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The process or means of acquiring capital necessary to conduct a business activity. Two of the most common forms of financing are debt financing and equity financing. In debt financing, one borrows money, usually from an institution, with the promise to return the money with interest at some point in the future. This provides capital to the borrower and a profit to the lender. In equity financing, a company sells portions of ownership to those who are interested. Unlike debt financing, equity financing usually raises capital without incurring liabilities, but the risk exists that the company will not raise enough. An alternative to both debt financing and equity financing, especially for start-ups, is using money from personal savings to pay for activities.


Borrowing money to buy property. See leverage.

References in periodicals archive ?
Easy integrated financing - Consumers can choose their preferred method of financing using Capital One's Blank Check(R) or alternative financing.
arranged a $28 million leasehold financing for One Riverfront Plaza, a 20-story, 418,00 SF office tower in Newark, N.
At the dealership, consumers will choose the vehicle they have specified and then qualified consumers will have the option of funding their loan online directly through Capital One or using alternative financing.
David Tobin arranged the financing for this transaction;
Houlihan arranged the financing for this transaction.
Assignments by the financing entity of the financed entity's loan to an intermediate entity (see Aiken Industries).
Generally speaking, the proposed regulations provide that, where the intermediate party is related to one or both of the other parties, the IRS may treat the intermediate party as a conduit if the participation of the intermediate party in the financing arrangement (i) reduces the tax imposed by section 881, and (ii) is pursuant to a tax avoidance plan.
For successful project-finance structures, many companies must rely on a melange approach -- that is, a blend of sponsor equity, local borrowing, MFI participation, Export Credit Agency (ECA) involvement, vendor financing, international debt/equity financing, derivative products to hedge exposures and so on.
The financing announced today provides the liquidity and working capital necessary to help our emerging market channel partners grow significantly, which is key to Cisco's Emerging Markets strategy," said David Rogan, president of Cisco Systems Capital Corporation.
450 Million of Acquisition & Construction Financing--Multiple Hotel Assets--Carlton, as exclusive advisor to an international hospitality developer, is arranging acquisition and construction financing as well as joint venture equity for a major hotel company.
A commercial equipment manufacturer on the verge of closing an important deal faced a difficult dilemma: Unless it could offer its customer a financing contract, it risked losing the business to a rival.
Since joining GE in 1988, Lupoff has also led structured finance teams in Asia Pacific, in railroad financing and in distressed debt.