Debt may be characterized as senior debt or subordinated debt . This is a loan secured with a particular piece or set of equipment. The lender usually has a purchase money security interest specific to the equipment making this senior debt . Lenders may require additional collateral and almost always require an appraisal by a national appraisal firm acceptable to the lender. The sale of preferred stock, common stock, options or warrants in the corporation, either privately or in the public markets.
Venture capital is a type of equity financing.
This is the sale of accounts receivable invoices to a third party who then assumes the obligation of collecting the invoice. Factors can move quickly to get funds to a business but are usually the most expensive way to finance accounts receivable. This is an appraisal term representing the appraiser's best judgment on the value of the appraised item under circumstances where there is NOT adequate time to collect bids for the sale of the item. This contrasts with orderly liquidation value . These are loans for a fixed period of time during which only interest is repaid for some or all of the term.