Equity financing is the common method of raising fresh capital apart from public issue by selling common shares for the business entities to high net worth individuals, institutional investors or financial institutions who are looking at diverse investment opportunities. This differs from debt financing, where the business secures a loan from a financial institution. Equity financing is typically used as seed money for business startups or as additional capital for established businesses wanting to expand.
Equity financing is normally obtained by selling shares of the business in the form of common stock. Typically each share represents a single unit of ownership of the company. For example, if the company has issued 1000 shares of common stock and Owner A has 500 shares then Owner A owns 50% of the company. Ownership in a business is diluted whenever additional shares are issued.
Equity Financing is that there is no obligation to repay the money acquired through it. Of course, a company's owners want it to be successful and provide equity investors a good return on their investment, but without required payments or interest charges as is the case with debt financing. Equity financing places no additional financial burden on the company. Since there are no required monthly payments associated with equity financing, the company has more capital available to invest in growing the business.
Considering above, SFCS helps to get various local & foreign equity financing partner with the line of entrepreneurs need for the growing & already established business entities.