Alex Smid Finance Basics

ALEX SMID FINANCING 101

Equity Financing
Equity financing is generally considered less certain than debt financing. Equity financing is also typically where non-cash assets such as equipment, skills, and land are invested alongside regular cash. This is the category in which we also find venture capital, shares of stock, angel investors, and more. The terms that are used to describe the equity financing relationship are more varied and, as such, will be simply dubbed equity investors (alex smid).

The return of equity financing is the claim on a business's profits; not just today's profits, but in modern companies that issue stock, all future potential profits as well. For this reason, i.e. because most personal finance does not involve the debtor making a profit, almost all of personal finance is debt financing. The exceptions will be noted shortly.

While it's true that in equity financing, the equity investor still has some claim on the business' assets, the creditor's prior claim renders this point moot from a practical standpoint. What protection, then, is offered for equity financing says Alex Smid? The claim to management rights. As an equity investor, with a few notable exceptions, you are granted the right to do everything in your personal power along with the other equity investors to make sure that the business goes in a profitable direction.

Debt Financing
Debt financing. In this mode money is borrowed, and usually the borrower (debtor) gives the lender (creditor) a promisory note. This, usually, obligated the debtor to pay back a certain defined amount at a particular and defined time in the future. "Forms of debt financing can include credit cards, mortgages, signature loans, bonds, IOUs, and HELOCs (Home Equity Lines of Credit), Treasury debt, savings bonds and corporate bonds said Alex Smid."

With debt financing, the creditor's return is fixed and understandable. It is the agreed upon interest rate for the debt. This rate can vary from a single digit rate to 20% or perhaps even 30% depending on the debtor. Risk is determined by a handful of factors the most significant usually being one's credit history. The protective claim offered to creditors in debt financing is a claim on the debtor's assets. Should the debtor fail to repay, the creditor may forcibly take possession of other debtor property and sell it, using the money to offset the loss of the loan. "The claim of creditors takes priority over the claim of those who participate in equity financing Mr. Alex Smid said".

ALEX SMID PROFILE

Chairman
International Capital Investment Group Ltd.
Financial Services industry
March 2001 – Present (8 years)
Mr. Alex Smid founded International in 2001 to develop investment opportunities and build closer relationships with governments, regulators and companies across North America and Europe. Mr. Smid has acted as principal in a number of notable merger and acquisition transactions; as primary to a number of public and privately held corporations.

President
MIBEX Corporation
Capital Markets industry
January 2008 – May 2008 ( 5 months)

President
Southridge Enterprises Inc.
Renewables & Environment industry
September 2006 – December 2007 (1 year 4 months)

Director
Radiant Energy Inc.
Oil & Energy industry
April 2003 – May 2006 (3 years 2 months)

President
Sparta Enterprises Inc.
Oil & Energy industry
January 1999 – July 2002 (3 years 7 months)