Forms of Short-term Financing/Equity Investment: Difference between revisions
wikademia>MSUglobal New page: {{TF7.1}} ==Equity Investment== Business loan applicants must have a reasonable amount invested in their business to ensure that, when combined with borrowed funds, the business can opera... |
wikademia>MSUglobal No edit summary |
||
| Line 3: | Line 3: | ||
==Equity Investment== | ==Equity Investment== | ||
Business loan applicants must have a reasonable amount invested in their business to ensure that, when combined with borrowed funds, the business can operate on a sound basis. There will be a careful examination of the debt-to-worth ratio of the applicant to understand how much money the lender is being asked to lend (debt) in relation to how much the owner(s) have invested (worth). Owners invest either assets that are applicable to the operation of the business and/or cash which can be used to acquire such assets. The value of invested assets should be substantiated by invoices or appraisals for startup businesses or current financial statements for existing businesses. | Business loan applicants must have a reasonable amount invested in their business to ensure that, when combined with borrowed funds, the business can operate on a sound basis. There will be a careful examination of the debt-to-worth ratio of the applicant to understand how much money the lender is being asked to lend (debt) in relation to how much the owner(s) have invested (worth). Owners invest either assets that are applicable to the operation of the business and/or cash which can be used to acquire such assets. The value of invested assets should be substantiated by invoices or appraisals for startup businesses or current financial statements for existing businesses. | ||
<div style="float:right;">[[Forms of Short-term Financing/Small Business Administration (SBA) of the US|Prev]] | [[Forms of Short-term Financing/Earnings Requirements|Next]] | |||
[[Category:International Business]] | [[Category:International Business]] | ||
Revision as of 16:28, 28 September 2007
Equity Investment
Business loan applicants must have a reasonable amount invested in their business to ensure that, when combined with borrowed funds, the business can operate on a sound basis. There will be a careful examination of the debt-to-worth ratio of the applicant to understand how much money the lender is being asked to lend (debt) in relation to how much the owner(s) have invested (worth). Owners invest either assets that are applicable to the operation of the business and/or cash which can be used to acquire such assets. The value of invested assets should be substantiated by invoices or appraisals for startup businesses or current financial statements for existing businesses.