Posted on May 14, 2019 by chris in News

Issuing shares in a company, also known as equity financing, is the practice of raising capital for a business by selling shares of ownership in the company. It is one of the major alternatives to debt financing, which is the practice of raising capital through bank loans, bonds and other forms of borrowing.

There are several reasons why raising finance by issuing shares poses an attractive option, especially for SMEs. However, it should be noted that there are some drawbacks and pitfalls to avoid, and those considering raising funds through issuing share capital should consider both sides of the coin carefully before making a decision. Below is a quick rundown of the pros and cons to aid you in that decision:

Advantages of raising funds by issuing share capital

Disadvantages of share capital

Still unsure?

If you’re considering taking your business to the next level through the funds raised by share capital but aren’t quite sure if it’s the right move for you, it could be time to obtain professional advice. At Profile, we’re experienced business accountants with a proven track record of giving insightful financial advice that can offer practical benefits to your company.

To learn more about how we can help you progress, give us a call on 020 8432 2289 or drop us an email at [email protected] and we’ll get back to you as soon as we can. What are you waiting for? Get in touch today!