5 Simple Ways to Invest in Real Estate

Here’s how—from buying rental property to REITs and more.

Buying and owning real estate is an investment strategy that can be both satisfying and lucrative. Unlike stock and bond investors, prospective real estate owners can use leverage to buy a property by paying a portion of the total cost upfront, then paying off the balance, plus interest, over time.

While a traditional mortgage generally requires a 20% to 25% down payment, in some cases a 5% down payment is all it takes to purchase an entire property. This ability to control the asset the moment papers are signed emboldens both real estate flippers and landlords, who can, in turn, take out second mortgages on their homes in order to make down payments on additional properties. Here are five key ways investors can make money on real estate.

While a traditional mortgage generally requires a 20% to 25% down payment, in some cases a 5% down payment is all it takes to purchase an entire property. This ability to control the asset the moment papers are signed emboldens both real estate flippers and landlords, who can, in turn, take out second mortgages on their homes in order to make down payments on additional properties. Here are five key ways investors can make money on real estate.

Key Takeaways

  • Aspiring real estate owners can buy a property using leverage, paying a portion of its total cost upfront, then paying off the balance over time.
  • One of the primary ways in which investors can make money in real estate is to become a landlord of a rental property.
  • People who are flippers, buying up undervalued real estate, fixing it up, and selling it, can also earn income.
  • Real estate investment groups are a more hands-off way to make money in real estate.
  • Real estate investment trusts (REITs) are basically dividend-paying stocks.

5 Simple Ways To Invest In Real Estate

1. Rental Properties

Owning rental properties can be a great opportunity for individuals with do-it-yourself (DIY) and renovation skills, and have the patience to manage tenants. However, this strategy does require substantial capital to finance up-front maintenance costs and to cover vacant months.

Pros

  • Provides regular income and properties can appreciate
  • Maximizes capital through leverage
  • Many tax-deductible associated expenses

Cons

  • Can be tedious managing tenants
  • Potentially damage property from tenants
  • Reduced income from potential vacancies

According to U.S. Census Bureau data, sales prices of new homes (a rough indicator for real estate values) consistently increased in value from 1940 to 2006, before dipping during the financial crisis. Subsequently, sales prices resumed their ascent, even surpassing pre-crisis levels. It remains to be seen what the longterm effects of the coronavirus pandemic will be on real estate values.

2. Real Estate Investment Groups (REIGs)

Real estate investment groups (REIGs) are ideal for people who want to own rental real estate without the hassles of running it. Investing in REIGs requires a capital cushion and access to financing.

REIGs are like small mutual funds that invest in rental properties. In a typical real estate investment group, a company buys or builds a set of apartment blocks or condos, then allows investors to purchase them through the company, thereby joining the group.

A single investor can own one or multiple units of self-contained living space, but the company operating the investment group collectively manages all of the units, handling maintenance, advertising vacancies, and interviewing tenants. In exchange for conducting these management tasks, the company takes a percentage of the monthly rent.

A standard real estate investment group lease is in the investor’s name, and all of the units pool a portion of the rent to guard against occasional vacancies. To this end, you’ll receive some income even if your unit is empty. As long as the vacancy rate for the pooled units doesn’t spike too high, there should be enough to cover costs.

Pros

  • More hands-off than owning rentals
  • Provides income and appreciation

Cons

  • Vacancy risks
  • Similar fees as mutual funds
  • Susceptible to unscrupulous managers

3. House Flipping

House flipping is for people with significant experience in real estate valuation, marketing, and renovation. House flipping requires capital and the ability to do, or oversee, repairs as needed.

This is the proverbial “wild side” of real estate investing. Just as day trading is different from buy-and-hold investors, real estate flippers are distinct from buy-and-rent landlords. Case in point—real estate flippers often look to profitably sell the undervalued properties they buy in less than six months.

Pure property flippers often don’t invest in improving properties. Therefore, the investment must already have the intrinsic value needed to turn a profit without any alterations, or they’ll eliminate the property from contention.

Flippers who are unable to swiftly unload a property may find themselves in trouble because they typically don’t keep enough uncommitted cash on hand to pay the mortgage on a property over the long term. This can lead to continued, snowballing losses.

