---
title: Preference share
description: When a company decides to sell its shares in return for equity capital, the lenders often demand that the shares they are allocated are preference shares. This means that in the event that the company
---

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# Preference share

When a company decides to sell its shares in return for equity capital, the lenders often demand that the shares they are allocated are preference shares. This means that in the event that the company is liquidated, they are the first shareholders to be paid.

- [Understanding funding](https://knowledge.finfind.co.za/understanding-funding?hsLang=en#main-content)

    - [Challenges to accessing finance](https://knowledge.finfind.co.za/understanding-funding?hsLang=en#challenges-to-accessing-finance)
    - [Different funding needs](https://knowledge.finfind.co.za/understanding-funding?hsLang=en#different-funding-needs)
    - [Different types of funders](https://knowledge.finfind.co.za/understanding-funding?hsLang=en#different-types-of-funders)
    - [Different types of funding products](https://knowledge.finfind.co.za/understanding-funding?hsLang=en#different-types-of-funding-products)
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- [Funding for startups](https://knowledge.finfind.co.za/funding-for-startups?hsLang=en#main-content)

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    - [Incubators and enterprise development programmes](https://knowledge.finfind.co.za/funding-for-startups?hsLang=en#incubators-and-enterprise-development-programmes)
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