Equity Loan

Equity loan is typically an “investment” in a company that is secured by a certain amount of that company’s shares and structured, in part or whole, as a loan. Investment banks will provide funds secured by the “equity” or ownership shares of your company.

Companies that receive funding are those in large rapidly growing markets, or in niche markets that are not targeted by major players.

Investment Stage
Early and later-stage companies with a founder and partial management team with revenue or profits and the need for expansion capital.

Size of the Investment
Typically $1-2 million initially with up to $5-10 million over the life of the investment.

Duration
Investments typically are for 3-5 years, but sometimes may last longer.

onEntrepreneur

onEntrepreneur is an online magazine centered on the world of business, entrepreneurship, finance, marketing, technology and much more. We are regularly updated – sign up with our newsletter to send the updates directly to your inbox.

Leave a Reply

Your email address will not be published. Required fields are marked *