Financing Instruments
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Financing Instruments
Debt
Debt financing is a common way of raising capital by borrowing money from creditors such as banks, financial institutions, or other companies. The…
Quasi-Equity
Issuing equity is a well-established way for companies to raise capital. It means that the company is selling part of its ownership – so-called…
QE: Revenue-based loan
A Revenue-Based Loan or Revenue Share Agreement (RSA) can offer a range of benefits to enterprises in their early or growth stages. The investor…
QE: Subordinated loan
A subordinated loan (subordinated or junior debt) is a form of debt capital that the enterprise pays back to the creditor. What makes subordinated …
QE: Venture debt
Venture debt is a quasi-equity financing instrument for raising capital in the form of debt which can be used to supplement existing venture capital…
QE: Convertible notes
A convertible note is an innovative financing instrument in the form of a loan, which the investor can later convert into company shares. Early-stage…
QE: SAFE
A Simple Agreement for Future Equity (SAFE) is a financing instrument for seed stage enterprises that allows investors to essentially buy future…
Equity
Equity investment is financing provided by an investor in exchange for shares in the company. She therefore becomes a shareholder of the company,…
Results-Based Financing (RBF)
Results-based financing (RBF) is used to provide incentives for the enterprise in exchange for the delivery of pre-agreed and verified results. It…
RBF: Impact Bond
With rising awareness of global challenges such as climate change, an increasing number of investors is keeping an eye on incorporating environmental…
RBF: Social Impact Incentives (SIINC)
Social Impact Incentives (SIINC) are a financing instrument designed to incentivize impact-oriented enterprises to go the extra mile to make their…
RBF: Performance-based loan
As with traditional loans, a performance-based loan is a debt that an enterprise takes on which comes with a set of terms and conditions concerning…
RBF: Performance-based Contract
A performance-based contract is a mechanism that allows a financier, usually a philanthropic or governmental/public entity, to hire and pay for the…
RBF: Carbon Credit
Carbon credits are a tradable commodity that allows an emitter to compensate carbon emissions and are equivalent to 1 ton of carbon dioxide (CO2) or…
Grant
Grants are non-repayable funds provided by donor agencies, public institutions or charitable organizations. Grant recipients are often non-profit…