What is eagle finance morehead ky?

Eagle finance is the practice of raising money for a business by selling stocks or equity in a company. Finance Morehead KY companies raised about $34.7 billion in the first quarter of 2016, which was nearly double what was raised during the same period last year, according to Thomson Reuters data.

Use of this finance:

Businesses in morehead KY use this to expand and grow their products, services and reach out to new customers.

Advantages of Eagle Finance:

• Takes less time: It takes months to get a bank loan, but this method can take days or hours. It is faster.

Less paperwork: There are a lot of documentations required for the bank loans. The process is lengthy and requires many documents to be filled in a very stringent manner. On the other hand, it is not so demanding for equity financing if you know what you are doing. You do not have to fill up any forms or sign any agreements or contracts that will bind you after getting funding.

• Reducing cost: Equity financing is less expensive and takes shorter time. There are no fees like bank loans, which charge interest rates.

• Easier to get approved: You can get approved for equity financing even with bad credit score than a bank loan. If your business is not yet well established, this will be the best option for you. You can also get funding from eagle finance companies even if there are no assets that can be used as security in this type of loans.

• No collateral required: If you have bad credit history, do not worry because it does not require any collateral for a loan for equity financing.

How did this finance evolve?

Eagle financing is a relatively new, modern form of business financing. It came about as a merger between traditional leveraged buyouts and access to venture capital. The first known use of eagle finance was in 1997 when private equity firm Apax Partners and insurance company BMO Harris Bank invested $200 million in Fiserv Inc, a credit card processing company. The private equity firm received 58 percent ownership vote while the bank received 24 percent.

With the emergence of more and small companies, they have used more this financing instead of big banks as it has been with traditional lending. However, some financial experts suggest that this new way of financing will end up with banks again because when markets are down and panic arises, equity financing comes to an end. Banks are not affected by uncertainty while debt financing keeps going. When markets turn sour, buyers disappear making equity financing hard to get without enough resources from your own pocket.

How can it be used efficiently?

The most obvious way to use this form of business financing is to raise money for a start-up through selling shares or equity in the company. It is a good idea to offer a part of the shares to insiders or investors with the intention of holding on to them for a long period. If the business grows, their share in it will be much higher in value.

Disadvantages:

It is not the best option to use if you are in need of a large amount of money. It is also much more expensive than bank loans.

If you do not know what you are doing, this can ruin your business and life. In addition, it will be very hard to find an investor in Eagle finance because most of them are looking for returns in large amounts which can be achieved by investing in bonds or stocks.

Eagle finance companies may also require that you give personal guarantees as one form of protection for the financing. This means if your business does poorly, you may have to pay up even though your company was the sole source of the problems.

How does it work?

This strategy is based on a company that has a good track record and a bright future. The company is sold to private equity investors or financial institutions who purchase a majority of the business for a certain amount. These companies pay for the stock in cash, services, and products. These buyers also provide their personal guarantees to help protect the investments from non-performing companies.

Before you do anything, learn about how this program works and whether it is suitable for your business or not. Read all agreements carefully before signing them as there could be hidden risks in them which you should know about before signing it. Take help from experts or lawyers to identify all risks before moving forward with any eagle financing deal.

Is it worth it?

It is always best to spend time and money on reading about this matter to understand the pros and cons of each option carefully. You will avoid any loss or gain if you learn about the benefits and risks of this form of financing.

Who does it suit?

Eagle finance is a great idea for young and small companies that are not yet established enough for bank loans but are not connected with large corporate networks. These companies need funds to expand product range, attract new customers, or establish new markets in the country.

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