Equity Loan FinancingLoans to equity financing
Collateralised loans; unsecured loans; equity; quasi-equity. For this purpose we can provide equity and credit financing to SMEs through a number of intermediaries in the countries where we operate.
Pros and cons of equity financing
Private equity financing, the fundraising arena through the selling of company assets, can sometimes be more appropriate than other financing instruments, such as banking credit - but it can place different requirements on you and your company. Procuring funds for your company through equity financing can have many advantages including:
An investor can only realize his investments if the company is doing well, e.g. by going public or selling to new shareholders. External analysts anticipate that the company will provide added value that will help you research and implement your own growing strategies. Just like you, your investor is also very interested in the company's performance, i.e. in terms of expansion, profit and value.
Often, financiers are willing to offer follow-on financing as the company expands. But there are also disadvantages when it comes to equity financing. First of all, you have a smaller stake in the transaction - both as a percent and in money value. Learn more about equity financing in ICAEW's Corporate Finance Guide.
To learn more about the different ways to collect funds for your company, see Corporate Finance Opportunities: an outline.
It may come a point where the most appropriate, efficient and strategically sound way to grow your businesses is via the use of equity. LDC can potentially offer you between 2 million and 100 million in equity to finance your investments through the following privately equity solutions: pre-flotation financing.
We are an incumbent and premier provider of UK small and medium-sized business in the region with a current over £2 billion asset base and equity financing to companies across a range of industries from telecommunications to utilities and consumer electronics. We are known throughout the entire sector for building powerful working relationships within our senior executive team and with consultants to create value for shareholders and eventually achieve business outcomes.