Overview

In order to fund the growth or turnaround of a business, it is necessary for the owners to have available sufficient financial resources; which may be either debt or equity. Debt means incurring a liability to repay borrowed monies over a period of time, plus interest. Equity involves raising money by selling partial ownership of the business to an investor. There are advantages to each of these options and often the best route is to have a combination of the two. Whichever option is chosen, the investor will have various rights to information, consultation or control that need to be considered and dealt with accordingly.