--- title: "Meaning & Key Takeaway of: Financing is an art form. One of the…" description: "\"“Financing is an art form. One of the challenges is how to correctly finance a company. In certain periods of time, more covenants need to be put into ..." image: "https://sms4smile.com/quotes/i/85b/michael-milken-31197_art_financing-is-an-art-form-one-of-the-chal_1315532.jpg" --- # Financing is an art form. One of the challenges is how to… ![“Financing is an art form. One of the challenges is how to correctly finance a company. In certain periods of time, more covenants need to be put into deals. You have to be sure the company has the right covenant -- to allow it the freedom to grow, but also to insure the integrity of the credit…” quote by Michael Milken](https://sms4smile.com/quotes/i/85b/michael-milken-31197_art_financing-is-an-art-form-one-of-the-chal_1315532.jpg) [Download](https://sms4smile.com/quotes/i/85b/michael-milken-31197_art_financing-is-an-art-form-one-of-the-chal_1315532.jpg) [Open image](https://sms4smile.com/quotes/i/85b/michael-milken-31197_art_financing-is-an-art-form-one-of-the-chal_1315532.jpg) > ““Financing is an art form. One of the challenges is how to correctly finance a company. In certain periods of time, more covenants need to be put into deals. You have to be sure the company has the right covenant -- to allow it the freedom to grow, but also to insure the integrity of the credit. Sometimes a company should issue convertible bonds instead of straight bonds. Sometimes it should issue preferred stock. Each company and each financing is different, and the process can’t be imitative.”” [Michael Milken](https://sms4smile.com/quotes/author/michael-milken/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Effective financing requires tailoring structures like covenants, convertible bonds, or preferred stock to a company’s specific growth needs and credit integrity. **In simple terms:** Tailor financing to each company’s needs. Key Takeaway Match financing tools to growth goals. Themes finance customization risk management Mood analytical pragmatic Type advice technical When to use this quote - startup fundraising - corporate restructuring - credit analysis - investment banking Key Concepts covenants convertible bonds preferred stock Questions to Reflect On - How do you balance flexibility with simplicity? - When might a standard approach be preferable? A Different Perspective Over‑customization can increase complexity and cost. ★ ★ ★ ★ ★ No ratings yet [Art](https://sms4smile.com/quotes/about/art/) [Art form](https://sms4smile.com/quotes/about/art-form/) [Business](https://sms4smile.com/quotes/about/business/) [Company Financing](https://sms4smile.com/quotes/about/company-financing-4366515/) [Convertible Bonds](https://sms4smile.com/quotes/about/convertible-bonds-4366516/) [Correctly Finance](https://sms4smile.com/quotes/about/correctly-finance-4366517/) [Customer](https://sms4smile.com/quotes/about/customer/) [Financing](https://sms4smile.com/quotes/about/financing/) [Financing Different](https://sms4smile.com/quotes/about/financing-different-4366514/) [Investing](https://sms4smile.com/quotes/about/investing/) [Preferred stock](https://sms4smile.com/quotes/about/preferred-stock-148513/) [Time](https://sms4smile.com/quotes/about/time/) ## Related quotes > [That goes back to 1932, although it was really implemented in '33 under Jesse Jones, and it invested in mostly banks initially and preferred…](https://sms4smile.com/quotes/warren-buffett/that-goes-back-to-1932-although-it-was-really-implemented-in-33-under/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [It takes 150 years to build an investment bank and only five minutes to convince you to sell me preferred stock in it at…](https://sms4smile.com/quotes/warren-buffett/it-takes-150-years-to-build-an-investment-bank-and-only-five-minutes/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [In many cases, the Treasury will get preferred or convertible preferred stock for the money it gives to banks. 