There is another kind of flipper who makes money by buying reasonably priced properties and adding value by renovating them. This can be a longer-term investment, where investors can only afford to take on one or two properties at a time.Pros

  • Ties up capital for a shorter time period
  • Can offer quick returns

Cons

  • Requires a deeper market knowledge
  • Hot markets cooling unexpectedly

4. Real Estate Investment Trusts

real estate investment trust (REIT) is best for investors who want portfolio exposure to real estate without a traditional real estate transaction.

A REIT is created when a corporation (or trust) uses investors’ money to purchase and operate income properties. REITs are bought and sold on the major exchanges, like any other stock.

A corporation must payout 90% of its taxable profits in the form of dividends in order to maintain its REIT status. By doing this, REITs avoid paying corporate income tax, whereas a regular company would be taxed on its profits and then have to decide whether or not to distribute its after-tax profits as dividends.

Like regular dividend-paying stocks, REITs are a solid investment for stock market investors who desire regular income. In comparison to the aforementioned types of real estate investment, REITs afford investors entry into nonresidential investments, such as malls or office buildings, that are generally not feasible for individual investors to purchase directly.

More important, REITs are highly liquid because they are exchange-traded. In other words, you won’t need a realtor and a title transfer to help you cash out your investment. In practice, REITs are a more formalized version of a real estate investment group.

Finally, when looking at REITs, investors should distinguish between equity REITs that own buildings, and mortgage REITs that provide financing for real estate and dabble in mortgage-backed securities (MBS). Both offer exposure to real estate, but the nature of the exposure is different. An equity REIT is more traditional, in that it represents ownership in real estate, whereas the mortgage REITs focus on the income from mortgage financing of real estate.

Pros

  • Essentially dividend-paying stocks
  • Core holdings tend to be long-term, cash-producing leases

Cons

  • Leverage associated with traditional rental real estate does not apply

5. Online Real Estate Platforms

Real estate investing platforms are for those that want to join others in investing in a bigger commercial or residential deal. The investment is done via online real estate platforms, also known as real estate crowdfunding. It still requires investing capital, although less than what’s required to purchase properties outright.

Online platforms connect investors who are looking to finance projects with real estate developers. In some cases, you can diversify your investments with not much money.

Pro’s

  • Can invest in single projects or portfolio of projects
  • Geographic diversification

Cons

  • Tends to be illliquid with lockup periods
  • Management fees

The Bottom Line

Whether real estate investors use their properties to generate rental income, or to bide their time until the perfect selling opportunity arises, it’s possible to build out a robust investment program by paying a relatively small part of a property’s total value upfront. And as with any investment, there is profit and potential within real estate, whether the overall market is up or down.

By Andrew Beattie in Investopedia

Please contact Albert A. van Daalen for advice and support in Investment Services.

Hoe vind je een gat in de markt?

Een gat in de markt is de heilige graal voor startende ondernemers. Of je nu iets totaal nieuws hebt bedacht of juist iets gaat doen wat al bestaat. Je moet je altijd afvragen of er behoefte is aan jouw product of dienst. Waarom kiezen klanten voor jou? Wat is jouw unique selling point?

1. Gat in de markt is meer dan innovatie

‘Een gat in de markt vinden’ kun je op meerdere manieren interpreteren. Het eerste waar mensen aan denken, is een volledig nieuw product dat niemand kent dat vervolgens door iedereen wordt gekocht.

Oftewel: een innovatie of niche die leidt tot een enorm commercieel succes. Neem de paperclip of de introductie van Wi-Fi. Je kunt het ook anders bekijken, namelijk als iets wat nog mist in de markt.

Wees creatief

Dit kan ook zijn: unieke service, lage kosten. Denk bijvoorbeeld aan het succes van peer-to-peer-diensten als Airbnb. Het is dan de manier waarop een dienst (een overnachting in een appartement) werkt, die een behoefte vervult.

To do: je verdienmodel kan ook een gat in de markt zijn, zoals een abonnementsvorm. Doe de Verdienmodel Challenge.

2. Welk probleem los je op?

Het uitgangspunt moet zijn dat de klant een probleem heeft. Jij lost dit op met jouw product (of dienst). Een valkuil is: beginnen met het antwoord (je product) en dan bedenken of dit een probleem oplost of een behoefte vervult (de vraag).

Vervullen van behoeften klanten

Je creëert dus geen behoefte met jouw product, maar je vervult de behoefte van de klant.

