Equity Finance

[Davy Dany]

What is equity finance and is it right for your business?

Equity finance is share capital invested in a business for the medium to long term in return for a share of the ownership and, sometimes, an element of control of the business.

Unlike lenders, equity finance investors don't normally have rights to interest or to be repaid at a particular date. Their return is usually paid in dividend payments and depends on the growth and profitability of the business.

Because equity investors share the risks your business faces, equity finance is often referred to as risk capital.

Is it right for your business?
Different forms of equity finance suit different business situations.