Businesses can use either debt or equity capital to raise money—where the cost of debt is usually lower than the cost of equity.
Debt holders usually charge businesses interest, while equity holders rely on stock appreciation or dividends for a return.
Preferred equity has a senior claim on a company’s assets compared to common equity, making the cost of capital lower for preferred equity.
The financial models from Achieve Corporation involves determining the mix of debt and equity that is most cost-effective for your business.
Our scope of works normally includes:
- Investigating and advising on the different funding options – debt, equity, grants, supplier finance
- Preparing and presenting a set of forecasts and a business plan
- Helping clients assess the commercial, accounting, and cash flow implications of financing structures
- Introductions to funders based upon our existing network of PE companies’ and corporate lenders