Differences between funding and financing
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Table 1 below summarises the key differences between funding and financing.
Table 1: The key differences between funding and financing
Funding
Financing (debt)
Financing (equity)
Payback requirement
None
Principal + interest, according to a fixed schedule
In the form of dividend, according to the share
Seniority
N/A
Usually senior, ahead of dividend
Usually last, dividend only after all operating expenses and debt...
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