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That goes back to…](https://sms4smile.com/quotes/howard-warren-buffett/i-don-t-think-it-would-be-crazy-to-have-a-model-or-an-entity-model-on/) [Howard Warren Buffett](https://sms4smile.com/quotes/author/howard-warren-buffett/) > [Making money from enforcing patents is no more wrong than investing in preferred stock.](https://sms4smile.com/quotes/nathan-myhrvold/making-money-from-enforcing-patents-is-no-more-wrong-than-investing/) [Nathan Myhrvold](https://sms4smile.com/quotes/author/nathan-myhrvold/) > [We are seeing a lot of cases where the startups are writing the term sheet, dictating the terms, selling common stock instead of preferred…](https://sms4smile.com/quotes/naval-ravikant/we-are-seeing-a-lot-of-cases-where-the-startups-are-writing-the-term/) [Naval Ravikant](https://sms4smile.com/quotes/author/naval-ravikant/) > [I think you'll have plenty of scrutiny as how the money's invested. I mean, just like the RFC. When the RFC operated, people knew…](https://sms4smile.com/quotes/warren-buffett/i-think-you-ll-have-plenty-of-scrutiny-as-how-the-money-s-invested-i/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [In financing growing companies, we always looked for human value that didn't appear on the balance sheet.](https://sms4smile.com/quotes/michael-milken/in-financing-growing-companies-we-always-looked-for-human-value-that/) [Michael Milken](https://sms4smile.com/quotes/author/michael-milken/) > [I believe we have to move, eventually in our country, toward a system of public financing that really works for candidates running for federal…](https://sms4smile.com/quotes/janet-napolitano/i-believe-we-have-to-move-eventually-in-our-country-toward-a-system/) [Janet Napolitano](https://sms4smile.com/quotes/author/janet-napolitano/) > [Government support is not only investing in upstream areas like basic research, but also in downstream areas like applied research and early-stage financing for…](https://sms4smile.com/quotes/mariana-mazzucato/government-support-is-not-only-investing-in-upstream-areas-like-basic/) [Mariana Mazzucato](https://sms4smile.com/quotes/author/mariana-mazzucato/) > [With the right kind of financing, I think we can grow by 100 percent per year.](https://sms4smile.com/quotes/magnus-larsson/with-the-right-kind-of-financing-i-think-we-can-grow-by-100-percent/) [Magnus Larsson](https://sms4smile.com/quotes/author/magnus-larsson/) > [America must deal once and for all with an utterly irrational health care financing system that allows private interests to make billions in profits…](https://sms4smile.com/quotes/suzanne-gordon/america-must-deal-once-and-for-all-with-an-utterly-irrational-health/) [Suzanne Gordon](https://sms4smile.com/quotes/author/suzanne-gordon/) > [“Clients steer the ship in the sea of business.”](https://sms4smile.com/quotes/utibe-samuel-mbom/clients-steer-the-ship-in-the-sea-of-business/) [Utibe Samuel Mbom](https://sms4smile.com/quotes/author/utibe-samuel-mbom/) > [A social impact bond is a new way of bringing financing into social and environmental support issues.](https://sms4smile.com/quotes/judith-rodin/a-social-impact-bond-is-a-new-way-of-bringing-financing-into-social/) [Judith Rodin](https://sms4smile.com/quotes/author/judith-rodin/) ## More by Michael Milken > [So many of my family and friends had lost their battles against cancer. What could I do that my relatives and friends had not?…](https://sms4smile.com/quotes/michael-milken/so-many-of-my-family-and-friends-had-lost-their-battles-against/) [Michael Milken](https://sms4smile.com/quotes/author/michael-milken/) > [Small and mid-sized companies in this country historically have been responsible for creating the overwhelming majority of new jobs in the private sector. One…](https://sms4smile.com/quotes/michael-milken/small-and-mid-sized-companies-in-this-country-historically-have-been/) [Michael Milken](https://sms4smile.com/quotes/author/michael-milken/) > [My experience indicates that most people who've accumulated a great deal of wealth haven't had that as their goal at all. 