“3 Types of Credit”

2581 Search Results

2581 Search Results

What Is Equity Financing? Debt vs. Equity Financing

What Is Equity Financing? Debt vs. Equity Financing

https://www.sofi.com/learn/content/what-is-equity-financing/

Both equity and debt financing can give you the funding you need to grow your business, but they work in very different ways. With equity financing, you sell shares of your company to investors to raise capital. If you use debt financing, you borrow money from a bank or other lender and pay it back […]


Understanding Debt Factoring for Small Businesses

Understanding Debt Factoring for Small Businesses

https://www.sofi.com/learn/content/debt-factoring/

Debt factoring describes a situation when a business works with a third party company to receive payment on unpaid invoices. The debt factoring company usually buys the invoice at a discount and provides the remaining amount once it is able to collect payment. As you may expect, there are fees involved, but if you’re having […]


What Is Insolvency and How Does It Work?

What Is Insolvency and How Does It Work?

https://www.sofi.com/learn/content/what-is-insolvency/

Business insolvency occurs when a company is unable to settle its debt payments to lenders as they become due because of a lack of assets. This can happen any number of ways, and may be the first step towards bankruptcy for a business. Below, we talk about what you need to know about insolvency, steps […]


Accounts Payable vs Notes Payable: How They Compare

Accounts Payable vs Notes Payable: How They Compare

https://www.sofi.com/learn/content/notes-payable-vs-accounts-payable/

Businesses borrow money in different ways. They might, for example, receive goods and services on credit and pay the invoice 30 or 60 days later. Or, they might take out a small business loan and repay the principal (plus interest) in monthly installments over several years. Both types of debt are considered liabilities. In small […]


What Is Equity Crowdfunding for Startups?

What Is Equity Crowdfunding for Startups?

https://www.sofi.com/learn/content/equity-crowdfunding/

Equity crowdfunding is a form of crowdfunding that helps you find people who are willing to fund your startup in return for a financial stake in the company. While this type of fundraising can help you raise capital without going through the traditional channels (like finding venture capital or taking on debt), it’s not the […]


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