Knowledge Centre / Before you start
Why raise money through an IPO instead of a loan?
Is this the right time, and the right route?
A loan must be repaid with interest, usually needs collateral and personal guarantees, and limits how much more you can borrow. Money raised in an IPO is equity: there is no EMI and no repayment date.
In return, you share ownership and take on listed-company duties, and the share price can rise or fall. Many companies use both.
More on Before you start
- Is my company actually suitable for an IPO?
- What is the right time for me to raise funds?
- How should I prepare before meeting a merchant banker, and what should I ask?
- What is the difference between the SME platform and the Main Board?
- Can a company of my size raise money through an SME IPO?
- My operating profit is below the SME test today. Is there any point talking?
All 40 questionsIPO reviewsHow the preparation works
General information, not legal or investment advice. Rules as at 2 November 2026.
Begin a conversation
Your question is not here, or your answer depends on your company?
Ask it directly. It will get a straight answer, in confidence.
Begin a conversation