Many people don’t understand what is the difference between Equity Investors and Debt Investors. 

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<div class="draft--imgNormal draft-block"><div><div style="height:1600px" class="image-block-prerender" data-src="https://images.vocus.cc/410cba6e-84c7-441c-a743-a04a83bef7bd.jpeg" data-width="1600" data-height="900" data-position="center"></div><figcaption class="imageCaption draft-block" style="cursor:text;display:block">Photo Credit by <a href="https://www.facebook.com/PhotographySofi" target="_blank" class="draft--a">Sofi Photography</a></figcaption></div></div>
<div class="draft-block draft--p left">Many people don’t understand what is the difference between Equity Investors and Debt Investors. We would like to briefly explain the differences.</div>
<div class="draft-block draft--p left"><span style="font-weight: bold; ">Equity = Investment</span></div>
<ol>
  <li class="draft-block draft--li">For: generate future income, you don’t sell later</li>
  <li class="draft-block draft--li">Use: running cost, to run operation, ex. employee, marketing, rent</li>
  <li class="draft-block draft--li">Investors get: company shares, profit(income-expense) of the company (profit is not only expressed as money, but it could also be expressed as cost)</li>
  <li class="draft-block draft--li">Return on investment: is higher than Debt investor, but the risk is higher as well</li>
  <li class="draft-block draft--li">Investors’ Risk: company spend too much cost, and they can’t pay back to investors</li>
  <li class="draft-block draft--li">Investor need: help growth management</li>
</ol>
<div class="draft-block draft--p left"><span style="font-weight: bold; ">Debt = Loan</span></div>
<ol>
  <li class="draft-block draft--li">Investors get: interest of the loan</li>
  <li class="draft-block draft--li">Return on investment: around 20% per year</li>
  <li class="draft-block draft--li">Investors’ expense: tax, bank fee</li>
  <li class="draft-block draft--li">For: sell later, depends on the company</li>
  <li class="draft-block draft--li">Use: buy material to manufacture the product, buy the product to sell later</li>
  <li class="draft-block draft--li">Advantage: Lower risk to keep the value</li>
</ol>
<div class="draft-block draft--p left"><span style="font-weight: bold; ">Please feel free to correct us, if we are wrong. Or if you have any question, please leave your comment, or</span> <a href="https://www.facebook.com/LaFeniceSG" target="_blank" class="draft--a"><span style="font-weight: bold; ">discuss with us</span></a><span style="font-weight: bold; ">.</span></div>

<p>Photo Credit by <a href="https://www.facebook.com/PhotographySofi">Sofi Photography</a></p>
<p>Many people don’t understand what is the difference between Equity Investors and Debt Investors. We would like to briefly explain the differences.</p>
<p><strong>Equity = Investment</strong></p>
<ol>
  <li>For: generate future income, you don’t sell later</li>
  <li>Use: running cost, to run operation, ex. employee, marketing, rent</li>
  <li>Investors get: company shares, profit(income-expense) of the company (profit is not only expressed as money, but it could also be expressed as cost)</li>
  <li>Return on investment: is higher than Debt investor, but the risk is higher as well</li>
  <li>Investors’ Risk: company spend too much cost, and they can’t pay back to investors</li>
  <li>Investor need: help growth management</li>
</ol>
<p><strong>Debt = Loan</strong></p>
<ol>
  <li>Investors get: interest of the loan</li>
  <li>Return on investment: around 20% per year</li>
  <li>Investors’ expense: tax, bank fee</li>
  <li>For: sell later, depends on the company</li>
  <li>Use: buy material to manufacture the product, buy the product to sell later</li>
  <li>Advantage: Lower risk to keep the value</li>
</ol>
<p><strong>Please feel free to correct us, if we are wrong. Or if you have any question, please leave your comment, or</strong> <a href="https://www.facebook.com/LaFeniceSG"><strong>discuss with us</strong></a><strong>.</strong></p>

Many people don’t understand what is the difference between Equity Investors and Debt Investors. We would like to briefly explain the differences.

For: generate future income, you don’t sell later

Use: running cost, to run operation, ex. employee, marketing, rent

Investors get: company shares, profit(income-expense) of the company (profit is not only expressed as money, but it could also be expressed as cost)

Return on investment: is higher than Debt investor, but the risk is higher as well

Investors’ Risk: company spend too much cost, and they can’t pay back to investors

Return on investment: around 20% per year

Use: buy material to manufacture the product, buy the product to sell later

Please feel free to correct us, if we are wrong. Or if you have any question, please leave your comment, or discuss with us.

Equity Investors vs. Debt Investors