question.jpgIn Business Law

How are corporations financed?

Most corporations (like most other business entities) are financed in one of two ways, or in a combination of the two ways - via funding with equity and/or funding with debt. Of course, one of the big advantages of the corporate form is that it is easier to obtain equity funding, because the corporation can sell its stock for cash. However, corporations can also obtain loans to help get by until the investment equity and profits are enough to allow the business to sustain itself on its own. Obviously, the details about how you should finance your corporation will turn on factors specific to your precise situation.