Een van de manieren om goede klantinzichten te krijgen, is een klantgesprek waarin je echt doorvraagt en niet alleen op zoek gaat naar de antwoorden die jij wilt horen. Zo ontdek je hoe je echt waarde toevoegt met je product of dienst.

Tip: Stel jij je klant wel genoeg domme vragen? Lees: klantinzicht in 6 échte gesprekken 

3. De kracht van een goed bedrijfspand

Je ondernemingsplan is de basis van iedere onderneming en onmisbaar om het gat in de markt te vinden en jouw bedrijf tot een succes te maken.

Het bedrijfsplan brengt niet alleen jouw beperkingen en mogelijkheden in kaart, een goed ondernemingsplan is in veel gevallen ook noodzakelijk om externe financiers binnen te halen.

Onderbouwing ontwikkelingen uit branche en regio

Onderbouw je verhaal met gegevens over de actuele ontwikkelingen in jouw branche en regio. Beschrijf gedetailleerd welke producten en of diensten je gaat aanbieden.

Tip: zoek je een voorbeeld ondernemingsplan? Download gratis voor jouw branche.

4. Onderzoek de markt

Geen ondernemingsplan is compleet zonder de resultaten van een branche- en marktonderzoek. Je moet als toekomstig ondernemer achterhalen hoe jouw markt in elkaar zit en op de hoogte blijven van de laatste ontwikkelingen.

Marktonderzoek

Met een marktonderzoek kun je alle zaken die jouw onderneming kunnen beïnvloeden in kaart brengen. Op de site van Rabobank vind je actuele cijfers en trends voor jouw branche

To do: plan een vast moment in de week om aan de slag te gaan met je bedrijf. Bekijk deze must-do’s voor elke startende ondernemer

De klant moet uiteindelijk worden overtuigd dat jij degene bent die met een product of dienst zijn behoefte gaat vervullen. Jouw business moet een toegevoegde waarde bieden en aansluiten bij de doelgroep die je voor ogen hebt.

Marketingmix

Een marketingplan helpt je hierbij. Een belangrijk onderdeel hiervan is de marketingmix, in de volksmond bekend als ‘de vier P’s’:

  • Prijs
  • Product
  • Plaats
  • Promotie

5. Analyseer feiten en cijfers over je doelgroep

Het succes van jouw onderneming valt of staat met het bereiken van de juiste doelgroep. Deze mensen gaan uiteindelijk jouw producten kopen of er gebruik van maken. Als er geen vraag naar jouw producten is, hoe fantastisch ze in jouw ogen ook zijn, verkoop je niets.

Behoefte potentiële klanten

Weet op wie je je moet richten, onderzoek of deze groep mensen wel in voldoende mate in jouw regio aanwezig is. Zodra je weet waar potentiële klanten behoefte aan hebben, kun je jouw product of dienst hierop aanpassen.

Op deze manier kun je ook sneller een betere afweging maken wat betreft de kostprijs van het product of jouw uurtarief.

To do: kom je er niet uit? Maak een afspraak bij de bank [of een loket van investeerders] als je wilt sparren over je plan. 

6. Ontdek jouw ‘unique selling point’

Hoe onderscheid jij je als startende ondernemer van concurrenten? Wat is jouw unique selling point (USP)? Wat maakt jou beter, groter en anders? En heel belangrijk: matcht jouw USP met de behoeftes van jouw klant?

Ofwel: is het ook een ‘unique buying point’? Denk aan: 

  • Service en gemak
  • Prijs
  • Kwaliteit, uitstraling, design
  • Persoonlijke kwaliteiten van jou en je team
  • Unieke combinatie van diensten en producten 
  • Uniek netwerk
  • Bijzonder verdienmodel, met aantoonbaar voordeel voor je klant 
  • Uniek verhaal. Denk aan ‘social enterprise’-kenmerken: dingen die je doet in de keten waarmee je de concurrentie een stap voor bent. Bijvoorbeeld op het gebied van klimaat, dierenwelzijn, cultuur of arbeidsomstandigheden 

Zijn jouw USP’s echt zichtbaar? 

Formuleer drie conrete, zichtbare USP’s voor jouw product of bedrijf. ‘Betere service’ is dus niet voldoende. Hoe ziet, ruikt, voelt of hoort je klant het? Vraag anderen om feedback: is dit echt wat je product of dienst uniek en aantrekkelijk maakt? 

