All About Equity Financing

If you want to establish a new business then you will surely need some money for the basic requirements of your company. You can take loans to develop your business. Loans can be done by mainly two sources-

  • Equity
  • Debt

Here we will discuss Equity Financing. This is the investment in which an organization, represents the released ordinary share capital. Equity finance can be raised from about three main source-

The initial source is internally made money also named as retained earnings. The main thing about raising finance through retained earnings is that it is cheap and requires no transaction cost. You can read testimonials on this website


The second main source of value finance is right issues. Right issues are simply an offer to existing shareholders to give for new shares at a discount as compared to the current rates of the market.

The third main source of raising equity finance is to issue new shares to the public. A large amount of finance can be made through new shares issue but on the other hand, it is much costly than other sources of equity because it requires heavy transaction costs and some other professional fees.

By these three sources, you can take an equity loan.It will help you in increasing your business growth.