BUS 402 Equity & Debt Financing Business Management Discussion
Equity and Debt Financing” Please respond to the following:
Using the Internet or Strayer databses, examine two (2) sources of outside equity capital available to entrepreneurs. Next, describe the source(s) you would use if you were creating a new company. Explain your rationale.
Using the Internet or Strayer databses, analyze two (2) sources of debt financing. Next, discuss which non-bank source you would use if you were creating a new company. Explain your rationale.
Lastly, respond to at least one (1) post of your peers.
Peers discussion post below in which Ill have to provide a response too.
RE: Week 8 Discussion
Good Afternoon Professor and Class,
Two sources of outside equity capital available to entrepreneurs
Angel investors-they are individuals who hope to put resources into new business which has the potential for development. They take a gander at the business thought and put resources into business these speculators can be of family, companion or pariah eg financial specialist. the greatest bit of leeway is that it is anything but difficult to get venture structure them as they can contribute with no organized cycle generally they doesn’t assume responsibility for the administration. The only disadvantage can be they might not have ability to work with the business person.
Venture capitalist – these are firms/people that put resources into new business. They take cash from a few sources like annuity reserves, money managers, industrialists, and so on and put resources into groundbreaking thoughts, business people. They generally put resources into a startup that has a long haul procuring potential. The greatest preferred position is that they put resources into an enormous sum. additionally, they have huge associations which can help in business development. the greatest burden is that they can partake in the administration and have the ability to eliminate the CEO moreover.
Two sources of debt financing
banks and non-banking budgetary foundations. like speculation organization, advance organization, resource money organization banks offer advances to the business visionary on predefined rate represented by the national bank of the nation nonbanking monetary establishment is the organization
non-banking financing organization is the organizations who give credits dependent on the specific condition. eg microfinance establishment. I will go for the credit associations a nonbank element to offer me an advance as a business person as this organization offer advances to business people to start their business additionally they offer advances to start an independent venture at a low-financing cost as a business person, I can get an advance at an insignificant expense.