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They get the benefit of your…](https://sms4smile.com/quotes/michael-milken/there-s-no-substitute-for-rolling-up-your-sleeves-and-working-with/) [Michael Milken](https://sms4smile.com/quotes/author/michael-milken/) > [In financing growing companies, we always looked for human value that didn't appear on the balance sheet.](https://sms4smile.com/quotes/michael-milken/in-financing-growing-companies-we-always-looked-for-human-value-that/) [Michael Milken](https://sms4smile.com/quotes/author/michael-milken/) > [The past is always triple-A. We can all remember what the past was. But if we try to make the future triple-A, we have…](https://sms4smile.com/quotes/michael-milken/the-past-is-always-triple-a-we-can-all-remember-what-the-past-was-but/) [Michael Milken](https://sms4smile.com/quotes/author/michael-milken/) > [Earlier in this century, philanthropy often flowed from the wills of dead industrialists. In recent decades, it's as likely to have come from a…](https://sms4smile.com/quotes/michael-milken/earlier-in-this-century-philanthropy-often-flowed-from-the-wills-of/) [Michael Milken](https://sms4smile.com/quotes/author/michael-milken/) > [In the four decades of philanthropy that have paralleled my business career, I've found that the same principles apply whether you're providing access to…](https://sms4smile.com/quotes/michael-milken/in-the-four-decades-of-philanthropy-that-have-paralleled-my-business/) [Michael Milken](https://sms4smile.com/quotes/author/michael-milken/) > [The future of our country is not found in our boardrooms, but in our classrooms.](https://sms4smile.com/quotes/michael-milken/the-future-of-our-country-is-not-found-in-our-boardrooms-but-in-our/) [Michael Milken](https://sms4smile.com/quotes/author/michael-milken/) > [Dedicated researchers seek better treatments and cures for diabetes, kidney disease, Alzheimer's and every form of cancer. But these scientists face an array of…](https://sms4smile.com/quotes/michael-milken/dedicated-researchers-seek-better-treatments-and-cures-for-diabetes/) [Michael Milken](https://sms4smile.com/quotes/author/michael-milken/) > [ The federal investment in finding cures for cancer - $3 billion annually \[as of 1999\] - is less than ... zero ... point ...… ](https://sms4smile.com/quotes/michael-milken/the-federal-investment-in-finding-cures-for-cancer-3-billion-annually/) [Michael Milken](https://sms4smile.com/quotes/author/michael-milken/) > [You've got to treat people as equals, and make them feel like it's their company. I don't know if I've had any impact or…](https://sms4smile.com/quotes/michael-milken/you-ve-got-to-treat-people-as-equals-and-make-them-feel-like-it-s/) [Michael Milken](https://sms4smile.com/quotes/author/michael-milken/) [Explore all 16 Michael Milken quotes ](https://sms4smile.com/quotes/author/michael-milken/) ## More Art quotes > [True works of art contain their own theory and give us the measurement according to which we should judge them.](https://sms4smile.com/quotes/johann-wolfgang-von-goethe/true-works-of-art-contain-their-own-theory-and-give-us-the/) [Johann Wolfgang von Goethe](https://sms4smile.com/quotes/author/johann-wolfgang-von-goethe/) > [Before Noah, men having only water to drink, could not find the truth. 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You treat ideas like cats: you make them follow you.](https://sms4smile.com/quotes/ray-bradbury/that-s-the-great-secret-of-creativity-you-treat-ideas-like-cats-you/) [Ray Bradbury](https://sms4smile.com/quotes/author/ray-bradbury/) > [“So, really," continued Jacob as if this were perfectly normal to expound on art in these circumstances, "when you think about it, the artists…](https://sms4smile.com/quotes/justina-chen-headley/so-really-continued-jacob-as-if-this-were-perfectly-normal-to-expound/) [Justina Chen Headley](https://sms4smile.com/quotes/author/justina-chen-headley/) > [“There are two options in art; either to adopt philosophical life by dissecting art, or to write your own philosophical life and claim it…](https://sms4smile.com/quotes/taf-teh/there-are-two-options-in-art-either-to-adopt-philosophical-life-by/) [Taf Teh](https://sms4smile.com/quotes/author/taf-teh/) > [The house has to serve comfort. 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