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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


Borrowing money to buy property. See leverage.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
This is not surprising, in that there is an inherent conflict between geometric growth in the demand for long-term care services and a continuing disinclination on the part of taxpayers and politicians to augment financing programs.
Responsibilities: One of two black women to become a managing director at Morgan Stanley, she is responsible for private equity financing in the technology, media, telecommunications, transportation, industrial, and healthcare sectors.
According to statistics, the annual income of new and used cars worldwide tend to be about $1.3 trillion, of which only 30% ($385 billion) is cash sales, and about 70% ($915 billion) has financing arrangements.
The profit, therefore, is much higher from business in financing the purchases of second hand cars.
Paul Greenbaum, managing member of GCP, arranged the financing.
Suppliers view their receivables in a Web-based format, and, at their option, sell them to a funder in return for early cash, less a financing fee.
Arizona and Maine have offered full public financing of statewide and legislative races since the 2000 election cycle.
* Wind Energy--a new business that offers feasibility studies, project development and financing.
RCMD is one of numerous brokers who offer premium financing via AFCO Credit Corp., Pittsburgh.
Large corporations only need to prove cash flow and demonstrate a decent financial condition to get financing as a result of the incoming investment, Hernandez says.
Freddie Mac held a number of financing arrangements (favorable financing) on Jan.

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