Corporate Finance

Preferred Stock

This guide explains what preferred stock is and is designed to give you a better understanding of this type of equity investment. This guide also looks at the different classifications of preferred stock.

Common Stock

This guide explains what common stock is and is designed to give you a better understanding of this type of equity investment. This guide also looks at the different classifications of common stock.

Equity Financing

This guide explains what equity financing is, how it works, and it goes into detail about the different types of equity financing available. To understand more about raising money with debt vs equity, we recommend: Capital Stack Quick Guide, as a companion to this guide.

What is Interest Coverage?

This guide explains what interest coverage is and why it’s important. We also cover how interest coverage is calculated and how lenders use ratios to gain insight into a business’ ability to repay debt.

Term Loans (Part 2): Structure & Amortization

This guide explains how term loans are structured and explains how amortization works. That guide explains what term loans are and how they work, this guide goes into depth about how these loans are actually structured and amortized as well as what these terms mean.

Term Loans (Part 1): How They Work

This guide explains what term loans are and how businesses use them as a financing option. We also explain the main components of term loans and how they are different from other types of debt. Here are some quick takeaways regarding term loans:

Revolver Debt: Lines of Credit

This guide explains what revolver debt is in business and it explains how revolving lines of credit work. Additionally, we will look at why revolver debt is valuable to a business. Finally, we’ll learn about who provides revolver debt and what these arrangements typically look like.