Investment Advisory Services
Do you want to put your company in a stronger financial position, improve its efficiency and profitability?
The VM Wealth corporate finance gives Clients access to a full array of financing solutions. Our team focuses on originating, structuring, facilitating and executing debt financings.
Debt financing, in simple terms, is borrowing money from another source, with an agreement to repay in a fixed amount of time, at a particular interest rate. Debt financing is usually a facility accessed by small businesses, and may be short-term or long-term. In the short-term, a business may need funds to take care of its day-to-day needs, such as inventory. Long-term debt financing is usually to take care of major purchases or improvements on fixed assets such as equipment, facilities and real estate.
Advantages to Debt Financing:
- You retain maximum control and ownership of your business
- The interest on debt financing maybe tax deductible
- If your business is seasonal, your VM Wealth Advisor will design a debt financing strategy to get you through the slow period
NB. Tax laws may be revised from time to time resulting in changes to your tax liability
Equity Financing is when a company raises money for its endeavours by selling stocks to investors, whether individual or corporate. Investors who purchase these stocks receive ownership interests in the business as a result.
Options for Equity Financing
There are different types of Equity Financing including:
- Venture capital — money (and possible expertise) from private investors
- Initial Public Offerings (IPO) – selling shares to the public for the first time
- JSE Junior Exchange Listing
- Franchising – giving others the right to sell a trademark product/service
- Employee Stock Ownership Plan (ESOP) - employees are allowed to own a share of the business
Benefits of Equity Financing
- In the case of ESOP, production levels may increase
- Contributes to a healthy balance sheet
- Provides necessary leverage to attract other investors and/or lenders
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