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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 ?
25 million permanent financing for Commerce Park, a four-building, two-story medical office complex in Bridgeport, Conn.
140 million acquisition financing--Tierra Del Sol, Aruba--The financing will be used for the acquisition of the Tierra Del Sol Resort and Country Club, the premier golf and country club on the island of Aruba.
Premium financing created a tool so companies can finance their P/C coverage and pay over the year, as opposed to at one time," said Bryan Blakeman, a managing partner for risk management with Kaye-Bassman International Corp.
In Argentina you can probably count on one hand the number of corporations that have been able to get financing in the capital markets," says San Miguel.
The court analogized Freddie Mac's interest in its favorable financing to a bank's interest in its "deposit base" or "core deposits," which have been found to be intangible amortizable assets; see Citizens & S.
The manufacturer's equity share of the interest on dealers' or distributors' loans, which would be paid entirely to the finance company in a conventional inventory financing arrangement, and other financing options such as asset-based loans and factoring.
11) A guarantee is not a financing transaction,(12) nor is a transfer of money or other property in satisfaction of a repayment obligation.
We generally do not do development and construction financing unless we are going to do the permanent financing, and typically we do construction financing only with companies that already have cash flowing facilities in our portfolio.
Gaining expertise in municipal taxable project financings will serve as a natural entry for WR Lazard into corporate finance, Glover predicts.
Matthew Classi, managing member of GCP Capital Group LLC, arranged the financing.
AmTrade provides trade financing services in all areas where capital equipment is involved, including telecom, construction, textiles, packaging and food processing, says Michael P.

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