Does equity refinancing have an impact on the company?

The impact of equity financing and debt financing on the company is mainly reflected in the following aspects:

First, the impact of equity financing on enterprises:

1, the impact on decision-making power, equity financing is the introduction of partners, that is, shareholders, as shareholders, have the right to participate in various decisions of enterprises;

2. The impact on the voting results, shareholders have the right to vote, including voting on managers, financial budgets, market plans, etc. And enjoy the corresponding decision-making power according to the shareholding ratio.

3. The impact on the profit ratio, shareholders have the right to share the company's dividends, which means that the company's profits need to be distributed to new investors in proportion.

4. Shareholders have the right to know the impact on company secrets.

Second, the impact of seeking full financing on the company:

1. Where the use direction of funds is affected, the creditor has the right to require the debtor to use the funds in the direction agreed in the loan. If the debtor fails to use the funds as agreed, the creditor has the right to require the debtor to repay the loan in advance and perform the liability for breach of contract.

2. The impact on the company's credit. If the company fails to repay its debts on time, it will affect its reputation.

3. Impact on operators. Liabilities can put a heavy burden on operators.