Homeowners have seemingly limitless choices to tap in to the equity in their homes. Many folks choose to refinance for cash out at closing, others are looking also for the benefits of a lower interest rate on their loan and cash out for repairs, unexpected expenses and other of life’s little surprises.
Finance is required by every business to run and operate. Long term need for funds can be most fruitfully met by equity. Equity finance refers to the participation of general public in the ownership of the business. Equity finance is the procurement of funds by a company from the general public by issuing share certificates as ownership proof.
Finance managers world over are faced with the choice between debt financing and equity financing when looking for finance for their businesses. Both the types have certain merits and demerits. A little demystification will perhaps help towards the decision making process.