What is add-on financing?

Answer by  chinthamani (63)

On my opinion add-on financing is a very easy method to calculate interest in which the total interest is calculated and then added to the total loan. Then the new total is divided by the number of payments. It results in a higher effective rate than simple interest. That's all.

Answer by  LeheckaG (1826)

"Add-on financing" or "follow on offering" is when a publicly traded corporation issues & sells additional stock shares AFTER any IPO (initial public offering). Such sale's cash proceeds are then used either to: Shore up negative or poor cash flows or Make capital improvements & expand the business. The alternative is issuing corporate-bonds or obtaining other-loans which negatively-impact the bottom-line.

Answer by  patti (29325)

Add-in financing is when a company issues additional stock (after the IPO) as a way of raising capital without borrowing. In this way, the company avoids conventional borrowing, which creates indebtedness.

Answer by  Maddux (65)

Add-on financing is when a public company has a secondary stock offering following their initial public offering. This is done to raise capital without adding risky debt.

Answer by  gleverance (720)

Add-on financing is when a company issues additional shares of stock in order to raise capital. It is done after an initial public offering, and is usually meant as a way to raise capital from investors without borrowing.

Answer by  Liz59 (10966)

Add on financing is basically the way that you will receive your financing. It is actually added on after the purchase has been made. In the case of cars, you have add on financing.

Answer by  patti (29325)

A company issues stock to raise capital. After the IPO, additional stock issues are considered "ad on financing" to raise more capital without borrowing.

Answer by  Laura47 (138)

Also known as add-on interest, it is a method to calculate interest in which the total interest is calculated and then added to the total loan. Then the new total is divided by the number of payments. It results in a higher effective rate than simple interest.

Answer by  Liz59 (10966)

It is any stock that is owned by a major public traded company for example, a company on the NASDAC or TSEX.

Answer by  hariom (3)

Add-on financing actually means posting some adds on your own website or on your own blog which you have created. By posting such things you get paid by the advertisers.