{"id":2159,"date":"2022-01-31T05:16:06","date_gmt":"2022-01-31T05:16:06","guid":{"rendered":"https:\/\/uk.legalvision.com.au\/?p=2159"},"modified":"2025-07-02T00:41:59","modified_gmt":"2025-07-01T23:41:59","slug":"difference-between-debt-and-equity-investment","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/","title":{"rendered":"Debt and Equity Investment in the UK"},"content":{"rendered":"<span style=\"font-size: revert\">Have you come across a business you want to invest in? Or do you own a business looking to grow and want to know the advantages and disadvantages of different investment options? This article will provide an overview of the two main ways you can invest money in a business: debt and equity investments. It will also explain the key legal implications for the different kinds of financing.\u00a0<\/span>\n<h2 id=\"overview\">Overview\u00a0<!-- \/wp:post-content --> <!-- wp:paragraph --><\/h2>\nIt is helpful to understand who is who in a debt or equity transaction.\u00a0<!-- \/wp:paragraph --> <!-- wp:paragraph -->\n\nYour particular objectives will differ depending on if you are:\n\n<!-- \/wp:paragraph --> <!-- wp:list -->\n<ul>\n \t<li>the one <em>making the investment <\/em>in the business; or<\/li>\n \t<li>the owner of a business hoping <em>to raise money<\/em>.<\/li>\n<\/ul>\n<!-- \/wp:list --> <!-- wp:paragraph -->\n\nRegardless of your position, you should understand the interests and objectives of both parties.\n\n<!-- \/wp:paragraph --> <!-- wp:heading {\"level\":3} -->\n<h3 id=\"the-business-owner\">The Business Owner<\/h3>\n<!-- \/wp:heading --> <!-- wp:paragraph -->\n\nAs a business owner, you are likely hoping to raise money to grow your business.\u00a0<!-- \/wp:paragraph --> <!-- wp:paragraph -->\n\nFor instance, perhaps you want to scale up the size of your operations to cut costs and grow sales. Or you may want to:\n\n<!-- \/wp:paragraph --> <!-- wp:list -->\n<ul>\n \t<li>buy a piece of equipment;<\/li>\n \t<li>move into a new market; or<\/li>\n \t<li>distribute a new product.<\/li>\n<\/ul>\nAlternatively, you may have a large payment coming up that you need help meeting.\u00a0<!-- \/wp:list --> <!-- wp:paragraph -->\n\nUnless you have a substantial sum of cash lying in reserve, you will likely need to raise money from outside investors. Your two main options are:\n\n<!-- \/wp:paragraph --> <!-- wp:list -->\n<ul>\n \t<li>to borrow money (raise debt finance); or<\/li>\n \t<li>to sell shares in your company (raise equity finance).<\/li>\n<\/ul>\n<!-- \/wp:list --> <!-- wp:heading {\"level\":3} -->\n<h3 id=\"the-investor\">The Investor<\/h3>\n<!-- \/wp:heading --> <!-- wp:paragraph -->\n\nIf you have excess cash lying around, it is always sensible to put the money to work by investing.<!-- \/wp:paragraph --> <!-- wp:paragraph -->\n\nThere are many ways to invest your money. One of them is by investing in private businesses (rather than public companies). However, for the vast majority of non-professional investors, investing in private companies is risky because it is largely unregulated.\n\n<!-- \/wp:paragraph --> <!-- wp:paragraph -->\n\nThat said, those who invest in private businesses do so by either:\n\n<!-- \/wp:paragraph --> <!-- wp:list -->\n<ul>\n \t<li>lending money to a company (debt); or<\/li>\n \t<li>buying shares in a company (equity).<\/li>\n<\/ul>\n<!-- \/wp:list --> <!-- wp:paragraph -->\n<div class=\"box box--warning box--icon\">\n\nUnfortunately, it is difficult to walk up to established companies that are not trading on the public markets and solicit them as an investment opportunity. As above, most private companies willing to be approached tend to be early-stage businesses hoping to raise seed-financing (i.e. equity).<!-- \/wp:paragraph --> <!-- wp:heading -->\n\n<\/div>\n<h2 id=\"debt-financing\">Debt Financing<!-- \/wp:heading --> <!-- wp:heading {\"level\":3} --><\/h2>\n<h3 id=\"legal-overview\">Legal Overview<\/h3>\n<!-- \/wp:heading --> <!-- wp:paragraph -->\n\nLegally, debt refers to a certain kind of contract between two parties.\n\n<!-- \/wp:paragraph --> <!-- wp:paragraph -->\n<div class=\"box box--icon box--info\">\n\nA contract is an <a href=\"https:\/\/legalvision.co.uk\/startups\/investment-agreement\/\">agreement<\/a> that has the force of law. If either party fails to uphold their end of the agreement, the other party can enforce the terms of the contract by going to court and asking a judge to order performance on their behalf.\n\n<\/div>\n<!-- \/wp:paragraph --> <!-- wp:paragraph -->\n\nIn the context of debt financing, at its simplest, a debt agreement is where the investor promises to give the company a certain sum of money in exchange for the company promising to pay the money back, usually with an additional amount (interest).\n\n<!-- \/wp:paragraph --> <!