7. Houd het simpel

Wie wil opvallen met een product of dienst, moet zich leren onderscheiden. Maar dat hoeft lang niet altijd met een complexe oplossing. Het gezegde ‘less is more’ gaat ook hier op.

Een van de businesslessen van de succesvolle Britse entrepreneur Richard Branson is dat je simpele zakelijke oplossingen moet bedenken waar jouw organisatie bestaande problemen mee kan oplossen.

Kleine effectieve verbeteringen

Natuurlijk: innovatie is belangrijk, maar het wiel hoeft niet altijd volledig opnieuw uitgevonden te worden. Het aanbrengen van een kleine verbetering in een bestaande strategie is mogelijk even effectief als de strategie rigoureus omgooien.

Een goede richtlijn is dat je jouw doel op een bierviltje kunt uitleggen. En kun je potentiële klanten of zakenpartners niet in een paar minuten uitleggen wat jouw bedrijf doet en waarom het een succes gaat worden? Schaaf dan nog eens aan je elevator pitch.

To do: werk aan je elevator pitch en focus daarbij op wat jouw product uniek maakt. 

Durf ervoor te gaan

Ondernemen is durven, lef tonen, risico nemen. Twijfel je of jouw product of dienst wel zo uniek is? Hoe meer liefde, focus en energie naar je bedrijf gaat, hoe groter je toegevoegde waarde.

”Natuurlijk is het al eerder gedaan, maar nog niet door jou”, aldus Elizabeth Gilbert in ‘Big Magic, de kunst van creatief leven’.

Gewoon doen! 

Een gat in de markt zoeken, is vooral ook: gewoon beginnen en alles doen wat er in je macht ligt om sterk van start te gaan. Als je denkt een goed product of unieke dienst in handen te hebben, kom in actie! Met de 8 to do’s hierboven zet je de eerste stappen. 

Gepubliceerd door IkGaStarten.nl

How To Build An Advisory Board?

An advisory board is a critical tool for getting your business to the next level. These 5 tips will get the right people around your table.

One of the smartest growth initiatives a business owner can implement is an advisory board: a hand-selected group of advisors that believe in your leadership, are aligned with your culture and mission, and are committed to your success.

The vast majority of business owners who implement an advisory board fail to see a strong return on investment because they haven’t followed guidelines to pick the right advisors, and haven’t set them up for success.

If you are considering implementing an advisory board, follow these first steps to attract and recruit your best advisors:

1: Complete your Values, Mission, Vision, and Strategic Plan first.

To create a comprehensive board search document, you must have your foundational elements constructed. What do you stand for, why do you exist, and where are you going? You must be able to articulate this to any prospective board member. In addition, you must be able to share your target customer profiles and your competitive landscape.

It is not the advisory board’s job to complete this work.

2: Select Advisors That Are Ahead of You.

Choose advisors that have already achieved what you are trying to achieve so that you can learn from both their successes and their mistakes. You don’t want to sit around a table with others that are exactly where you are.

For example, a company is currently at $60 million in revenue. The company expects to double in 18 months. It’s CFO has never managed the finances of a $120 million company. Therefore, they defined a board seat to attract a financial advisor who has run a company with revenues of more than $100 million.

Another example is a professional services firm that has developed a suite of products they want to bring to the market. This requires a re-engineering of their business model. They created a board seat definition to attract experts that have successfully pivoted their business models, so that they could advise their business of the many potential pitfalls.

3: Make Sure Your Advisors Fit Your Needs.

Are you expecting your advisors to only work with your C-level execs? Or do you want them mentoring your other employees? Are you expecting them to be available during meetings? Or only show up quarterly? Are you expecting your advisors to make key introductions to customers or investors? These are just 3 of the many considerations you must think about when selecting advisors.

4: Start Small.

An advisory board takes on a life of its own. In addition to running your company, you will have to manage the individual and collective contributions. Start with no more than 4 advisors. If you successfully identify your needs, you will be able to prioritize your top 4 seats.

5: Institute a One-Year Agreement with Each Advisor.

An advisory board is an evolving, dynamic entity that will likely change as your business grows. You want the option of re-evaluating each advisor at the end of each year to determine if they are aligned with your goals for the coming year, and if they have met your expectations.

