one of the major sources of early financing is
Related Terms: Debt Financing; Capital Structure. A company can finance its operation by using equity, debt, or both. Equity is cash paid into the businessâeither the owner's own cash or cash contributed by one or more investors. Equity investments are certified by issuing shares in the company.ebt-Equity Ratio. If the company also used debt as a way of financing its activities, the lender's perspective also plays a role. The company's ratio of debt to equity will influence a lender's willingness to lend. If equity is higher than debt, the lender will feel more secure.