Finance

How do I find a debt equity backer?

min read
Opinions expressed by Entrepreneur contributors are their own.
Debt and equity backing are two different concepts.

Normally you will utilize a traditional lender to provide debt or search out various investors that are looking to be a debt backer vs. equity partner. A lot will depend on the profitability projections, your credit, etc., as to the ease of finding this backer. Also, they'll want to know what you are using the debt for...few will provide debt for operating so they'll be looking to see what types of assets you are using the funds for.

Equity backers are usually more open to risk as they are looking for opportunities for a higher return -- though bottom line is they want to see how this business is going to make money so they can get a return on their investment.

Visit with your accountant for specifics that will work for what you are hoping to achieve.

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