-- wp:paragraph -->\n\nIf the company does not pay the debt back, in theory, the investor (also known as a lender, noteholder, or creditor) can ask the court to make an order requiring the company to make a payment (a debt order).\n\n<!-- \/wp:paragraph --> <!-- wp:paragraph -->\n\nBut, if the company has <em>no<\/em> money, not even a court order can recover the money. Therefore, most debt financing seeks to improve the position of the debt investor so that they will only lend if certain conditions are met.\n\n<!-- \/wp:paragraph --> <!-- wp:heading {\"level\":4} -->\n<h3 id=\"terms-of-a-debt-agreement\">Terms of a Debt Agreement<\/h3>\n<!-- \/wp:heading --> <!-- wp:paragraph -->\n\nTherefore, most debt agreements contain additional terms, usually in favour of the lender. The two most common terms are:\n\n<!-- \/wp:paragraph --> <!-- wp:list -->\n<ul>\n \t<li>security agreements, where you agree to transfer the legal right to a piece of property to the lender if you default (breach the debt agreement) on your business loan; and<\/li>\n \t<li>covenants, which are promises to do or refrain from doing something, such as taking out additional loans or failing to generate a sufficient amount of cash over a specific period.<\/li>\n<\/ul>\n<!-- \/wp:list --> <!-- wp:heading -->\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    <script>\nvar gform;gform||(document.addEventListener(\"gform_main_scripts_loaded\",function(){gform.scriptsLoaded=!0}),document.addEventListener(\"gform\/theme\/scripts_loaded\",function(){gform.themeScriptsLoaded=!0}),window.addEventListener(\"DOMContentLoaded\",function(){gform.domLoaded=!0}),gform={domLoaded:!1,scriptsLoaded:!1,themeScriptsLoaded:!1,isFormEditor:()=>\"function\"==typeof InitializeEditor,callIfLoaded:function(o){return!(!gform.domLoaded||!gform.scriptsLoaded||!gform.themeScriptsLoaded&&!gform.isFormEditor()||(gform.isFormEditor()&&console.warn(\"The use of gform.initializeOnLoaded() is deprecated in the form editor context and will be removed in Gravity Forms 3.1.\"),o(),0))},initializeOnLoaded:function(o){gform.callIfLoaded(o)||(document.addEventListener(\"gform_main_scripts_loaded\",()=>{gform.scriptsLoaded=!0,gform.callIfLoaded(o)}),document.addEventListener(\"gform\/theme\/scripts_loaded\",()=>{gform.themeScriptsLoaded=!0,gform.callIfLoaded(o)}),window.addEventListener(\"DOMContentLoaded\",()=>{gform.domLoaded=!0,gform.callIfLoaded(o)}))},hooks:{action:{},filter:{}},addAction:function(o,r,e,t){gform.addHook(\"action\",o,r,e,t)},addFilter:function(o,r,e,t){gform.addHook(\"filter\",o,r,e,t)},doAction:function(o){gform.doHook(\"action\",o,arguments)},applyFilters:function(o){return gform.doHook(\"filter\",o,arguments)},removeAction:function(o,r){gform.removeHook(\"action\",o,r)},removeFilter:function(o,r,e){gform.removeHook(\"filter\",o,r,e)},addHook:function(o,r,e,t,n){null==gform.hooks[o][r]&&(gform.hooks[o][r]=[]);var d=gform.hooks[o][r];null==n&&(n=r+\"_\"+d.length),gform.hooks[o][r].push({tag:n,callable:e,priority:t=null==t?10:t})},doHook:function(r,o,e){var t;if(e=Array.prototype.slice.call(e,1),null!=gform.hooks[r][o]&&((o=gform.hooks[r][o]).sort(function(o,r){return o.priority-r.priority}),o.forEach(function(o){\"function\"!=typeof(t=o.callable)&&(t=window[t]),\"action\"==r?t.apply(null,e):e[0]=t.apply(null,e)})),\"filter\"==r)return e[0]},removeHook:function(o,r,t,n){var e;null!=gform.hooks[o][r]&&(e=(e=gform.hooks[o][r]).filter(function(o,r,e){return!!(null!=n&&n!=o.tag||null!=t&&t!=o.priority)}),gform.hooks[o][r]=e)}});\n<\/script>\n\n                <div class='gf_browser_gecko gform_wrapper gravity-theme gform-theme--no-framework lawyer-form_wrapper gplaceholder_wrapper form-with-labels-no-asterisks_wrapper has-new-validation-error-styling_wrapper' data-form-theme='gravity-theme' data-form-index='0' id='gform_wrapper_2453' style='display:none'><div id='gf_2453' class='gform_anchor' tabindex='-1'><\/div><form method='post' enctype='multipart\/form-data' target='gform_ajax_frame_2453' id='gform_2453' class='lawyer-form gplaceholder form-with-labels-no-asterisks has-new-validation-error-styling' action='\/api\/wp\/v2\/posts\/2159#gf_2453' data-formid='2453' novalidate>\n                        <div class='gform-body gform_body'><div id='gform_fields_2453' class='gform_fields top_label form_sublabel_below description_below validation_below'><div id=\"field_2453_1000\" class=\"gfield gfield--type-honeypot gform_validation_container field_sublabel_below gfield--has-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_1000'>X\/Twitter<\/label><div class='ginput_container'><input name='input_1000' id='input_2453_1000' type='text' value='' autocomplete='new-password'\/><\/div><div class='gfield_description' id='gfield_description_2453_1000'>This field is for validation purposes and should be left unchanged.