For finance genuises, what is the difference between debt and equity finance, and what exactly is structured?

finance? Is it different. What is the diffrences between contsruction loans, mezzanine loans, mortgage loans and land loans? what are the same, what are different??????

When a company needs money it can take on debt, eg borrow money from a bank which then has to be repaid.
Or it can issue more equity, (i.e. shares) and this is equity finance. It does not require repayment
A structured loan is one having a definite structure, eg 60% loan and 40% equity, the loan payable in equal amounts over 3 years.

http://biztaxlaw.about.com/od/financingy...

Construction loans, mezzanine loans, mortgage loans, etc. They're all loans i.e. debt. The differences are the ways they're secured and sourced.

The difference between equity and debt finance is the difference between a business partner and a lender. When you join with your siblings to open a business, you're funding your company with equity. Your siblings get to share the profits and losses.

If, on the other hand, you borrow money from banks, you don't have to share the profits with them. Their returns are limited to the interest you're paying. You, however, must keep paying the interest even if your business doesn't make any money.

Tags

　　Easy Money 　　Easy Investing 　　Earn Money 　　Direct Investment 　　Debt Financing 　　Capital Investment 　　Business Investment 　　Business financing

Related information

Mortgage, Refinance, Debt Consolidation, Construction, Home Improvement...?

No, thanks. I'd never do business with someone who doesn't read and follow the guidelines of this site. Posting ads here violates the guidelines.

...

In Australia is there a limit on how long a credit agency keep on chasing an old debt that is owed to them?

based upon your status,I believe you should find something useful here....

Some of the money used to finance the project will be debt. Should the cash flows show interest charges &why

The interest should count as part of the expense. In finance every dollar is either positive or negative. (Most use [brackets] around negetive and positive just looks regular. If you can't ...

Allied uses debt in its capital structure, so some of the money used to finance the project will be debt. Give

The Modigliani-Miller theorem (of Franco Modigliani, Merton Miller) forms the basis for modern thinking on capital structure. The basic theorem states that, in the absence of taxes, bankruptcy cost...

Allied uses debt in its capital structure, so some of the money used to finance the project will be debt.?

Of course, but a good cash flow model is going to incorporate both cost of equity AND cost of debt. No debt on the balance sheet looks great, but at these still historically low rates, carrying...

"Deflation reduces the value of real assets financed with debt". Explain why?

Deflation reduces the value of all assets, not just those financed with debt. But anytime debt is involved the "leverage" heightens the changes in the asset value. So if you bought ...

I'm 21 and i whas 18k dollars in debt i paid it all off in cash but...?

You just paid off your debt, BUT you have a line of bad credit. Of course you can't get a loan. You need to establish a good line of credit. Try getting a secured credit card. Most credit card...

Who finance US consumer debt?

We all do, sooner or later. When there's a lot of debt, both consumer and government, the currency is worth less, and that makes everything go up. Fuel is a good example. One of the reasons...