We advise businesses to institute a restricted stock agreement if they are giving equity to their advisors so that they can buy back the stock at the termination of their service.

Aligning Advisors to Your Holes and Goals

Selecting the right advisors is just as important as selecting the right employees. The wrong advisors will be a waste of time and money, and can potentially lead you down the wrong path.

Especially in today’s rapidly changing environment, companies must constantly evaluate what types of expertise they need. For example, an expert in cybersecurity is now a critical addition to any board.

The more intentional you can be when selecting your advisors in aligning them to the “holes and goals” of your organization, the more successful they will be in helping you achieve your growth objectives.

Edited excerpt from Inc.

What Is Corporate Social Responsibility (CSR)?

Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable—to itself, its stakeholders, and the public. By practicing corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.

To engage in CSR means that, in the ordinary course of business, a company is operating in ways that enhance society and the environment, instead of contributing negatively to them.

Understanding Corporate Social Responsibility (CSR)

Corporate social responsibility is a broad concept that can take many forms depending on the company and industry. Through CSR programs, philanthropy, and volunteer efforts, businesses can benefit society while boosting their brands.

As important as CSR is for the community, it is equally valuable for a company. CSR activities can help forge a stronger bond between employees and corporations, boost morale and help both employees and employers feel more connected with the world around them.

Key Takeaways

  • Corporate social responsibility is important to both consumers and companies.
  • Starbucks is a leader in creating corporate social responsibility programs in many aspects of its business.
  • Corporate responsibility programs are a great way to raise moral in the workplace.

For a company to be socially responsible, it first needs to be accountable to itself and its shareholders. Often, companies that adopt CSR programs have grown their business to the point where they can give back to society. Thus, CSR is primarily a strategy of large corporations. Also, the more visible and successful a corporation is, the more responsibility it has to set standards of ethical behavior for its peers, competition, and industry.

Example of Corporate Social Responsibility

Starbucks has long been known for its keen sense of corporate social responsibility and commitment to sustainability and community welfare. According to the company, Starbucks has achieved many of its CSR milestones since it opened its doors. According to its 2019 Global Social Impact Report, these milestones include reaching 99% of ethically sourced coffee, creating a global network of farmers, pioneering green building throughout its stores, contributing millions of hours of community service, and creating a groundbreaking college program for its partner/employees.

Starbucks’ goals for 2020 and beyond include hiring 10,000 refugees, reducing the environmental impact of its cups, and engaging its employees in environmental leadership. Today there are many socially responsible companies whose brands are known for their CSR programs, such as Ben & Jerry’s ice cream and Everlane, a clothing retailer.

Special Considerations

In 2010, the International Organization for Standardization (ISO) released a set of voluntary standards meant to help companies implement corporate social responsibility. Unlike other ISO standards, ISO 26000 provides guidance rather than requirements because the nature of CSR is more qualitative than quantitative, and its standards cannot be certified.

Instead, ISO 26000 clarifies what social responsibility is and helps organizations translate CSR principles into practical actions. The standard is aimed at all types of organizations, regardless of their activity, size, or location. And, because many key stakeholders from around the world contributed to developing ISO 26000, this standard represents an international consensus.

By Jason Fernando in Investopedia

Top 2 Ways Corporations Raise Capital

Running a business requires a great deal of capital. Capital can take different forms, from human and labor capital to economic capital. But when most people hear the term “financial capital,” the first thing that comes to mind is usually money.

While it can mean different things, it isn’t necessarily untrue. Financial capital is represented by assets, securities, and yes, cash. Having access to cash can mean the difference between companies expanding or staying behind and being left in the lurch. But how can companies raise the capital they need to keep them going and to fund their future projects? And what options do they have available?

There are two types of capital that a company can use to fund operations: debt and equity. Prudent corporate finance practice involves determining the mix of debt and equity that is most cost-effective. This article examines both kinds of capital.

Key Takeaways

  • Businesses can use either debt or equity capital to raise money, where the cost of debt is usually lower than the cost of equity, given debt has recourse.
  • Debt capital comes in the form of loans or issues of corporate bonds. Equity capital comes in the form of cash in exchange for company ownership, usually through stocks.
  • Debt holders usually charge businesses interest, while equity holders rely on stock appreciation or dividends for a return.
  • Preferred equity has a senior claim on a company’s assets compared to common equity, making the cost of capital lower for preferred equity.