<\/div><\/div><div id=\"field_2453_1\" class=\"gfield gfield--type-text gfield--input-type-text gf_left_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_1'>First Name<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_text'><input name='input_1' id='input_2453_1' type='text' value='' class='medium'     aria-required=\"true\" aria-invalid=\"false\"   \/><\/div><\/div><div id=\"field_2453_12\" class=\"gfield gfield--type-text gfield--input-type-text gf_right_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_12'>Last Name<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_text'><input name='input_12' id='input_2453_12' type='text' value='' class='medium'     aria-required=\"true\" aria-invalid=\"false\"   \/><\/div><\/div><div id=\"field_2453_2\" class=\"gfield gfield--type-email gfield--input-type-email gf_left_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_2'>Email Address<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_email'>\n                            <input name='input_2' id='input_2453_2' type='email' value='' class='medium'    aria-required=\"true\" aria-invalid=\"false\"  \/>\n                        <\/div><\/div><div id=\"field_2453_3\" class=\"gfield gfield--type-phone gfield--input-type-phone gf_right_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_3'>Phone<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_phone'><input name='input_3' id='input_2453_3' type='tel' value='' class='medium'   aria-required=\"true\" aria-invalid=\"false\"   \/><\/div><\/div><div id=\"field_2453_14\" class=\"gfield gfield--type-select gfield--input-type-select gfield--width-full custom-select gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_14'>Number of Employees in Your Business<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_select'><select name='input_14' id='input_2453_14' class='large gfield_select'    aria-required=\"true\" aria-invalid=\"false\" ><option value='' selected='selected'>Select ...<\/option><option value='0' >0<\/option><option value='1' >1-5<\/option><option value='6' >6-20<\/option><option value='21' >21-50<\/option><option value='51' >51-250<\/option><option value='250' >250+<\/option><\/select><\/div><\/div><div id=\"field_2453_4\" class=\"gfield gfield--type-textarea gfield--input-type-textarea gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_4'>Tell us about your enquiry<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_textarea'><textarea name='input_4' id='input_2453_4' class='textarea medium'     aria-required=\"true\" aria-invalid=\"false\"   rows='10' cols='50'><\/textarea><\/div><\/div><div id=\"field_2453_5\" class=\"gfield gfield--type-html gfield--input-type-html gfield_html gfield_html_formatted gfield_no_follows_desc field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  >By submitting this form, you agree to receive emails from LegalVision and can unsubscribe at any time. View our <a href=\"https:\/\/legalvision.co.uk\/privacy-notice\/\" target=\"_blank\">Privacy Policy<\/a>. <\/div><div id=\"field_2453_8\" class=\"gfield gfield--type-hidden gfield--input-type-hidden gform_hidden field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><div class='ginput_container ginput_container_text'><input name='input_8' id='input_2453_8' type='hidden' class='gform_hidden'  aria-invalid=\"false\" value='http:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/2159' \/><\/div><\/div><div id=\"field_2453_13\" class=\"gfield gfield--type-hidden gfield--input-type-hidden gform_hidden field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><div class='ginput_container ginput_container_text'><input name='input_13' id='input_2453_13' type='hidden' class='gform_hidden'  aria-invalid=\"false\" value='generic_form' \/><\/div><\/div><fieldset id=\"field_2453_999\" class=\"gfield gfield--type-checkbox gfield--type-choice gfield__uk-marketo-opt-in field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><legend class='gfield_label gform-field-label screen-reader-text' ><\/legend><div class='ginput_container ginput_container_checkbox'><div class='gfield_checkbox ' id='input_2453_999'><div class='gchoice gchoice_2453_999_1'>\n\t\t\t\t\t\t\t\t<input class='gfield-choice-input' name='input_999.1' type='checkbox'  value='1'  id='choice_2453_999_1'   \/>\n\t\t\t\t\t\t\t\t<label for='choice_2453_999_1' id='label_2453_999_1' class='gform-field-label gform-field-label--type-inline'>By submitting this form, you agree to receive content and event invitations from us to help you grow your business. If you do not want to receive such messages, tick here.