Debt Financing and Equity Financing for Businesses Enterprise AL

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

Mr. Jeffrey A. Luther, CFP®
(334) 347-4238
1403 Rucker Blvd
Enterprise, AL
Firm
First Command Financial Planni
Areas of Specialization
Comprehensive Financial Planning, Government and Military, Insurance Planning, Long-Term Care, Social Security Planning, Wealth Management

Data Provided By:
Wells Fargo - Enterprise Downtown
(334) 393-3388
306 S Main St
Enterprise, AL
Type
Branch
Office Hours
Mon-Fri 08:30 AM-05:00 PM
Sat-Sun Closed

Regions Bank - Enterprise
(334) 347-0502
110 East College Street
Enterprise, AL
Type
Branch
Office Hours
M-Th 8:30-4:30
F 8:30-5:30
S CLOSED
Su NA
Drive Up Hours
M-Th 8:30-5:00
F 8:30-5:30
S CLOSED
Su NA

Wells Fargo - Elba Main
(334) 897-2291
402 Collier St
Elba, AL
Type
Branch
Office Hours
Mon-Thu 09:00 AM-04:00 PM
Fri 09:00 AM-05:30 PM
Sat-Sun Closed

Loomis-Fargo
(334) 308-1001
3477 County Road 617
Enterprise, AL
 
Mr. Troy D. Richards, CFP®
(334) 348-2333
1247 Rucker Blvd Ste C
Enterprise, AL
Firm
First Command Financial Planning
Areas of Specialization
Comprehensive Financial Planning, Government and Military, Insurance Planning, Long-Term Care, Retirement Income Management, Retirement Planning, Social Security Planning

Data Provided By:
Wells Fargo - Enterprise Westgate
(334) 347-7700
619 Boll Weevil Cir
Enterprise, AL
Type
Branch
Office Hours
Mon-Fri 08:30 AM-05:00 PM
Sat-Sun Closed

Wells Fargo - Daleville
(334) 598-4446
70 Old Hwy 134
Daleville, AL
Type
Branch
Office Hours
Mon-Fri 08:30 AM-05:00 PM
Sat-Sun Closed

Wells Fargo - Ozark Main
(334) 774-9313
293 Andrews Ave
Ozark, AL
Type
Branch
Office Hours
Mon-Fri 09:00 AM-05:00 PM
Sat 08:30 AM-12:00 PM
Sun Closed

First Franklin Financial
(334) 347-5795
621 Boll Weevil Cir Ste 29
Enterprise, AL
 
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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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