------------------- #1 - Debt financing does not give company lender rights of ownership. #2 - After subtracting taxes, you start paying interest on loans. ๐๐๐๐ญ ๐ ๐ข๐ง๐๐ง๐๐ข๐ง๐ ๐๐ข๐ฌ๐๐๐ฏ๐๐ง๐ญ๐๐ ๐๐ฌ -------------------------------------------------------- #1 - Too much loan or debt generates cash flow issues which make it hard to repay your debts. #2 - You have to pay the money back in a certain amount of time ๐๐ก๐๐ญ ๐ข๐ฌ ๐๐ช๐ฎ๐ข๐ญ๐ฒ ๐ ๐ข๐ง๐๐ง๐๐ข๐ง๐ ? ---------------------------------------------- Company needs cash or extra income to grow continuously.These resources can be raised by equity financing . ๐๐ช๐ฎ๐ข๐ญ๐ฒ ๐ ๐ข๐ง๐๐ง๐๐ข๐ง๐ ๐๐๐ฏ๐๐ง๐ญ๐๐ ๐๐ฌ ---------------------------------------------------- #1 - The risk is lower here because it's not a loan and it does not need to be repaid.Equity Financing is a very nice way to finance your business if you can't afford a loan. #2 - We collect a shareholder network that increases your firm's credibility. ๐๐ช๐ฎ๐ข๐ญ๐ฒ ๐ ๐ข๐ง๐๐ง๐๐ข๐ง๐ ๐๐ข๐ฌ๐๐๐ฏ๐๐ง๐ญ๐๐ ๐๐ฌ --------------------------------------------------------- #1 - In event of extremely large dispute with shareholders, you might only need to take advantage of cash and let investors run your business without you. #2 - It takes time and effort to find the perfect investors for your firm. ๐๐๐๐ญ ๐ฏ๐ฌ ๐๐ช๐ฎ๐ข๐ญ๐ฒ ๐ ๐ข๐ง๐๐ง๐๐ข๐ง๐ ๐๐๐ฒ ๐๐ข๐๐๐๐ซ๐๐ง๐๐๐ฌ ------------------------------------------------------------------------- #1 - Debt is short - term finance, Whereas equity is firm's long - term finance. #2 -Debt financiers are the firm's lender.Whereas, company's shareholder is the company's owner. To know more about ๐๐๐๐ญ ๐ฏ๐ฌ ๐๐ช๐ฎ๐ข๐ญ๐ฒ ๐ ๐ข๐ง๐๐ง๐๐ข๐ง๐ you can go to this ๐ฅ๐ข๐ง๐ค ๐ก๐๐ซ๐:-https://www.wallstreetmojo.com/debt-vs-equity-financing/ Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe - https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1 |
| Category | Education |
| Tags | debt vs equity financing | debt vs equity financing advantages disadvantages | debt financing vs equity financing | difference between debt and equity financing | debt and equity financing |
