Types of Financing
There are many different types of financing. Below listen are the important and common ones. Debt Financing -Debt financing does not give the lender ownership control, but rather the principal must be repaid with interest. Length of the loan, interest rates, security and different terms depend upon for what the loan is being used. There are distinctive types, for example, short term, time loans, lines of credit, medium to long term, working capital loan, loans for equipment, real estate financing and asset-based lending. The distinction between a bank and an asset-based lender can be significant. Asset-based lenders are not regulated and this makes conventional financial ratios secondary in the credit analysis. While banks are virtually confined nowadays to strict reliance on balance sheet figures, an asset-based lender can look behind…