Außenfinanzierung

Außenfinanzierung refers to the procurement of capital from external sources by a company or organization. This contrasts with Innenfinanzierung, which utilizes internally generated funds. External financing can take various forms, broadly categorized into debt financing and equity financing.

Debt financing involves borrowing money that must be repaid, typically with interest, over a specified period. Common examples include bank loans, bonds, and commercial paper. Lenders have a claim on the company's assets and earnings, but they do not gain ownership.

Equity financing, on the other hand, involves selling ownership stakes in the company. This can be done through issuing new shares to investors, such as venture capitalists, angel investors, or the public through an initial public offering (IPO). Equity holders become part-owners and share in the company's profits and losses, but they do not require repayment of their investment.

Companies choose between external financing methods based on their financial situation, risk tolerance, and strategic goals. Debt financing can be less dilutive to ownership but increases financial risk due to repayment obligations. Equity financing does not require repayment but dilutes existing ownership and can be more costly in the long run if the company is highly profitable. The decision also depends on market conditions and the availability of different financing options.