<\/label>\n\t\t\t\t\t\t\t<\/div><\/div><\/div><\/fieldset><\/div><\/div>\n        <div class='gform-footer gform_footer top_label'> <button type=\"submit\" id=\"gform_submit_button_2453\" class=\"gform_button button\" onclick=\"gform.submission.handleButtonClick(this);\" data-submission-type=\"submit\"><span class=\"gform_submit_button__text\">Submit Now<\/span><\/button> <input type='hidden' name='gform_ajax' value='form_id=2453&amp;title=&amp;description=&amp;tabindex=0&amp;theme=gravity-theme&amp;hash=ec2463697d0d9cef7b71236ae60964c7' \/>\n            <input type='hidden' class='gform_hidden' name='gform_submission_method' data-js='gform_submission_method_2453' value='iframe' \/>\n            <input type='hidden' class='gform_hidden' name='gform_theme' data-js='gform_theme_2453' id='gform_theme_2453' value='gravity-theme' \/>\n            <input type='hidden' class='gform_hidden' name='gform_style_settings' data-js='gform_style_settings_2453' id='gform_style_settings_2453' value='' \/>\n            <input type='hidden' class='gform_hidden' name='is_submit_2453' value='1' \/>\n            <input type='hidden' class='gform_hidden' name='gform_submit' value='2453' \/>\n            \n            <input type='hidden' class='gform_hidden' name='gform_currency' data-currency='GBP' value='\/1XhLOT1uFMuNIAQP4LtwdgKTAIqIKnu8So5LLc6iAZep2SsLhxAYyH4Ahz7Kqf\/2NBgQvTIyg0194JgcOGyDbMWzhktobIA6E8\/sYSNK77JNgU=' \/>\n            <input type='hidden' class='gform_hidden' name='gform_unique_id' value='' \/>\n            <input type='hidden' class='gform_hidden' name='state_2453' value='WyJ7XCIxNFwiOltcIjIyODY0N2ViMWU3NTcxZjA4YTY4NGJmMDcwMTk3Y2I0XCIsXCJiMzk3YmQ1MDBmMmFjNjk1ODE4MzdmNTBhYTA2MzQ0OFwiLFwiNGYyNGZkZGEwMzlkNDUxMWFhZGE1NGYwZmQwZmNiZTdcIixcIjUyMmJkMDE2M2I2ZmEwOTI3NDZhZjU5YTg0ZmM1NDk5XCIsXCIzODRlNjk1YjQxMTAzMWFiYmQ2ODEyMGYyZWFhMDYyNlwiLFwiYjkzNDcwNTE2MjkxOGRjZWViMjQzNzRjNmE0NGVmNTlcIixcIjQxMTliODZhMzVjYzJiMWViNDZiMmQ4NjRlNGUzZmNjXCJdfSIsIjQ3MjNiMzA2ZDIyZGVkODA2N2YyMjYyOThkYzI1ODVmIl0=' \/>\n            <input type='hidden' autocomplete='off' class='gform_hidden' name='gform_target_page_number_2453' id='gform_target_page_number_2453' value='0' \/>\n            <input type='hidden' autocomplete='off' class='gform_hidden' name='gform_source_page_number_2453' id='gform_source_page_number_2453' value='1' \/>\n            <input type='hidden' name='gform_field_values' value='' \/>\n            \n        <\/div>\n                        <\/form>\n                        <\/div>\n\t\t                <iframe style='display:none;width:0px;height:0px;' src='about:blank' name='gform_ajax_frame_2453' id='gform_ajax_frame_2453' title='This iframe contains the logic required to handle Ajax powered Gravity Forms.'><\/iframe>\n\t\t                <script>\ngform.initializeOnLoaded( function() {gformInitSpinner( 2453, 'https:\/\/legalvision.co.uk\/wp-content\/themes\/legalv-v6\/img\/spinner.svg', true );jQuery('#gform_ajax_frame_2453').on('load',function(){var contents = jQuery(this).contents().find('*').html();var is_postback = contents.indexOf('GF_AJAX_POSTBACK') >= 0;if(!is_postback){return;}var form_content = jQuery(this).contents().find('#gform_wrapper_2453');var is_confirmation = jQuery(this).contents().find('#gform_confirmation_wrapper_2453').length > 0;var is_redirect = contents.indexOf('gformRedirect(){') >= 0;var is_form = form_content.length > 0 && ! is_redirect && ! is_confirmation;var mt = parseInt(jQuery('html').css('margin-top'), 10) + parseInt(jQuery('body').css('margin-top'), 10) + 100;if(is_form){form_content.find('form').css('opacity', 0);jQuery('#gform_wrapper_2453').html(form_content.html());if(form_content.hasClass('gform_validation_error')){jQuery('#gform_wrapper_2453').addClass('gform_validation_error');} else {jQuery('#gform_wrapper_2453').removeClass('gform_validation_error');}setTimeout( function() { \/* delay the scroll by 50 milliseconds to fix a bug in chrome *\/ jQuery(document).scrollTop(jQuery('#gform_wrapper_2453').offset().top - mt); }, 50 );if(window['gformInitDatepicker']) {gformInitDatepicker();}if(window['gformInitPriceFields']) {gformInitPriceFields();}var current_page = jQuery('#gform_source_page_number_2453').val();gformInitSpinner( 2453, 'https:\/\/legalvision.co.uk\/wp-content\/themes\/legalv-v6\/img\/spinner.svg', true );jQuery(document).trigger('gform_page_loaded', [2453, current_page]);window['gf_submitting_2453'] = false;}else if(!is_redirect){var confirmation_content = jQuery(this).contents().find('.GF_AJAX_POSTBACK').html();if(!confirmation_content){confirmation_content = contents;}jQuery('#gform_wrapper_2453').replaceWith(confirmation_content);jQuery(document).scrollTop(jQuery('#gf_2453').offset().top - mt);jQuery(document).trigger('gform_confirmation_loaded', [2453]);window['gf_submitting_2453'] = false;wp.a11y.speak(jQuery('#gform_confirmation_message_2453').text());}else{jQuery('#gform_2453').append(contents);if(window['gformRedirect']) {gformRedirect();}}jQuery(document).trigger(\"gform_pre_post_render\", [{ formId: \"2453\", currentPage: \"current_page\", abort: function() { this.preventDefault(); } }]);        if (event && event.defaultPrevented) {                return;        }        const gformWrapperDiv = document.getElementById( \"gform_wrapper_2453\" );        if ( gformWrapperDiv ) {            const visibilitySpan = document.createElement( \"span\" );            visibilitySpan.id = \"gform_visibility_test_2453\";            gformWrapperDiv.insertAdjacentElement( \"afterend\", visibilitySpan );        }        const visibilityTestDiv = document.getElementById( \"gform_visibility_test_2453\" );        let postRenderFired = false;        function triggerPostRender() {            if ( postRenderFired ) {                return;            }            postRenderFired = true;            gform.core.triggerPostRenderEvents( 2453, current_page );            if ( visibilityTestDiv ) {                visibilityTestDiv.parentNode.removeChild( visibilityTestDiv );            }        }        function debounce( func, wait, immediate ) {            var timeout;            return function() {                var context = this, args = arguments;                var later = function() {                    timeout = null;                    if ( !immediate ) func.apply( context, args );                };                var callNow = immediate && !timeout;                clearTimeout( timeout );                timeout = setTimeout( later, wait );                if ( callNow ) func.apply( context, args );            };        }        const debouncedTriggerPostRender = debounce( function() {            triggerPostRender();        }, 200 );        if ( visibilityTestDiv && visibilityTestDiv.offsetParent === null ) {            const observer = new MutationObserver( ( mutations ) => {                mutations.forEach( ( mutation ) => {                    if ( mutation.type === 'attributes' && visibilityTestDiv.offsetParent !== null ) {                        debouncedTriggerPostRender();                        observer.disconnect();                    }                });            });            observer.observe( document.body, {                attributes: true,                childList: false,                subtree: true,                attributeFilter: [ 'style', 'class' ],            });        } else {            triggerPostRender();        }    } );} );\n<\/script>\n<\/div>\n<\/div>\n<div id=\"content-next\"><!-- scroll anchor --><\/div>\n<h2 id=\"equity-financing\">Equity Financing<\/h2>\n<!-- \/wp:heading --> <!-- wp:paragraph -->\n\nEquity is a measure of ownership in a company, which you can measure by shares. Your company\u2019s share capital refers to how much money your company has raised by issuing shares.\n\n<!-- \/wp:paragraph --> <!-- wp:paragraph -->\n\nIf you raise money through equity financing, you are effectively selling ownership to another person in your company.\n<div class=\"box box--icon box--info\">\n\n<!-- \/wp:paragraph --> <!-- wp:paragraph -->\n\nIf you are the only shareholder of your company before equity financing, you will lose a percentage of ownership. This is called dilution.\n\n<\/div>\n<!-- \/wp:paragraph --> <!-- wp:paragraph -->\n\nIn exchange for owning shares in a company, the equity investor will either want the value of their shares to grow so they can sell them later, or for the company to increase its profitability and pay them dividends.\n\n<!-- \/wp:paragraph --> <!-- wp:heading {\"level\":4} -->\n<h3 id=\"practical-considerations\">Practical Considerations<\/h3>\n<!-- \/wp:heading --> <!-- wp:paragraph -->\n\nShareholders hold certain legal rights. For instance, if you usually pay yourself through a dividend issuance, you will have to pay the same amount per share to your new shareholders. However, if you prejudice them in any way, they can take actions against you and your company.\n\n<!-- \/wp:paragraph --> <!-- wp:paragraph -->\n\nFor many companies issuing their first equity raise, their equity investors will usually want additional protection. This can be by:\n\n<!-- \/wp:paragraph --> <!-- wp:list -->\n<ul>\n \t<li>being appointed as a director so that they can control the day-to-day operations,<\/li>\n \t<li>being issued different share classes; or<\/li>\n \t<li>drawing up a shareholder agreement setting out additional rights.<\/li>\n<\/ul>\n<!-- \/wp:list --> <!-- wp:paragraph -->\n\nTherefore, this is one of the key disadvantages to equity financing: by selling ownership, you also lose some control over your company.\n\n<!-- \/wp:paragraph --> <!-- wp:heading -->\n<h2 id=\"key-takeaways\">Key Takeaways<\/h2>\n<!-- \/wp:heading --> <!-- wp:paragraph -->\n\nDebt and equity are the two fundamental ways people invest in companies. A debt investment is a contract between a company and the investor setting the terms of a debt issuance (usually a loan). This contract obligates the investor to provide the company with a sum of money in exchange for the company promising to pay the money back plus interest and abide by the other terms of the loan. An equity investment is the purchase of shares of ownership in a company. Shareholders are entitled to share in the profits of the company, either directly through dividend payments or indirectly by later selling the shares at a higher price than they bought them for.