equity in your home can be a wise financial move, especially
when interest rates are low. For some homeowners, the liquidity
offers new opportunities for investing, while for others paying
off high-interest debt saves thousands of dollars in interest
and on taxes.
Would you like
to take advantage of the equity you've built in your home?
Considering home improvements or just need extra cash for a
major purchase? A Home Equity Loan may be the best solution for
Equity financing requires that you sell an ownership interest in
the business in exchange for capital. The most basic hurdle to
equity financing is finding investors who are willing to buy
into your business; however, the amount of equity financing that
you undertake may depend more upon your willingness to share
management control than upon the investor appeal of the
business. By selling equity interests in your business, you
sacrifice some of your autonomy and management rights.
The effect of selling a large percentage of the ownership
interest in your business may mean that your own investment will
be short-term, unless you retain a majority interest in the
business and control over future sale of the business. Of
course, many small business operators are not necessarily
interested in maintaining their business indefinitely, and your
personal motives for pursuing a small business will determine
the value you place upon business ownership. Sometimes the
bottom line is whether you would rather operate a successful
business for several years and then sell your interests for a
fair profit, or be repeatedly frustrated in attempts at
financing a business that cannot achieve its potential because
of insufficient capital.
types of equity financing available to you are, to some extent,
determined by the organizational form of your small business.
While your choice of business form or "entity" for your small
business involves a wide spectrum of other important issues —
such as the degree of personal risk involved in the type of
business, tax considerations, and the need to attract good