Financing Assignment Help
Learn All the Basics of Financing Through Online Homework Help
It is common for people to borrow money for purchasing vehicles, homes or anything else they presently do not have the money for but still want to go ahead with the purchase. Financing allows them to make the purchase. Students studying finance often have to deal with plenty of homework and assignments. Our financing homework help is tailor made to provide you the right kind of online academic assistance.
What is financing?
Financing means asking any financial institutions such as banks, finance companies, credit union or any other person for that matter. You should repay the money at a certain point in future.
For instance, when you wish to buy a car but you don’t have the cash for it, the dealer shall look for a bank that is willing to finance the car for you. When the financing is approved, the bank pays the money to the car dealer for the car. The bank then bills you each month for it. You can better understand the concept with our financing assignment help.
The bank would be willing to lend you the money if you agree to pay a certain interest on top of the money that is being lent to you. In other words, financing is the act of borrowing money with a promise of repaying that money along with an additional fee, known as interest, over a specified time period.
Two types of financing
There are mainly two types of financing- debt financing and equity financing. Both the types have their own disadvantages and advantages. Most of the companies use a combination of both the types of financing for their financial operations. While providing financing homework help, our experts will discuss both these sides in details.
- Equity financing:
Equity is synonymous with ownership. In case of equity financing, the equity doesn’t need to be paid back, although the ownership is relinquished to the shareholders. For example, an owner of a particular company might want to expand for growing operations. Rather than debt, the owner might decide to sell a certain percentage of stake in the company. Companies sometimes prefer equity since the investors bear all the risks.
- Debt financing:
People are usually familiar with debt being a form of finance because of mortgages and car loans. This type of financing is also common for starting new businesses. Debt, however, must be repaid. The lenders also want to be paid a certain interest for the money they lend. Some even require collateral before they lend the money.
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