\n\n<!-- \/wp:paragraph --> <!-- wp:paragraph -->\n\nIf you need help understanding how trust corporations operate, our <a href=\"https:\/\/legalvision.co.uk\/corporate-lawyers-lp\/\">experienced corporate lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today at <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <a href=\"https:\/\/legalvision.co.uk\/membership\">membership page<\/a>.\n\n<!-- \/wp:paragraph --> <!-- wp:heading -->\n<h2 id=\"frequently-asked-questions\">Frequently Asked Questions<\/h2>\n<!-- wp:yoast\/faq-block {\"questions\":[{\"id\":\"faq-question-1643605431891\",\"question\":[{\"type\":\"strong\",\"props\":{\"children\":[\"What is a debt investment?\"]}}],\"answer\":[\"Most of us are familiar with a debt investment where a bank lends a company money. This is a contract that sets out the amount of money lent, at what rate it will be repaid, and any other additional terms like promises not to borrow more money.\u00a0\"],\"jsonQuestion\":\"\\u003cstrong\\u003eWhat is a debt investment?\\u003c\/strong\\u003e\",\"jsonAnswer\":\"Most of us are familiar with a debt investment where a bank lends a company money. This is a contract that sets out the amount of money lent, at what rate it will be repaid, and any other additional terms like promises not to borrow more money.\u00a0\"},{\"id\":\"faq-question-1643605447014\",\"question\":[{\"type\":\"strong\",\"props\":{\"children\":[\"What is an equity investment?\"]}}],\"answer\":[\"Buying and selling shares on the stock market is the most common form of equity investment. For smaller businesses, in exchange for providing a company with money, the investor receives shares that correspond to ownership rights in the company.\"],\"jsonQuestion\":\"\\u003cstrong\\u003eWhat is an equity investment?\\u003c\/strong\\u003e\",\"jsonAnswer\":\"Buying and selling shares on the stock market is the most common form of equity investment. For smaller businesses, in exchange for providing a company with money, the investor receives shares that correspond to ownership rights in the company.\"}]} -->\n<div class=\"schema-faq wp-block-yoast-faq-block\">\n<div id=\"faq-question-1643605431891\" class=\"schema-faq-section\"><strong class=\"schema-faq-question\"><strong>What is a debt investment?<\/strong><\/strong>\n<p class=\"schema-faq-answer\">Most of us are familiar with a debt investment where a bank lends a company money. This is a contract that sets out the amount of money lent, at what rate it will be repaid, and any other additional terms like promises not to borrow more money.<\/p>\n\n<\/div>\n<div id=\"faq-question-1643605447014\" class=\"schema-faq-section\"><strong class=\"schema-faq-question\"><strong>What is an equity investment?<\/strong><\/strong>\n<p class=\"schema-faq-answer\">Buying and selling shares on the stock market is the most common form of equity investment. For smaller businesses, in exchange for providing a company with money, the investor receives shares that correspond to ownership rights in the company.<\/p>\n\n<\/div>\n<\/div>\n<!-- \/wp:yoast\/faq-block --><div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/2159\" \/>            <input value=\"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"Debt and Equity Investment in the UK\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Have you come across a business you want to invest in? Or do you own a business looking to grow and want to know the advantages and disadvantages of different investment options? This article will provide an overview of the two main ways you can invest money in a business: debt and equity investments. It<a href=\"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/\">Continue reading <span class=\"sr-only\">&#8220;Debt and Equity Investment in the UK&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13461,"featured_media":679,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"2780,892,862,3564,3769,1001","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[28],"tags":[20,21,527,528,529,530],"class_list":["post-2159","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporations","tag-small-business","tag-medium-business","tag-equity","tag-lending","tag-investment","tag-investor"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Difference Between a Debt and Equity Investment? | LegalVision UK<\/title>\n<meta name=\"description\" content=\"Are you curious what the difference between a debt and equity investment is? This article lays out the legal and commercial considerations.