Most lending arrangements operate on the principle of debt finance. By taking out a loan, your company incurs a financial obligation to repay that loan and any interest in accordance with the terms outlined in your contract. In some cases, however, equity finance may be a better choice for your company. Working with a knowledgeable Boca Raton equity financing lawyer can help you determine which of these options is most practical and advantageous for your company.
Equity financing allows your business to raise money by selling stocks to investors. Stocks represent a portion of your company’s value and convey an ownership stake to buyers of these financial instruments. This can help your business to avoid debt while ensuring that you have adequate funds on hand to manage ongoing expenses and to continue to grow and expand in the Florida economy.
Equity financing offers some real advantages for business owners in our area, including the following:
These financial arrangements are not without their disadvantages, however:
By working with a qualified Boca Raton equity financing lawyer, you can often determine whether this option is right for your business.
At the Boca Raton Business law firm of Berkowitz and Associates, we take pride in delivering the most practical and actionable guidance for our clients in navigating equity financing issues and helping businesses to make the right choices in the competitive marketplace. If you are considering outside investment in your company, give our office a call today at 561-982-7800 to schedule a consultation. We will walk you through your options and help you to determine the most appropriate choice for your business. The entire team at Berkowitz and Associates is ready to serve your legal needs.
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