Debt Financing and Equity Financing for Businesses Cottage Grove MN

Looking for Debt Financing and Equity Financing for Businesses in Cottage Grove? We have compiled a list of businesses and services around Cottage Grove that should help you with your search. We hope this page helps you find Debt Financing and Equity Financing for Businesses in Cottage Grove.

Charles Buck
Buck Financial Advisors, LLC
(651) 330-3585
9733 Wellington Ridge
Woodbury, MN
Expertises
Retirement Planning & Distribution Rules, Retirement Plan Investment Advice, Newlyweds & Novice Investors, Helping Clients Identify & Achieve Goals, Middle Income Client Needs
Certifications
NAPFA Registered Financial Advisor, CFP®

Thomas Alf
Clerestory Advisors, Inc.
(651) 209-2610
750 Main Street, Suite 215
Mendota Heights, MN
Expertises
Retirement Planning & Distribution Rules, Ongoing Investment Management, Cash Flow/Budgets/Credit Issues, Planning Issues for Unmarried & Same-Sex Couples, Divorce Planning
Certifications
NAPFA Registered Financial Advisor, CDFA, CFP®, CPA

Jonathan Jaranson
PrairieView Partners, LLC
(651) 233-1100
413 Wacouta Street, Suite 300
St. Paul, MN
Expertises
Ongoing Investment Management, High Net Worth Client Needs, Retirement Plan Investment Advice, Estate & Generational Planning Issues, Tax Planning, Planning Concerns for Corporate Executives
Certifications
NAPFA Registered Financial Advisor, CFP®

Steven Zimmerman
Mindful Asset Planning
(952) 432-4666
14530 Pennock Avenue
Apple Valley, MN
Expertises
Retirement Planning & Distribution Rules, Financial Psychology/Coaching, Ongoing Investment Management, Planning Concerns for Corporate Executives, Planning Issues for Business Owners, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®, ChFc

Janet Stanzak
Financial Empowerment, LLC
(952) 646-0026
450 American Blvd. West
Bloomington, MN
Expertises
Retirement Planning & Distribution Rules, Ongoing Investment Management, Planning Issues for Business Owners, Women's Financial Planning Issues, Tax Planning, Estate & Generational Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®, MS

Nate Wenner
Wipfli Hewins Investment Advisors, LLC
(651) 766-2869
8665 Hudson Blvd N
St. Paul, MN
Expertises
Ongoing Investment Management, Planning Issues for Business Owners, Advising Medical Professionals, Women's Financial Planning Issues, High Net Worth Client Needs, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, CFP®, CIMA, CPA/PFS

Lauri Salverda
Clerestory Advisors, Inc.
(651) 209-2610
750 Main Street, Suite 215
Mendota Heights, MN
Expertises
Ongoing Investment Management, Middle Income Client Needs, Helping Clients Identify & Achieve Goals, Retirement Plan Investment Advice, Estate & Generational Planning Issues, Planning Issues for Unmarried & Same-Sex Couples
Certifications
NAPFA Registered Financial Advisor, CDFA, CFA, CFP®

Stephen Galligan
Galligan Financial Advisors
(651) 456-5385
3460 Washington Drive, Suite 204
Eagan, MN
Expertises
Ongoing Investment Management, Helping Clients Identify & Achieve Goals, Divorce Planning, Tax Planning
Certifications
NAPFA Registered Financial Advisor, CFP®, CPA/PFS, MBA, MS

Edward Schrotenboer
Ednomics Financial, LLC
(952) 888-3834
801 W. 106th Street, Suite 212
Bloomington, MN
Expertises
Tax Planning, Retirement Planning & Distribution Rules, Middle Income Client Needs, Ongoing Investment Management, Hourly Financial Planning Services, College/Education Planning
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA

Robert Rogers
Rogers Financial Advisory, LLC
(612) 379-7692
143 Orlin Avenue, SE
Minneapolis, MN
Expertises
Ongoing Investment Management, College/Education Planning, Retirement Planning & Distribution Rules, Planning Issues for Unmarried & Same-Sex Couples
Certifications
NAPFA Registered Financial Advisor, BA, CFP®, MA, PhD

Debt Financing and Equity Financing for Businesses

There are several advantages as well as disadvantages to debt financing and equity financing, and while not everyone understands the differences, they need to be understood.

The first type of financing to look at is the most traditional, called debt financing. In simple terms debt financing means that you have loans for money that you do not have, this is why it is called debt, because you are in debt. Whether you owe this money to a bank, individual company, or even an investor you are under an obligation to repay the debt.

Some of the advantages to debt financing are that you are able to stay in control of your business. You are who decides what money is spent on, whom to hire, what hours of operation and everything else associated with your business. Another advantage is for your tax purposes. Simply put any money that you spend on interest rates you can deduct on your taxes. Depending on the amount of interest you are paying, this can be a huge tax saving.

One of the biggest disadvantages of debt financing is that too much debt can cause your business to look risky, or even unstable. While this is the most desired type of financing, you must ensure that your business is capable of making all debt payments on time.

The next major type of financing is called equity financing. This means that you are trading a piece of ownership of your business for money. This method is most often associated with angel investors and venture capitalists. One of the biggest advantages to equity financing is that you do not have to repay the debt in any way - you do not have to make a monthly or balloon payment to give money back to the investor. As long as your business is making money your investors are happy.

Another advantage is that your investors may be able to help you get debt financing. With the funding coming from several sources, you could give up less of your business and still get the funding you need. In addition, the investors may be financing other companies that can help your business out. Most reputable investors will only associate with reputable companies, so having a reputable investor helping your business automatically gives your business a bit of an edge over some competitors.

The disadvantage with equity financing is that you are giving away partial ownership of your business in exchange for money. This means that you are no longer the only person in charge of making decisions such as pricing, employees, merchandise, and suppliers. You will also need the other owner’s signature in order to apply for bank accounts, credit cards, as well as other forms of debt financing. One of the worse scenarios that can come from equity financing is that you end up being forced out of your business. This is generally caused by disagreements where the parties are unable to work together, and someone must be bought out. Typically, the party bought out is the one who originally started the business, simply becau...

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