AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Tax Efficient Ways to Raise Equity
The main reason or one of the reasons that you would put loans into a company rather than equity is if you're going to get a return on that interest on a loan. Whereas a return on equity would be dividends, which are paid out of post tax profits. So it will depend on the, you know, on the priorities really of the scenario. Most big investors will want equity. But sometimes earlier stage people might just get a loan,. perhaps friends and family or something like that will help somebody buy a company. And then we'll just want the loan paid back.