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infotechshare of the high risk, the lender may want to see a 20% to 30% return. Mezzanine capital is treated as equity on the company’s balance sheet. Showing equity rather than a debt obligation makes the company look more attractive to future lenders. The biggest advantage is that you do not have to pay back the money. If your business enters bankruptcy, your investor or investors are not creditors. Why Is Business Finance Important? During economic downturns, it can be much harder for small businesses to qualify for debt financing. No matter the size of a business, the larger the amount of cash flowing in and out of business the better. However, not having a good financial system can cause a lot of problems, including some legal issues. According to billionaire investor Mark Cuban, companies sustained piggyplannet by “cheap money” without “valid business prospects” will disappear during this crypto market downturn. Ratio analysis is used to compare a firm’s performance with t