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Difference Between a Debt and Equity Investment? | LegalVision UK\" \/>\n<meta property=\"og:description\" content=\"Are you curious what the difference between a debt and equity investment is? This article lays out the legal and commercial considerations.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/\" \/>\n<meta property=\"og:site_name\" content=\"LegalVision UK\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/LegalVision\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-31T05:16:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-07-01T23:41:59+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2021\/11\/30230748\/brand-design-00235.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"1066\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Kieran Ram\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@LegalVision_law\" \/>\n<meta name=\"twitter:site\" content=\"@LegalVision_law\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kieran Ram\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/\"},\"author\":{\"name\":\"Kieran Ram\",\"@id\":\"https:\/\/legalvision.co.uk\/#\/schema\/person\/5a59ade89273f68f939c7cb8cc66e6f1\"},\"headline\":\"Debt and Equity Investment in the UK\",\"datePublished\":\"2022-01-31T05:16:06+00:00\",\"dateModified\":\"2025-07-01T23:41:59+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/\"},\"wordCount\":1147,\"image\":{\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2021\/11\/30230748\/brand-design-00235.jpg\",\"keywords\":[\"small business\",\"medium business\",\"equity\",\"lending\",\"investment\",\"investor\"],\"articleSection\":[\"Corporate Articles\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/\",\"url\":\"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/\",\"name\":\"Difference Between a Debt and Equity Investment? | LegalVision UK\",\"isPartOf\":{\"@id\":\"https:\/\/legalvision.co.uk\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2021\/11\/30230748\/brand-design-00235.jpg\",\"datePublished\":\"2022-01-31T05:16:06+00:00\",\"dateModified\":\"2025-07-01T23:41:59+00:00\",\"author\":{\"@id\":\"https:\/\/legalvision.co.uk\/#\/schema\/person\/5a59ade89273f68f939c7cb8cc66e6f1\"},\"description\":\"Are you curious what the difference between a debt and equity investment is? This article lays out the legal and commercial considerations.\",\"breadcrumb\":{\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/#primaryimage\",\"url\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2021\/11\/30230748\/brand-design-00235.jpg\",\"contentUrl\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2021\/11\/30230748\/brand-design-00235.jpg\",\"width\":1600,\"height\":1066,\"caption\":\"Escrow \u2013 What is it, and How is it Used? | LegalVision UK\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/legalvision.co.uk\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Corporate Articles\",\"item\":\"https:\/\/legalvision.co.uk\/category\/corporations\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Debt and Equity Investment in the UK\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/legalvision.co.uk\/#website\",\"url\":\"https:\/\/legalvision.co.uk\/\",\"name\":\"LegalVision UK\",\"description\":\"LegalVision is a commercial law firm in the UK with a commitment to innovation\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/legalvision.co.uk\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/legalvision.co.uk\/#\/schema\/person\/5a59ade89273f68f939c7cb8cc66e6f1\",\"name\":\"Kieran Ram\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/legalvision.co.uk\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/legalvision.co.uk\/wp-content\/uploads\/sites\/4\/2024\/04\/Kieran-2349-scaled-e1714435159620-96x96.jpg\",\"contentUrl\":\"https:\/\/legalvision.co.uk\/wp-content\/uploads\/sites\/4\/2024\/04\/Kieran-2349-scaled-e1714435159620-96x96.jpg\",\"caption\":\"Kieran Ram\"},\"description\":\"Kieran is a Trainee Solicitor in LegalVision\u2019s Corporate and Commercial team. He has completed a Law Degree, the Legal Practice Course and a Masters in Sports Law, specialising in Football Law.\",\"url\":\"https:\/\/legalvision.co.uk\/author\/kieranram\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Difference Between a Debt and Equity Investment? | LegalVision UK","description":"Are you curious what the difference between a debt and equity investment is? This article lays out the legal and commercial considerations.