Debt Capital

Debt capital is also referred to as debt financing. Funding by means of debt capital happens when a company borrows money and agrees to pay it back to the lender at a later date. The most common types of debt capital companies use are loans and bonds, which larger companies use to fuel their expansion plans or to fund new projects. Smaller businesses may even use credit cards to raise their own capital.

A company looking to raise capital through debt may need to approach a bank for a loan, where the bank becomes the lender and the company becomes the debtor. In exchange for the loan, the bank charges interest, which the company will note, along with the loan, on its balance sheet.

The other option is to issue corporate bonds. These bonds are sold to investors—also known as bondholders or lenders—and mature after a certain date. Before reaching maturity, the company is responsible for issuing interest payments on the bond to investors. Because they generally come with a high amount of risk—the chances of default are higher than bonds issued by the government—they pay a much higher yield. The money raised from bond issuance can be used by the company for its expansion plans.

While this is a great way to raise much-needed money, debt capital does come with a downside: It comes with the additional burden of interest. This expense, incurred just for the privilege of accessing funds, is referred to as the cost of debt capital. Interest payments must be made to lenders regardless of business performance. In a low season or bad economy, a highly-leveraged company may have debt payments that exceed its revenue.

Example of Debt Capital

Let’s look at the loan scenario as an example. Assume a company takes out a $100,000 business loan from a bank that carries a 6% annual interest rate. If the loan is repaid one year later, the total amount repaid is $100,000 x 1.06, or $106,000. Of course, most loans are not repaid so quickly, so the actual amount of compounded interest on such a large loan can add up quickly.

Equity Capital

Equity capital, on the other hand, is generated not by borrowing, but by selling shares of company stock. If taking on more debt is not financially viable, a company can raise capital by selling additional shares. These can be either common shares or preferred shares.

Common stock gives shareholders voting rights but doesn’t really give them much else in terms of importance. They are at the bottom of the ladder, meaning their ownership isn’t prioritized as other shareholders are. If the company goes under or liquidates, other creditors and shareholders are paid first. Preferred shares are unique in that payment of a specified dividend is guaranteed before any such payments are made on common shares. In exchange, preferred shareholders have limited ownership rights and have no voting rights.

The primary benefit of raising equity capital is that, unlike debt capital, the company is not required to repay shareholder investment. Instead, the cost of equity capital refers to the amount of return on investment shareholders expect based on the performance of the larger market. These returns come from the payment of dividends and stock valuation.

The disadvantage to equity capital is that each shareholder owns a small piece of the company, so ownership becomes diluted. Business owners are also beholden to their shareholders and must ensure the company remains profitable to maintain an elevated stock valuation while continuing to pay any expected dividends.

Because preferred shareholders have a higher claim on company assets, the risk to preferred shareholders is lower than to common shareholders, who occupy the bottom of the payment food chain. Therefore, the cost of capital for the sale of preferred shares is lower than for the sale of common shares. In comparison, both types of equity capital are typically more costly than debt capital, since lenders are always guaranteed payment by law.

Example of Equity Capital

As mentioned above, some companies choose not to borrow more money to raise their capital. Perhaps they’re already leveraged and just can’t take on any more debt. They may turn to the market to raise some cash.

A startup company may raise capital through angel investors and venture capitalists. Private companies, on the other hand, may decide to go public by issuing an initial public offering (IPO). This is done by issuing stock on the primary market—usually to institutional investors—after which shares are traded on the secondary market by investors. For example, Facebook went public in May 2012, raising $16 billion in capital through its IPO, which put the company’s value at $104 billion.

The Bottom Line

Companies can raise capital through either debt financing or equity financing. Debt financing requires borrowing money from a bank or other lender or issuing corporate bonds. The full amount of the loan has to be paid back, plus interest, which is the cost of borrowing.

Equity financing involves giving up a percentage of ownership in a company to investors, who purchase shares of the company. This can either be done on a stock market for public companies, or for private companies, via private investors that receive a percentage of ownership.

Both types of financing have their pros and cons, and the right choice, or the right mix, will depend on the type of company, its current business profile, its financing needs, and its financial condition.

By Claire Boyte-White in Investopedia

Please contact Albert A. van Daalen for advice and support in Investment Services.