2 min read
Definition
An equity injection is new capital contributed by existing owners or new investors in exchange for shares, increasing the company’s equity without adding debt.
In plain terms
It is putting more of your own (or an investor’s) money in. It reduces reliance on borrowing and improves the ratios lenders care about.
Why it matters for your company
Lenders often view an equity injection as "skin in the game" and may lend more alongside it, since it lowers gearing. It is a common step before or beside a growth facility. See seed capital.
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Share capital
Share capital is what shareholders paid for their shares — the invested equity that, with retained profit, a…
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Gearing
Gearing is the ratio of a business's debt to its equity, showing how much of its funding comes from borrowing…
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Seed capital
Seed capital is the earliest money that gets a business off the ground — founder, friends-and-family or angel…
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Equity
Equity is the owners' residual stake in a business: the value of its assets after every liability is paid…
Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.