Project Equity: When is Enough Too Much and is There
Ever Too Much?

When considering the development of a new diagnostic imaging center, one of the key factors that a financing source—manufacturer-based, independent bank, or other third party—considers is how much cash equity the owners are putting into the project. They want to know this answer for a variety of reasons and will analyze the answer in a few different ways.

The purpose of this article is to explain what equity is, why it is considered important, how to get it, how to determine the amount needed, and how much makes sense for a particular situation.

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