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/","og_locale":"en_GB","og_type":"article","og_title":"Difference Between a Debt and Equity Investment? | LegalVision UK","og_description":"Are you curious what the difference between a debt and equity investment is? This article lays out the legal and commercial considerations.","og_url":"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/","og_site_name":"LegalVision UK","article_publisher":"https:\/\/www.facebook.com\/LegalVision","article_published_time":"2022-01-31T05:16:06+00:00","article_modified_time":"2025-07-01T23:41:59+00:00","og_image":[{"width":1600,"height":1066,"url":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2021\/11\/30230748\/brand-design-00235.jpg","type":"image\/jpeg"}],"author":"Kieran Ram","twitter_card":"summary_large_image","twitter_creator":"@LegalVision_law","twitter_site":"@LegalVision_law","twitter_misc":{"Written by":"Kieran Ram","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/#article","isPartOf":{"@id":"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/"},"author":{"name":"Kieran Ram","@id":"https:\/\/legalvision.co.uk\/#\/schema\/person\/5a59ade89273f68f939c7cb8cc66e6f1"},"headline":"Debt and Equity Investment in the UK","datePublished":"2022-01-31T05:16:06+00:00","dateModified":"2025-07-01T23:41:59+00:00","mainEntityOfPage":{"@id":"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/"},"wordCount":1147,"image":{"@id":"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/#primaryimage"},"thumbnailUrl":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2021\/11\/30230748\/brand-design-00235.jpg","keywords":["small business","medium business","equity","lending","investment","investor"],"articleSection":["Corporate Articles"],"inLanguage":"en-GB"},{"@type":"WebPage","@id":"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/","url":"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/","name":"Difference Between a Debt and Equity Investment? | LegalVision UK","isPartOf":{"@id":"https:\/\/legalvision.co.uk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/#primaryimage"},"image":{"@id":"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/#primaryimage"},"thumbnailUrl":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2021\/11\/30230748\/brand-design-00235.jpg","datePublished":"2022-01-31T05:16:06+00:00","dateModified":"2025-07-01T23:41:59+00:00","author":{"@id":"https:\/\/legalvision.co.uk\/#\/schema\/person\/5a59ade89273f68f939c7cb8cc66e6f1"},"description":"Are you curious what the difference between a debt and equity investment is? This article lays out the legal and commercial considerations.","breadcrumb":{"@id":"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/#primaryimage","url":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2021\/11\/30230748\/brand-design-00235.jpg","contentUrl":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2021\/11\/30230748\/brand-design-00235.jpg","width":1600,"height":1066,"caption":"Escrow \u2013 What is it, and How is it Used? | LegalVision UK"},{"@type":"BreadcrumbList","@id":"https:\/\/legalvision.co.uk\/corporations\/difference-between-debt-and-equity-investment\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/legalvision.co.uk\/"},{"@type":"ListItem","position":2,"name":"Corporate Articles","item":"https:\/\/legalvision.co.uk\/category\/corporations\/"},{"@type":"ListItem","position":3,"name":"Debt and Equity Investment in the UK"}]},{"@type":"WebSite","@id":"https:\/\/legalvision.co.uk\/#website","url":"https:\/\/legalvision.co.uk\/","name":"LegalVision UK","description":"LegalVision is a commercial law firm in the UK with a commitment to innovation","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/legalvision.co.uk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Person","@id":"https:\/\/legalvision.co.uk\/#\/schema\/person\/5a59ade89273f68f939c7cb8cc66e6f1","name":"Kieran Ram","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/legalvision.co.uk\/#\/schema\/person\/image\/","url":"https:\/\/legalvision.co.uk\/wp-content\/uploads\/sites\/4\/2024\/04\/Kieran-2349-scaled-e1714435159620-96x96.jpg","contentUrl":"https:\/\/legalvision.co.uk\/wp-content\/uploads\/sites\/4\/2024\/04\/Kieran-2349-scaled-e1714435159620-96x96.jpg","caption":"Kieran Ram"},"description":"Kieran is a Trainee Solicitor in LegalVision\u2019s Corporate and Commercial team. He has completed a Law Degree, the Legal Practice Course and a Masters in Sports Law, specialising in Football Law.","url":"https:\/\/legalvision.co.uk\/author\/kieranram\/"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/2159","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/13461"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=2159"}],"version-history":[{"count":6,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/2159\/revisions"}],"predecessor-version":[{"id":188099,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/2159\/revisions\/188099"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/679"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=2159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=2159"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=2159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}