{"id":1132689,"date":"2022-06-24T06:08:15","date_gmt":"2022-06-24T06:08:15","guid":{"rendered":"https:\/\/www.ghanamma.com\/2022\/06\/24\/businesses-urged-to-strike-balance-between-equity-and-debt\/"},"modified":"2022-06-24T06:08:15","modified_gmt":"2022-06-24T06:08:15","slug":"businesses-urged-to-strike-balance-between-equity-and-debt","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2022\/06\/24\/businesses-urged-to-strike-balance-between-equity-and-debt\/","title":{"rendered":"Businesses urged to strike balance between equity and debt"},"content":{"rendered":"<p><\/p>\n<div>\n<p>The Director of Retail Banking, Charles Addo, has said businesses should not underestimate the importance of pumping in their own money before seeking financial support.<\/p>\n<p>Speaking during the on-air series of the Citi Business Festival, Mr. Addo explained that having that equity helps in minimising the risk.<\/p>\n<p>Evidence of equity from retailers seeking financial support from banks is considered a green flag by lenders.<\/p>\n<p>\u201cOnce there is some form of equity inside a business, it shows that the shareholders have shown a bit more commitment, and they care about ensuring the business doesn\u2019t collapse,\u201d Mr. Addo said.<\/p>\n<p>When people only invest borrowed money into their businesses, he added that \u201cif it goes bust, you may not give it the necessary attention that it needs as well.\u201d<\/p>\n<p>Ultimately, Mr. Addo urged entrepreneurs to find the balance between borrowing money for their business and investing in their own business.<\/p>\n<p>\u201cStriking the balance between equity and debt is the best. Either one is fine.\u201d<\/p>\n<p>Mr. Addo spoke on what to look out for, when it comes to \u2018Financing Retail\u2019 on today\u2019s edition of the <a class=\"link-complex\" href=\"https:\/\/twitter.com\/search?q=%23CitiBusinessFestival\" target=\"_blank\" rel=\"hashtag noopener\"><span class=\"hash\">#<\/span><span class=\"link-complex-target\">CitiBusinessFestival<\/span><\/a> on-air series.<\/p>\n<p>The 2022 edition of the Citi Business Festival is mainly sponsored by ABSA Bank, with support from MTN Momo and MTN Business, Ghana Investment Promotion Centre, IT Consortium and GIRSAL.<\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/w.soundcloud.com\/player\/?url=https%3A\/\/api.soundcloud.com\/tracks\/1292812546&#038;color=%23ff5500&#038;auto_play=false&#038;hide_related=false&#038;show_comments=true&#038;show_user=true&#038;show_reposts=false&#038;show_teaser=true\" width=\"100%\" height=\"166\" frameborder=\"no\" scrolling=\"no\"><\/iframe><\/p>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Director of Retail Banking, Charles Addo, has said businesses should not underestimate the importance of pumping in their own money before seeking financial support. Speaking during the on-air series of the Citi Business Festival, Mr. Addo explained that having that equity helps in minimising the risk. Evidence of equity from retailers seeking financial support [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1132691,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[72],"tags":[2827,1999,1580,15149,186,581],"class_list":["post-1132689","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-balance","tag-businesses","tag-debt","tag-equity","tag-strike","tag-urged"],"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1132689","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/comments?post=1132689"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1132689\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=1132689"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=1132689"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=1132689"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}