Mezzanine Financing: What It Is, How It Works, and When Companies Use It
Warren Team
Continue learning
Related articles
Compare side by side
Key terms
- Equity FinancingA method of raising capital by selling ownership shares (equity) in a company to investors in exchange for funding. Unlike debt financing, equity financing does not require repayment or interest payments, but it does dilute the existing owners' ownership percentage and control. Companies at various stages use equity financing, from startups selling shares to angel investors to established companies issuing stock through public offerings.
- Debt FinancingA method of raising capital by borrowing money that must be repaid over time with interest, typically through loans, lines of credit, or issuing bonds. Unlike equity financing, debt financing allows business owners to retain full ownership and control of their company. However, debt must be repaid regardless of business performance and increases the company's financial risk through required interest and principal payments.
- Room and BoardThe combined cost of housing and meal plans at a college or university, which is a significant portion of the overall cost of attendance. Room and board costs vary depending on whether you live on campus, off campus, or at home, and the type of meal plan you select. Many colleges require first-year students to live on campus and purchase a meal plan.
Get your first personalized plan in minutes
Free to start, no credit card required. Warren reads your accounts, it never moves money.